(2 minutes read)
· South African society and businesses would be at risk if the
government extends a five-week lockdown without allowing more
industries to get back to work, experts opine.
· They say that the administration has to balance restarting an
already moribund economy with avoiding a surge in Covid-19 infections
that crippled nation’s public healthcare system.
South African society and businesses would be at risk if the
government extends a five-week lockdown without allowing more
industries to get back to work, experts opine.
Investec Group Chief Executive Officer Fani Titi and the head of the
company’s South African banking unit, Richard Wainwright, who is also
the chairperson of industry body- the Banking Association South
Africa- maintain that the lockdown extension would significantly
damage the economy and would disrupt the social and economic fabric.
There will be many unemployed people, casing law and order problems.
They say that the administration has to balance restarting an already
moribund economy with avoiding a surge in Covid-19 infections that
crippled nation’s public healthcare system.
In the meantime, banks are in talks with the government and regulators
over a loan-guarantee program largely aimed at keeping small
businesses running. Investec is also in talks with the Johannesburg
Stock Exchange for easing access to the equity market for raising
capital. The government will have to harness the private sector to
ensure there are broader support measures.
Members of the alcohol industry are also asking for an early lifting
of lockdown. President Ramaphosa announced an extension of the
lockdown until the end of April. The liquor lobby complained that its
members would not be able to deal with another two weeks of generating
no income as their taverns are their only source of earning a living.
The industry could not qualify for any financial package and said that
they were feeling the financial crunch.
