Author: Gugu Lourie

President Cyril Ramaphosa said on Thursday night the country would begin a gradual and phased recovery in economic activity. “Our people need to eat. They need to earn a living. Companies need to be able to produce and to trade, they need to generate revenue and keep their employees in employment,” he said. “We have accordingly decided that beyond Thursday 30 April, we should begin a gradual and phased recovery of economic activity.” “We will implement a risk-adjusted strategy through which we take a deliberate and cautious approach to the easing of current lockdown restrictions.” Ramaphosa added that the government…

South Africa’s alcohol and cigarette makers are set to get R6billion in tax breaks. It is part of South Africa’s government measures to help businesses focus on staying afloat and paying their employees and suppliers. The South African National Treasury on Thursday announced that the measures are expected to provide around R70 billion in support, either through reductions in taxes otherwise payable or through deferrals of tax payments to tax compliant businesses. The interventions include a tax holiday for the makers of alcohol and cigarettes. “Due to the restrictions on the sale of alcoholic beverages and tobacco products, payments due…

Finance Minister Tito Mboweni has provided more details on the second set of measures that are aimed at assisting individuals and businesses through the COVID-19 pandemic. “There is a critical need for government interventions to assist with job retention and support businesses that may be experiencing significant distress,” the National Treasury said in a statement on Thursday. Last month, Mboweni announced initial measures to assist tax compliant businesses with cash flow assistance and provide an incentive for businesses to retain their lower-income employees. “Since the announcement, economic conditions have worsened and National Treasury and the South African Revenue Service (SARS)…

SA Taxi has secured R1.9 billion ($100 million) in loans to empower taxi operators. SA Taxi, which is owned by JSE-listed Transaction Capital, is vertically integrated into the minibus taxi industry. The South African National Taxi Council (SANTACO), which is a national body which represents the interests of its members who are individual minibus taxi operators, owns 25% of SA Taxi. The company has signed a $100 million loan agreement with the African Development Bank. The financial package, comprising a senior loan of R190 million and an associated facility of R1.4 billion, will provide a powerful boost to industrialization through…

The South African government wants to retain several restrictions in place once the national lockdown ends. The proposal is contained in a presentation titled “Risk-adjusted strategy for economic activity” that was published on the SASTA website There is early evidence that the full national lockdown imposed since 26 March 2020 has successfully limited the spread of the coronavirus, reads the report. “However, there are serious risks associated with lifting lockdown restrictions too soon, or in an unsystematic and disorderly manner.” The government proposes the following restrictions to be maintained post lockdown, according to a presentation on the SASTA website: The…

Suspended Minister of Communications, Telecommunications & Postal Services, Stella Ndabeni-Abrahams has paid admission of a guilty fine of R1000. NPA spokesperson Phindi Mjonondwane said Ndabeni-Abrahams was charged with Contravention of Regulation 11 B of the Disaster Management Act. M.M. “Communications Minister Stella Ndabeni-Abrahams has been fined R1,000 for breaching lockdown regulations,” she said. “She will need to appear in the Pretoria District Court on 22 May to pay the fine as an admission of guilt.” Earlier this month, the presidency announced that President Cyril Ramaphosa had placed Ndabeni-Abrahams on special leave for two months – one month of which would…

Insurer Santam is returning money to all its personal and business clients as driving declines because of widespread coronavirus-related shutdowns. Santam has announced it will refund 20% of motor premiums paid in April. “We are absolutely committed to playing our part to help alleviate some of the devastating impacts of this virus. We are listening to our clients and monitoring the impact of this pandemic, and where we are able to provide additional assistance, we will do so in a fair and responsible manner.,” Lizé Lambrechts, Santam CEO, said. “As a proudly South African business, we are dedicated to helping…

South Africa’s President Cyril Ramaphosa announced a R500 billion stimulus package to deal with the economic impact of COVID-19. The country embarked on an economic response that can be divided into three phases. The first phase began in mid-March when it declared the coronavirus pandemic a national disaster. This included a broad range of measures to mitigate the worst effects of the pandemic on businesses, on communities and on individuals. The measures included tax relief, the release of disaster relief funds, emergency procurement, wage support through the UIF and funding to small businesses. “We are now embarking on the second…

Unemployed South Africans to receive R2,100 each in special grants as part of a temporary 6-month Coronavirus grant. South Africa’s President Cyril Ramaphosa announced today that poverty and food insecurity have deepened dramatically in the course of just a few weeks. In order to curb the spread of COVID-19, the country imposed a 21-day lockdown that has since been extended by two weeks to the end of April. “To reach the most vulnerable families in the country, we have decided on a temporary 6-month Coronavirus grant,” said Ramaphosa. The state will direct R50 billion towards relieving the plight of those most…

A payments project, which makes it harder for crooks to load fraudulent debit orders and harder for consumers to query debit orders on their bank accounts, has been delayed. The mysterious R99 debit orders that many people have complained about could now be around until May 2021. The South African Reserve Bank (SARB) has today published (in the government’s Gazette) a new date for when the payments project – DebiCheck (also known as Authenticated Collections) – will be operational. This simply means banks will continue to pay “rogue debit orders” that customers did not authorise. The system, which aims to…