Author: Gugu Lourie

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…

Uber is launching Uber Direct in South Africa as coronavirus minimises the demand for its traditional ride-hailing business. Uber Direct is an on-demand and scheduled last-mile delivery solution for businesses. Businesses can use Uber Direct to move their goods within their supply chain, and between locations to better balance supply and demand, ensuring customers receive their orders when required. “This is our broadest effort yet to help businesses meet unprecedented demand for delivery, and helping people stay at home while still getting the items they need,” Alon Lits, Director for Uber Sub-Saharan Africa explains. “Uber Direct also allows us to…

The department of labour has announced that close to 1.6 million South African workers are covered by applications already lodged by companies for COVID-19 payments. The applications highlight the devastating economic impact of the COVID-19 pandemic on the South African economy. As part of its response to the COVID-19 pandemic, the department of labour has issued a directive for relief to be provided to contributors who have lost income or required to take annual leave as a result of the coronavirus breakout. To date, the Unemployment Insurance Fund (UIF) has received just over 55 268 applications from employers representing about…

The problem with a lockdown is it works, but only for a short period, explains Associate Professor Co-Pierre Georg, convenor of UCT’s sought-after master’s in financial technology. As we’ve seen, governments around the world are resorting to drastic measures to curb the spread of the virus. Many countries have imposed lockdowns of varying lengths as a means of slowing the spread of the deadly COVID-19. South Africa has extended its 21-day lockdown by two weeks to the end of April. Other countries are already under pressure to immediately lift tough lockdowns so they can jump-start their economies. However, many experts…

As at today, the total number of confirmed COVID-19 cases in South Africa is 3158. The total number of tests conducted is 114 711. The provincial breakdown is as follows: REPORTING OF CONFIRMED DEATHS “Today we regrettably report 2 more COVID-19 related deaths.  Similar to yesterday, these are from Kwa Zulu – Natal and the Western Cape. “This brings a total death toll to 54 today.  We convey our condolences to the families and also appreciate the committed health workers who were treating the deceased patients.”

South Africa’s municipal councillors are “looting” food parcel meant to be distributed to the poor across the country as millions go hungry because of the national lockdown. The alleged incidents of corruption and food looting currently taking place have been reported in several provinces, where claims are being made that those in charge of the distributions – mostly ANC councillors – are not giving the food to the needy families, according to City Press. The newspaper stated that there are fears that food-related protests, which have flared up in some provinces, could escalate if the national government does not intervene.…

Andile Ramaphosa, son of President Cyril Ramaphosa, and businessmen Brad Fisher have set up a project to enable micro-suppliers to earn a living during the national lockdown. Andile owns SDI (Supplier Development Initiatives) a company that introduces micro-suppliers to larger companies. SDI is an existing services-on-demand platform that uplifts micro-suppliers across multiple industries. Fisher and Andile have set up a new programme, SDI Force, which gathers donations for personal protective equipment (PPE) and clothing to enable micro-suppliers to earn a living while doing their bit to combat the virus. SDI Force was initially set up to focus on and assist…

South African Food Sovereignty Campaign co-founder Vishwas Satgar told the Sunday Times that their estimates were that the number of “food-stressed people” had doubled from last year to 30-million. This includes 4-million people in the informal sector who cannot work and 18-million people on social grants who do not earn enough to buy increasingly expensive food, according to the newspaper. The organisation represents small-scale farmers, farmworkers and food NGOs. “There are 1-million domestic workers and nearly 90,000 waste-pickers who don’t have money to buy food. There are 3.5-million elderly people and 12-million children whose grants are not enough to buy…

In anticipation of additional cases of COVID-19 infections, the South African government is setting up emergency field hospitals and quarantine sites. The country is moving to establish 1,644 emergency field hospitals and quarantine sites, according to the Sunday Times. One of the venues in Nasrec Expo Centre in Johannesburg, which will hold 2,000 beds. Western Cape government said two acute treatment facilities will be constructed in the Cape Town metro and one in a rural area. In the Eastern Cape, marquees will be erected for field hospitals. According to a report tabled by the health department before parliament’s health portfolio…

A 28-year-old family business is looking to crowdfunding to keep its food retail chain afloat and save about 600 jobs. Gilli Apter, the daughter of the founders of Anat, is hoping to keep the family business alive for the next generation to come. Anat is a beloved, Middle Eastern food brand founded in South Africa in 1992 popular known for its lovely falafels and shawarmas. South Africa was placed on national lockdown by President CyrilRamaphosa until the end of April in a move to curb the spread of the deadly COVID-19. For more read: Coronavirus: South Africa Extends Lockdown by Two Weeks Anat said…

Intergovernmental Fintech Working Group (IFWG) has recommended that crypto assets – such as bitcoin – remain without legal tender status and not be recognised as electronic money. IFWG is made up of the Financial Intelligence Centre (FIC), the Financial Sector Conduct Authority (FSCA), the National Credit Regulator (NCR), National Treasury, the South African Revenue Service (SARS) and the South African Reserve Bank (SARB). In its latest policy paper, the group of South African financial sector regulators provides specific recommendations for the development of a regulatory framework for crypto assets, including suggestions on the required regulatory changes to be implemented. IFWG further…

South Africa’s communications watchdog has allocated a special phone number for COVID-19 emergencies. The Independent Communications Authority of SA (ICASA) has allocated the phone number “111” for use for COVID-19 emergency services. “The service code ‘111’ is hereby harmonised and mandated for COVID-19 national emergency services,” Dr. Keabetswe Modimoeng, ICASA’s acting chairperson, said in new regulations published today. Calls to the COVID-19 emergency number will be free. “The ‘111’ service code is mandated for COVID-19 national emergency services during the National State of Disaster. The service code “111” will cease to be harmonised and mandated within three (3) months after…

Wits University announced on Wednesday that it has instituted an emergency remote teaching and learning programme. The remote programme is one of the measures Wits is implementing to help minimise the lost time during the ongoing lockdown, which was instituted to curb the spread of the coronavirus pandemic. The university said in a statement that it has finalised an agreement with four telecommunications service providers: Telkom, MTN, Vodacom and Cell C to zero-rate Wits’ library and learning management sites from 15 April 2020. The full list of zero-rated sites is available via this link:https://www.wits.ac.za/mywits/zero-rated-data-to-students-and-applicants/ “We are working through Universities South…

Capitec has ‘quietly’ entered the unsecured vehicle finance market through a partnership with WeBuyCars. The banking group describes its unsecured lending product as ‘purpose lending”. It has opened its first outlet inside the WeBuyCars dealership at Brackenfell warehouse in the Western Cape. Gerrie Fourie, Capitec CEO, disclosed during the company’s 2020 financial results presentation on Tuesday that the bank has already granted nine loans within 15 days at the WeBuyCars warehouse. He said these loans were granted three weeks before the national lockdown began. Fourie said Capitec’s first ‘purpose lending’ client bought a 2VW Touareg 3.0 V6 TD1, 2010 model…

The total remuneration for Gerrie Fourie, Capitec boss, has been reduced by R22 million to R72 million in 2020 financial year. The banking group revealed in its 2020 annual report that Fourie’s total remuneration was R72 million versus R94.9 million in 2019. Fourie’s guaranteed pay amounts to R12.8 million and R54 million in long-term incentives. Capitec chief financial officer, Andre du Plessis, was paid R52 million, down from R65 million in 2019. While risk management executive, Nkosana Mashiya, pocketed R22 million versus R20 million in 2019. Capitec’s headline earnings grew to R6.28 billion in 2020 financial year versus R5.29 billion…

Capitec Bank revealed today that it has signed up more than 1.5 million new customers for the year end-February 2020. According to the bank, digital and self-service banking saved its clients R474 million during the year whilst the migration created more capacity in its branch network. “We now have 6.7 million retail clients making use of our digital channels (banking app and USSD) up from 5.2 million in 2019,” the bank informed investors on Monday. However, some customers still like visiting brick and mortar branches. During the year under review, the bank said about 7.8 million (2019: 6.6 million) retail…

The Gauteng Liquor Forum, which wants restrictions on the sale of alcohol eased during an extended lockdown, is threatening court action against the South African government. The South African government banned the sale of alcohol during the lockdown that started on 26 March 2020, was due to expire on 16 April and was extended to month-end. The forum, which is a non-profit organisation of stakeholders made up of associations of mostly township based Shebeens and Taverns, represent about 20,000 micro and small businesses around Gauteng. Also read: Coronavirus: SA Liquor Makers Want Booze Restrictions Eased Struggling South Africa’s liquor makers…