South Africa sets R500bn plan to save virus-hit economy
JOHANNESBURG – South Africa’s government unveiled a 500 billion rand ($26 billion) package to shore up an economy devastated by the fallout from the coronavirus pandemic and support those who’ve been worst affected.
The plan will be funded by reprioritizing 130 billion rand of expenditure from existing budgets, and borrowing from domestic and international lenders, President Cyril Ramaphosa said Tuesday in a televised address to the nation. There will be 200 billion rand in guarantees for banks to encourage them to lend, a 100 billion-rand allocation to protect and create jobs and an additional 50 billion rand for welfare grants for the poor and unemployed, he said.
“The coronavirus pandemic requires an economic response equal to the scale of the disruption it’s causing,” Ramaphosa said. “The scale of this emergency relief program is historic. It demonstrates that we will not spare any effort or any expense in our determination to support our people and protect them from harm.”
Source: iol.co.za
