Ramaphosa announces aid for households & businesses hit by Covid, unrest

This follows months of changes to the lockdown restrictions leading to a limitation to trade for some businesses since March last year.

Tourism, the liquor and restaurant sectors are among the hardest hit. 

The challenges faced by the sectors were compounded by the violence and unrest that gripped Gauteng and KwaZulu-Natal earlier this month when retail stores, malls, factories and warehouses were looted and set alight. 

Strategic routes were also close off resulting in food and fuel shortages. 

Both crises plunged families and businesses into economic uncertainty. 

Ramaphosa addressed the nation on Sunday on the measures in place to help recover the country’s dire economic outlook. 

“Although calm has been restored to these areas, the impact of the violence and destruction continues to be felt by households, employees and businesses,” he said.

“We are taking decisive action now to secure the livelihoods of millions of people that have been threatened by both the pandemic and the unrest.”

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Government will be reinstating the social relief of distress grant to provide a monthly payment of R350 until the end of March 2022. 

“This has been made possible by the slight improvement we have seen in our revenue collection.  We are expanding the number of people who are eligible for this grant by allowing unemployed caregivers who currently receive a Child Support Grant to apply,” said the president. 

“Details on the reinstatement of the grant, including the process for application, will be announced shortly.  

“In addition to the food relief being provided by the Department of Social Development, government will contribute R400 million to the Humanitarian Crisis Relief Fund established by the Solidarity Fund to assist with the immediate needs of affected communities.” 

Ramaphosa detailed the aid to be provided to businesses. 

“Many of these businesses have lost everything, and will not be able to rebuild on their own.  

“SASRIA has committed to expedite the payment of all valid claims, and is working together with private insurers to ensure that assessments are completed without delay.  

“Government will ensure that SASRIA is able to honour all of its obligations and will provide whatever support is necessary in this regard.” 

Ramaphosa further vowed to extend support to uninsured businesses that were affected by the violence. 

“Government will set aside dedicated funds for this purpose and we will soon announce a mechanism for these businesses to apply for support,” he said.  

“The Employment Tax Incentive will also be extended for a period of four months to include any employee earning below R6 500 and to increase the incentive amount by up to R750 per month.  

“This will encourage employers to hire and retain employees, especially those in the retail and hospitality sectors which have been worst affected.  

“We will also defer payment of PAYE taxes for a period of three months to provide businesses with additional cash flow, with an automatic deferral of 35 per cent of PAYE liabilities for employers with revenue below R100 million.” 

He added investigations into the unrest continue.