Ramaphosa announces R500bn Covid-19 support package

Ramaphosa addressed the nation at the Union Buildings on Tuesday.

The R500 billion is equal to 10% of the country’s Gross Domestic Product.

Ramaphosa said R130 billion of the funding will come from the existing budget, while the rest will be funded by the likes of the World Bank and the International Monetary Fund (IMF).  

Ramaphosa said healthcare facilities, the poor and most vulnerable will be at the centre of the aid, which includes an increase in social grants and billions of rands in subsidies for business and lost wages. 

"This funding will be used, in the first instance, to fund the health response to coronavirus. An amount of R20 billion will be directed to addressing our efforts to address the pandemic.

"If we are to successfully manage the anticipated surge in cases and ensure that everyone who needs treatment receives it, we must provide for additional expenditure on personal protective equipment for health workers, community screening, an increase in testing capacity, additional beds in field hospitals, ventilators, medicine and staffing.”

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The government will implement a 6-month grant programme, to the tune of R50 billion, to reach the most vulnerable families in society.

"This means that child support grant beneficiaries will receive an extra R300 in May and from June to October they will receive an additional R500 each month,” Ramaphosa explained.

“All other grant beneficiaries will receive an extra R250 per month for the next six months."

A total of R100 billion has been set aside for the protection and creation of jobs, while R2 billion will be made available to assist spaza shop owners and other small and medium businesses.

"R40 billion has been set aside for income support payments for workers whose employers are not able to pay their wages,” Ramaphosa said.

"We continue to provide assistance – in the form of loans, grants and debt restructuring – to SMMEs, spaza shop owners and other informal businesses.”

A large portion of the package will be a R200 billion loan guarantee scheme to help pay salaries and suppliers.

"This will assist enterprises with operational costs, such as salaries, rent and the payment of suppliers. In the initial phase, companies with a turnover of less than R300 million a year will be eligible," Ramaphosa added.

An additional R20 billion will be made available to municipalities to allow for the provision of emergency water supply, increased sanitisation of public transport and facilities, and providing food and shelter for the homeless.

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