President Cyril Ramaphosa on Tuesday evening announced a R500bn socio-economic relief and support package to deal with the ravages of the Covid-19 crisis, of which R20 billion will go directly towards the health service response to the virus.
Ramaphosa said the "extraordinary coronavirus budget", which equals about 10 percent of GDP, was needed for fighting the health threat, helping those facing hunger and social distress, giving support to workers and companies, and implementing a phased reopening of the economy.
The president said R130 billion will come out of the country's current budget, while the National Treasury was in talks with international institutions including the World Bank, the IMF, the African Development Bank and the New Development Bank to source the rest.
The government was also talking to local lenders.
Ramaphosa said emergency support for poor South Africans would take the form of increased grants paid through the social welfare systems for six months.
He said a further R100 billion will be set aside for the protection of jobs and job creation.
The President said that South Africa will adopt a phased approach to easing the country's current Covid-19 lockdown, as ending it abruptly could see an overwhelming resurgence in infections.
He said the easing of current restrictions, among the most draconian adopted anywhere in the world in response to the health crisis, would be reviewed on a constant basis.
Ramaphosa said he would again address the nation on Thursday evening to make announcements regarding the lockdown, which began on March 27.
- African News Agency (ANA)
