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Nation

Ramaphosa announces historic R500bn economic rescue package

April 22, 2020 By Skylar Thoma

By Skylar Thoma

MAIN IMAGE: SA President Cyril Ramaphosa has announced a plan for R500 billion in government spending to address the economic effects of the coronavirus pandemic. SOURCE: Twitter @PresidencyZA

South African President Cyril Ramaphosa announced the largest economic relief package in South Africa’s history, amounting to approximately 10 percent of the country’s Gross Domestic Product, in a televised address Tuesday evening.

The R500-billion stimulus package includes increased spending on health care, additional social grants, and loan guarantees.

Explaining the plan to the nation, Ramaphosa defended the current nationwide lockdown as “absolutely necessary” but acknowledged that measures to combat the virus have severely damaged the country’s economy, which had already been struggling prior to the outbreak of the epidemic.

“The pandemic requires an economic response that is equal to the scale of the disruption it is causing”, he said. 

As part of the massive surge in spending, R20bn will go to health care interventions, R200bn will be spent on loan guarantees, R100bn on job creation and support, and R20bn on supporting municipality spending.

Social grants will also be increased for a six-month period. Recipients of child care grants will see their grants go up by R500, and people who are unemployed and not receiving any social grants can apply for a temporary R350 monthly grant.

Ramaphosa also announced tax deferments and certain tax holidays for companies, including a three-month holiday on carbon taxes. In total tax measures will amount to an additional R70bn in relief.

The government will pay for R130bn of the package by transferring funds from other government departments. 

The remaining money will have to be borrowed from external sources, such as the International Monetary Fund (IMF) and the World Bank. The IMF had announced on Tuesday that South Africa could be eligible for $4.2 billion USD (R80 billion) in loans under certain conditions, according to Bloomberg.

Finance Minister Tito Mboweni is scheduled to announce details of how the plan will be funded, and is due to present an adjustment budget for the country. However, a time for this has not yet been specified.

Opposition parties generally welcomed Ramaphosa’s announcement. The DA said the president’s plan, “if executed correctly, could be the kick-start our economy needs to recover from the effects of Covid-19 and the lockdown”.

The EFF released a cautiously optimistic endorsement of the president’s stimulus package, calling the increases in social grants “a step in the right direction”. But the party asked for further details of how the relief will be implemented before they fully embrace the government’s strategy.

The President last night resisted the pressure from inside his own party and alliance to fund this stimulus package from unsustainable and counterproductive sources like the PIC and tax hikes. His decision to approach global institutions was the right one.https://t.co/cWMPOrP6gj

— Democratic Alliance (@Our_DA) April 22, 2020

Economic Freedom Fighters Statement on South Africa’s Economic Stimulus and Social Relief Measures. pic.twitter.com/UAQU7lr6sK

— Economic Freedom Fighters (@EFFSouthAfrica) April 21, 2020

Some worry the stimulus package will not be enough. Reuters reports that COSATU, which participates in the National Economic Development and Labour Council, had demanded a stimulus package of 1 trillion Rand.

University of Witwatersrand economist Gilad Isaacs raised a number of concerns in an opinion piece about Ramaphosa’s plan. For instance, he suggested the amount that would be needed for the additional social grants would exceed the amount that had been set aside for that purpose.

Isaacs also pointed out that South Africans are generally skeptical of international financial institutions like the IMF which he said were “notorious for accompanying loans with anti-poor, pro-market measures of deregulation and slashing government and social spending”.

South Africa's ruling ANC had denounced the idea of seeking help from the IMF and World Bank, but President Ramaphosa seems to have rejected their position. He says the government is working on potential funding from the IMF, World Bank, AfDB and the BRICS New Development Bank. https://t.co/e8u17cGnSU

— Geoffrey York (@geoffreyyork) April 21, 2020

Ramaphosa promised that details of further relief efforts will be announced in the coming days. Plans to ease the lockdown in order to restart the economy in a phased way are expected to be announced on Thursday night when Ramaphosa is due to address the nation again.

Economy

Ramaphosa calls for national solidarity as lockdown is extended through April

April 9, 2020 By Skylar Thoma

By Skylar Thoma

MAIN IMAGE: President Cyril Ramaphosa addresses the nation to announce that South Africa’s three-week lockdown has been extended to five weeks.

President Cyril Ramaphosa announced on Thursday that South Africa’s nationwide lockdown would be extended by two weeks, to the end of April. 

Thanking the nation for their efforts to date, Ramaphosa said it was clear the lockdown which began on March 26 had had a significant impact on slowing the rate of new infections. However, he said it was imperative that the restrictions should not be lifted too soon and the decision to extend the lockdown had been taken to prevent an “uncontrollable resurgence of the disease”. 

He said the government would roll out a program with three main focuses over the lockdown period. The first would be an intensified public health response to slow down and reduce new infections.

Over the next two weeks, a community testing and screening programme would be rolled out, focusing on the most vulnerable communities in the country, he announced. Those testing positive would be isolated at facilities that were being equipped to house them.

The president announced that 20,000 cellphones had been donated to the government by Vodacom. The phones had been preinstalled with an app that health workers will be able to use to send data on the screening program directly into the national data tracking centre.

A second focus would be to provide economic support measures to assist businesses who were severely impacted by the lockdown. Ramaphosa said the Unemployment Insurance Fund had set aside R40 billion to help employees who are not able to work during the lockdown. The UIF has paid out R356 million to claimants during the lockdown period so far.

Ramaphosa said he would be working with cabinet to develop a comprehensive package of urgent economic measures to respond both to the immediate crisis “and to the severe economic challenges that we must confront in the months ahead”.

He appealed to large businesses “not to resort to force majeure” during #LockdownSA and to continue paying their suppliers if possible.

“The government is continuing its efforts to provide vulnerable communities with food, water, and other basic needs,” he said. “To date, the government has delivered over 11 000 water storage tanks to communities across the country.” 

Ramaphosa also announced that he, along with the deputy president, members of his cabinet and the provincial premiers, would take a cut of a third of their salaries for the next three months. This money would be donated to the national Solidarity Fund. The fund was established at the start of the earlier lockdown to assist in providing funds for the country’s Covid-19 fight.

Ramaphosa concluded with a call for vigilance and solidarity.

“The struggle against #COVID19 is far from over. We are only at the beginning of a monumental struggle that will require every resource.  We cannot relax. We cannot be complacent.”

“Until we contain the virus, the same rules remain,” he said.

He ended his address saying, “Much is being asked of you. Far more than should ever be asked but we know that this is a matter of survival and we dare not fail. I know we shall recover and I also know we shall overcome. May God bless South Africa and protect her people.”

Several commentators on Twitter expressed admiration for Ramaphosa’s difficult decision.

#SouthAfrica Pres. Ramaphosa takes a difficult but scientifically sound decision to extend national lockdown by 14 days. The risk of #economic damage is offset against the disastrous implications of #Covid_19 But with limited stimulus, economic hardship will be enduring.

— Daniel Silke (@DanielSilke) April 9, 2020

"We are only at the beginning of a monumental struggle. We cannot relax and we cannot be complacent." Powerful connection & empathy when Ramaphosa said he knows this is a big ask, that it is hard on us. And so South Africa's lockdown continues for 2 more weeks. We will abide.

— Redi Tlhabi (@RediTlhabi) April 9, 2020

Look, I talk a lot of smack about politicians, but President Cyril Ramaphosa valued all of our lives by extending the lockdown. He's one of the few world leaders who has shown his humanity and leadership. We are fortunate in South Africa.

— Sergio Pereira (@sergiowrites) April 9, 2020

Featured

How circus school saved me from drugs and gangs

April 11, 2018 By Admin

By Hannah Green and Serena Hawkey

“His mom sold drugs and abused him. Some nights he slept outside. But after seeing the Zip Zap Circus School performing in Khayelitsha, something told Aviwe Mfundisi to travel the 30km to central Cape Town and apply to join…”

Read more about Aviwe’s story at select.Timeslive.co.za.

How circus school saved me from drugs and gangs

Education

Class divides in Cato Manor

April 9, 2018 By Admin

News of the day from select.Timeslive.co.za:

By Hannah Green

“For a municipality-built house, the home Nompilo Mkhize shares with her father and son in Durban’s Cato Manor is impressive.

The floors are tiled, the sitting room has a silver Samsung TV, and there is even a platter of fake wooden fruit decorating the coffee table. Mkhize’s father’s job as a driver for night-shift Prasa employees has treated them well.

South Africa is often described as a land of two nations, divided between a financially successful white minority and a large community of impoverished black Africans. But in Cato Manor the divide is not that simple…”

Continue reading at select.Timeslive.co.za.

A land of two nations, but in Cato Manor it is not so simple

Hannah Green

Malema takes aim at Zulu king over land: ‘There are no holy cows’

March 9, 2018 By Admin

MAIN IMAGE: The rolling hills of rural KwaZulu Natal seen from the national road. The debate over ownership of land is heating up in South Africa. Photo by Serena Hawkey.

South African media were today reporting on tension between opposition leader Julius Malema and Zulu King Goodwill Zwelithini over Malema’s call for expropriation of land without compensation. Zwelithini has warned that his warriors are ready to defend the three million hectares of rural land controlled by the Ingonyama Trust, which he heads. The trust was established in 1994 and placed control of tribal lands in KwaZulu Natal under the king.

Today the Sunday Times reported that Malema accused Zwelithini of “intimidating” those who were calling for expropriation of land without compensation.

The news outlet said Malema told a press conference on Thursday, “There are no holy cows in this country. We must debate issues openly‚ including disagreeing with the Zulu king. The Zulu king must call for engagement with regards to the land. He must be respected‚ he must not be feared. I don’t fear anyone‚ no one. I only fear God.”

See reports on News24 and Sunday Times below.

Read more at Sunday Times or News24

Malema takes aim at Zulu king over land: ‘There are no holy cows’

 

Politics

Let’s talk about sex: edu video series targets SA’s teens

November 28, 2017 By Admin

https://www.timeslive.co.za/sunday-times/lifestyle/health-and-sex/2017-11-09-lets-talk-about-sex-edu-video-series-targets-sas-teens/

Mandela Namaste

Apartheid wasn’t height of SA evil

November 28, 2017 By Admin

Nation

News of the Day: September 27, 2017

September 27, 2017 By Admin

Cosatu strikes take over downtown Durban today in the spirit of anti-corruption, anti-state capture, and of course political advancement for the upcoming ANC elections.

According to this Sunday Times article, (https://www.timeslive.co.za/politics/2017-09-27-cosatu-gets-moving-on-its-ambitious-national-strike-against-state-capture/), Cosatu is marching for the president to appoint a judicial commission to look into state capture, and for the proceeds of state capture to be funneled into projects for helping the poor.

However, according to an article by Mercury, (https://www.iol.co.za/news/south-africa/kwazulu-natal/cosatustrike-durban-march-gains-momentum-11373968), many Cosatu affiliates at the marches have been seen wearing shirts supporting Cyril Ramaphosa’s presidential campaign today.

It is probable that the accumulation of Cosatu’s and the general public’s discontent with state capture naturally flows hand in hand with Cyril Ramaphosa’s political platform. In that case, today’s events are more than just political presence at a march to promote an upcoming election, but perhaps the surfacing of a widespread discontent with the current state of the economy which transcends political, and even trade union lines.

 

Nation

Cupcakes fuel protest march to Parliament

April 7, 2017 By Admin

By Alexa Cole and Sealy McMurrey

Photo By: Esa Alexander

Cupcakes decorated with political slogans proved to be a popular snack among many in the crowd waving posters‚ banners and flags.

Charly’s Bakery makes hundreds of cupcakes every day‚ and since Thursday night‚ the bakers have been creating specialty cupcakes in response to the protests against President Jacob Zuma.

Cupcakes were decorated with slogans such as “Recall Parliament”‚ “SA Must Rise”‚ “Divided We Fall”‚ “United We Stand”‚ “Cry Our Beloved Country”‚ as well as images of the South African flag.

Bakery owner‚ Jacqui Biess‚ said‚ “Cupcakes are a wonderful way to mobilize people”.

The bakery has a strong presence on social media‚ with over 100 000 followers on Facebook. Biess said she began advertising the cupcakes on Thursday night on social media and quickly started seeing retweets. “We had no idea if it would be dead today‚ but we’ve had a really good turnout‚” said Biess.

Cupcakes with slogans aren’t new to Charly’s. Biess said that whenever a big event happened‚ she and her daughters brainstormed when to write on their cupcakes that would elicit a giggle and have them flying off the racks.

Previous notable cupcakes have included “Honorable Speaker” in response to the Economic Freedom Fighter’s Julius Malema and his antics in Parliament. “Don’t touch me on my studio” was another in response to former AWB leader André Visagie’s infamous interview on the SABC and “Vote” cupcakes were a hit during the elections.

Read the published story here.

Featured Tagged With: bakery, Charly's, cupcakes, Divided We Fall, mobilization, mustfall, parliament, SA must rise, United We Stand

Court backing for recreational dagga use a win for addicts‚ says Anti-drug Alliance

April 6, 2017 By Admin

“The Anti-drug Alliance believes the High Court ruling‚ in favour of recreational dagga use‚ is “a win” for drug addicts. The alliance’s coastal director Andrew Stoller said that dagga could now be used as an “exit drug” in rehabilitation programmes.”

The alliance’s coastal director Andrew Stoller said that dagga could now be used as an “exit drug” in rehabilitation programmes.

“The argument has been used that it is a gateway drug but we have found that it can be used as an exit drug‚” said Stoller.

He said that in their experience in working with alcoholics dagga was used to effectively remedy addiction.

He said the judgement also meant that medical companies could start testing the plant’s medicinal effectiveness.

Judge Dennis Davis ruled in favour of Dagga Party leader Jeremy Acton who brought an application to decriminalise the private use of dagga and growing the plant.

Western Cape High Court rules in favour of private dagga use
Davis declared the limitations on the private use of dagga “unjustifiable” in terms people’s constitutional right to privacy.

“I smoked about ten joints‚ went into my heart and made my plea statement. I listened to the cannabis and used it to express my truth‚” said Acton outside the court in Cape Town where a crowd of about fifty pro-dagga activists sang – some even lit dagga pipes.

“Cannabis won this case today‚ I was just the vehicle‚” said Acton.

Emily Rizzo is on an SIT Study Abroad program and produced this story in association with Round Earth Media

– TMG Digital/The Times

Nation

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