"A huge support plan." South African President Cyril Ramaphosa unveiled, Tuesday, April 21, his plan to support the most vulnerable businesses and people facing the coronavirus pandemic. The head of state will release 24.4 billion euros.

"We are announcing this evening a huge plan of economic support and social welfare of 500 billion rand (24.4 billion euros), which represents about 10%" of the gross domestic product of South Africa, he said in a television intervention.

"The impact of the coronavirus requires an extraordinary coronavirus budget," he said, stressing that "the scale of this emergency program [was] historic" for the first industrial power on the African continent.

"Poverty and food insecurity"

Among the 500 billion rand allocated to the recovery plan, 130 billion come from the current budget, for which the priorities have been revised, said the head of state. The remaining 370 billion rand will come from "international partners and international financial institutions". For the social component, a total of 50 billion rand will be allocated to the most vulnerable, who will receive an increase in their social benefits for six months.

This envelope should help "millions of South Africans in the informal economy" and the unemployed who "are fighting to survive", while "poverty and food insecurity have worsened dramatically in in recent weeks, "said the president. 

For the economic component, the government will notably offer Rand 200 billion in loan guarantees to businesses to cover "their operational costs, such as salaries, rents and payment of suppliers". This plan should help "more than 700,000 companies and more than 3 million employees" in this difficult period which comes after the entry into recession at the beginning of the year, of South Africa.

The most affected country in sub-Saharan Africa

Entering a recession at the end of 2019 before the start of the pandemic, South Africa has been idling since entering national confinement on March 27. This measure has been extended until at least April 30.

According to a survey by the National Statistics Institute (StatsSA) released on Tuesday, more than 40% of South African companies fear they will not survive the coronavirus pandemic and total containment.

The country is the most affected in sub-Saharan Africa by the global pandemic of Covid-19, with 3,465 confirmed cases, including 58 dead.

With AFP

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