Streaming issues? Report here
Just the Hits generic 2 CapeTalk Just the Hits generic 2 CapeTalk
Just the Hits with Abongile Nzelenzele
11:00 - 15:00
volume_up
volume_mute

Up Next: Just the Hits
See full line-up
Just the Hits with Abongile Nzelenzele
11:00 - 15:00
Home
arrow_forward
Business

SA economy opens steadily - will it bring any relief to the contraction?

28 May 2020 6:43 PM
Tags:
South African economy
Lockdown
COVID-19
level3

On Monday many sectors of the economy will return to business as usual.

The relaxing of many of lockdown level 4 regulations means lots of changes in terms of who can and cannot trade.

But is there anything in the lifting of the regulations, can the changes announced for level 3 go any way to alleviate the effects of the economic contraction suffered due to the impact of Covid-19?

It merely mitigates... it brings some businesses online but that does not mean businesses are going back to normal...consumers are not going to spend because confidence is low, job prospects are zero, so consumers are going to hold on to what they have...the economy is going to experience difficulties for quite some time.

Isaah Mhlanga, Executive Chief Economist - Alexander Forbes Investments

Minister of Trade Ebrahim Patel's comment "most people are going back to work from Monday" sounded rather optimistic in the light of the fact that many jobs are gone, many companies are gone and that many businesses would not want the full complement of people back at work.

It does make sense for employers to say they don't want the full complement back... two weeks ago the mining sector opened up and since then two mines had to close because they had infections...a resurgence of infections is not only a SA problem we've seen it globally where people have rushed to open up - it's likely to be a stop-and-go.

Isaah Mhlanga, Executive Chief Economist - Alexander Forbes Investments

We are not out of the woods; the economy will continue to struggle significantly.

Isaah Mhlanga, Executive Chief Economist - Alexander Forbes Investments

We have some permanent loss and there's a lot of this that we cannot see - for example - you might be able to return to your work place...but until the schools open fully many parents would not be able to return to work...then there is the issue of transport...many cannot get to work without sufficient public transport.

Gina Schoeman, economist - Citibank Global Economics team

Also the income loss - we've tried to give our best estimate regarding employment losses - our estimate is SA will lose about two million jobs as a result of the shock of Covid-19 - but what we don't know is how many people took paycuts?

Gina Schoeman, economist - Citibank Global Economics team

I'm not sure how low SA confidence can go because it was already very low before Covid-19 hit.

Gina Schoeman, economist - Citibank Global Economics team

Listen to the interview below.

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning.


This article first appeared on 702 : SA economy opens steadily - will it bring any relief to the contraction?


28 May 2020 6:43 PM
Tags:
South African economy
Lockdown
COVID-19
level3

Recommended

More from Business

hotel-room-bed-accommodation-tourism-travel-vacation-leisure-break-sleep-123rf

Whoops! Presidency backtracks on info stating that leisure travel is allowed

11 July 2020 1:10 PM

The Presidency has now deleted an infographic on social media suggesting that leisure travel is allowed under level 3 regulations.

Share this:
Read More arrow_forward

Light bulb, electricity, load shedding.

Load shedding a big blow to local businesses trying to recover from lockdown

11 July 2020 12:23 PM

Eskom announced the return of load shedding on Friday due to reduced generating capacity and increased pressure on the grid.

Share this:
Read More arrow_forward

Food security hunger feeding 123rf 123rfbusiness 123rflifestyle

South Africa is an emerging epicentre of hunger – Oxfam

10 July 2020 3:39 PM

More people are likely to die from Covid-19-related hunger than the disease itself, warns Oxfam in its “Hunger Virus” report.

Share this:
Read More arrow_forward

wifi-internet-data-broadband-cell-phone-mobile-device-network-providers-123rf

Small Business Focus: How to get your marketing right in a shrinking media world

9 July 2020 8:38 PM

Pavlo Phitidis says focus must be on the customer group you are trying to reach. You've got to get your demographics right.

Share this:
Read More arrow_forward

broken-heart-broke-money-coins-finances-love-relationship-divorce-break-up-123rf

Personal Finance Feature: Julia - The super saver

9 July 2020 8:02 PM

Though leaving corporate to venture into tourism has been a big test of resilience, she is still happy with her decision.

Share this:
Read More arrow_forward

180710sactwu-strikejpg

SA is becoming a country of old people. Median age has risen from 23 to 27

9 July 2020 7:30 PM

Lumkile Mondi says skills and knowledge that have driven a lot of the growth in the past are going to be undermined.

Share this:
Read More arrow_forward

Woman saving money piggy bank mask 123rf 123rfbusiness 123rflifestyle

Supersaver Julia has changed lives, and she can change yours! – Bruce Whitfield

9 July 2020 3:00 PM

Need the inspiration to save? The Money Show’s Bruce Whitfield interviews “Supersaver Julia” at around 7:15 pm tonight.

Share this:
Read More arrow_forward

candle-dark-electricityjpg

Eskom heaps more misery on SA as load shedding returns. Because the cold front

9 July 2020 9:30 AM

"The generation system is constrained due to the cold front. Expect load shedding," warns Eskom's Sikonathi Mantshantsha.

Share this:
Read More arrow_forward

200106-daniel-mminele-edjpg

Daniel Mminele on his shapeshifting career

8 July 2020 8:43 PM

Absa CEO Daniel Mminele says they had to transition very quickly within a very space of time into operating in a new normal.

Share this:
Read More arrow_forward

171227prieska-arrestjpg

Payment methods ... the good, the bad and the ugly

8 July 2020 8:14 PM

Wendy Knowler says it is expensive to issue or bank a cheque. For example, to deposit a cheque can cost well over R100.

Share this:
Read More arrow_forward