'It doesn’t make sense to keep restaurants open at risk to the rest of economy'
South Africa’s longsuffering restaurants, gyms, casinos, and cinemas are again facing an existential threat in the form of new lockdown regulations, announced by President Cyril Ramaphosa on Sunday.
The government says it has no money to support these businesses and the jobs they provide through the next two weeks.
“What we are saying is when a person is dead, you can’t resuscitate,” said Minister in the Presidency Khumbudzo Ntshavheni on Monday.
“But when you lost a job, it will be rebuilt tomorrow or the other day.”
Ntshavheni added that the government would be able to reprioritise funds if unions withdrew their demands for salary increases.
The previous three alcohol sales bans caused R14.2 billion in lost sales revenue, and R7.8 billion in lost taxes, according to the Beer Association of South Africa.
The Money Show’s Bruce Whitfield interviewed Dr Neva Makgetla, a Senior Economist at TIPS (scroll up to listen).
They’re trying very hard not to close down most workplaces. They should’ve maintained relief programmes… But it doesn’t make sense to keep open a relatively small sector… at huge risk to the rest of the economy…Dr Neva Makgetla, Senior Economist - TIPS
Tourism is about 5% of GDP…Dr Neva Makgetla, Senior Economist - TIPS
If you let Covid-19 run wild, then people like you and me stop going out anyways…Dr Neva Makgetla, Senior Economist - TIPS
Find ways to serve people that are safe… The UIF still has R60 billion in reserve… You need to talk to your Minister of Finance. He is intent on not spending money… We do have to be careful [about spending] …Dr Neva Makgetla, Senior Economist - TIPS
Source : https://www.123rf.com/photo_144144263_the-effect-of-the-covid-19-pandemic-on-global-business.html?term=covid19%2Bloan&vti=ma8918zrf8fk12k0oo-1-85