SA in lockdown to curb COVID-19
With the world facing an unprecedented global health emergency, the South African government has been swift and decisive in its response to tackling the Coronavirus (COVID-19) pandemic.
Implementing decisive measures to curb the spread of COVID-19 in the country, President Cyril Ramaphosa announced a nationwide lockdown on 23 March, saying immediate, swift and extraordinary action was required to prevent a human catastrophe of enormous proportions.
“This is a decisive measure to save millions of South Africans from infection and save the lives of hundreds of thousands of people.
“While this measure will have a considerable impact on people's livelihoods, on the life of our society and on our economy, the human cost of delaying this action would be far, far greater,” he explained.
Strict measures in place
The nation-wide lockdown, enacted in terms of the Disaster Management Act, covers the period 26 March until midnight 16 April during which all South Africans are ex-pected to stay at home.
Those exempted from the lockdown include health workers in the public and private sectors, emergency personnel, those in security services and other persons necessary to respond to the pandemic.This includes those involved in the production, distribution and supply of food and basic goods, essential banking services, the maintenance of power, water and telecommunications services, laboratory services, and the provision of medical and hygiene products.
Individuals are not allowed to leave their homes except under strictly controlled circumstances,
such as to seek medical care, buy food, medicine and other supplies or collect a social grant.
All shops and businesses have closed, except for pharmacies, laboratories, banks, essential financial and payment services, including the JSE, supermarkets, petrol stations and health care providers.
Temporary shelters have been identified for homeless people. Sites have also being identified for quarantine and self-isolation for people who cannot self-isolate at home.
To ensure the implementation of these measures, President Ramaphosa directed that the South African National Defence Force be deployed to support the South African Police Service.
The nationwide lockdown will be accompanied by a public health management programme which will significantly increase screening, testing, contact tracing and medical management.
Community health teams will also focus on expanding screening and testing where people live, focusing first on high density and high-risk areas.
“To ensure that hospitals are not overwhelmed, a system will be put in place for ‘centralised patient management' for severe cases and ‘decentralised primary care' for mild cases.”
Emergency water supplies in the form of water storage tanks, water tankers, boreholes and communal standpipes are being provided to informal settlements and rural areas.
Cushioning the economic impact
Acknowledging the economic impact COVID-19 is likely to have on South Africans, the President announced a set of interventions to cushion society from economic difficulties.
“This is the first phase of the economic response, and further measures are under consideration and will be deployed as needed.”
Support for the vulnerable include the establishment of a Solidarity Fund, which South African businesses, organisations and individuals, and members of the international community, can contribute to.
The fund will focus efforts to combat the spread of the virus, help track the spread, care for those who are ill and support those whose lives are disrupted. It will complement measures from the public sector.
Government kicked off contributions to the fund through seed capital of R150 million, while the private sector has also pledged financial contributions. In addition, the Rupert and Oppenheimer families have committed R1 billion each to assist small businesses and their employees affected by the COVID-19.
“We will be spending money to save lives and to support the economy,” said the President.
He voiced concern over businesses selling certain goods at excessively high prices, saying this would not be tolerated.
“Regulations have been put in place to prohibit unjustified price hikes, to ensure shops maintain adequate stocks of basic goods and to prevent people from ‘panic buying'.
“It is important for all South Africans to understand that the supply of goods remains continuous and supply chains remain intact.”
Government has had discussions with manufacturers and distributors of basic necessities, who have indicated that there will be a continuous supply of these goods.
Support for businesses and workers
A safety net is being developed to support those in the informal sector, where most businesses will suffer as a result of the shutdown.
Support will also be given to those livelihoods will be affected.
Government is consultation over a proposal for a special dispensation for companies that are in distress because of COVID-19.
“Through this proposal employees will receive wage payment through the Temporary Employee
Relief Scheme, which will enable companies to pay employees directly during this period and avoid retrenchment.”
Employees who become sick because of exposure at their workplace will be paid through the Compensation Fund.
To provide further relief for South Africans, commercial banks have been exempted from provisions of the Competition Act to enable them to develop common approaches to debt relief and other necessary measures.
A tax subsidy of up to R500 per month for the next four months will benefit more than four million private sector employees who earn below R6 500 under the Employment Tax Incentive.
The South African Revenue Service will also work towards accelerating the payment of employment tax incentive reimbursements from twice a year to monthly to get cash into the hands of compliant employers.
Tax compliant businesses with a turnover of less than R50 million will be allowed to delay 20 percent of their pay-as-you-earn liabilities over the next four months and a portion of their provisional corporate income tax payments without penalties or interest over the next six months.This intervention is expected to assist over 75 000 small and medium-term enterprises.
In addition, the Department of Small Business Development has made more than R500 million available immediately to assist small and medium enterprises that are in distress through a simplified application process.
The Industrial Development Corporation has put a package together with the Department of Trade, Industry and Competition of more than R3 billion for industrial funding to address the situation of vulnerable firms and to fast-track financing for companies critical to our efforts to fight the virus and its economic impact.
The Department of Tourism has made an additional R200 million available to assist small and medium enterpirses in the tourism and hospitality sector.
State of Disaster
The nation lockdown came shortly after the President declared a State of Disaster on 15 March.
Declaring a State of Disaster allows government to have an integrated and coordinated disaster management mechanism that will focus on preventing and reducing the outbreak of this virus.
A State of Disaster lasts for three months, but can be extended or cancelled by declaration of the President. Crucially, this approach includes lessening the red tape that allows government to access resources.
Government use its powers and resources in five crucial areas, namely:
Assisting or protecting the public.
Providing relief.
Protecting property.
Fighting disruption.
Dealing with the destruction and other effects caused by the disaster.
Since the outbreak of the pandemic, government's response has been led by an Inter-Ministerial Committee (IMC), chaired by the Minister of Health, Dr Zweli Mkhize.
A National Command Council has been established and is being chaired by the President. It includes members of the IMC, and meets three time a week to coordinate all aspects of our extraordinary emergency response.
Uniting in the face of adversity
With the country facing tough and uncertain times, the President commended South Africans for uniting in their response to COVID-19.
“From religious leaders to sporting associations, from political parties to business people, from trade unions to traditional leaders, from NGOs to public servants, every part of our society has come forward to confront this challenge.
“Many have had to make difficult choices and sacrifices, but all have been determined that these choices and sacrifices are absolutely necessary if our country is to emerge stronger from this disaster.”
He added that more of this unity and sense of community would be required in the days ahead.
“I call on all of us, one and all, to play our part.To be courageous, to be patient, and above all, to show compassion. Let us never despair. For we are a nation at one, and we will surely prevail.”