Social development desperately needed
The instances of misappropriation of Coronavirus (COVID-19) funds, which have come to the fore, is a blight on South Africa’s impressive response to the global pandemic.
In the words of President Cyril Ramaphosa, it is “an unforgivable betrayal for the millions of South Africans who are being negatively affected by the impact of COVID-19, experiencing hunger daily, hopelessness and joblessness”.
However, the corruption cloud must not negate all the good done over the past six months to protect South Africans from the devastating social and economic impacts of the pandemic, from the Special COVID-19 Social Relief of Distress Grant and the Unemployment Insurance Fund (UIF) COVID-19 Temporary Employer/ Employee Relief Scheme (TERS) to the SMME Debt Relief Scheme, the Tourism Relief Fund and the Solidarity Fund – contributed to by governments, companies, foundations and individuals.
With South Africa on Level 1 of the national lockdown and most people back at work, government is moving with urgency to rebuild South Africa’s economy, restore growth and create jobs.
Government has not turned its back on the thousands of people made extra vulnerable by the long months of economic inactivity.
Some of the support measures announced in April, as part of the R500 billion economic and social relief package – which provided vital support for households, companies and workers – have been extended.
As the country marks Social Development Month in October, it is appropriate that we reflect on the considerable support government has given – and continues to give – to cushion the impacts of the pandemic and the considerable financial challenges South Africa faces.
After a two-week halt in the UIF COVID-19 TERS benefits to implement
tighter controls and ensure funds go only to qualifying recipients, payments resumed towards the end of September.The benefit was also extended until 15 October 2020, providing further support to workers and companies whose income remains at risk.
Adjustments have also been made to the Loan Guarantee Scheme to make it easier for companies of any size to access credit at low interest rates, with repayments delayed for as much as 12 months.This will help companies badly affected by the national lockdown continue operations while the economy recovers.
Another measure taken by government – the historic reduction in interest rates by 300 basis points since January – will help ensure adequate liquidity in domestic markets going forward.
Since the announcement of the national lockdown in March, well over R30 billion in additional support has been provided directly to more than 16 million people from poor households through the special COVID-19 grants and the top-up of existing grants.
More than 800 000 companies have benefited through the UIF wage support scheme and through the grants and loans provided by various government departments and public entities.
More than four million workers have received R42 billion in wage support, which helped preserve jobs while companies were unable to operate.
In addition to those businesses that have received direct support, many more companies have benefited from tax relief measures worth in the region of R70 billion.
The Solidarity Fund has to date allocated R2.4 billion to support key areas of the country’s national coronavirus response, including food relief for vulnerable households and vouchers for subsistence farmers.
It is heartening to see how people across South Africa – and indeed from across the globe – are contributing to this fund. In mid-September, the United Kingdom swelled Solidarity’s coffer by donating R50 million, to go towards projects supporting and promoting women’s empowerment.
Apart from government’s many significant COVID-19 interventions, the social media platforms of various government departments have captured numerous donations and community interactions around the country, most notably the handover of personal protective equipment and dignity packs to communities.
Good news for people who battle to access government services is that the South African Social Security Agency (SASSA) has launched a new online portal, initially for child support, older persons and foster child grants. This will prevent people from having to stand in queues and spend valuable money on public transport.
Social Development Month aims to engage communities to identify their challenges and put together action plans to deal with these challenges. Never before has this been more crucial, as the country works to recover from the worst public health crisis in living memory.
Our President put it best when he said:“We have shown what South Africans are capable of when we join forces. Let us hold on to that spirit of unity and solidarity. Let us move forward with determination and resolve.”