Gearing up for level 3
Consultations under way – Trade and Industry deputy minister
TRADE and Industry Deputy Minister Fikile Majola yesterday said the government was still in the process of finalising consultations with stakeholders on moving the country’s economy to level 3 lockdown.
“There has been advice received with regards to moving to level 3. That is a matter that is being considered,” Majola said, adding that some of the advice was conflicting. “We will certainly move to level 3,” he assured MPS when he briefed the trade and industry portfolio committee.
On May 13, President Cyril Ramaphosa announced consultations to shift the economy to level 3.
There have been mixed views on reopening the economy, with some warning that easing too soon and too quickly could result in another wave of Covid-19 pandemic.
Majola stated that there were several issues being looked at, including whether to apply a differentiated approach or have the entire country moved to level 3.
“Many parts of the economy are moved systematically to get industries and the economy to start working again.”
He stated that the government would have to be ready and adjust when implementing the risk adjustment strategy.
“We are happy consultations have been going well and we should go to level three without major hindrances.”
Majola said that after the consultations Ramaphosa would make further announcements.
“The president will make announcements and will go into detail as ministries and departments what should be in the revised regulations.”
The Trade and Industry director-general Lionel October said there was conflicting evidence on reopening the economy and that it was not a debate found only in South Africa. He said the country has had an early lockdown but the infections were on the increase.
October told the MPS that the lockdown was aimed at saving lives, reducing the Covid-19 impact as well as preparing health responses to the pandemic.
“It is clear that the five-week lockdown has been effective,” October said. “It achieved its core objective. It reduced the rate of infections. It flattened the curve.
“We did succeed in flattening the curve and there is no way to be stopping the pandemic.”
October told the MPS that the peak for coronavirus infections was expected sometime in July and August.
“We have to be prepared for that. We have to prepare our resources.”
October also said the country had to deal with the global pandemic and could not be expected to be different.
“We have to prioritise health to save the economy.”
He told of efforts to prioritise the procurement of personal protection equipment and working with companies to produce health products that were declared an essential service.
October also said they expected a contraction in the economy.
“Estimates of the impact on the economy vary at the moment and will be driven by the trajectory of the virus both in South Africa and globally.”
Referring to the R500 billion to alleviate the impact of Covid-19, October said it was unprecedented and a significant injection.
“It is because we expect a significant contraction in gross domestic product.”
He said the Independent Development Corporation has approved 12 applications totalling R476m in the essential supplier interim programme.
“Support includes financing to ramp up local production of critical goods and trade finance support to import essential products needed in the fight against Covid-19.”
He also said the department was working with companies to build supply of critical health supplies.
“The national ventilation project has finalised prototyping and will soon be in production to meet expected demand by early July,” October said.
He added that the department was working with business to ensure it understands the lockdown regulations.