Sowetan

State must stop covidprene­urs and give small business a break

PPEs procuremen­t and supply a perfect opportunit­y to stimulate economic growth in townships and rural areas

- Sandile Zungu Zungu, the founder of Zungu Investment Company, is president of the Black Business Council

It would be churlish not to applaud the, albeit long overdue, government-led efforts to clamp down on the thieves who have used the coronaviru­s pandemic to loot public funds meant to fight the flu-like disease which has claimed more than 10,000 lives to date.

Still, we shouldn’t squander the opportunit­y to stimulate our economy to benefit black communitie­s in our townships and villages who have been robbed by the Covid-19 thieves in the name of black business.

Tomorrow, we will receive further evidence of the devastatio­n Covid-19 has wreaked on jobs when Statistics SA releases the latest unemployme­nt numbers. We are most likely to learn that hundreds of thousands have lost their livelihood­s. Worse, the data will confirm two other worrying trends: first, that the impact is disproport­ionately felt by women; and second, that blacks are worst affected by unemployme­nt.

Also, at the end of the week, the current lockdown will expire, meaning the government will have to open up more of the economy in the battle to save livelihood­s.

This is both an opportunit­y and a risk. As the economy is reopened, we face the risk of a resurgence of infections. In the absence of a safe and effective vaccine, we are left with one course of action: to learn to live with the virus while continuing with our lives.

Since the pandemic started, the only reliable way of preventing further infections and deaths has been to apply health protocols: wash hands, wear face masks and maintain social distancing.

Covid-19 has also opened up new opportunit­ies which we need to seize with both hands. As more workers return to work, they will need face masks and sanitisers. This is a magnificen­t opportunit­y for government, state-owned enterprise­s (SOEs) and the private sector to alleviate unemployme­nt and stimulate economic activity to build inclusive growth.

Government needs to immediatel­y localise the manufactur­ing and supply of personal protective equipment (PPE) – masks and gloves – for both frontline workers like doctors and nurses as well as the wider public. Tenders need to be broken down to more chewable chunks for small firms, especially women-owned.

Communitie­s need to organise themselves into cooperativ­es to produce, distribute and sell these PPEs. If done right, this has the potential of stimulatin­g both the clothing and textile as well as transport sectors.

Owing in part to cheap imports, there are literally hundreds of factories lying idle which can – with minimal state support – be reopened for this anti-Covid economic response. .

To avoid further thieving, it would be preferable for government to sign up individual cooperativ­es and households willing to take advantage of this opportunit­y. Part of the money could come from the R200bn credit guarantee scheme which has not gained traction.

To bolster demand, SOEs, state department­s and the private sector need to buy their PPE – including branded masks – from black small and medium-sized enterprise­s which have been robbed of a legitimate opportunit­y to grow by the covidprene­urs.

Due to this economic emergency, government should impose a punitive import surcharge to any firm that buys PPE outside SA.

Once this industrial capability is built, we should consider scaling it up to supply neighbouri­ng countries especially Mozambique and Zimbabwe as well as members of the Southern African Customs Union (Botswana, Lesotho, Namibia and eSwatini) as part of boosting intraAfric­an trade which has been paused by the virus.

Of course, the thieves need to account for their thievery.

 ?? / VELI NHLAPO ?? Soweto-based dressmaker Ali Sambo switched to making face masks during the lockdown.
/ VELI NHLAPO Soweto-based dressmaker Ali Sambo switched to making face masks during the lockdown.
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