Presidency | South Africa  🇿🇦Verified account

President #Ramaphosa: The South African Social Security Agency – SASSA – will within days implement a technology-based solution to roll out food assistance at scale through vouchers and cash transfers to ensure that help reaches those who need it faster and more efficiently.

President #Ramaphosa: In addition, to fill the immediate need, the Department of Social Development has partnered with the Solidarity Fund, NGOs and community-based organisations to distribute 250,000 food parcels across the country over the next two weeks.

President #Ramaphosa: We are deeply disturbed by reports of unscrupulous people abusing the distribution of food and other assistance for corrupt ends. We will not hesitate to ensure that those involved in such activities face the full might of the law.

President #Ramaphosa: While there are several interventions that already exist within government to deal with the extremely high unemployment such as the Expanded Public Works Programme and the community works programme, these are not enough.

President #Ramaphosa: The coronavirus crisis will lead to many people losing their jobs. An additional R100 billion will be set aside for protection of jobs and to create jobs.

President #Ramaphosa: Since the declaration of a state of national disaster over a month ago, government has put in place a range of measures to support workers’ wages and assist companies in distress.

President #Ramaphosa: By the end of today, the UIF’s special COVID-19 benefit has paid out R1.6-billion, assisting over 37,000 companies and 600,00 workers. R40 billion has been set aside for income support payments for workers whose employers are not able to pay their wages.

President #Ramaphosa: We continue to provide assistance – in the form of loans, grants and debt restructuring – to SMMEs, spaza shop owners and other informal businesses. The value of this assistance to date is over R100 million.

President #Ramaphosa: An additional amount of R2 billion will be made available to assist SMEs and spaza shop owners and other small businesses.

President #Ramaphosa: The IDC facility to support companies to procure or manufacture personal protective equipment has been utilised in the past few weeks, with finance of R162 million approved to date.

President #Ramaphosa: Other forms of support have been extended to artists, athletes and technical personnel, as well as to waste pickers and public works participants in the environment sector.

President #Ramaphosa: While these measures are providing obvious relief to many companies and workers, it is clear that there is a far greater need across the entire economy.

President #Ramaphosa: We will therefore be introducing a R200 billion loan guarantee scheme in partnership with the major banks, the National Treasury and the South African Reserve Bank.

President #Ramaphosa: This will assist enterprises with operational costs, such as salaries, rent and the payment of suppliers. In the initial phase, companies with a turnover of less than R300 million a year will be eligible.

President #Ramaphosa: It is expected that the scheme will support over 700,000 firms and more than 3 million employees through this difficult period. A number of the banks are ready to roll out the product before the end of the month.

President #Ramaphosa: Government is also working on additional support measures for vulnerable and affected sectors like the taxi industry.

President #Ramaphosa: In addition to existing tax relief measures, we will also be introducing a 4-month holiday for companies’ skills development levy contributions, fast-tracking VAT refunds and a 3-month delay for filing and first payment of carbon tax.

President #Ramaphosa: To assist a greater number of businesses, the previous turnover threshold for tax deferrals is being increased to R100 million a year, and the proportion of PAYE payment that can be deferred will be increased to 35 percent.

President #Ramaphosa: Businesses with a turnover of more than R100 million a year can apply directly to SARS on a case-by-case basis for deferrals of their tax payments.

President #Ramaphosa: No penalties for late payments will be applicable if they can show they have been materially negatively impacted in this period.

President #Ramaphosa: Taxpayers who donate to the Solidarity Fund will be able to claim up to an additional 10 percent as a deduction from their taxable income.

President #Ramaphosa: In total these tax measures should provide at least R70 billion in cash flow relief or direct payments to businesses and individuals. The Minister of Finance will provide further details on the above and other tax-related announcements.

President #Ramaphosa: In the implementation of all these measures, we are determined to ensure that women, youth and persons with disability received particular attention & support.

President #Ramaphosa: The South African Reserve Bank has also made an important contribution to support the real economy.

President #Ramaphosa: In line with its Constitutional mandate, it has cut the repo rate by 200 basis point, in effect unlocking at least R80 billion in the real economy, and taking other steps to provide additional liquidity to the financial system.

President #Ramaphosa: Several commercial banks and insurance companies have also assisted the economic relief effort by, among other things, delaying or reducing instalment payments, providing debt relief, and waiving bank fees for grant beneficiaries.

President #Ramaphosa: The fourth area on which Cabinet has resolved is the phased re-opening of the economy.

President #Ramaphosa: We will follow a risk-adjusted approach to the return of economic activity, balancing the continued need to limit the spread of the coronavirus with the need to get people back to work.

President #Ramaphosa: As I have said previously, if we end the lockdown too soon or too abruptly, we risk a massive and uncontrollable resurgence of the disease.

President #Ramaphosa: We will therefore follow a phased approach, guided by the best available scientific evidence, to gradually lift the restrictions on economic activity. As we do so, we remain firm in our resolve to contain the transmission of the virus.