President Cyril Ramaphosa said on Monday that his government would soon stop coronavirus pandemic relief it is providing to medium-sized firms and ordinary workers since the funding is not sustainable.
The South African government has been disbursing millions of dollars to both small companies and lowly-paid workers to cushion them from the economic hardship brought about by the pandemic lockdowns and restrictions.
“The social and economic relief package that we introduced in April last year is the largest intervention of its kind in our history,” Ramaphosa said in his weekly message to the nation.
According to Ramaphosa, the relief measures his government provided were unsustainable with the country’s national debt sky-rocketing as a result of the economy’s poor performance.
He said the relief support was meant to only provide a firm foundation for recovery, adding that companies would need to come up with innovative ways to retain jobs and ensure their sustainability and profitability in the long run.
The president said his government would now only provide funding to small firms in all sectors until mid-March, while the ordinary people’s special Covid-19 grants would be extended for only the next three months.
He called on the recipients to brace themselves for the tough times ahead as the economy was still far from recovery while the pandemic was experiencing a second wave.
NM/jn/APA