Cyril Ramaphosa’s R500bn COVID-19 War Chest

Thebe Mabanga

President Cyril Ramaphosa announced R 500 billion, or 10% of South Africa’s GDP, in economic stimulus measures designed to shield the economy from the ravages of the spread of the novel Coronavirus and kick-start growth once the national lockdown is over and the pandemic eventually passes.

The money will come from R130 billion of reprioritised spending, while the balance will come from local and international sources including the Unemployment Insurance Fund, as well as Development Finance Institutions such as the World Bank, the International Monetary Fund (IMF), the New development Bank or BRICS Bank as well as the Africa Development Bank.

Ramaphosa started by acknowledging the disruptive nature of the lockdown but emphasised its importance.

“While the nation-wide lockdown is having a devastating effect on our economy, it is nothing compared to the catastrophic human, social and economic cost if the coronavirus could spread among our people unchecked.”