President Cyril Ramaphosa announces a massive social relief and economic support package of R500 billion, which he says amounts to 10% Gross Domestic Product (GDP).
“As part of this phase, we are announcing this evening a massive social relief and economic support package of R500 billion, which amounts to around 10% GDP,” he said.
Ramaphosa says this package will help curb hunger and social distress and stabilize the economy which has greatly been affected by COVID-19.
“The impact of the coronavirus requires an extraordinary budget of around R500 billion to direct resources towards fighting the pandemic,” he said.
President Ramaphosa also adds that due to poverty and food insecurity which has increased in the course of few weeks, government will issue a temporary 6 months coronavirus grant, R50 billion will be directed towards that.
“We will direct R50 billion towards relieving the plight of those who are most desperately affected by the coronavirus.
This means that child support grants beneficiaries will receive an extra R300 in May and from June to October they will receive an additional R500 each month,” said Ramaphosa.
All other grant beneficiaries will receive an extra R250 per month for the next six months.
Those who are currently unemployed and did not receive any other form of social grant or UIF payment will get R350 per month in the next 6 months.
Ramaphosa also adds that R2 billion will be made available to assist SMEs and Spaza shop owners and other informal businesses.
“We continue to provide assistance in the form of loans, grants and debt restructuring to SMEs, spaza shop owners and other informal businesses,” he said.