How did the safety regulations adopted by the political leaders in South Africa and globally helped to minimise the spread of Covid 19
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President Cyril Ramaphosa first addressed the nation on COVID-19 on 15 March, declaring a national state of disaster in terms of the Disaster Management Act. He announced that government is taking ‘urgent and drastic measures to manage the disease, protect the people of our country and reduce the impact of the virus on our society and on our economy’.
In his second address, on 23 March, the President announced a national lockdown, initially for 21 days, and outlined more stringent interventions in a comprehensive plan to limit transmission of the virus and to mitigate its economic and social impact.
South Africa’s economic response can be divided into three phases:
The first phase began in mid-March when the coronavirus pandemic was declared as a national disaster. This included a broad range of measures to mitigate the worst effects of the pandemic on businesses, on communities and on individuals. The measures included tax relief, the release of disaster relief funds, emergency procurement, wage support through the UIF and funding to small businesses.
The second phase of the economic response was aimed at stabilising the economy, addressing the extreme decline in supply and demand and protecting jobs. On 21 April, the President announced that a social and economic support package of R500 billion had been finalised, amounting to approximately 10% of GDP. The three areas of focus are (i) redirecting resources to fund the health response to coronavirus; (ii) providing direct support to households and individuals for the relief of hunger and social distress; and (iii) providing assistance to companies in distress and seeks to protect jobs by supporting workers’ wages.
The third phase is an economic strategy aimed at driving the recovery of the economy as the country emerges from this pandemic. Central to the economic recovery strategy will be measures to stimulate demand and supply through interventions such as a substantial infrastructure build programme, the speedy implementation of economic reforms, and other steps that will ignite inclusive economic growth.
Government’s goal is to steadily increase economic activity while putting measures in place to reduce the transmission of the virus and provide adequate care for those who become infected and need treatment. As part of this approach, there will be five Coronavirus Alert Levels, in line with a risk-adjusted strategy which seeks to slow down the rate of infection and flatten the curve
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