Finance minister Tito Mboweni has outlined government’s funding plans in response to the coronavirus pandemic currently impacting South Africa.<\/p>\n
Speaking at a ministerial press briefing on Monday (16 March), Mboweni said that the primary source of funding will come from the National Disaster Fund – which is available immediately.<\/p>\n
He added that the government is looking at further financial cuts as the pandemic drags on and costs continue to rise.<\/p>\n
“As the situation develops we will need to set aside further funding,” he said.<\/p>\n
“That means that we will have to reduce programmes throughout the government system, by reducing the allocated amounts so that we can shift these funds towards this (coronavirus) project.”<\/p>\n
Mboweni added that National Treasury officials are also in contact with financial sector regulatory authorities to make sure that the banking and financial services sectors are coordinated.<\/p>\n
“The key issue is to make sure that we don’t have a situation where we are unable to procure testing facilities or whatever else is necessary.”<\/p>\n
Economic disruption\u00a0<\/strong><\/p>\n In his weekly open letter to South Africa on Monday (16 March), president Cyril Ramaphosa warned that the coronavirus will be extremely disruptive and will likely cause damage to the economy.<\/p>\n “We have to address the inevitable economic fallout. We must expect a decline in exports, a drop in tourist arrivals and a severe impact on production, business viability and job creation and retention,” he said.<\/p>\n Ramaphosa added that his cabinet is in the process of finalising a comprehensive package of interventions to mitigate the expected impact of Covid-19 on the economy.<\/p>\n This is being done in consultation with business, labour and other relevant institutions, he said.<\/p>\n \u201cSouth Africa has a positive track record in managing public health emergencies. We have the knowledge, the means and the expertise. Our scientists and epidemiologists are world-class.\u201d<\/p>\n
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