South Africa’s government unveiled a 500 billion rand ($26bn, Dh95.4bn) package to shore up an economy devastated by the fallout from the coronavirus pandemic and support those who have been worst affected.
The plan will be funded by reprioritising 130bn rand of expenditure from existing budgets, and borrowing from domestic and international lenders, President Cyril Ramaphosa said on Tuesday in a televised address to the nation. There will be 200bn rand in guarantees for banks to encourage them to lend, a 100bn rand allocation to protect and create jobs and an additional 50bn rand for welfare grants for the poor and unemployed, he said.
“The coronavirus pandemic requires an economic response equal to the scale of the disruption it is causing,” Mr Ramaphosa said. “The scale of this emergency relief program is historic. It demonstrates that we will not spare any effort or any expense in our determination to support our people and protect them from harm.”
The support package is equal to about 10 per cent of South Africa’s gross domestic product and will add to government debt, which the Treasury said was already approaching unsustainable levels before the virus struck.
The rand weakened as Mr Ramaphosa delivered his speech, dropping as much as 1.4 per cent against the dollar.
South Africa has been relatively spared the worst of the ravages of the pandemic, with 3,465 infections and 58 fatalities so far. Still, a lockdown aimed at curbing the spread of the disease and preventing the health system from being overwhelmed is devastating the economy, with the central bank expecting it to contract 6.1 per cent this year.
The government’s response packages is measured and necessary, said Philippe Burger, a professor who heads the University of the Free State’s economics and management science department.
“Internationally, we have seen packages of between 10 per cent and 20 per cent of GDP, so this is not on the small side,” he said in an interview. “I don’t really think we can afford more. We are already stretching the budget to the furthest extent possible.”
Details of how funding will be redirected will be announced in an adjustment budget tabled by the finance minister, Mr Ramaphosa said, without giving a date. The World Bank, the International Monetary Fund, the New Development Bank and the African Development Bank are among the institutions that have been approached for additional funding options.
“Despite the ostensibly large stimulus package announced, Treasury hasn’t injected as much new money into the economy. They have reshuffled expenditure and put out a massive loan-guarantee program. What you need is spending, not lending. Only 170bn rand of the package represents new discretionary spending, making the size of the actual support package announced closer to 3 per cent of GDP,” Boingotlo Gasealahwe, Bloomberg Africa economist, said.
Companies with revenue of less than 300 million rand a year will initially be eligible for guaranteed loans, and 700,000 are expected to benefit. Several banks will be ready to offer the financing before month-end, Mr Ramaphosa said.
“The risk sharing and funding arrangements between government and banks on these loans are specifically designed to ensure the stability of the financial system is maintained,” Nedbank chief executive Mike Brown, said.
The president also announced that companies with revenue of more than 100m rand a year can apply to defer their tax payments.
The government initially imposed a 21-day lockdown on March 27 and later extended it by another two weeks. Enforced by the police and military, it only allows people to leave their homes to buy food, collect welfare grants and seek medical care – unless they provide essential services.
Mr Ramaphosa said he will announce measures on April 23 to begin phasing out the lockdown to get the economy going again.
The support plan is positive, given the scale of the economic and social problems confronting South Africa and should strengthen Mr Ramaphosa politically if they have the desired effect, said Gina Schoeman, an economist at Citibank South Africa. Details on where the money will go and which budgets will be cut are needed “to figure out how sustainable a solution this is”, she said.
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The specs
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The specs: 2018 Chevrolet Trailblazer
Price, base / as tested Dh99,000 / Dh132,000
Engine 3.6L V6
Transmission: Six-speed automatic
Power 275hp @ 6,000rpm
Torque 350Nm @ 3,700rpm
Fuel economy combined 12.2L / 100km
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THE SPECS
Jaguar F-Pace SVR
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THE SPECS
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Dolittle
Director: Stephen Gaghan
Stars: Robert Downey Jr, Michael Sheen
One-and-a-half out of five stars
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
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Benefits of first-time home buyers' scheme
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Farasan Boat: 128km Away from Anchorage
Director: Mowaffaq Alobaid
Stars: Abdulaziz Almadhi, Mohammed Al Akkasi, Ali Al Suhaibani
Rating: 4/5
The past Palme d'Or winners
2018 Shoplifters, Hirokazu Kore-eda
2017 The Square, Ruben Ostlund
2016 I, Daniel Blake, Ken Loach
2015 Dheepan, Jacques Audiard
2014 Winter Sleep (Kış Uykusu), Nuri Bilge Ceylan
2013 Blue is the Warmest Colour (La Vie d'Adèle: Chapitres 1 et 2), Abdellatif Kechiche, Adele Exarchopoulos and Lea Seydoux
2012 Amour, Michael Haneke
2011 The Tree of Life, Terrence Malick
2010 Uncle Boonmee Who Can Recall His Past Lives (Lung Bunmi Raluek Chat), Apichatpong Weerasethakul
2009 The White Ribbon (Eine deutsche Kindergeschichte), Michael Haneke
2008 The Class (Entre les murs), Laurent Cantet
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
match details
Wales v Hungary
Cardiff City Stadium, kick-off 11.45pm
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Results
5pm: Warsan Lake – Maiden (PA) Dh80,000 (Turf) 2,200m; Winner: Dhaw Al Reef, Sam Hitchcott (jockey), Abdallah Al Hammadi (trainer)
5.30pm: Al Quadra Lake – Maiden (PA) Dh80,000 (T) 1,600m; Winner: Mrouwah Al Gharbia, Sando Paiva, Abubakar Daud
6pm: Hatta Lake – Handicap (PA) Dh80,000 (T) 1,600m; Winner: AF Yatroq, George Buckell, Ernst Oertel
6.30pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 1,600m; Winner: Ashton Tourettes, Adries de Vries, Ibrahim Aseel
7pm: Abu Dhabi Championship – Listed (PA) Dh180,000 (T) 1,600m; Winner: Bahar Muscat, Antonio Fresu, Ibrahim Al Hadhrami
7.30pm: Zakher Lake – Rated Conditions (TB) Dh80,000 (T) 1,400m; Winner: Alfareeq, Dane O’Neill, Musabah Al Muhairi.
Global state-owned investor ranking by size
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The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
UAE currency: the story behind the money in your pockets
Specs
Engine: Dual-motor all-wheel-drive electric
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- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
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Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
THE LOWDOWN
Romeo Akbar Walter
Rating: 2/5 stars
Produced by: Dharma Productions, Azure Entertainment
Directed by: Robby Grewal
Cast: John Abraham, Mouni Roy, Jackie Shroff and Sikandar Kher
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
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Rocketman
Director: Dexter Fletcher
Starring: Taron Egerton, Richard Madden, Jamie Bell
Rating: 3 out of 5 stars
RESULTS
5pm: Handicap (PA) Dh70,000 1,400m
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5.30pm: Handicap (TB) Dh70,000 1,000m
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Winner: Aiz Alawda, Fernando Jara, Ahmed Al Mehairbi
6.30pm: Handicap (PA) Dh70,000 2,000m
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7.30pm: Al Ain Mile Group 3 (PA) Dh350,000 1,600m
Winner: Somoud, Connor Beasley, Ahmed Al Mehairbi
8pm: Handicap (PA) Dh70,000 1,600m
Winner: Al Jazi, Fabrice Veron, Eric Lemartinel
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
THE SPECS
Engine: 3.5-litre V6
Transmission: six-speed manual
Power: 325bhp
Torque: 370Nm
Speed: 0-100km/h 3.9 seconds
Price: Dh230,000
On sale: now
Herc's Adventures
Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
MATCH INFO
Tottenham Hotspur 3 (Son 1', Kane 8' & 16') West Ham United 3 (Balbuena 82', Sanchez og 85', Lanzini 90' 4)
Man of the match Harry Kane
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Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
