Coronavirus: South Africa commits KSh.2.8bn as stimulus package
South Africa’s President Cyril Ramaphosa announced a $26.33 billion (Ksh2.8 trillion) stimulus on Tuesday.
According to a Reuters report, the amount is equivalent to 10 percent of South Africa’s Gross Domestic Product (GDP) and will try to cushion the economic downturn brought about by coronavirus pandemic.
“The pandemic requires an economic response that is equal to the scale of the disruption it is causing,” he said in an address on national television, pledging to “address the extreme decline in supply and demand and to protect jobs.”
President Ramaphosa said South Africa had approached global financial institutions like the World Bank, IMF and the African Development Bank to help fund the package.
“As part of this phase, we’re announcing this evening a massive social and economic support package of 500 billion rand, which amounts to about 10% of our GDP,” he said.
Flights across South Africa’s airspace have dropped to a standstill as airlines ground planes to stop the spread of coronavirus.
South Africa has so far recorded 3,465 coronavirus cases, 58 deaths and 1,056 recoveries.
The country is second in Africa for having recorded the highest number of COVID-19 Egypt.
But even as the number keep surging, the country is already in a nationwide military-patrolled lockdown to curb the spread of the virus.
It is among other African nations which have imposed strict curfews and shutdowns in an attempt to halt the spread of the coronavirus.