Emergency budget as unemployment soars
Ramaphosa added that the economic collapse extended to government’s already-embattled coffers and, as a result, Finance Minister Tito Mboweni would be tasked with tabling an emergency budget before Parliament on 24 June. The president warned:
“The economic hardship that has been forced on a number of companies in the private sector will be forced on a number of entities in the public sector as well. The government, business, labour and civil society will have to deepen their collaboration as never before in driving the national recovery effort.”
The president noted that despite the country’s grim financial standing, proactive measures by some multinational firms — including the Ford Motor Company and Amazon — held hope for much-needed foreign investment. Still, Ramaphosa reiterated that the road to pre-pandemic levels of economic activity would be long and arduous, saying:
“There are tough times ahead. There are no quick-fixes and we have to be realistic about our prospects, especially about the time it will take for our economy to recover. Even the advanced economies will contract substantially because of COVID-19 and it will take a long time for economic output to return to pre-pandemic levels.
“At the same time we remain optimistic.”
Despite the fierce socioeconomic toll, Ramaphosa reiterated his support for the nationwide lockdown which had managed to flatten the coronavirus’ curve and save lives.
