How COVID-19 is threatening South Africa’s economy as Ramaphosa imposes strict restrictions
The President of South Africa, Cyril Ramaphosa has announced strict restrictions which will take effect from Wednesday March 18, 2020 as part of measures to stem the spread of the deadly coronavirus (Covid-19).
The president, in an address on Sunday, imposed a travel ban on foreign nationals from high-risk countries like Italy, Iran, South Korea, Spain, Germany, the United States, the United Kingdom and China.
The country has recorded the highest level of infection of Covid-19 in the southern Africa region since its outbreak. As at Sunday March 15, Covid-19 infection toll has hit 61, 10 days after it recorded its first case on Thursday March 5.
The virus, according to the president, is already threatening two of the country’s main sources of income: mining and tourism.
“We have seen a dramatic decline in economic activity in our major trading partners, a sudden drop in international tourism and severe instability across all global markets,” he said.
A report by Strategy&, a subsidiary of the auditing firm Price WaterhouseCoopers, also stressed how the effect of the virus on the Chinese market is affecting the Asian country’s capacity to absorb South African metal production.
According to the report, every year South Africa exports the equivalent of 450 million euros worth of iron, manganese and chromium ores to China. This accounts for two thirds of South Africa’s total exports to China by value. However, the 1% decline in Chinese growth announced by the International Monetary Fund (IMF) is expected to lead to a reduction in demand for South African raw materials.
As the country battles with containing the spread of COVID-19, Ramaphosa also announced other measures expected to take a toll on the nation’s economy which entered recession in the fourth quarter of last year, the second in two years. Effective from Monday March 16, 35 of its 53 land ports will be shut, two of the eight sea ports will be closed for passengers and crew changes.
“This will have a potentially severe impact on production, the viability of businesses, job retention and job creation,” Ramaphosa said.
But the priority of the country at this critical time is not all about its already fragile economy, according to the president, it is to “safeguard the health and well-being of all South Africans, to minimise the number of infections and to ensure all those infected get proper treatment.”
Tweeting with the hashtag #CoronavirusSouthAfrica, they also shared photos of long queues at malls in es in the country as citizens engage in panic buying.
A South African Tourism blogger tweeted:
British Airways already threatening to lay off staff, inbound tourism will definitely be affected negatively and we might see the same happening in the hospitality industry.The entire value chain is bound to be affected, the SMMEs will suffer the most. #Coronavirussouthafrica pic.twitter.com/xGQe2idxTB
— TheLifestyleTourist (@ms_tourist) March 16, 2020
Another South African who was shocked to see empty shelves at a mall tweeted:
Went to woolies earlier today and was shocked by the empty shelves and packed trolleys, kept wondering if I’m missing something 🥺 #Coronavirussouthafrica
— Nozipho 🎀 a Khaleesi 👑 (@Nozeepho) March 16, 2020
