COVID-19: Martin Kingston on how to flatten SA’s recession curve

As South Africa grapples with the dual challenges of flattening the COVID-19 curve and the recession curve, business leaders like Martin Kingston from Business for South Africa are advocating for a strategic and coordinated economic recovery plan. The nation is anxiously awaiting President Ramaphosa's economic recovery plan, expected to provide guidelines on reigniting the country's growth engine amid the pandemic. Kingston emphasizes the need to navigate the delicate balance between protecting public health and reviving the economy. The current predicament facing South Africa is compounded by a pre-existing recession and two recent downgrades to junk status and has been further exacerbated by the impact of COVID-19. The economy is projected to contract by 8 to 10 percent in 2020, with potential for further decline. Kingston underscores the urgency of gradually lifting lockdown restrictions to jumpstart economic activities while safeguarding public health. It is crucial to implement a phased approach to allow different sectors of the economy to resume operations responsibly. In the short term, Kingston acknowledges the hardships faced by businesses and individuals due to retrenchments and income losses. As the possibility of an extended lockdown looms, there is a pressing need to strike a balance between saving lives and sustaining the economy. He stresses the importance of providing support to the most vulnerable members of society to prevent social unrest and ensure societal stability. Business for South Africa has been actively engaged in discussions with government and other stakeholders to shape an effective economic stimulus plan. Collaboration between different sectors is essential to align efforts and ensure a cohesive strategy towards recovery. Kingston highlights the need for significant fiscal stimulus to counter the impact of the recession and COVID-19, emphasizing the shared goal of promoting inclusive economic growth. The level of cooperation and alignment among social partners, including government, civil society, and labor unions, is viewed as a positive development in navigating the challenges presented by the current crisis. By working together and pooling resources, South Africa aims to overcome the economic downturn and lay the foundation for a sustainable recovery. The path ahead will require concerted efforts and a long-term commitment to rebuilding the economy and fostering growth in the post-COVID-19 era.