COVID-19: Cas Coovadia on why govt. should rethink its strategy on reopening the economy

South Africa's phased approach to reopening the economy amid the COVID-19 pandemic has sparked discussions and debates among business leaders and government officials. Cas Coovadia, the CEO of Business for South Africa, recently joined CNBC Africa to share his views on the current situation and the way forward. Coovadia emphasized the need for a mindset shift in the government's approach to reopening the economy, suggesting that a faster pace is essential to minimize the hardships faced by the population. He pointed out that while the initial lockdown was necessary to prepare the healthcare system, a prolonged closure of the economy could have severe consequences in terms of poverty and hunger. Coovadia proposed a more flexible strategy that focuses on allowing businesses to operate with minimal exclusions and implementing safety measures to protect employees. This, he believes, will not only jumpstart the economy but also help in identifying and containing the spread of the virus. According to Coovadia, the current restrictions, such as the ban on certain goods and limited capacity in manufacturing, are counterproductive and hinder the recovery process. He highlighted the importance of e-commerce and internet shopping as viable options to boost economic activity while ensuring safety. Coovadia also addressed the controversial issue of the cigarette ban, suggesting that regulating the sale of cigarettes through legal channels would help curb the thriving black market and generate much-needed revenue for the government. Overall, Coovadia stressed the urgency of rethinking the government's strategy to strike a balance between public health concerns and the economic well-being of the nation.