JOHANNESBURG (Reuters) &#8211; South African petrochemicals giant Sasol Ltd on Wednesday cut its guidance for synthetic fuel production and liquid fuel sales for this financial year due to a three-week nationwide lockdown linked to coronavirus.



Sasol is now expecting to produce approximately 7.3-7.4 million tons of synfuel against the previously guided range of 7.7–7.8 million tons, the company said in a statement to the Johannesburg Stock Exchange.



It is also targeting sales of 50–51 million barrels of liquid fuel for the financial year 2020, against 57–58 million barrels previously, it said.



Synfuel or synthetic fuel is a form of liquid fuel made from coal in South Africa. Sasol is the world’s biggest producer of motor fuel from coal.



South African President Cyril Ramaphosa imposed a nationwide lockdown at the end of March to contain spread of the deadly coronavirus, which has already <a href="https://www.cnbcafrica.com/news/2020/04/02/south-africa-needs-hundreds-of-thousands-of-covid-19-tests-health-minister/">infected 1,749 people in the country and killed 13</a>.



The lockdown, which prompted rating agency <a href="https://www.cnbcafrica.com/coronavirus/2020/04/03/fitch-downgrades-sa-2/">Moody’s to downgrade the country’s sovereign rating to junk</a>, crashed domestic demand at a time when the economy had already slipped into a recession.



It is projected to contract further in the current financial year.



“Sasol’s management team is in the process of proactively identifying further measures to provide an additional buffer against short-term volatility,” said the company in its statement, referring to the fall in demand in the country.



The group, which is also <a href="https://www.cnbcafrica.com/earnings/2020/03/17/sasol-plans-2bn-rights-issue/">facing high debt levels and falling oil and chemical prices</a>, said it has decided to suspend production at its inland crude oil refinery Natref from April 9.



“A decision was also made by Sasol to reduce daily production rates at our Secunda Synfuels Operations (SSO) by approximately 25%,” it said.



A further reduction in rates may be required depending on further developments in the fuels market, the company added.



However, Sasol said despite the suspension of output at the Natref refinery and lower production rates at SSO, the country’s current demand for fuels and chemicals, including sanitisers, will be met.



It had said on March 31 that its full-year results could be hit by potential disruptions to production, supply chains and construction as the coronavirus continued to spread across the world.



(Reporting by Promit Mukherjee; Editing by Jan Harvey)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKBN21Q0WO-OZABS">https://af.reuters.com/article/investingNews/idAFKBN21Q0WO-OZABS</a> and is republished with its permission.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

South Africa’s Sasol cuts production, sales target due to COVID-19 lockdown

Amid the global COVID-19 pandemic and 21-day lockdown faced by South Africans, First National Bank has announced <a href="https://www.cnbcafrica.com/videos/2020/04/03/sas-banks-reveal-how-small-businesses-can-apply-for-the-r1bn-oppenheimer-fund/">additional measures to assist small and medium-sized enterprises</a> battling with funding in the country.



In addition to the implementation of financial relief systems for individual and business customers, FNB has expressed commitment towards assisting SMEs through, “alternative funding support, critical business support resources, links to various government resources and private funding initiatives.”



The following is a statement on behalf of First National Bank:



FNB extends additional help to assist SMEs with alternative funding and resource support



6 April 2020 – In addition to the various COVID-19 measures implemented to provide relief to individual and business customers, FNB has further committed to helping small businesses with alternative funding support, critical business support resources, links to various government resources and private funding initiatives.



Given the various relief interventions needed by small businesses across different sectors, FNB has launched a portal under the “COVID-19 – For My Business” menu on the FNB App or Online Banking, where SME customers in need of help can register their requests for assistance.This will enable the bank to obtain information and present potentially relevant relief solutions.



“The first phase of alternative funding that we are excited to make available to SME customers via the portal is from the South African Future Trust (SAFT), a Public Benefit Organisation established by Nicky and Jonathan Oppenheimer to extend financial assistance to employees of South African SMMEs who are at risk of losing their jobs or will suffer a loss of income because of COVID-19,” says Jesse Weinberg, Head of the SME Customer Segment at FNB.



FNB has received a range of queries from SME customers on various topics from SMEs, from assisting them with cashflow relief on their existing credit and merchant services facilities with the bank, to general requests such as resources and guidance on obtaining alternative funding support for their businesses.&nbsp;



“Requests registered by SMEs through our portal will enable us to rapidly assess the situation and requests of these businesses to determine possible financial and non-financial assistance that could help them,” adds Weinberg.



A challenge for many small and medium-sized businesses is that they often have limited access to funding, whether in the form of bank credit or alternative sources. In times of an economic down-turn or crisis, these businesses are some of the most vulnerable as they generally have less access to liquidity to weather the storm than larger businesses.



FNB SMEs can register their interest to apply for the South African Future Trust (SAFT) funding by completing the SME assessment found under the “COVID-19 – For My Business” menu on the FNB App or FNB Online Banking.



SMEs who meet the following criteria could be eligible for the funding as determined by SAFT:



<ul><li>The business has an annual turnover below R25m</li><li>The business can clearly demonstrate the impact of COVID-19 on their operations; the business must have been in good financial health prior to 1 March 2020.</li><li>The business must have been trading for at least 24 months</li><li>Confirmation of permanent employment status of employee</li><li>The business must have its main bank account with FNB and be in good standing with the bank; demonstrated sound banking behaviour maintained a good credit history</li></ul>



For more information on SAFT visit <a href="https://secure-web.cisco.com/1s3rkD1cj8AGmG18fuJ2x_AyOubeXbdWvhiXPo8wZ_fmWLNsrU01mXeBoxjCwGmtfWv0_7G5MnIEPL_jXEIIIUVQ93d3CyIARz5pRNgDbia73tmakzFlkFJDMQmUIp81qp2Ws3DkUNZlwngU0dQCKCk85ggzzNgh1omemqUvK287zcye7g3WZf8AX8ROyIEsVmeJPFiiq58tRsXlTsTvwIzxaC5SYIJB9WSr4dJcgOMy0hJ-vC35u4l02Q7YJ5XHxP25MtZ9Fq-SW1y9D2B3bt0b9czIZr6VkYTK5dqRoViPNPfbPXoJMCSr7WDOAdJxxWL66c87g7X50OzKbZGyKog/https%3A%2F%2Fopp-gen.com%2Fsaft%2F">https://opp-gen.com/saft/</a>



“As announced in President Cyril Ramaphosa&#8217;s address to the nation, we have pledged R1bn to extend a financial lifeline to employees of South African Small, Medium, and Micro-sized Enterprises (“SMMEs”). Our aim is to mitigate the immediate economic impact of the COVID-19 crisis by keeping companies in business and protecting jobs, in order to fast-track South Africa’s economic recovery after this pandemic. Our response, in collaboration with the South African Government and private sector, is to create a structure that will extend direct financial support to SMME employees who are at risk of losing their jobs or will suffer a loss of income because of COVID-19,” said Nicky and Jonathan Oppenheimer.



“In much the same way as our SME clients are dealing with unprecedented uncertainty, we too realised we also needed a different approach to respond to the crisis and try extend help our SMEs in a more holistic way,” concludes Weinberg.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

Administrators propose sales plan for SA retailer Edcon, see potential job cuts

FNB extends aid for battling SMEs in South Africa amid COVID-19, lockdown

In a bid to help alleviate the impact of COVID-19 in South Africa, the Southern and Eastern African division of the multinational conglomerate, Siemens, has donated R500, 000 to the Solidarity Response Fund.



In addition, the company has partnered with Legae Larona, a fully black, female-owned enterprise based in Alexandra township, to manufacture and distribute 20, 000 face masks to communities in need.



The following is a statement on behalf of Siemens Southern and Eastern Africa:



Johannesburg, April 3, 2020



Siemens in solidarity with South Africa in its fight against the COVID-19 pandemic



<ul><li>Siemens commits R500&nbsp;000.00 to the Solidarity Response Fund to aid in the fight against coronavirus in South Africa</li><li>Siemens Plays a part in helping to ‘flatten the curve’ of Coronavirus</li><li>Siemens commits to manufacturing 20 000 face masks to help communities in need</li></ul>



Siemens has made a commitment of R500&nbsp;000.00 to support the government in alleviating the impact of the Coronavirus in South Africa.



This donation was made through the Solidarity Response Fund, which is an independently administered fund that allows individuals, companies and members of the international community to make tax-deductible donations that will help in the fight against the Coronavirus pandemic.



Sabine Dall’Omo, Siemens CEO for Southern and Eastern Africa says, “Siemens has a long-standing commitment to South Africa. Now, is a crucial time for companies to evaluate their place in society and make a difference, no matter how small. Our contribution to the Solidarity Response Fund cements Siemens’ promise to improving the lives of South Africans.



Furthermore, Siemens has partnered with Legae Larona, a 100% black, female-owned enterprise based in Alexandra township, to manufacture 20&nbsp;000 face masks that will be distributed to communities in need. This forms part of the company’s Enterprise and Supplier Development, for women and social contribution during the COVID-19 pandemic.



“Townships, such as Alexandra in Johannesburg are quite confined, this makes citizens in those communities more susceptible to the disease as it has a greater chance of spreading at a much faster pace,” says Sabine Dall’Omo.&nbsp;&nbsp;



She adds, “working alongside the South African government to not only assist in taking care of our most vulnerable communities, but to ultimately contribute to the fight against this virus and the betterment of the country is imperative in these trying times.” Sabine Dall’Omo echoes President Cyril Ramaphosa and says that everyone has a responsibility during this time, she urges everyone in the country to play their part in helping to ‘flatten the curve’ by staying at home.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

Siemens donates R500, 000 towards fight against COVID-19 in South Africa

By Irmgard Erasmus – Senior Financial Economist



Acutely aware of Ethiopia’s vulnerability to the health and
economic repercussions of the Covid-19 pandemic, Prime Minister Abiy Ahmed
urged “collective leadership and coordinated responses” to overcome the
challenges posed by the unprecedented shock. 



The Ethiopian leader has taken a dominant position in the campaign
for comprehensive stimulus packages and debt relief for the African continent,
stressing that “we are not prepared to overcome the virus on our health systems
and the long-term impact on our economies”. 



Echoing this concern, a consortium of African ministers of finance
emphasised in a communique dated April 1 that “urgent need” exists “for fiscal
stimulus to contain the crisis”.



On April 1, G20 leaders indicated that they are preparing a
response package for Africa that will include debt relief and financial aid.
The response package will incorporate “recent demands from President Cyril
Ramaphosa of South Africa and Prime Minister Abiy Ahmed of Ethiopia”, according
to Politico. 



This also came after the United Nations Economic Commission for
Africa (UNECA) again requested the “urgent and immediate release” of a $100bn
support package to aid domestic response actions in the fight against the
health and economic implications of the Covid-19 pandemic. 



While the ministers welcomed the IMF and World Bank’s call for
official bilateral creditors to “provide breathing space” to African countries,
the consortium believes that “such relief should be extended to countries
across the region and by other creditors during this exceptional period”. 



A comprehensive $100bn support package for Africa will be
formalised for discussion and presentation at the World Bank and IMF’s
stakeholders’ initiatives on April 15.



For the public sector, disbursements will be utilised for the
servicing of public sector debt and interest payments, including on sovereign
bonds, in order to create “immediate fiscal space and liquidity” for
governments to focus their attention on domestic fiscal stimulus needs amid the
crisis. 



The consortium proposes that the $44bn disbursement be pooled into
a global special purpose vehicle (SPV) to be used for external debt service
“for effective management purposes till economic recovery takes hold and
agreement can be reached with creditors”. The ministers stressed that this
measure would guard against default by countries. 



The ministers requested the IMF to raise Special Drawing Rights
(SDRs) availability over the next two to three years. The consortium believes
that it would service the debt relief SPV facility and provide crucial
liquidity support.



Ethiopia has already rescheduled debt servicing agreements with
“some major creditors”, which will alleviate hard currency liquidity demands.
By September 2019, public external debt stock stood at $26.8bn, or half of
total outstanding public debt. 



Public external debt comprised a 60:40 split between central
government and state-owned enterprises, according to official records. 



Public external debt servicing costs amounted to $548.4m during Q1
FY 2019/20 (the fiscal year commences on July 8), of which $457.2m was due to
SOE debt servicing. 



Ethiopia has been among the most vocal of African nations to
request debt waivers or debt relief – while African finance ministers called
for a $100bn stimulus package, Prime Minister Abiy Ahmed urged G20 members to
provide $150bn under a proposed three-point action plan. The disbursal should
take the form of supplementary budgetary support, debt relief, and private
sector financing, according to the proposal. 



The prime minister furthermore urged G20 nations to support the
World Health Organisation (WHO) and Africa Centres for Disease Control and
Prevention (CDC) in strengthening public health delivery and emergency
preparedness.



Cognisant of the fragility of the private sector, especially as
small- and medium-sized enterprises account for over 70% of the private sector
in Africa, the consortium stressed that liquidity relief should be extended in
particular to service and tourism sectors. 



African finance ministers requested support from the G20, EU, and
all Development Finance institutions to support a proposal aimed at the
refinancing, rescheduling, and implementation of guarantee schemes and
liquidity facilities for the private sector. 



In particular, African airline companies require preservation and
protection “given their significant contribution to the GDP of Africa”.
Ethiopian Airlines suspended flights to 80 destinations in light of the
pandemic. 



Demand for local flights, which are ongoing, dropped by at least
50% already. The airline estimates that it will lose at least $190m due to the
pandemic. 



The Ethiopian government has ordered the central bank to release
Etb15bn ($460m) to private banks as it ramped up its fight against the economic
spillover effects of the Covid-19 pandemic. The liquidity injection will enable
the banking sector to extend debt relief and additional loan facilities to
customers. 



This came in addition to instructions to avail foreign currency to
importers, with priority given to importers of essential goods or the
manufacturing of essential goods. 



In March, the World Bank granted a $500m grant and loan facility
(split evenly) to Ethiopia in support of its reform programme. 



The prime minister voiced his gratitude to “the generosity of the
Ethiopian people” as local stakeholders contributed generously to the National
Resource Mobilisation Committee initiative.



NKC African Economics’ preliminary GDP forecast suggests that
Ethiopia will be hit particularly hard by coronavirus-related disruptions. 



Absent comprehensive external support, a sharp slump in private
sector demand and investment momentum threatens an unprecedented plunge in
economic growth this year to 1.1% – down from a pre-virus forecast of 7.1%. 



Crucially, the pandemic threatens to disrupt progress made under
the reform agenda towards policy overhaul, broad-based privatisation of state
assets, financial liberalisation, and the launch of a domestic bourse. 



An uncomfortable reliance on grant relief amid strained domestic
fiscal capacity threatens to bloom into full-blown crisis in the absence of
comprehensive external financial support.

Lion_of_Judah,_Addis_Ababa,_Ethiopia

Op-Ed: Ethiopia – Abiy leads African appeal for relief actions

31 March 2020 



MEDIA STATEMENT 



MARY OPPENHEIMER AND DAUGHTERS TO GIVE R1.0 BILLION (ONE BILLION RAND) TO THE SOLIDARITY FUND IN THE FIGHT AGAINST COVID-19 IN SOUTH AFRICA



We join all South Africans in expressing our profound hope that, together, we can overcome this grave challenge to our country and to the world.



Under the wise leadership of President Cyril Ramaphosa, South Africans are following the government’s directives to prevent the spread of COVID-19. We realise, however, that until this pandemic passes, our country will experience enormous difficulties and hardships.



This unprecedented situation is placing strain on all our lives – but especially on our vulnerable communities, South Africans who struggle even in normal times to meet the basic needs of their families, to buy food and pay for medical and other necessities.



My daughters and I have thought long and hard about where we could make the greatest difference in this fight and have decided it is to support the humanitarian needs of everyone living in South Africa. So, we think that it is the Solidarity Fund which is most aligned to our concerns about basic needs, food, medicine, general care and gender abuse.



We are grateful for all the other efforts, small and large, that South Africans are making to help our country through this difficult time. We are especially proud of my brother, Nicky, and his family&#8217;s patriotism in launching a separate initiative, The South African Future Trust (SAFT), last week.



In addition, there are so many people to thank from all parts of our government and the private sector, who are providing essential services; and especially our healthcare workers – our hospitals&#8217; support staff, nurses and doctors – who are risking their lives to save everyone in South Africa most affected by COVID-19. 



We salute you.



MARY OPPENHEIMER &amp; VICTORIA FREUDENHEIM, REBECCA OPPENHEIMER, JESSICA JELL AND RACHEL DIAMOND



a. Mary Oppenheimer is the daughter of the late South African businessman and philanthropist Harry Oppenheimer. Her brother is Nicky Oppenheimer. 



b. The Solidarity Fund will make a separate announcement shortly, once this donation has reached the Fund. 



c. Media inquiries may be directed to the Mary Oppenheimer Daughters Family Office (MODO), email info@modaughters.com



END



For more coverage on COVID-19 visit:&nbsp;<a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

Mary Oppenheimer and daughters donate R1 billion to COVID-19 Solidarity Fund

By Piet Nel, SAICA
Project Director, Tax. 



Johannesburg, 30 March 2020 – The President of South Africa, Mr
Cyril Ramaphosa, recently announced a 21-day lockdown period from midnight on
Thursday, 26 March until midnight on Thursday, 16 April 2020 due to the
COVID-19 pandemic. 



The COVID-19
lockdown currently in place will have an impact on tax-related matters.&nbsp;
This includes contact with the South African Revenue Services (SARS), returns
and payments due to SARS, as well as disputes.&nbsp; It also has an impact on
employers and their employees.&nbsp; Whilst a lot of information was available
at the time of writing of this article, it is expected that more information
will be made available over the next couple of days.&nbsp; The following is
based on information that was available on 29 March 2020: 



Contact
with SARS during the period 



SARS advised
taxpayers and tax practitioners to use the online channels such as eFiling, the
SARS MobiApp and e@syFile to interact with SARS.&nbsp; SARS has provided
dedicated email addresses for this purpose on their website.&nbsp; 



It is
envisaged that visits to SARS offices are possible, but an appointment must be
made on the SARS website.&nbsp; Please remember the lockdown restrictions that
are in place when you are travelling to a SARS branch.&nbsp; Remember that
accountants and tax practitioners are not seen as the providers of essential
services.&nbsp; Special rules relating to Customs and border posts were made
available by SARS.&nbsp; 



Submission
of returns&nbsp; 



There is no
relief for the submission of tax returns.&nbsp; Taxpayers must therefore ensure
that returns are submitted on or before the due dates.&nbsp;&nbsp;&nbsp; 



Disputes 



According to a
notice from the Chairperson: Customs and Excise National Appeals, the days
during the period 27 March 2020 to 16 April 2020 will not be taken into account
in determining days or period for purposes of an appeal under the Customs
Act.&nbsp; 



SARS has not
given a similar notice for objections and appeals under the other tax
Acts.&nbsp; Where a taxpayer is unable to comply with a prescribed period
during which steps in the dispute process must be instituted due to the
lockdown, it would constitute exceptional circumstances.&nbsp; 



Payments 



Tax debt:



There is no
relief for the payment of assessed taxes and payment must be made on the due
date.&nbsp; In fact, SARS said that this is a critical period for SARS in terms
of revenue collections and now, more than ever, the country requires everyone
to pay their fair share.&nbsp; SARS requested that payments are made on time
and that COVID-19 uncertainty is not used as a reason for non-payment.&nbsp;
SARS may well continue with their collection procedures of tax debt.&nbsp; 



Where a
taxpayer is unable to make the payment, or can only do so partially, a request
for a deferred arrangement during the lockdown period must be sent to the
dedicated email addresses made available by SARS.&nbsp; 



Other
taxes:



In line with
the announcement by the President, SARS and National Treasury confirmed that
effective 1 April 2020, tax compliant businesses with a turnover of less than
R50 million will be allowed to delay paying a portion of their amounts due to
SARS.&nbsp; The details are as follows: 



Employees’
tax



With respect
to pay-as-you-earn (PAYE) liabilities, tax compliant business with a turnover
of less than R50 million can delay 20% thereof for a limited period of four
months, beginning 1 April 2020 and ending on 31 July 2020.&nbsp; The deferred
PAYE liability must be paid to SARS in equal instalments over the six-month
period commencing on 1 August 2020, i.e. the first payment must be made on 7
September 2020.&nbsp; There is no relief for the March payment due on 7 April
2020.&nbsp; 



Provisional
tax: 



Tax compliant
small- to medium-sized businesses will also be allowed to defer of a portion of
the payment of the first and second provisional tax liability to SARS, for a
period of twelve months, beginning 1 April 2020 and ending on 31 March 2021,
without SARS imposing administrative penalties and interest for the late
payment of the deferred amount.&nbsp; This means that the payment due 31 March
2020 must be made in full.&nbsp; 



The first
provisional tax payment due from 1 April 2020 to 30 September 2020 will be
based on 15% of the estimated total tax liability, while the second provisional
tax payment from 1 April 2020 to 31 March 2021 will be based on 65% of the
estimated total tax liability.&nbsp; Provisional taxpayers with deferred
payments will be required to pay the full tax liability when making the third
provisional tax payment in order to avoid interest charges.&nbsp; 



The proposed
amendments are deemed to have come into operation on 1 April 2020 and apply to
first provisional tax periods ending on or after 1 April 2020 but before 1
October 2020 and to second provisional tax periods ending on or after 1 April
2020 but before 1 April 2021.&nbsp; 



Employment
Tax Incentive (ETI): 



For the period
of four months, beginning 1 April 2020 and ending on 31 July 2020:



<ul><li>The maximum amount of ETI claimable during this four-month period for employees eligible will be increased from R1 000 to R1 500 in the first qualifying twelve months and from R500 to R1 000 in the second twelve qualifying months.  </li><li>Allowing a monthly ETI claim in the amount of R500 during this four-month period for employees from the ages of: <ul><li>18 to 29 who are no longer eligible for the ETI as the employer has claimed ETI in respect of those employees for 24 months; and </li><li>30 to 65 who are not eligible for the ETI due to their age.  </li></ul></li><li>Accelerating the payment of employment tax incentive reimbursements from twice a year to monthly as a means of getting cash into the hands of tax compliant employers as soon as possible.</li></ul>



This will,
however, only apply to employers that were registered with SARS as at 1 March
2020. Further to the above, the current compliance requirements for employers
under sections 8 and 10(4) of the ETI Act will continue to
apply.&nbsp;&nbsp;&nbsp; 



Unemployment
Insurance 



The President
also said that government is exploring the temporary reduction of employer and
employee contributions to the Unemployment Insurance Fund and employer
contributions to the Skill Development Fund.&nbsp; The Unemployment Insurance
Commissioner has developed a Corona Virus Tem­porary
Employer-Employee Relief Scheme (COVID19TERS) to contribute to the containment
of the Coronavirus and its impact.



In terms of
the Temporary Employer/Employee Relief Scheme (TERS) process, the UIF may fund
the distressed companies directly in relation to the TERS Allowance. The
benefits paid will be capped at a 38% to 60% of the maximum of R17 712 per
month and the employee will be paid in terms of the income replacement rate
sliding scale as provided in the Unemployment Insurance Act.&nbsp; The minimum
that will be paid will be a replacement income equal to minimum wage of the
sector concerned.&nbsp; 



Where an
employer, as a direct result from the current COVID-19 pandemic, decided to
close their business for a period and send employees home, this would
constitute a temporary lay-off. If the employer cannot pay his employees for
this period, the employer can apply for the “National Disaster Benefit” from
the UIF.&nbsp; 



Where an
employee has been quarantined for 14 days or longer, the Illness Benefit will
apply.&nbsp; Existing benefits for illness and unemployment will kick in if no
leave is granted.&nbsp; 



Should a UIF
contributor pass on from COVID-19, death benefits will be paid to the
beneficiaries of the deceased.&nbsp; 



Employers
should apply by reporting their closure to the email address: <a href="mailto:Covid19ters@labour.gov.za">Covid19ters@labour.gov.za</a>.&nbsp; 



Value-Added
Tax



SARS announced
that, due to the measures put in place under the Disaster Management Act 57 of
2002, “essential goods” as defined in Regulation R.398 in Government
Gazette No 43148 of 25 March 2020 will be subject to a VAT exemption and a full
rebate of customs duties during the COVID-19 pandemic.&nbsp; 



The
VAT-rulings department at SARS announced that work on rulings in progress will
be delayed. Any correspondence, including new ruling applications submitted to
SARS from 27 March 2020, will be acknowledged or responded to once the
aforementioned measures have been relaxed or ended.



Conclusion 



Employers,
employees, taxpayers and tax practitioners are advised to regularly check the
SARS website for updates on the issues.&nbsp; SARS indicated that it would make
information available to recognised professional bodies to be communicated to
tax practitioners.&nbsp; 



[End]



About SAICA



The South African Institute of Chartered Accountants (SAICA), South
Africa’s pre-eminent accountancy body, is widely recognised as one of the
world’s leading accounting institutes. The Institute provides a wide range of
support services to more than 50 000 members and associates who are chartered
accountants [CAs(SA)], as well as AGAs(SA) and ATs(SA), who hold positions as
CEOs, MDs, board directors, business owners, chief financial officers, auditors
and leaders in every sphere of commerce and industry, and who play a
significant role in the nation’s highly dynamic business sector and economic
development.



SAICA Media Contact



Kulani
Chauke



Communication
Coordinator: Corporate



SAICA Brand
Division 



011 479 0698



<a href="mailto:kulanic@saica.co.za">kulanic@saica.co.za</a>



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

The impact of COVID-19 lockdown on tax and unemployment related matters

Statement by National Treasury (South Africa)



The Minister of Finance has announced the following exceptional tax measures as part of the fiscal package outlined by President Cyril Ramaphosa on 23 March 2020 in his speech on the Escalation of Measures to Combat COVID-19. These measures are over and above the tax proposals made in the 2020 Budget on 26 February 2020. The tax adjustments are made in light of the National State of Disaster and due to the significant and potentially lasting negative impacts on the economy from the spreading of the COVID-19 virus. There is a critical need for government interventions to assist with job retention and assist businesses that may be experiencing significant distress. These measures include: 



<ul><li>The introduction of a tax subsidy to employers of up to R500 per month for the next four months for those private sector employees earning below R6,500 under the Employment Tax Incentive. This will help over 4 million workers; </li><li>The South African Revenue Service to accelerate the payment of employment tax incentive reimbursements from twice a year to monthly to get cash into the hands of compliant employers as soon as possible; </li><li>Tax compliant businesses with a turnover of R50 million or less will be allowed to delay 20% of their employees’ tax liabilities over the next four months and a portion of their provisional corporate income tax payments without penalties or interest over the next six months. This intervention is expected to assist 75 000 small and medium term enterprises. </li></ul>



 For more coverage on COVID-19 visit:&nbsp;<a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a> 



National Treasury and SARS today publish draft explanatory notes detailing these COVID-19 tax measures as well as the circumstances under which they will apply. The measures will take effect from 1 April 2020. 



The above measures will be given legal effect in terms of two bills to be tabled when Parliament re-convenes later this year for retrospective enactment. These bills are the Disaster Management Tax Relief Bill and the Disaster Management Tax Relief Administration Bill. The draft bills alongside their draft explanatory memorandum, will be published for public comment on the National Treasury and SARS websites by 1 April 2020. 



Together with the Commissioner of SARS, National Treasury will also be considering additional exceptional adjustments to assist with COVID-19 relief efforts and to the tax treatment of newly formed funds in this regard. 



The draft explanatory notes regarding the COVID-19 tax measures can be found on the National Treasury (www.treasury.gov.za) and SARS (www.sars.gov.za) websites. Comments on the draft explanatory notes can be made to 2020AnnexCProp@treasury.gov.za.

ArcelorMittal South Africa fined R3.64 million over hydrogen sulfide emissions

COVID-19: SA’s Treasury reveals new tax relief measures

On Monday South Africa&#8217;s President, Cyril Ramaphosa revealed that South Africa&#8217;s <a href="https://www.cnbcafrica.com/special-report/2020/02/21/the-forbes-billionaires-list-africas-billionaires-2020/">richest families</a> the <a href="https://www.cnbcafrica.com/news/2020/03/23/covid-19-sa-under-nationwide-lockdown-from-thursday-midnight/">Rupert and Oppenheimer families had each contributed R1 billion</a> to assist small businesses and their employees affected by the coronavirus pandemic. Today the Motsepe family has contributed R1 billion ($57mn). See full statement below&#8230; 



 READ: <a href="https://www.cnbcafrica.com/coronavirus/2020/03/28/tony-elumelus-united-bank-for-africa-donates-14mn-to-covid-19-relief-across-africa-this-is-how-it-will-be-used/">Tony Elumelu’s United Bank For Africa donates $14mn to COVID-19 relief across Africa, this is how it will be used…</a> 



READ: <a href="https://www.cnbcafrica.com/coronavirus/2020/03/28/abdul-samad-rabius-bua-group-pledges-n1bn-to-fight-covid-19-in-nigeria/">Abdul Samad Rabiu’s BUA Group pledges N1bn to fight COVID-19 in Nigeria </a>



The Motsepe Family in partnership with companies and organisations that they are associated with, have pledged R1 billion to assist with the current Coronavirus (COVID-19) pandemic and its related challenges that are confronting South Africa and the African Continent. 



These companies and organisations are:  Motsepe Foundation  Sanlam  African Rainbow Capital (ARC)  African Rainbow Minerals (ARM)  and others 



The Founder and Chairman of the Motsepe Foundation, Dr Patrice Motsepe said: “Several hundred million rands will immediately be made available with the primary objective of saving lives and slowing and restraining the spread of the Coronavirus. We are purchasing sanitisers, disinfectants, Personal Protective Equipment (PPE) and are in discussions with Government, health workers and other stakeholders to assist with acquiring other equipment and making resources available which are essential for dealing with the Coronavirus pandemic. We’ve been advised that access to water for regularly washing hands is crucial for slowing and limiting the spread of the Coronavirus. We are therefore providing water to poor rural and urban communities by purchasing water tanks (jojos), drilling and equipping for borehole water and also building sanitary facilities. The current lockdown has an impact on the goods, equipment and services that can be purchased immediately and the goods and services which can be provided when the lockdown has been terminated. Our short to medium term interventions include building additional classrooms, computer centers and laboratories in all the 9 provinces of South Africa to assist with the excessively high number of students per classroom in some schools; particularly in the context of the current Coronavirus pandemic and the social distancing requirements. 



For more coverage on COVID-19 visit:&nbsp;<a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a> Those schools in the poor rural and urban areas which do not have internet access or facilities will be assisted with study guides, scientific calculators, dictionaries and other educational equipment and facilities identified in consultation with the Department of Basic Education, school principals and teachers. Poor and underdeveloped communities are ill-prepared to deal with the serious challenges and consequences of the Coronavirus pandemic and are in dire need of our assistance and contributions. We are committed to contribute to the provision of quality education, infrastructure and other facilities to better prepare and equip them to deal with future pandemics or catastrophes.” 



We will be working in partnership with:  traditional leaders, kings, queens and their communities that we have been working with for the past 20 years;  the 34 Religious and Faith-Based organisations that participate in the annual Motsepe Foundation National Day of Prayer;  National, Provincial and Local Government authorities;  Trade Union and other Worker Representative organisations;  NGOs and other local community representative organisations;  sport organisations and entities;  local, provincial and national business and professional organisations;  black and white farmers and their representative organisations; and  other organisations or structures that can assist or partner with us in dealing with the current Coronavirus pandemic. 



The CEO of Sanlam Ian Kirk said: “Sanlam has a rich history of always putting our people, our clients and our country first; hence our mantra of ‘Doing well, by doing Good’. Today, we’re proud of the partnership with the Motsepe Family and its associated companies. We believe these efforts will make a meaningful contribution not only towards fighting the Coronavirus, but also in developing the long-term sustainability of South Africans, particularly in poor and rural areas. Periods of profound uncertainty like these call for us to come together to support all the prudent actions that contain the scourge of this virus and its impact on our already fragile economy.” 



The CEO of ARC Dr Johan van Zyl said: “As a nation we are in unchartered waters in terms of the scale and danger that the COVID19 pandemic presents to South Africans. It is now time for each and everyone of us to demonstrate leadership and help. ARC is a fairly young company with limited financial resources. Yet, it remains important that we make a contribution. In this regard we are partnering with companies and organisations with which we have common interests and share common values to ensure that the positive impact we aim to make is felt.” We have been in contact with various Ministers and MECs and will also be in contact with the Government’s Coronavirus Solidarity Fund to identify specific initiatives and projects where we can partner and work together. There may be upliftment and developmental undertakings where they are better positioned than we are, in which case we may fund or donate with them on a particular project or partnership. 



We want to thank Government for their leadership and cooperation including health workers, police, soldiers, as well as Religious and Faith-Based organisations, traditional leaders, trade union and other worker representative organisations, NGOs and other rural and urban organisations. We also want to thank business and in particular the Rupert and Oppenheimer families, the employees, boards and stakeholders of the companies that the Motsepe Family is associated with, for their assistance and contributions in dealing with the current Coronavirus pandemic. 



South Africans have a history of uniting and working together when confronted with major and enormous challenges. We are confident that South Africa will in the medium to long term overcome the life-threatening and economic challenges caused by the Coronavirus pandemic and continue to build a bright and inclusive future for the people of South Africa and the African continent.

Global Industry Outlook 1: Patrice T. Motsepe

Motsepe family & associates join Rupert and Oppenheimer families in donating R1bn to deal with COVID-19 pandemic

JOHANNESBURG (Reuters) &#8211; Cases of coronavirus in South Africa passed 1,000 on Friday, the health ministry said, while also reporting its first two deaths on the first day of a three-week, nationwide lockdown. 



South African President Cyril Ramaphosa announced the lockdown, which saw Africa’s most industrialised economy largely shudder to a halt overnight, earlier this week. 



“This morning, we South Africans wake up with sad news that we now have our first deaths resulting from COVID-19,” the health ministry said in a statement, adding cases had risen to more than 1,000, from 927 on Thursday. 



Both deaths had occurred in the southernmost province of Western Cape, with one in a public hospital and the other in a private hospital, the statement read. 



The 21-day lockdown came into force at midnight on Thursday, and largely confines people to their homes aside from specific purposes like buying food or for health emergencies. 



However, local media on Friday morning showed pictures of bustling streets and long queues outside supermarkets in poor townships &#8211; where cramped, squalid conditions make social distancing near impossible, and mean the virus could spread quickly among people reliant on an ailing public health system. 



(Reporting by Emma Rumney; Editing by Tim Cocks)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/topNews/idAFKBN21E0YX-OZATP">https://af.reuters.com/article/topNews/idAFKBN21E0YX-OZATP</a> and is republished with its permission.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

S.Africa COVID-19 cases exceed 1,000, first two dead reported

By Graham Viljoen, Nina Keyser, Shirleen Ritchie, Yashika
Govind, Lumen Moolman and Bianca de Klerk from Webber Wentzel



The address by President Cyril
Ramaphosa on Monday, 23 March 2020, set out certain fiscal relief measures to help
small and medium enterprises (SMEs)
and vulnerable firms mitigate cash flow constraints as a consequence of the COVID-19
outbreak. Certain of these measures will be implemented through the tax system
and aim to use the tax system as a means of easing the liquidity constraints
currently faced by businesses. Specific detail on these measures will be published
by National Treasury in the coming days.&nbsp;
We provide a summary of the tax proposals set out in the address by the
President below.



Support for businesses:



<ul><li>Pay as you earn</li></ul>



SMEs with a turnover of less than ZAR50&nbsp;million‑



<ul><li>may defer 20% of their prospective pay-as-you-earn (PAYE) liabilities over the next four months; and </li><li>may defer a portion of their provisional corporate income tax payments without penalties or interest over the next six months.  </li></ul>



The deferral of provisional tax
payments should apply to the first and second provisional tax payments as well
as potentially the third top-up payment. &nbsp;



In order to qualify for these
deferrals, the enterprise must be fully tax compliant. &nbsp;Enterprises can check their tax compliance status
via SARS eFiling. &nbsp;We look forward to
additional clarity around whether an application will need to be submitted to
SARS or whether the relief applies automatically.



Support for employers and employees:



<ul><li>Employee Tax Incentive</li></ul>



Government has proposed an additional
tax subsidy in the amount of up to ZAR500 per month for the next four months
per qualifying employee in the private sector.&nbsp;




The employment tax incentive (ETI) is
paid to employers who employ qualifying employees (including the youth) and is
considered a labour cost sharing mechanism between government and the private
sector to incentivise employment.&nbsp; The
existing ETI is aimed at supporting qualifying employees who earn below ZAR6&nbsp;500
per month on a sliding scale based on salary where the employer is registered for
Employees Tax.&nbsp; 



The employer is entitled to reduce the
total amount of its PAYE liability by setting off the ETI amount calculated in
respect of that month.&nbsp; Where there is no
PAYE to set off against the ETI amount, the employer will be entitled to a
reimbursement of the total ETI amount available as at the end of each PAYE
reconciliation period.



A further proposal aims at reducing the
reimbursement period to a monthly period.



<ul><li>Compensation Fund</li></ul>



Any employee who falls ill pursuant to exposure
to Covid-19 at work will be entitled to claim from the Compensation Fund.&nbsp; Broadly speaking, claimants are required to
include such compensation in their gross income for tax purposes.&nbsp; The amount is, however, exempt from normal tax
in accordance with section 10(1)(gB) of the Income Tax Act. 



<ul><li>UIF – Temporary Employee Relief Scheme</li></ul>



Government proposes utilising the
Temporary Employee Relief Scheme (TERS)
to enable companies to pay employees and avoid retrenchments.&nbsp; TERS was launched in December 2019 and is
aimed at assisting businesses who face temporary constraints that will result
in retrenchments.&nbsp; The allowance will be
in the form of a wage payment directly to employees. 



This should support SMEs and other
vulnerable firms who are faced with a loss of income to provide support to
workers. &nbsp;



<ul><li>UIF and SDL</li></ul>



Government is investigating a reduction
in employer and employee contributions to the Unemployment Insurance Fund and a
reduction in Skills Development Levies. 



The proposal entails using actuarial
reserves in the Unemployment Insurance Fund to support workers of SMEs and
vulnerable firms who are faced with loss of income and whose employers cannot
provide support.&nbsp; 



The relief outlined by the President to aid SMEs and vulnerable firms and employees during this time is welcomed. We will provide an update as more detail becomes available.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

Tax relief proposed by the President – image LR

Covid-19: Tax relief proposed by the President

JOHANNESBURG (Reuters) &#8211; South African President Cyril Ramaphosa has tested negative for coronavirus, the presidency said in a statement on Thursday. 



“The president submitted for testing as a precautionary measure upon the advice of physicians on Tuesday 24th March 2020 and received his results last night,” the statement said, adding he had held meetings with a variety of people in recent weeks. 



(Reporting by Emma Rumney; Editing by Alison Williams)



This article was first published on Reuters Africa <a href="https://www.reuters.com/article/us-health-coronavirus-safrica-president-idUSKBN21D0X5">https://www.reuters.com/article/us-health-coronavirus-safrica-president-idUSKBN21D0X5</a> and is republished with its permission.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

Ramaphosa tests negative for coronavirus as South Africa to begin lockdown

CR-lockdown

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As South Africans enter into the reality of working and living from their homes for the next 21 days, President Cyril Ramaphosa and Brand SA are urging people to play their part in the fight against the COVID-19 outbreak in the country, joining CNBC Africa for more on regaining brand South Africa in light of Covid-19 is the Acting CEO of Brand South Africa, Thulisile Manzini.

How the Spirit of Ubuntu can help SA fight COVID-19

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While most companies prepare to go on lock-down at midnight tomorrow – the JSE will continue, business as usual. Africa’s largest exchange was recognised as an essential service exempt from the three week lock-down by the country’s President Cyril Ramaphosa. Joining CNBC Africa for more is Leila Fourie, CEO, JSE.

Africa’s largest exchange to remain open during lock-down

JOHANNESBURG &#8211; South Africa’s rand rose against the dollar on Tuesday, boosted by the promise of unlimited dollar funding from the U.S. Federal Reserve, which helped sentiment globally, even as an impending 21-day lockdown threatened the local economy.



At 0832 GMT, the rand traded at 17.7200 to the dollar, 0.73% stronger than its previous close. Stocks also rose. 



President Cyril Ramaphosa announced on Monday that South Africa would shut down for three weeks from Thursday in a bid to contain the coronavirus, joining a number of economies around the world taking drastic measures not usually seen in peacetime. 



While likely to have huge consequences for an economy that had already tipped into recession in the final quarter of last year, the measures were widely praised as the decisive, harsh action needed to contain the outbreak. 



The rand did not react to this announcement, Peregrine Treasury Solutions said in a note. The currency is usually led by global factors, and markets around the world were on Tuesday benefiting from an uptick in sentiment following the announcement of a package of extraordinary measures from the Fed. 



Peregrine said however that the rand would likely remain on the back foot. 



“The prospects for an already struggling local economy are now even more bleak, as all businesses except for essential services and goods are to be halted,” it said. 



The Johannesburg Stock Exchange’s Top-40 index was up around 4.5%, with the broader all-share index also rising by just shy of 4%. 



Miners were the biggest winners on the blue-chip index, with the likes of Sibanye-Stillwater, BHP Global and Anglo American Platinum enjoying rises of 13%, 10.9% and 9.9% as prices of commodities like oil, platinum and gold rose. 



But consumer-focused firms likely to be affected by the lockdown suffered. 



Bonds also took a tumble, with the yield on the benchmark instrument due in 2030 gaining 91 basis points to 13.215%. 



(Reporting by Emma Rumney; editing by Nick Macfie)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKBN21B157-OZABS">https://af.reuters.com/article/investingNews/idAFKBN21B157-OZABS</a> and is republished with its permission.

S.Africa’s rand rises on Fed support even as lockdown looms

JOHANNESBURG (Reuters) &#8211; South Africa’s confirmed number of coronavirus cases rose to 554 on Tuesday from 402 a day earlier, as businesses raced to make plans for a nationwide lockdown from midnight on Thursday.



President Cyril Ramaphosa announced the 21-day lockdown in an address to the nation on Monday, saying Africa’s most advanced economy needed to escalate its response to curb the spread of the outbreak. 



South Africa has the highest number of confirmed coronavirus cases in sub-Saharan Africa, and public health experts are worried that the virus could overwhelm the health system if infection rates rise steeply. 



Health officials are working to expand the country’s coronavirus testing capacity and develop a plan to ensure there are enough intensive care beds with respirators. 



“The numbers, we mustn’t be shocked when we see them increase. But these measures if we all work together must turn the curve around,” Health Minister Zweli Mkhize told a televised news conference, saying South Africa could reach an inflection point in its infection curve two or three weeks after its lockdown restrictions enter into force. 



Two patients are in intensive care, but there have been no deaths from coronavirus in the country, Mkhize said. 



Agriculture Minister Thoko Didiza said the government had taken steps to ensure the lockdown would not affect food security. 



“There is no need to embark on panic-buying, the country has enough food supplies,” Didiza said, adding the government would be monitoring food retailers to ensure sellers do not inflate prices.



Aviation company Comair, a franchise partner of British Airways (BA), said it was suspending all flights it operates for BA and services on the kulula.com low-cost airline from Thursday until April 19. 



Tsogo Sun Gaming said its casinos and bingo sites would be closed by Wednesday. 



A bargaining council for the clothing manufacturing industry said it had reached a collective agreement for guaranteed pay for 80,000 workers for six weeks. 



(Reporting by Alexander Winning, Olivia Kumwenda-Mtambo and Emma Rumney; editing by Barbara Lewis)



This article was first published on Reuters Africa <a href="https://www.reuters.com/article/us-health-coronavirus-safrica-idUSKBN21B17D">https://www.reuters.com/article/us-health-coronavirus-safrica-idUSKBN21B17D</a> and is republished with its permission.

South Africa’s coronavirus cases reach 554, country braces for lockdown

STATEMENT BY PRESIDENT CYRIL RAMAPHOSA ON
ESCALATION OF MEASURES TO COMBAT COVID-19 EPIDEMIC



UNION BUILDINGS, TSHWANE



23 MARCH 2020



My fellow South Africans, 



It is a week since we
declared the coronavirus pandemic a national disaster and announced a package
of extraordinary measures to combat this grave public health emergency.



The response of the South
African people to this crisis has been remarkable.



Millions of our people have
understood the gravity of the situation.



Most South Africans have
accepted the restrictions that have been placed on their lives and have taken
responsibility for changing their behaviour.



I am heartened that every
sector of society has been mobilised and has accepted the role that it needs to
play.



From religious leaders to
sporting associations, from political parties to business people, from trade
unions to traditional leaders, from NGOs to public servants, every part of our
society has come forward to confront this challenge.



Many have had to make
difficult choices and sacrifices, but all have been determined that these
choices and sacrifices are absolutely necessary if our country is to emerge
stronger from this disaster.



Over the past week, South
Africans have demonstrated their determination, their sense of purpose, their
sense of community and their sense of responsibility.



For this, we salute you and
we thank you.



On behalf of the nation, I
would also like to thank the health workers, our doctors, nurses and paramedics
who are on the frontline of the pandemic, our teachers, border officials,
police and traffic officers and all the other people who have been leading our
response.



Since the national state of
disaster was declared, we have put in place a range of regulations and
directives.



These regulations have
restricted international travel, prohibited gatherings of more than 100 people,
closed schools and other educational institutions and restricted the sale of
alcohol after 6pm.



We reiterate that the most
effective way to prevent infection is through basic changes in individual
behaviour and hygiene.



We are therefore once more
calling on everyone to: 



<ul><li>wash hands frequently with hand
sanitisers or soap and water for at least 20 seconds;</li></ul>



<ul><li>cover our nose and mouth when
coughing and sneezing with tissue or flexed elbow;</li></ul>



<ul><li>avoid close contact with anyone with
cold or flu-like symptoms.</li></ul>



Everyone must do everything
within their means to avoid contact with other people.



Staying at home, avoiding
public places and cancelling all social activities is the preferred best
defence against the virus.



Over the past week, as we
have been implementing these measures, the global crisis has deepened.



When I addressed the nation
last Sunday there were over 160,000 confirmed COVID-19 cases worldwide.



Today, there are over
340,000 confirmed cases across the world.



In South Africa, the number
of confirmed cases has increased six-fold in just eight days from 61 cases to
402 cases.



This number will continue
to rise.



It is clear from the
development of the disease in other countries and from our own modelling that
immediate, swift and extraordinary action is required if we are to prevent a
human catastrophe of enormous proportions in our country.



Our fundamental task at
this moment is to contain the spread of the disease.



I am concerned that a rapid
rise in infections will stretch our health services beyond what we can manage
and many people will not be able to access the care they need.



We must therefore do
everything within our means to reduce the overall number of infections and to
delay the spread of infection over a longer period – what is known as
flattening the curve of infections.



It is essential that every
person in this country adheres strictly – and without exception – to the
regulations that have already been put in place and to the measures that I am
going to announce this evening.



Our analysis of the
progress of the epidemic informs us that we need to urgently and dramatically
escalate our response.



The next few days are
crucial.



Without decisive action,
the number of people infected will rapidly increase from a few hundred to tens
of thousands, and within a few weeks to hundreds of thousands.



This is extremely dangerous
for a population like ours, with a large number of people with suppressed
immunity because of HIV and TB, and high levels of poverty and malnutrition.



We have learnt a great deal
from the experiences of other countries.



Those countries that have
acted swiftly and dramatically have been far more effective in controlling the
spread of the disease.



As a consequence, the
National Coronavirus Command Council has decided to enforce a nation-wide
lockdown for 21 days with effect from midnight on Thursday 26 March.



This is a decisive measure
to save millions of South Africans from infection and save the lives of
hundreds of thousands of people.



While this measure will
have a considerable impact on people’s livelihoods, on the life of our society
and on our economy, the human cost of delaying this action would be far, far
greater.



The nation-wide lockdown
will be enacted in terms of the Disaster Management Act and will entail the
following:



<ul><li>From midnight on Thursday 26 March
until midnight on Thursday 16 April, all South Africans will have to stay at
home.</li></ul>



<ul><li>The categories of people who will be
exempted from this lockdown are the following: health workers in the public and
private sectors, emergency personnel, those in security services – such as the
police, traffic officers, military medical personnel, soldiers – and other persons necessary for our
response to the pandemic.</li></ul>



It will also include those involved in the production,
distribution and supply of food and basic goods, essential banking services,
the maintenance of power, water and telecommunications services, laboratory
services, and the provision of medical and hygiene products. A full list of
essential personnel will be published.



<ul><li>Individuals will not be allowed to
leave their homes except under strictly controlled circumstances, such as to
seek medical care, buy food, medicine and other supplies or collect a social
grant.</li></ul>



<ul><li>Temporary shelters that meet the
necessary hygiene standards will be identified for homeless people. Sites are
also being identified for quarantine and self-isolation for people who cannot
self-isolate at home.</li></ul>



<ul><li>All shops and businesses will be
closed, except for pharmacies, laboratories, banks, essential financial and
payment services, including the JSE, supermarkets, petrol stations and health
care providers. </li></ul>



Companies that are essential to the production and
transportation of food, basic goods and medical supplies will remain open. 



We will publish a full list of the categories of businesses
that should remain open. 
 




Companies whose operations require continuous processes such
as furnaces, underground mine operations will be required to make arrangements
for care and maintenance to avoid damage to their continuous operations. 
 




Firms that are able to continue their operations remotely
should do so.



<ul><li>Provision will be made for essential
transport services to continue, including transport for essential staff and for
patients who need to be managed elsewhere.</li></ul>



The nation-wide lockdown is
necessary to fundamentally disrupt the chain of transmission across society.



I have accordingly directed
the South African National Defence Force be deployed to support the South
African Police Service in ensuring that the measures we are announcing are
implemented.



&nbsp;This nationwide lockdown will be accompanied
by a public health management programme which will significantly increase
screening, testing, contact tracing and medical management.



Community health teams will
focus on expanding screening and testing where people live, focusing first on
high density and high-risk areas.



To ensure that hospitals
are not overwhelmed, a system will be put in place for ‘centralised patient
management’ for severe cases and ‘decentralised primary care’ for mild cases.



Emergency water supplies –
using water storage tanks, water tankers, boreholes and communal standpipes –
are being provided to informal settlements and rural areas.



A number of additional
measures will be implemented with immediate effect to strengthen prevention
measures. Some of those measures are that:



<ul><li>South African citizens and residents
arriving from high-risk countries will automatically be placed under quarantine
for 14 days.</li></ul>



<ul><li>Non-South Africans arriving on
flights from high-risk countries we prohibited a week ago will be turned back.</li></ul>



<ul><li>International flights to Lanseria
Airport will be temporarily suspended.</li></ul>



<ul><li>International travellers who arrived
in South Africa after 9 March 2020 from high-risk countries will be confined to
their hotels until they have completed a 14-day period of quarantine.</li></ul>



Fellow South Africans,



Our country finds itself
confronted not only by a virus that has infected more than a quarter of a
million people across the globe, but also by the prospects of a very deep
economic recession that will cause businesses to close and many people to lose
their jobs.



Therefore, as we marshal our
every resource and our every energy to fight this epidemic, working together
with business, we are putting in place measures to mitigate the economic impact
both of this disease and of our economic response to it.



We are today announcing a set of interventions that will
help to cushion our society from these economic difficulties.



This is the first phase of the economic response, and
further measures are under consideration and will be deployed as needed.



These interventions are quick and targeted.



Firstly, we are supporting the
vulnerable.



<ul><li>Following consultation with social
partners, we have set up a Solidarity Fund, which South African businesses,
organisations and individuals, and members of the international community, can
contribute to. </li></ul>



The Fund will focus efforts to combat the spread of the
virus, help us to track the spread, care for those who are ill and support
those whose lives are disrupted. 



The Fund will complement what we are doing in the public
sector. 



I am pleased to announce that this Fund will be chaired by
Ms Gloria Serobe and the deputy Chairperson is Mr Adrian Enthoven. 



The Fund has a website – www.solidarityfund.co.za – and you
can begin to deposit monies into the account tonight. 



The Fund will be administered by a reputable team of people,
drawn from financial institutions, accounting firms and government. 



It will fully account for every cent contributed and will
publish the details on the website. 



It will have a board of eminent South Africans to ensure
proper governance. 



To get things moving, Government is providing seed capital
of R150 million and the private sector has already pledged to support this fund
with financial contributions in the coming period.&nbsp;&nbsp; 



We will be spending money to save lives and to support the
economy. 
 




In this regard, we must applaud the commitment made in this
time of crisis by the Rupert and Oppenheimer families of R1 billion each to
assist small businesses and their employees affected by the coronavirus
pandemic.



<ul><li>We
are concerned that there are a number of businesses that are selling certain
goods at excessively high prices. This cannot be allowed.</li></ul>



Regulations have been
put in place to prohibit unjustified price hikes, to ensure shops maintain
adequate stocks of basic goods and to prevent people from ‘panic buying’.



It is important for all
South Africans to understand that the supply of goods remains continuous and
supply chains remain intact.



Government has had
discussions with manufacturers and distributors of basic necessities, who have
indicated that there will be a continuous supply of these goods. There is
therefore no need for stockpiling of any items. 



<ul><li>A
safety net is being developed to support persons in the informal sector, where
most businesses will suffer as a result of this shutdown. More details will be
announced as soon as we have completed the work of assistance measures that
will be put in place.</li></ul>



<ul><li>To alleviate congestion at payment
points, old age pensions and disability grants will be available for collection
from 30 and 31 March 2020, while other categories of grants will be available
for collection from 01 April 2020.</li></ul>



All channels for access will remain open, including ATMs,
retail point of sale devices, Post Offices and cash pay points.



Secondly, we are going to
support people whose livelihoods will be affected.



<ul><li>We
are in consultation on a proposal for a special dispensation for companies that
are in distress because of COVID-19. Through this proposal employees will
receive wage payment through the Temporary Employee Relief Scheme, which will
enable companies to pay employees directly during this period and avoid
retrenchment.</li></ul>



<ul><li>Any
employee who falls ill through exposure at their workplace will be paid through
the Compensation Fund.</li></ul>



<ul><li>Commercial
banks have been exempted from provisions of the Competition Act to enable them
to develop common approaches to debt relief and other necessary measures.</li></ul>



We have met with all
the major banks and expect that most banks will put measures in place within
the next few days. 



<ul><li>Many
large companies that are currently closed have accepted their responsibility to
pay workers affected. We call on larger businesses in particular to take care
of their workers during this period.</li></ul>



<ul><li>In
the event that it becomes necessary, we will utilise the reserves within the
UIF system to extend support to those workers in SMEs and other vulnerable
firms who are faced with loss of income and whose companies are unable to
provide support. Details of these will be made available within the next few
days.</li></ul>



Thirdly, we are assisting
businesses that may be in distress.



<ul><li>Using
the tax system, we will provide a tax subsidy of up to R500 per month for the
next four months for those private sector employees earning below R6,500 under
the Employment Tax Incentive. This will help over 4 million workers. </li></ul>



<ul><li>The
South African Revenue Service will also work towards accelerating the payment
of employment tax incentive reimbursements from twice a year to monthly to get
cash into the hands of compliant employers as soon as possible.</li></ul>



<ul><li>Tax
compliant businesses with a turnover of less than R50 million will be allowed
to delay 20% of their pay-as-you-earn liabilities over the next four months and
a portion of their provisional corporate income tax payments without penalties
or interest over the next six months. This intervention is expected to assist
over 75 000 small and medium-term enterprises.</li></ul>



<ul><li>We
are exploring the temporary reduction of employer and employee contributions to
the Unemployment Insurance Fund and employer contributions to the Skill
Development Fund. </li></ul>



<ul><li>The
Department of Small Business Development has made over R500 million available
immediately to assist small and medium enterprises that are in distress through
a simplified application process. </li></ul>



<ul><li>The
Industrial Development Corporation has put a package together with the
Department of Trade, Industry and Competition of more than R3 billion for
industrial funding to address the situation of vulnerable firms and to
fast-track financing for companies critical to our efforts to fight the virus
and its economic impact.</li></ul>



<ul><li>The
Department of Tourism has made an additional R200 million available to assist
SMEs in the tourism and hospitality sector who are under particular stress due
to the new travel restrictions.</li></ul>



I want to make it clear
that we expect all South Africans to act in the interest of the South African
nation and not in their own selfish interests. 



We will therefore act very
strongly against any attempts at corruption and profiteering from this crisis. 



I have directed that
special units of the NPA be put together to act immediately and arrest those
against who we find evidence of corruption. 



We will work with the
judiciary to expedite cases against implicated persons and make sure the guilty
go to jail.



South Africa has a safe, sound, well-regulated and
resilient financial sector. 



Since the global financial crisis, we have taken steps to
strengthen the banking system, including increasing capital, improving
liquidity and reducing leverage. 



With a strong financial sector and deep and liquid
domestic capital markets, we have the space to provide support to the real
economy. 



We can make sure money flows to firms and households. 



We can ensure that our markets are efficient.



Last week, in line with its Constitutional mandate, the
South African Reserve Bank cut the repo rate by 100 basis point. This will
provide relief to consumers and businesses.&nbsp;




The South African Reserve Bank has also proactively
provided additional liquidity to the financial system.



The Governor has assured me that the Bank is ready to do
‘whatever it takes’ to ensure the financial sector operates well during this
pandemic.



The banking system will remain open, the JSE will continue
to function, the national payment system will continue to operate and the
Reserve Bank and the commercial banks will ensure that bank notes and coins
remain available.



The action we are taking now will have lasting economic
costs.



But we are convinced that the cost of not acting now would
be far greater.



We will prioritise the lives and livelihoods of our people
above all else, and will use all of the measures that are within our power to
protect them from the economic consequences of this pandemic.



In the days, weeks and
months ahead our resolve, our resourcefulness and our unity as a nation will be
tested as never before.



I call on all of us, one
and all, to play our part. 



To be courageous, to be
patient, and above all, to show compassion.



&nbsp;Let us never despair.



For we are a nation at one,
and we will surely prevail.&nbsp; 



May God protect our people.



Nkosi Sikelel&#8217; iAfrika.
Morena boloka setjhaba sa heso.



God seën Suid-Afrika. God
bless South Africa.



Mudzimu fhatutshedza
Afurika. Hosi katekisa Afrika.



I thank you.

FULL ADDRESS: Ramaphosa announces nationwide lockdown from Thursday midnight

JOHANNESBURG (Reuters) &#8211; South Africa’s Health Minister Zweli Mkhize said on Monday that the number of confirmed coronavirus cases had risen to 402, a jump of 128 since Sunday’s announcement that could worry public health experts concerned about the country’s readiness to deal with the epidemic. 



President Cyril Ramaphosa has declared a national state of disaster and imposed measures like travel bans to curb the spread of coronavirus. He is expected to address the nation later on Monday on new measures to mitigate the impact of the virus. 



(Reporting by Tanisha Heiberg; Editing by Alexander Winning)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/topNews/idAFKBN21A1U4-OZATP">https://af.reuters.com/article/topNews/idAFKBN21A1U4-OZATP</a> and is republished with its permission.

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