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Andy Duplessis, Managing Director, FoodFoward SA spoke to CNBC Africa about Ramaphosa’s R500bn COVID-19 stimulus package and that the aid reaches the intended beneficiaries.

FoodFoward SA feeding South Africa’s hungry amid COVID-19 crisis

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Last night South African President Cyril Ramaphosa announced a R500 billion economic recovery stimulus package as a national response to deal with the devastating impact of the Covid-19 pandemic on the country. Joining CNBC Africa to unpack this is Economist, Mike Schüssler.

COVID-19: How will SA fund its R500bn economic stimulus package?

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South Africa’s consumer price inflation slowed to 4.1 per cent year-on-year in March, from 4.6 per cent in February. The main contributors to the 4.1 per cent annual inflation rate were food, non-alcoholic beverages; housing and utilities. Joining CNBC Africa to unpack more is Patrick Kelly, Chief Director at Stats SA.

SA’s consumer inflation slows to 4.1% y/y in March – these were the main drivers

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Joining CNBC Africa to discuss the mix of global and local market news is Edgar Mafoko, Investment Portfolio Manager at FNB.

SA announces R500bn COVID-19 economic stimulus package

By Vuyani Ndaba



JOHANNESBURG (Reuters) &#8211; South Africa’s <a href="https://www.cnbcafrica.com/news/2020/04/15/poor-wealth-forecasts-for-south-africa-due-to-covid-19-sa-wealth-report/">economy will contract sharply this year</a> as activity is hit by the coronavirus outbreak, despite expectations the <a href="https://www.cnbcafrica.com/videos/2020/04/20/why-sarb-should-step-in-to-save-sa-companies-that-are-too-big-to-fail/">central bank</a> will cut interest rates again in May, a Reuters poll found on Monday.



The country is <a href="https://www.cnbcafrica.com/videos/2020/04/20/covid-19-martin-kingston-on-how-to-flatten-sas-recession-curve/">already in recession</a>, with the economy expected to have contracted 1.9% last quarter and to shrink an unprecedented 23% this quarter, the poll showed.



<a href="https://www.cnbcafrica.com/videos/2020/04/14/sarb-cuts-rates-by-100-basis-points-to-record-low/">Another rate cut from the central bank</a> &#8211; which cut 100 basis points from borrowing costs on March 19 and then again on April 14 &#8211; is expected to help the finance ministry, which has already ramped up borrowing.



Economists now expect the economy to shrink 4.9% this year before recovering with 2.0% growth next year. Last month’s survey had suggested 0.3% and 1.2% expansions, respectively.



The forecasts showed huge levels of uncertainty due to a <a href="https://www.cnbcafrica.com/coronavirus/2020/04/09/sa-extends-lockdown-by-two-weeks-until-end-april/">country-wide lockdown</a>. Even the most optimistic <a href="https://www.cnbcafrica.com/videos/2020/04/20/african-billionaire-christo-wiese-on-covid-19-crisis-and-its-impact-on-sas-economy/">economist forecast</a> a contraction of 1.0%, while the most pessimistic predicted a 14.6% contraction.



Base effects may play a role next year, with the most optimistic economist forecasting growth of 5.1%, but some respondents said the lockdown would make it costly and difficult to bring the economy back to normality.



With consumers staying home and global oil prices falling sharply, inflation forecasts were also cut. Prices are now expected to rise 3.8% this year and 4.5% in 2021, compared with 4.2% and 4.6% in a March poll.



That would give the South Africa Reserve Bank room to ease policy.



Nine of 15 economists polled in the past week expected interest rates to be cut by 50 basis points to 3.75% in May, while three said the Bank would cut by 25 basis points. Two expected no move, and one pencilled in a 100 basis-point cut.



“Given the scale of the SARB’s forecast revisions and that of its surprise rate cut, there is little doubt now that its hawkish reservations to cut rates have been lifted,” said Francesca Beausang, economist at Continuum Economics.



On April 14 the central bank slashed its repo rate by 100 basis points to 4.25% in an unscheduled meeting, similar to the U.S. Federal Reserve’s emergency cuts last month, to mitigate the impact of the coronavirus.



“It seems as though it is keen to cut more than any emerging markets bank to make up for its previous reservations,” Beausang added.



Meanwhile, the balance sheet of the South African Reserve Bank looks more healthy and counter-cyclical in dealing with exogenous shocks than that of the National Treasury.



Economists answering an extra question said South Africa asking for an <a href="https://www.cnbcafrica.com/news/2020/04/14/imf-approves-immediate-debt-relief-for-25-countries-amid-covid-19-crisis/">International Monetary Fund</a> rapid financing facility without conditions or the SARB increasing its purchase of bonds on the secondary market would be most effective in mitigating the country’s funding crisis during the lockdown.



Other measures favoured included the SARB issuing coronavirus or disaster bonds targeted exclusively for the lockdown period or issuing more shorter-maturity bonds.



Capital Economics said the chances of South Africa turning to the IMF were rising.



“Finance Minister Tito Mboweni ruled out the possibility of any multilateral support that comes with conditions. But the IMF’s Rapid Financing Instrument (RFI) or its new Short-Term Liquidity Line might fit the bill,” it said in a note.



The RFI provides rapid and low-access financial assistance to member countries facing an urgent balance of payments requirement, without the need to have a fully fledged programme in place.



Mboweni ruled out an IMF adjustment programme last week and said the country didn’t need budget support, despite acknowledging that there would be a deep recession this year because of the global COVID-19 pandemic.



Asking multilateral institutions, especially the IMF, for cash is deeply unpopular with a faction in the governing African National Congress and trade unions that the party uses to rally support before elections. The ANC and two allies warned Mboweni earlier this month against seeking IMF assistance.



(Additional polling by Khushboo Mittal in Bengaluru; Editing by Jonathan Cable and Hugh Lawson)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKBN2221Z2-OZABS">https://af.reuters.com/article/investingNews/idAFKBN2221Z2-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 African economy to shrink 4.9% in 2020, SARB to cut rates in May – Poll

By Chris Bishop



South African Billionaire Christo Wiese says he is an incurable optimist who believes his country will adapt to survive and rise above the COVID-19 outbreak that threatens to decimate its shaky economy. He also believes his struggling British High Street clothes stores will weather the storm.



Wiese also spoke of plans to announce his own relief fund – as many African billionaires have done- to feed the hungry rather than save small businesses.



“I think the most urgent need at the moment there are people going hungry. We forget that we have to keep small businesses going, we have to keep big businesses going,  but there are literally thousands of people who need a square meal a day. So, all of us will do things in a different way,” Wiese told CNBC Africa.  



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Wiese admitted in the interview that the COVID-19 was the biggest catastrophe he had seen in more than half a century of thick-and-thin in business.



“It is the worst I could have ever imagined. I mean if somebody had told me such a thing is possible, I would have disputed that.- I don’t think the world has seen anything like it is going through at the moment,” says Wiese.



“I am an incurable optimist and I believe that through this crisis that a lot of things may shake out correctly in a shorter space of time than they would otherwise have been. You know people talk about can the economy survive? &nbsp;I don’t know what they mean by that because there will be an economy when the dust has settled on this thing, so it is not a question of survival, but how we adapt…People are resilient, South Africans in particular, and we will adapt.”



Wiese also believes his struggling fashion store chain in the United Kingdom will weather the storm with the help of restructuring at the end of last year. He owns New Look fashion stories through his investment vehicle Brait and shut down a number of them &nbsp;as the High Street struggled. &nbsp;



“New Look has upped their game as far as e-commerce is concerned they have got their warehouses running so here and there people are managing to keep the ship afloat. People have been predicting the death of the High Street retailing in the UK for the last two or three years. I don’t think businesses just die like that, businesses do adapt and we have taken several initiatives in the last year with New Look in terms of a CVA (a cut down of store space and employees) to lessen the burden of leases and all those actions are being taken with a view to survive,” says Wiese.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;



CNBC Africa also asked Wiese about when the lockdown in South Africa should be lifted. “One of the many things that I am grateful for is that I am not the person who has to make that call. We are all by now fully informed about what the risks are and the downsides are and it is not a South African problem it is a global problem. It will be a very, very, tough call that has to be made but having said that I think people have learned a lot of lessons over the past few weeks and hopefully those lessons will be properly applied so we can start with gradual relaxations as you know people are talking all over the world, in the United States and the United Kingdom, and I just hope common sense will prevail,” says Wiese.

Billionaire Christo Wiese Interview

I’m an incurable optimist!  We will adapt to survive COVID-19 says African billionaire Wiese

By Victor Oladokun



Across Africa, affordable housing is in acute short supply. It is one of the reasons why lockdowns and social distancing during the COVID-19 pandemic are unimaginable and unsustainable. The pandemic is therefore a time bomb waiting to explode in Africa&#8217;s most densely populated informal settlements.



During this global lockdown, millions in the West will have the luxury of couch surfing through endless hours of Netflix or Tik Tok. But in Africa’s most congested and highly populated cities and slums, millions of families will be confined to less than 2 square meters of living space in unsanitary conditions. &nbsp;



What is urgently needed is a radical re-think.



Ticking Time Bombs



Slums and inhumane living conditions have been permanent fixtures of Africa&#8217;s urban landscapes for decades. The rapid growth of informal settlement is the result of a combination of factors. Accelerated urbanization, policy flip flops, the absence of adequate planning and foresight, the lack of infrastructure, low income levels, and the desperation of tens of thousands who arrive daily in pursuit of an even more elusive golden fleece.



In these epicenters of misery, millions of Africans, stripped of their dignity, live in appalling make-shift conditions with no hope of decent lives, nor access to water, sanitation and other basic necessities. The social and economic aberration runs deep. The slums exist on the periphery of more opulent and upscale neighbourhoods.



With a combined population of almost 50 million people, three of Africa&#8217;s megacities, Lagos, Cairo, and Kinshasa, are the continent&#8217;s most densely populated. Major centres of commercial activity, they attract the lion’s share of their respective country’s domestic and foreign investment. This is where the jobs are. And so, each day, millions of Africans travel commute for hours on crowded buses with poor ventilation, in order to engage in manual labour that barely covers the cost of transportation. &nbsp;



Face Me – I Face You



In Nigeria, with a population of 180 million people, and where I spent my formative years, millions are aware of what is known as ‘Face me &#8211; I Face You&#8217; dwellings. These are communal buildings with rooms that face one another divided only by a long corridor. In appalling cramped conditions, families occupy single rooms with shared toilet facilities and little or no access to water and sanitation.



Yet, residents in these living-hells are a notch higher on the social pecking order, for want of a better expression. At a level lower are the millions of day labourers who pay the equivalent of 20 cents or less a night for the &#8216;privilege&#8217; of laying their head for a few hours on a bare floor in a communal room with as many as 10-15 other grown men.&nbsp;



The short-term abodes are known as&nbsp;‘Taan lese’ or better still ‘Ta lo le se.”&nbsp; Translated from the Yoruba language, this means &#8220;Who&#8217;s leg is it?&#8221; The phrase aptly describes the packed sardine-like conditions in which the occupants spend the ‘night’, literally toe to toe.&nbsp;



They must rise early before dawn and make room for others who will occupy the same space during the day. For them and millions of &#8216;Face Me &#8211; I Face You&#8217; slum dwellers, these inhumane living conditions are death traps, one way or the other.



This week, as the long-term impact of the lockdown began to take effect in some countries, groups of young hungry men broke into supermarkets and homes in search of food.



Given the restrictions Covid-19 imposes and the lurking dangers ahead, short- and long-term solutions are urgently needed to decongest thousands of slums, improve the lives of millions of poor families, and stop the transmission of this and other future pandemics.



Africa and it’s Diaspora are not lacking in skills, imagination, creativity or talent. What is required are resources, partnerships, and cutting the red tape of bureaucracy and corruption.



Decongesting Africa&#8217;s Slums



Here are a few viable solutions.



<ul type="1"><li>The enactment of viable short-term emergency measures to house the most vulnerable during this pandemic, particularly the elderly, disabled, and those infected and recovering.</li></ul>



<ul><li>Urgent engagement with public, private sector and non-governmental partners to address and resolve immediate challenges. Working in conjunction with the private sector the innovative Africa Investment Forum, USAID, DFID, Germany&#8217;s KfW, the Japan International Cooperation Agency (JAICA), and Agence Française de Développement’s Proparco, are all excellent platforms for crowding in resources for housing development, healthcare facilities, water and sanitation.</li></ul>



<ul><li>Long-term plans including the conversion of low-level agricultural spaces and brown sites into residential areas. Also, the conversion of abandoned or under-utilised commercial buildings into housing units, will boost supplies. </li></ul>



<ul><li>Increased public spending on affordable housing would provide millions living in marginal communities with either free or heavily subsidised housing, electricity and water.</li></ul>



<ul><li>Incentives to attract private sector players into the housing construction business.</li></ul>



<ul><li>Decongesting urban areas and decentralising development by moving some government ministries and industries across provinces or states.</li></ul>



<ul><li>The promotion and creative use of sustainable materials to build affordable housing, instead of a primary reliance on steel and concrete.</li></ul>



<ul><li>Removing policies, processes and practices, that get in the way of eradicating slums and rent seeking slumlords.</li></ul>



Waiting: An illusive luxury



For the benefit of all and in the face of a virus that does not respect geographical boundaries, Africa&#8217;s leaders must urgently, creatively and radically address the chronic shortage of housing, water and sanitation, as well as the distribution of free masks.



Ultimately, a re-arrangement of national space, a reimagining of dwellings, a boom in the construction&nbsp;of housing, and the use of sustainable building materials, will have ripple multiplier effects. It will create jobs, enhance skills, improve qualities of life, reinvigorate local economies and incentivise the private sector.



We risk losing whole populations who have no defence against a ravaging pandemic.



Waiting is an illusive luxury. Time has run out!



&#8211; Victor Oladokun, is the former Director of Communication, African Development Bank Group



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

Op-Ed: Africa’s lockdown nightmare

Ghana lifts lockdown on key regions as COVID-19 cases reach 1,042

Ghana lifts lockdown on key regions as COVID-19 cases reach 1,042. shutterstock_422422516

A cabinet meeting, held via video conference and chaired by Rwandan President Paul Kagame, has resolved to extend the country’s existing <a href="https://www.cnbcafrica.com/east-africa/2020/04/15/rwandan-frank-nsonga-on-how-he-battled-covid-19-and-won/">COVID-19</a> lockdown for another eleven days, meaning it will now end on 30 April.



This is the second time the government has extended the <a href="https://www.cnbcafrica.com/east-africa/2020/04/09/im-bank-rwanda-reduces-interest-rates-by-0-5-to-cushion-customers-from-covid-19/">lockdown period</a>.



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



The following statement provides more details:



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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="743" height="1024" src="https://www.cnbcafrica.com/wp-content/uploads/2020/04/IMG-20200420-WA0001-1.jpg" alt="" class="wp-image-368470" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/04/IMG-20200420-WA0001-1.jpg 743w, https://cms.cnbcafrica.com/wp-content/uploads/2020/04/IMG-20200420-WA0001-1-218x300.jpg 218w, https://cms.cnbcafrica.com/wp-content/uploads/2020/04/IMG-20200420-WA0001-1-696x959.jpg 696w" sizes="(max-width: 743px) 100vw, 743px" /></figure>

Rwanda extends COVID-19 lockdown until 30 April

Rwanda extends COVID-19 lockdown until 30 April. shutterstock_520198060

Companies, which are registered through the Companies and Intellectual Property Commission&#8217;s (CIPC) BizPortal to perform essential services during <a href="https://www.cnbcafrica.com/videos/2020/04/09/the-economic-cost-of-covid-19-on-south-africa/">South Africa’s COVID-19 lockdown</a> period, are required to have a new certificate from the BizPortal website for the extended period, which begins on 17 April 2020.



For more details, read the statement below:



CIPC CERTIFICATION PROCESS FOR ESSENTIAL SERVICE BUSINESSES DURING EXTENDED LOCKDOWN



Companies, which are registered through the Companies and Intellectual Property Commission&#8217;s (CIPC) BizPortal to perform essential services during the lockdown period, will be required to have a new certificate from the BizPortal website for the extended period, which begins tomorrow 17 April 2020.&nbsp;



The certificate will be sent via email using the details provided at the time of registration, and will also be available for download from today. Companies will receive the certificates from today and the full list of registered companies will have received their certificates by the weekend.&nbsp;



The new certificate will clearly state that it is for the extended lockdown period, beginning 17 April 2020, and South African Police Service officials will be told which certificates to look for.&nbsp;



Certificates issued before today will no longer be valid and must be disposed of. To provide time for businesses to adjust to the new requirements, the new certificates will be available to be displayed from start of business on Monday, 20 April 2020.



The department reminds the public that possession of the CIPC certificate is still subject to the company fully complying with the applicable Lockdown Regulations and is a record of the company’s details, and does not in itself constitute the right to continue operating during the period.



Only businesses which provide essential services in terms of the Lockdown Regulations, as amended, issued by the Minister for Cooperative Governance and Traditional Affairs may continue their operations during the COVID-19 lockdown.&nbsp;



The CIPC certificate is a reference to the legal registration of the company in terms of the Companies Act, 2008 (Act No. 71 of 2008) and a record of registration to the CIPC. It does not give a firm or individual a right to trade if that company does not fall into an Essential Service as defined in the Lockdown Regulations.



The Department clarifies that the registration portal is only for companies registered in terms of the Companies Act. Other essential service providers, like healthcare professionals registered with the Health Professions Council of South Africa, sole proprietors who provide essential goods and services (like small business owners and spaza shops), and small-scale farmers will not register through the Bizportal. These businesses will not have a CIPC certificate, but must still comply with the provisions of the lockdown regulations.



Where the CIPC finds that certificates have been issued to companies which do not meet the definitions of an essential service, such certificate will be revoked, and the company will be referred to the South African Police Services. False declaration by the company is a criminal offence and will result in prosecution, in terms of Lockdown Regulations.



The regulations for the extended lockdown have also clarified that the transportation of liquor is prohibited, except where alcohol is required for industries producing hand sanitizers, disinfectants, soap, alcohol for industrial use and household cleaning products.



To confirm if your business complies, please consult the necessary regulation at <a href="https://www.gov.za/documents/disaster-management-act-regulations-address-prevent-and-combat-spread-coronavirus-covid-19">https://www.gov.za/documents/disaster-management-act-regulations-address-prevent-and-combat-spread-coronavirus-covid-19</a>.



Issued by the GCIS on behalf of The Department of Trade, Industry and Competition



16 April 2020



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

Here’s how to apply for SA’s COVID-19 loan guarantee scheme

Essential services require new CIPC certificate during South Africa’s extended COVID-19 lockdown

The South African rand fell on Wednesday after a <a href="https://www.cnbcafrica.com/videos/2020/04/14/sarb-cuts-rates-by-100-basis-points-to-record-low/">surprise repo rate cut</a> by the South African Reserve Bank, while broader emerging market risk assets retreated amid continued focus on the <a href="https://www.cnbcafrica.com/coronavirus/2020/04/14/covid-19-sa-will-leave-no-stone-unturned-in-obtaining-funding-from-multilateral-institutions-to-assist-its-economy-finmin-mboweni/">coronavirus outbreak</a>.



The following statement is on behalf of Peregrine Treasury Solutions:



By Bianca Botes, Executive Director at Peregrine Treasury Solutions



15 April 2020: The rand is falling prey to a risk-off environment due to the dire outlook for the South African economy and has lost a massive 2.5% today.



The situation has been exacerbated by US President Donald Trump’s withdrawal of funding from the World Health Organization (WHO) in the middle of a global pandemic.



The uncertainty regarding how long global lockdowns will endure is also adding fuel to the uncertainty in markets. On 13 April, for example, France extended its lockdown from 15 April to 11 May, on 14 April, India’s lockdown was extended to 3 May and there is widespread belief that the US will not be able to open its economy on 1 May, despite Trump’s claims that he can.



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

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

South African rand plummets after surprise rate cut, market uncertainty

NAIROBI (Reuters) &#8211; Kenya’s top telecoms operator Safaricom has seen a 70% surge in data usage as people stay at home to <a href="https://www.cnbcafrica.com/east-africa/2020/04/08/how-african-economies-can-survive-the-covid-19-crisis/">curb the spread of the new coronavirus</a>, it said on Tuesday.



The government closed schools and asked people to work from home where possible last month, after the East African nation reported its first case of the virus.



<a href="https://www.cnbcafrica.com/videos/2020/04/14/how-kenya-plans-to-help-its-informal-sector-survive-the-covid-19-crisis/">Confirmed cases have risen to 208</a> and additional restrictions, including a night time curfew, have been imposed.



Safaricom, which is partly owned by South Africa’s Vodacom and Britain’s Vodafone, said mobile phone data usage had jumped 35% as users streamed movies, worked from home and used social media sites like Facebook.



The company is one of the biggest providers of internet access in Kenya, supplying 300,000 homes with a fibre connection, and nearly all of the 47 million population with second, third and fourth generation mobile internet coverage.



Along with financial services platform M-Pesa, the data business has been one of the key drivers of earnings growth for Safaricom in recent years.



(Reporting by Duncan Miriri; Editing by Jon Boyle and Mark Potter)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKCN21W1NH-OZABS">https://af.reuters.com/article/investingNews/idAFKCN21W1NH-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>

Kenya’s Safaricom sees 70% jump in data usage during COVID-19 lockdown

JOHANNESBURG (Reuters) &#8211; South African lender Capitec said on Tuesday it would not pay a dividend for its full year, although profits rose by 19%, in line with guidance from the country’s central bank to <a href="https://www.cnbcafrica.com/southern-africa/2020/04/07/sarb-guides-banks-to-put-dividends-bonuses-on-hold/">scrap payouts amid the coronavirus outbreak</a>.



The <a href="https://www.cnbcafrica.com/news/2020/04/14/south-african-reserve-bank-cuts-repo-rate-by-another-100-basis-points/">South African Reserve Bank (SARB)</a> asked lenders to skip dividends for 2020 earlier in April to preserve capital for lending. Capitec was one of only a few lenders to not have already declared a dividend at this time.



“After extensive deliberation, the board decided to support the guidance of the Reserve Bank and decided against the declaration of the final ordinary dividend,” Capitec, which normally pays out 40% of profits to shareholders, said in its results statement.



The banks’ main rivals &#8211; South Africa’s big four lenders including FirstRand and Absa &#8211; all reported their results and declared dividends in March. The SARB has said dividends already announced can be paid.



Capitec reported a full-year profit rise of 19%, at the bottom end of a forecast range of 18% to 21% it outlined in a trading statement last month. [L8N2BC6T4]



Its headline earnings per share &#8211; the main profit measure in South Africa &#8211; stood at 5,428 cents ($3.02), verses 4,557 cents a year earlier.



The lender grew to become South Africa’s sixth largest bank by assets via a strategy focused on unsecured lending to lower-income consumers, and is generally perceived to be more exposed to any economic downturn as a result. Unsecured lending relies solely on consumers’ promises to repay.



A fear of a spike in bad debts following the <a href="https://www.cnbcafrica.com/east-africa/2020/04/08/how-african-economies-can-survive-the-covid-19-crisis/">outbreak of the coronavirus and a prolonged lockdown</a> to stem its spread have pummelled bank shares, with Capitec in particular suffering.



Its credit impairment charge rose by 14% over the year to February, in line with other banks which also saw impairments spike as the South African economy deteriorated.



($1 = 17.9976 rand)



(Reporting by Emma Rumney, Editing by Raju Gopalakrishnan)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKCN21W0P2-OZABS">https://af.reuters.com/article/investingNews/idAFKCN21W0P2-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>

COVID-19: South Africa eases lockdown to revive battered economy

South Africa’s Capitec says full-year profits rise by 19%, skips dividend

Ramaphosa tests negative for coronavirus as South Africa to begin lockdown

CR-lockdown

SA extends lockdown by two weeks until end April

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

South Africa’s Minister of Small Business Development, Khumbudzo Ntshavheni, has issued <a href="https://www.cnbcafrica.com/videos/2020/04/07/sa-launches-green-fund-to-drive-investment-into-smmes/">directions aimed at helping SMMEs</a> operating grocery stores in the country, including corner shops, spaza shops and fruit and vegetable stores, comply with the government’s COVID-19 lockdown regulations.



SMME grocery stores are permitted to operate during the lockdown period irrespective of the nationality of their owners provided that they meet the following requirements listed in the statement below.



The following is a statement on behalf of South Africa’s Ministry of Small Business Development:



MEDIA STATEMENT



DIRECTIONS TO ASSIST SMMEs OPERATING GROCERY STORES, CORNER SHOPS, SPAZA SHOPS TO COMPLY WITH COVID-19 LOCKDOWN REGULATIONS



Minister of Small Business Development (DSBD), Khumbudzo Ntshavheni has, in terms of section 27(2) of the Disaster Management Act, 2002 (Act No. 57 of 2002) issued Directions aimed at assisting SMMEs operating grocery stores including corner shops, spaza shops, fruit and vegetable stores to comply with the COVID-19 Lockdown Regulations.&nbsp;



In terms of the lockdown regulations, all enterprises operating within the boarder of the Republic of South Africa are expected to close during the lockdown period except for enterprises which are designated as providers of essential goods and services as per Annexure (b) to the lockdown regulations.



The Minister would like to point out that in terms of the recently gazetted Directions, grocery stores which include corner shops, spaza shops and fruit and vegetable stores are permitted to operate during lockdown period irrespective of the nationality of the owners provided that they adhere to the following:



<ol><li>Must hold permits issued by their respective local municipality allowing them to trade in line with the provisions of the Business Act 71 of 1991 as amended.</li><li>No person may stay overnight in the grocery store as this in contravention of the Food Safety and Health Standards.</li><li>Only the sale of food staff and basic necessities is permitted, grocery stores must not sell products or goods that are prohibited by the lockdown Regulations.</li><li>The grocery stores must uphold the Health and Hygiene requirements by:</li></ol>



<ul><li>Maintaining a social distance amongst customers and between the trader and customer of at least 1-metre.</li><li>Disinfecting and sanitizing trading spaces in line with the directions issued by the Department of Health.</li><li>Spaza shop owner and informal food traders currently trading without permits may apply for temporary permits, and in case of Non-South African citizens, the business owner (a) must have been lawfully&nbsp; residing in the republic and must hold a valid passport with a visa issued by the department of Home Affairs in terms of section 10 of the Immigration Act, 2002 (13 of 2002), authorising him or her to operate a business (b) must alternatively hold an asylum seekers’ permit issued in terms of section 22 of the Refugees Act, 1998 (Act 130 of 1998), which allows him or her to work. Permission to operate will be linked to the period covered by the asylum seekers’ permit.</li></ul>



The Informal Food Traders as referred to in the Regulations are limited to Fruit and Vegetable informal traders and the Langanas, who operate in the Northern Cape and Western Cape.



All enterprises referred to must ensure that they have absolute minimum number of staff necessary to safely operate the enterprise. Furthermore, employers are encouraged to provide transport for their employees during the lockdown period.



SMMEs wishing to enquire on information to clarify their status as rendering essential services or providing essential goods may contact the Department of Small Business Development (DSBD) on 0860 663 7867, alternatively send their queries to <a href="mailto:info@dsbd.gov.za">info@dsbd.gov.za</a>.



Enquiries: <a href="mailto:Media@dsbd.gov.za">Media@dsbd.gov.za</a> / +27 (0) 66&nbsp;285 0481



Issued by GCIS on behalf of



The Ministry of Small Business Development



07 April 2020



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

Africans singled out in southern China sparks diplomatic backlash

SMME grocery stores permitted to operate during South Africa’s COVID-19 lockdown

By Victor Oladokun April 3, 2020



Two days ago, I received an urgent plea from Massimo, a good friend and a highly respected Italian journalist based in Rome. His message was simple, urgent and straight to the point.



 “Please Victor, pay attention” he urged. “This virus is not ‘just a flu’ as some still insist it is. Keep your distance. Wash your hands regularly. Don’t touch your face, eyes and mouth. Avoid crowded places where you cannot maintain the required social distance … pay attention my friend!”



Italy has given the rest of the world a tragic glimpse of what a lockdown needs to look, especially for countries that blink and fail to take action fast. Italy’s experience is an urgent wake-up call about the importance of swift and decisive action.



Massimo knows first-hand what’s at stake. A few hours earlier, he had lost a professional colleague. His country, which has a social culture very similar to Africa’s, now has more than 13,000 deaths from COVID-19. It is the highest number of fatalities anywhere in the world. And the body count is still rising.



Africa has had some lead time to learn important lessons and proactively engage&nbsp; the World Health Organization, the Centers for Disease Control and Prevention, and other multilateral institutions, to hell put containment and preventative measures in place.



While others have wasted precious early moments, some countries and cities have been exemplars of what it takes to counter the spread of COVID-19. Rwanda for example, was the first country to take swift containment actions by placing portable sinks with running water in public spaces in its capital city and backing it up with a public awareness campaign. The Governor of Lagos State, Nigeria’s commercial hub, was also quick to convert a local stadium into an isolation and recovery area. Last week, Nigeria’s President Muhamadu Buhari placed the Federal Capital Territory of Abuja, Lagos and two neighbouring States, under lockdown for two weeks. Ultimately, Nigeria with a population of 180 million, will have to lock down for an even longer period of time. 



Several other countries are following suit. But many others are woefully lagging behind. There is still an unwillingness to acknowledge that not taking decisive and painful short-term action, will have devastating long-term consequences. 



Exposing systemic weaknesses



In spite of Africa’s best efforts, more must be done. The outlook for the continent is grim unless swift proactive actions are taken. For now, the pandemic is exposing deep cracks and systemic weaknesses across the board including a general lack of emergency preparedness, weak governance, and political, economic, social, cultural and health threats.



Millions of Africans live on less than two dollars a day. The implication is simple. A lack of access to money, food, water and electricity, means extended lockdowns will not be easy to implement. High levels of poverty and other communicable diseases were already impacting health and wellbeing long before the arrival of the coronavirus. A shortage of well-equipped and well-funded healthcare facilities is just the tip of the iceberg. Everything from doctors, clinics, hospitals, beds, medical supplies and intensive care units are in chronic short supply.



However, the Ebola outbreak in Sierra Leone and Liberia and collaborative action by African leaders and global partners, shows that where there is a will, there is always a way.



COVID-19 could not have arrived at a worse time for Africa. A crash in global commodity prices and a glut in the oil and gas markets has seen revenues drop precipitously. Further threats from nature, including the impact of devastating weather patterns such as Cyclone Idai and Henry and a recent plague of locusts, have to be managed alongside the pandemic.



Economically, the private sector and financial markets have taken a beating. The sudden reversal of fortunes is in stark contrast to a more positive projection in the African Development Bank’s 2020 African Economic Outlook when it was released in January 2020. The bandwidth of fiscal headroom is very thin. Commodity-sensitive economies are reeling under the effects of sudden price drops and the altered market reality of reduced global demand. Crude oil prices which now hover at $22 a barrel, have fallen more than 68% since January 2020. Non-oil commodity prices in natural gas and metals have also taken a nosedive.



Acting Fast and Thinking Authentically



Extended lockdowns carry inherent potential threats of their own and these must be managed. Along with underlying systemic weaknesses, the pandemic could unleash social unrest, the explosions of which will be as unprecedented as the virus itself.



We must therefore act fast and think authentically. Africa has its own particularities and to a certain extent, local contexts will require locally suited solutions, while drawing from global lessons. Recent videos of local communities forcefully resisting law enforcement and sanitation teams are already emerging. Such scenes are inevitable, for reasons of poverty, a lack of knowledge, and a chronic mistrust of authorities.



Concerns about informal settlements, some of the largest in the world, are a cause for worry, as is terrorism, economic and social exploitation and fragility.



Psychological impacts of a pandemic



Along with business and financial challenges, Africa’s leaders must prepare to address the social, physical and mental health fallouts from unavoidable lockdowns, social disruptions, the loss of basic human dignity, threats to civil life, and worse, the loss of life itself.



Several governments have grasped this and are stepping up, although time is not on their side. In many cases they have imposed limited two-week lockdowns in the first instance. The goal is not to alarm citizens. But this is unlikely to be sufficient as the virus apparently has its own agenda, pattern and timing! Realistically, beating COVID-19, is likely to require 6-10 weeks of total nationwide lockdowns, at a minimum.



 To not do so, is to sell an illusion. To not do so, is to delay the inevitable. To not do so, is to raise false hopes. To not do so, is to be complicit and irresponsible in the spread of this most virulent and devastating virus. Worse, it will be suicidal, not just for countries but for the continent.



Dealing with harsh realities



We must therefore deal with hard reality, scientific facts, current simulations and real global lessons. Cosmetic approaches will not work when surgical precision is required. We must marshal every resource in order to save lives … every life and especially those already living on the margins of society. The underlying ethos of Ubuntu which says – “I am, because you are,” must be unleashed with full force to save lives. We have to be brutally honest, in order to be kind to ourselves! The bottom line is that this is not a time for test runs.



Urgent action is needed now, not tomorrow. This includes –



<ol type="1"><li>Making tough and seemingly unpopular leadership decisions that will ultimately save lives and society.</li><li>Using every communication platform possible to increase public awareness and promote containment and preventative measures.</li><li>Stepping up testing and reducing the wait time between tests and test results.</li><li>Mobilising the support of public influencers including traditional, religious, civil society, entertainment celebrities, women and youth leaders.</li><li>Introducing measures to secure food and medical supply channels, fixing basic food prices, and curbing hoarding and panic-buying.</li><li>Re-purposing public spaces including conference centres, stadiums and open spaces for use as isolation and recovery centres.</li><li>Leveraging every available advantage, by focusing on low hanging fruits. For example, regional economic communities could re-organise manufacturing and target the supply of critically needed medicines, equipment and medical supplies, as well as food packaging and processing.</li><li>Delaying debt obligations and buying time with global creditors through forbearance or payment postponements. Prior to the COVID-19 pandemic, an estimated one third of African countries were at risk of debt distress. Post-crisis, the numbers will be significantly higher.</li></ol>



Pandemics and other global crises do not respect boundaries, titles or positions, creed, faith, gender, culture or hierarchy.



Abiy Ahmed, the Ethiopian Prime Minister and 2019 Nobel Peace Prize Laureate rightly tells us: “COVID-19 teaches us that we are all global citizens connected by a single virus that recognises none of our natural or man-made boundaries.” We are in this together, regardless of where we call home. “Umuntu ngumuntu ngabantu.” I am because you are.



Dr. Victor Oladokun is the former Director of Communication and External Relations, African Development Bank Group.



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

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SA extends lockdown by two weeks until end April

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SMME grocery stores permitted to operate during South Africa’s COVID-19 lockdown

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