<div style="max-width: 700px;">
 <video-js
 data-account="1571595826001"
 data-player="c0AOssA7"
 data-video-id="6160013798001"
 data-embed="default"
 controls=""
 data-application-id=""
 class="vjs-fluid"></video-js>
</div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
In the wake of the COVID-19 pandemic, Ghana has rolled out some palliatives including a 600 million cedis stimulus package for small and medium scale businesses with the aim of minimising the exposure of these businesses to the economic fallout of the pandemic. Joining CNBC Africa to discuss this initiative is Kosi Yankey-Ayeh, Executive Director of the National Board for Small and Medium Scale Industries in Ghana.

COVID-19: How is Ghana protecting its small and medium scale businesses?

In a roundtable discussion on Wednesday made up of several African leaders, organised by the New York Forum Institute, Chairman of the <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/">United Bank for Africa (UBA) Plc</a> Tony Elumelu stated that the global <a href="https://www.cnbcafrica.com/covid-19/">COVID-19</a> pandemic presents an opportunity to ‘reset’ the African continent.



The statement below provides a full summary of the meeting:



Elumelu says Covid-19 Presents Opportunity to Reset Africa&nbsp;



·&nbsp;&nbsp;&nbsp;Advocates Martial Plan to Boost Electricity And Ease Debt Burden



·&nbsp;&nbsp;&nbsp;&nbsp;Wants Youths Prioritised as SMEs are Empowered



The Chairman of the United Bank for Africa (UBA) Plc, Tony Elumelu, has stated that the Coronavirus Pandemic currently ravaging the world presents an opportunity to reset the African continent so that Africans can be empowered to become more productive and self reliant. He said this today at the high-level Roundtable discussions made up of African leaders including Dr. Ngozi Okonjo &#8211; Iweala, the Special Envoy of the African Union on Covid-19 and Tidjane Thiam who is also a Covid-19 Special Envoy responsible for mobilising international economic support for Africa.



During the session titled ‘Resilient World: An African call for a new world order’, Elumelu stated&nbsp;“I see this pandemic as an opportunity to reset Africa.’&nbsp;Whilst pointing out that&nbsp;Africa as a continent has all it takes to emerge into a strong digital economy, the UBA Group Chairman advocated a martial plan that will galvanise the entire continent and make Africa less dependent on the ‘circularity of debt’ from developed nations, which according to him, has been a major setback for decades.



He said, “I feel that as we engage the rest of the world in providing relief, we need to look for a more fundamental solution to Africa’s challenges. I have often argued for a martial plan overtime. We need to mobilise everyone. If we have a martial plan that mobilises resources to address particular issues, then we can mitigate against this constant begging for assistance.”



Explaining further, Elumelu pointedly said, “The truth is that we have resources to help mobilise people. As the founder of the Tony Elumelu Foundation, we committed to endow $100m to support young African entrepreneurs and we have been seeing the positive results this has yielded so far. It is evident that if we can fix access to electricity, ensure stability of the macro-economic environment, ensure prioritisation of the youth, empower our small and medium scale enterprises and fix youth migration, then we are in for a better and more resilient economy’.&nbsp;“There is the urgent need to prioritise our youths and empower our SMEs. The people who work hard need to be encouraged,” Elumelu noted passionately.



Tidjane Thiam&nbsp;who supported what Elumelu had proposed, said that rather than depend on international assistance at every point, there is the need for governments and institutions to invest in activities that will prioritise the youths and create a better enabling environment.&nbsp;



“I totally agree with Tony Elumelu. The major challenge is that we do not see enough entrepreneurs. Similar to what obtains in Asia and Europe, there is the need to promote a class of Entrepreneurs to drive the African economy. &nbsp;we need to groom more Tony Elumelus’ from Africa’ he said. Tidjane continued, ‘We know what needs to be done. We need government and multinational institutions to bring in capital so that there will be investment in health, infrastructure and the like. We do need to get rid of this debt cycle because constant rescheduling and begging for relief for debts is not good for us as a continent,” Thiam said.



Okonjo-Iweala, on her part, called for a system where youths and women will be empowered to create and produce more to boost the African economy.



Whilst calling on private and government parastatals to engage in meaningful partnerships that will help to galvanise job creation and entrepreneurship among youths in Africa, she said, “As Tony pointed out, we can see this pandemic as an opportunity for the continent. We have the African Free Trade Agreement, and we have to make it real.&nbsp;



“We have to specialise our countries to manufacture the things we need so we can trade with others. We need to produce good jobs for our young people. We need to empower our women and youths and put them at the centre. It is said that Africa would have the largest number of youths in the world by 2050, so we need to fix this,” she noted.



The roundtable which was organised by the New York Forum Institute, also had in attendance African Heads of States including President Mahamadou Issoufou of Niger; President Uhuru Kenyatta of Kenya; President Alassane Ouattara of Cote d’Ivoire; President Macky Sall of Senegal and President Julius Bio of Sierra Leone;



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

COVID-19 is the perfect opportunity to ‘reset’ Africa - UBA Chairman Tony Elumelu

COVID-19 is the perfect opportunity to ‘reset’ Africa – UBA Chairman Tony Elumelu

<div style="max-width: 700px;">
 <video-js
 data-account="1571595826001"
 data-player="c0AOssA7"
 data-video-id="6157727862001"
 data-embed="default"
 controls=""
 data-application-id=""
 class="vjs-fluid"></video-js>
</div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
This year was poised to see major strides in access to finance for SMEs in Kenya. Promising initiatives such as the repeal of the interest rate cap, financing opportunities though the African Development Bank and the establishment of a credit guarantee scheme are just a few of the steps that were underway. But now that the Covid-19 pandemic has reshuffled priorities and budgets worldwide, where does that leave vulnerable Kenyan SMEs? SME Consultant, Victor Otieno joins CNBC Africa for more.

How COVID-19 is affecting SME funding in Kenya

<div style="max-width: 700px;">
 <video-js
 data-account="1571595826001"
 data-player="c0AOssA7"
 data-video-id="6155799869001"
 data-embed="default"
 controls=""
 data-application-id=""
 class="vjs-fluid"></video-js>
</div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
The government of Rwanda has set up a $100 million COVID-19 relief fund so as to mitigate the economic effects of the pandemic on Rwanda&#8217;s economy. CNBC Africa&#8217;s Arnold Kwizera spoke to Rwanda&#8217;s Minister of Finance and Economic Planning, Uzziel Ndagijimana for more.

These are the COVID-19 relief measures Rwanda’s government is offering to SMEs

#BusinessTomorrow: How to rebuild small battling businesses after COVID-19

<div style="max-width: 700px;">
 <video-js
 data-account="1571595826001"
 data-player="c0AOssA7"
 data-video-id="6154317241001"
 data-embed="default"
 controls=""
 data-application-id=""
 class="vjs-fluid"></video-js>
</div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
Small and medium businesses have been considered to be the backbone of the region’s economy and with the Covid-19 crisis causing losses at best and closures at worst, the focus has been on how to financially support these companies, but where does that leave the social enterprises who are committed to providing these burgeoning businesses with the soft skills they need to sustain? Will they have to take a back seat? And what effect will that have on the growth of the SME sector? CNBC Africa spoke to Norette Turimuci, Executive Director at Resonate for more.

The role of social enterprise in post Covid-19 economic recovery

<div style="max-width: 700px;">
 <video-js
 data-account="1571595826001"
 data-player="c0AOssA7"
 data-video-id="6154014483001"
 data-embed="default"
 controls=""
 data-application-id=""
 class="vjs-fluid"></video-js>
</div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
Small and medium enterprises’ workers in the informal sector are some of those that have been affected the most by COVID-19 but to what extent has this impact been felt, Minister of Trade and Industry, Soraya Hakuziyaremye spoke to CNBC Africa for more.

Minister Hakuziyaremye on COVID-19 impact on trade & industry in Rwanda

In order to help <a href="https://www.cnbcafrica.com/coronavirus/2020/04/25/these-are-the-sectors-sa-is-considering-reopening-in-phase-4/">small and medium enterprises</a>, support the <a href="https://www.cnbcafrica.com/videos/2020/04/24/sa-economy-to-begin-a-gradual-reopening-on-1-may/">economy</a> and save jobs, the South African Reserve Bank (SARB) and the National Treasury are partnering with members of the Banking Association South Africa (BASA) to roll out a <a href="https://www.cnbcafrica.com/videos/2020/04/24/is-r800bn-stimulus-enough-for-markets/">R200 billion Covid-19 loan scheme</a>.



The scheme will allow qualifying <a href="https://www.cnbcafrica.com/article/2020/04/28/how-10000-covid-19-hit-companies-blundered-and-missed-out-on-millions/">businesses</a> to apply for loan funding from their primary bank for three months of operational costs, such as salaries, rent and supplier payments.



The statement below provides more details:



Covid-19 Loan Scheme for Small and Medium Enterprises



The R200 billion Covid-19 loan scheme is the outcome of the South African Reserve Bank (SARB) and the National Treasury partnering with members of the Banking Association South Africa (BASA) to help small and medium enterprises, support the economy and save jobs. The scheme will allow qualifying businesses to apply for loan funding from their primary bank for three months of operational costs, such as salaries, rent and supplier payments. All loans will be subject to bank credit approvals.



The Covid-19 loan scheme is a special credit facility that is being disbursed on behalf of SARB and National Treasury, using the infrastructure of the banking industry. Risk-sharing mechanisms in the scheme balance the need for government to support qualifying businesses, with ensuring the continued safety and soundness of the banking system. Similar schemes have been rolled out in over 50 countries in recent weeks.



Funding for these Covid-19 loans will be provided to banks by the SARB through a special financing mechanism. Any losses on the loans will first be offset against any margins earned on a bank’s portfolio of Covid-19 loans. Losses thereafter will be offset against a guarantee fee payable to the National Treasury by banks. Any further losses thereafter will be shared, with the first six percent being absorbed by the banks and the net balance absorbed by the National Treasury. Each bank will sign a bilateral agreement with the SARB, covering their participation in the scheme. The SARB will in turn contract with the National Treasury.



The scheme – which will start with an initial R100 billion &#8211; will be launched as soon as all the necessary legal agreements are in place. All parties are working around the clock to implement the scheme as quickly as possible after these agreements are finalised. While the finer details of the Covid-19 loan scheme and the related application process are still being finalised, the following principles will apply:



<ul><li>The Covid-19 loan scheme is a commercial arrangement and requires a credit application process, through which banks must evaluate if the business will likely be able to service all its commitments after the pandemic and lockdown. Banks are not obliged to extend Covid-19 loans and business owners may be required to sign surety.</li></ul>



<ul><li>The size of the Covid-19 loan will be calculated on the three-month funding requirement of certain operating expenses of the business, as approved by the bank, to be disbursed in monthly tranches.</li></ul>



<ul><li>Banks will not profit from the provision of the SARB guarantee. However, the administrative cost of facilitating the loans and the cost of capital will be recovered.</li></ul>



<ul><li>In the event of default, the Covid-19 loan would be subordinated to all other creditor claims.</li></ul>



<ul><li>The repayment of shareholder loans or dividends, using these funds, is expressly prohibited.</li></ul>



To qualify for the standardised Covid-19 loan, businesses, including sole proprietors, must inter alia:



<ul><li>Have a turnover under R300 million per annum</li></ul>



<ul><li>Be in good standing with their bank, prior to the onset of the Covid-19 pandemic</li></ul>



<ul><li>Be registered with the tax authority</li></ul>



<ul><li>Have insufficient normal borrowing capacity to fully fund its monthly operating expenses</li></ul>



<ul><li>Be adversely impacted by the lockdown.</li></ul>



Companies that may qualify for a Covid-19 loan, are advised to contact their primary bank. The launch date of the scheme and further details are expected to be announced shortly.



During the initial phases of the scheme, some processing backlogs will be inevitable. Banks undertake to work though these as quickly as possible and ask clients to be understanding of the challenges our staff have operating in the lockdown.



The R800 billion economic relief and stimulus package announced by President Cyril Ramaphosa and the Minister of Finance, Tito Mboweni, is an urgent and necessary part of saving lives and livelihoods, as the country unites to curb the pandemic. It will do much to alleviate poverty, hunger and uncertainty in our communities.



As important as they are, these emergency measures are not a sustainable solution to the devastating social and economic damage caused by the pandemic. We call on the President to urgently implement the ‘third phase’ of his economic recovery strategy: infrastructure development, structural reforms and sustainable transformation, to kickstart inclusive economic growth, create jobs and boost consumer and investor confidence. We need to rebuild a new and better economy for all South Africans. We hope these measures will be reflected in the extraordinary budget, which is yet to be announced. It is essential for both lives and livelihoods that we safely and fully reopen the economy as soon as possible.



Issued on behalf of The Banking Association South Africa



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

How SA’s R200bn Covid-19 loan scheme for small businesses works

<div style="max-width: 700px;">
 <video-js
 data-account="1571595826001"
 data-player="c0AOssA7"
 data-video-id="6151600139001"
 data-embed="default"
 controls=""
 data-application-id=""
 class="vjs-fluid"></video-js>
</div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
The African Women&#8217;s Entrepreneurship Program was designed to assist women across Sub-Saharan Africa who are transforming their societies through economic development and social advocacy, by running their small and medium enterprises; but now that many SMEs have been forced to temporarily suspend their activities, how have they been able to provide support? CNBC Africa spoke to the Chairperson for the Rwanda Chapter of the AWEP, Gloria Kamanzi for more.

How women entrepreneurs are coming together during COVID-19 isolation

<div style="max-width: 700px;">
 <video-js
 data-account="1571595826001"
 data-player="c0AOssA7"
 data-video-id="6151540690001"
 data-embed="default"
 controls=""
 data-application-id=""
 class="vjs-fluid"></video-js>
</div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
By tomorrow, the 24th of April, in response to the financial burden of the repercussions of COVID-19 pandemic, the Rwanda Revenue Authority will have disbursed FRw13 billion , around $13.5 million in V.A.T refunds to businesses. The move is one of several measures taken by the Government to protect businesses and SMEs from feeling the full brunt of the crisis, but what else can be done to soften the blow of these unprecedented times to Rwanda&#8217;s economy? CNBC Africa spoke to Economist, Professor Alfred Bizoza for more.

Rwanda moves to protect the business community from COVID-19 shocks

<div style="max-width: 700px;">
 <video-js
 data-account="1571595826001"
 data-player="c0AOssA7"
 data-video-id="6151322780001"
 data-embed="default"
 controls=""
 data-application-id=""
 class="vjs-fluid"></video-js>
</div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
With 782 confirmed cases in Nigeria, the COVID-19 induced-lock-down is taking a toll on economic activity and particularly the Small and Medium Enterprises in Nigeria. Muda Yusuf, Managing Director of the Lagos Chamber of Commerce and Industry joins CNBC Africa to discuss possible options to mitigate the impact.

COVID-19: How small businesses in Nigeria can mitigate the impact

<div style="max-width: 700px;">
 <video-js
 data-account="1571595826001"
 data-player="c0AOssA7"
 data-video-id="6150267370001"
 data-embed="default"
 controls=""
 data-application-id=""
 class="vjs-fluid"></video-js>
</div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
Financial consultancy and investment holding company YW Capital has launched a R20 million Business Acceleration Fund to aid businesses impacted the by COVID-19 pandemic. YW Capital CEO, Mesh Pillay joins CNBC Africa for more.

COVID-19: YW Capital launches R20mn fund to help small businesses stay open

As households and businesses in South Africa struggle to cope with the current economic turmoil and uncertainty brought upon by the COVID-19 pandemic, the Prudential Authority (PA) has welcomed the measures taken by banks to support their customers financially.



In addition to the South African Reserve Bank’s (SARB) deployment of monetary policy tools to alleviate the impact of COVID-19, the PA announced it will support the banking system by providing regulatory relief measures and guidance to banks to help manage the crisis.



The following is a statement by the Prudential Authority:



06 April 2020



Press release on regulatory relief measures and guidance to the banking sector in response to COVID-19



The impact of the coronavirus disease 2019 (COVID-19) is likely to have a lasting and detrimental effect on the economy. While the depth and length of the economic downturn remain uncertain, there is already evidence of stress at both the household and business levels, with small businesses of particular concern.



South Africa has a strong and resilient banking system with adequate levels of capital and significant liquidity buffers to manage this stress. The Basel framework, around which bank regulations are structured, has built-in buffers on both the capital and liquidity elements of the regulation for banks to draw on during times of financial stress.



The Prudential Authority (PA) welcomes the measures taken by banks to support their customers during this period of economic turmoil and uncertainty. A safe, sound and robust banking system is a key part of South Africa’s shock absorbers during these times.



In addition to the actions taken by the South African Reserve Bank (SARB) on deploying monetary policy tools to mitigate the impact of COVID-19, the PA has decided to support the banking system in response to the needs of banking customers. The PA will provide for regulatory relief measures as well as guidance to banks in managing the crisis. The regulatory relief measures are provided for in three areas, namely capital relief on restructured loans that were in good standing before the COVID-19 crisis, a lower liquidity coverage ratio (LCR) and lower capital requirements.



The PA is temporarily amending Directive 7 of 2015 on Restructured Exposures, which means that for the duration of the crisis, loans restructured as a result of the impact of COVID-19 will not attract a higher capital charge. This amendment covers loans to households, small- and medium-sized businesses and corporates, and for specialised lending.



For the duration of the crisis, the LCR, a ratio setting out the liquid assets a bank has to maintain in relation to its anticipated outflows, is being lowered from 100% to 80%.



In relation to capital relief, the Pillar 2A capital buffer, which is set at 1% of risk-weighted assets, is now set at zero. The PA has also provided clear criteria that provide for banks to dip into their capital conservation buffer, which is set at 2.5% of risk-weighted assets.



The PA plans to announce a timetable according to which banks can restore these buffers once the COVID-19 crisis has abated. This timetable will be sensitive to the need to balance the rebuilding of buffers to ensure a resilient banking system, with the negative effect that such measures could have on credit extension and economic growth.



While it should be noted that the PA is not the accounting standards regulator, it has provided guidance to the banking industry on how International Financial Reporting Standard (IFRS) 9 could be implemented during this period of volatility and stress. IFRS 9 is an important accounting standard applicable on expected credit losses in the banking sector and calculates expected credit losses over a business cycle.



The Basel framework, which provides clear rules on when discretionary dividend and bonus payments can be limited, is likely to be impacted. These constraints generally kick in when a bank breaches or is about to breach its capital buffer, which could become progressively tighter, leading it to dip into its capital buffers. With the high probability that the impact of COVID-19 will result in heightened stress in the banking system, the PA is issuing a guidance note advising banks not to distribute discretionary ordinary dividends during this period. Similarly, bonuses for senior executives should also be put on hold during this period.



The measures taken by the PA complement the steps taken by the SARB. These measures are being taken to mitigate the impact of COVID-19, while at the same time pointing out that South Africa’s banking system is robust and well-capitalised.



Today, the PA issued the following two Directives and one Guidance Note, which can be accessed on the website:



·&nbsp;&nbsp;&nbsp;&nbsp; D2/2020 &#8211; Matters related to temporary capital relief to alleviate risks posed by the Covid 19 pandemic;



·&nbsp;&nbsp;&nbsp;&nbsp; D3/2020 &#8211; Matters related to the treatment of restructured credit exposures due to the Coronavirus (Covid-19) pandemic;&nbsp; and



·&nbsp;&nbsp;&nbsp;&nbsp; G4/2020 &#8211; Recommendations on the distribution of dividends on ordinary shares and payment of cash bonuses to executive officers and material risk takers, in light of the negative economic impact of the Coronavirus Disease&nbsp; (Covid-19) pandemic and the temporary regulatory capital relief provided by the Prudential Authority.



For further information, contact Unathi Kamlana at <a href="mailto:Unathi.Kamlana@resbank.co.za">Unathi.Kamlana@resbank.co.za</a> or Ziyanda Mtshali at <a href="mailto:Ziyanda.Mtshali@resbank.co.za">Ziyanda.Mtshali@resbank.co.za</a>.



Issued by the Prudential Authority



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

Clarification on COVID-19 “hotspots” as SA moves to level 3 lockdown

Prudential Authority offers relief measures, guidance to South African banks amid COVID-19 crisis

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

As small businesses around South Africa feel the weight of the country’s 21 day lockdown and the COVID-19 pandemic, BUSINESS/PARTNERS has revealed how to apply for the R1 billion ($53m) funding the <a href="https://www.cnbcafrica.com/news/2020/03/23/covid-19-sa-under-nationwide-lockdown-from-thursday-midnight/">Rupert family</a> has set aside, see statement below. The Sukuma Relief Programme is being <a href="https://www.cnbcafrica.com/coronavirus/2020/03/29/covid-19-business-partners-to-administer-rupert-familys-r1bn-fund-for-small-businesses/">administered by BUSINESS/PARTNERS</a> of which&nbsp;<a href="https://www.remgro.com/group-investments/other-investments/">Remgro owns 42.8% stake</a>. Those wishing to apply can visit <a href="http://www.businesspartners.co.za">www.businesspartners.co.za</a>



By Ben Bierman, Managing Director at BUSINESS/PARTNERS



Positioned to provide widespread and sustainable support for small and medium enterprises (SMEs) that are financially impacted by COVID-19, the newly-established Sukuma Relief Programme comprises two distinct and separate relief offerings – one for formal sole proprietors and another for other business entities, namely close corporations, companies, and trusts.



The financial aid and assistance will comprise grants and low-interest-bearing loans with a 12-month repayment holiday. &nbsp;


		
						
				<div class="vjs-pip-container">
					
					<video-js id="6146826794001"
							data-account="1571595826001"
							data-player="c0AOssA7"
							data-embed="default"
							controls playsinline autoplay 							data-video-id="6146826794001"
							data-application-id=""
							width="100%" height="315">
					</video-js>
					<script src="https://players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js"></script> 				</div>
				
				<script src="//players.brightcove.net/videojs-pip/1/videojs-pip.min.js"></script> 				<script>
					videojs.getPlayer('6146826794001').ready(function() {
						var myPlayer = this;
						myPlayer.pip();
					});
				</script>
						
		


The Sukuma Relief Programme is structured to provide relief against the economic fallout of the COVID-19 pandemic, while leveraging further support as far as possible. Qualifying formal sole proprietors will receive a non-repayable grant of R25 000. Formal close corporations, companies and trusts will be eligible for an unsecured loan ranging between R250&nbsp;000 and R1&nbsp;000&nbsp;000, with no repayment obligations or interest incurred for the first 12 months, in addition to a R25&nbsp;000 grant.



FOR MORE ON COVID-19 VISIT: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>



In terms of necessary criteria, he says that close corporations, companies or trusts must be registered, tax- and regulatory-compliant South African businesses that can prove viability prior to the arrival of the pandemic. “When applying, these entities will therefore be required to submit documents and supporting evidence to corroborate that it is a viable business that was impacted by COVID-19. This proof can be a demonstration of a decrease in turnover, erosion of working capital, or inability to pay salaries.



<figure class="wp-block-embed-wordpress wp-block-embed is-type-wp-embed is-provider-cnbc-africa"><div class="wp-block-embed__wrapper">
https://www.cnbcafrica.com/videos/2020/03/31/how-sas-small-businesses-can-access-the-r1bn-oppenheimer-fund/
</div></figure>



Similarly, formal sole proprietors will need to provide proof of an active bank account to show business activity prior to the outbreak of the pandemic and provide evidence of tax compliance.



Given the gravity of the unprecedented COVID-19 disruption, Bierman says there will be a focus on swift application, approval and disbursement processing to ensure the relief is made available to qualifying SMEs as quickly as possible. We understand that many businesses are currently in need of immediate financial relief. Disbursements will therefore be made within seven days after applying for the assistance, provided the supporting evidence is supplied and verified.



For business owners wishing to apply, Bierman says applications will open Friday, 3 April 2020, on the BUSINESS/PARTNERS website (<a href="http://www.businesspartners.co.za/">www.businesspartners.co.za</a>). To apply, all you need to do is visit the website and follow the simple steps to fill in an application and upload the required supporting documents.



BUSINESS/PARTNERS is responsible for ensuring that every cent contributed to the fund ends up in the hands of business owners. This is a permanent vehicle to support South African SMEs in distress, and we intend to help support as many businesses as possible.



It should be noted, in this regard, that BUSINESS/PARTNERS will not be profiting from the funding in any way, and no fees will be charged in relation to the Sukuma Relief Programme. The donors will also not be paid back at any point.



The repayment of the loan portion is an appeal to the beneficiaries of the programme to “pay it forward” once their businesses are back on their feet, in order to allow for the continuing support of other SMEs into the future. While the fund has been originated to provide SMEs with financial aid to assist them in weathering the COVID-19 storm, the plan is for it to run on a sustainable basis over the long term and continue to help SMEs during challenging times like this in the future.

Applications open for Rupert family’s R1bn fund, here’s how to apply

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

STANDARD BANK EXTENDS INSTALMENT RELIEF MEASURES TO
PERSONAL ACCOUNT CUSTOMERS



29 March 2020: Standard
Bank has announced a second wave of relief to help its customer base navigate
financial commitments as Covid-19 continues to impact the livelihood of many
individuals across the country. 



The payment reprieve is aimed at
easing the financial burden of customers earning R7&nbsp;500 or less, who will
receive three-month instalment relief if they are not in arrears on any of
their accounts (as at 31 March 2020). This relief applies to qualifying
customers and their associated accounts, which include home loan, vehicle and
asset finance, credit cards as well as short term loans. Customers who opt for
the relief will see their interest and bank charges capitalised over the term
of their loan agreements. 



This second round of relief comes
after Standard Bank’s announcement last week that it would be instituting
instalment relief for both SMEs and fulltime students who have taken out loans
at the bank. The bank’s small enterprise clients with a turnover of less than
R20 million were granted a three-month instalment relief on their business loan
repayments. The latest instalment relief measure will further assist business
owners who bank with Standard Bank in their personal and business capacity. 



The three-month instalment relief
will be available on 1 April 2020 until end June 2020. Customers need not
contact the bank to initiate the offer, however, customers can continue to pay
their accounts as usual should they not want to take up on the relief offer
made by Standard Bank. 



Our customers’ financial
wellbeing remains our concern. Customers who are in financial distress and not
included in the three-month instalment relief offer, should contact the bank as
soon as possible by email on&nbsp; <a href="mailto:debtcarecentre@standardbank.co.za">debtcarecentre@standardbank.co.za</a>
or call us.



Funeka Montjane, Chief Executive,
Personal and Business Banking, Standard Bank South Africa, says: “At Standard
Bank, we are continuously looking for ways to provide the necessary assistance
to our customers who have been impacted negatively by the Covid-19 pandemic.”



Standard Bank is collaborating
with other government initiatives that have been started to support small
businesses and their employees. Qualifying employers and employees will also
get relief from initiatives like the Solidarity Fund. 



“We are committed to helping
those who are vulnerable at this time. It is critical that we try to ease their
financial burden and do what we can to prevent somebody from losing their home
or having to close their business. We continue to work with the industry and
regulators to ensure that we can solve some challenges systemically and we will
play our part responsibly to support government and the country,” says Ms
Montjane.



Furthermore, the banking sector
has collectively&nbsp;decided to waive Saswitch fees during the lockdown. This
means that a customer can use any ATM, including those offered by competing
banks and only pay the usual fees charged.



Standard Bank continues to evaluate
the current financial climate with a keen focus on how the bank can continue to
guide consumers through these difficult economic times.



“We will work tirelessly to find solutions that ease their financial burden in these times. We are here to help those who contribute to our society so that we can support economic growth in South Africa,” concluded Montjane.

SMEs

COVID-19: How is Ghana protecting its small and medium scale businesses?

COVID-19 is the perfect opportunity to ‘reset’ Africa – UBA Chairman Tony Elumelu

How COVID-19 is affecting SME funding in Kenya

These are the COVID-19 relief measures Rwanda’s government is offering to SMEs

#BusinessTomorrow: How to rebuild small battling businesses after COVID-19

The role of social enterprise in post Covid-19 economic recovery

Minister Hakuziyaremye on COVID-19 impact on trade & industry in Rwanda

How SA’s R200bn Covid-19 loan scheme for small businesses works

How women entrepreneurs are coming together during COVID-19 isolation

Rwanda moves to protect the business community from COVID-19 shocks

COVID-19: How small businesses in Nigeria can mitigate the impact

COVID-19: YW Capital launches R20mn fund to help small businesses stay open

Prudential Authority offers relief measures, guidance to South African banks amid COVID-19 crisis

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

Applications open for Rupert family’s R1bn fund, here’s how to apply

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

Standard Bank extends instalment relief measures to personal account customers

News Tips

Advertise With Us

SMEs

COVID-19: How is Ghana protecting its small and medium scale businesses?

COVID-19 is the perfect opportunity to ‘reset’ Africa – UBA Chairman Tony Elumelu

How COVID-19 is affecting SME funding in Kenya

These are the COVID-19 relief measures Rwanda’s government is offering to SMEs

#BusinessTomorrow: How to rebuild small battling businesses after COVID-19

The role of social enterprise in post Covid-19 economic recovery

Minister Hakuziyaremye on COVID-19 impact on trade & industry in Rwanda

How SA’s R200bn Covid-19 loan scheme for small businesses works

How women entrepreneurs are coming together during COVID-19 isolation

Rwanda moves to protect the business community from COVID-19 shocks

COVID-19: How small businesses in Nigeria can mitigate the impact

COVID-19: YW Capital launches R20mn fund to help small businesses stay open

Prudential Authority offers relief measures, guidance to South African banks amid COVID-19 crisis

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

Applications open for Rupert family’s R1bn fund, here’s how to apply

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

Standard Bank extends instalment relief measures to personal account customers

News Tips

Advertise With Us

Newsletters