South Africa's Ministry of Finance has successfully allocated funding to small- and medium-sized enterprises (SMEs) to keep them afloat amid the COVID-19 pandemic, although further measures will be required to counter the negative economic impact of the epidemiological crisis, the charge d'affaires at the South African Embassy in Moscow, Madivha Aaron Mudimeli, told Sputnik
MOSCOW (Pakistan Point News / Sputnik - 04th September, 2020) South Africa's Ministry of Finance has successfully allocated funding to small- and medium-sized enterprises (SMEs) to keep them afloat amid the COVID-19 pandemic, although further measures will be required to counter the negative economic impact of the epidemiological crisis, the charge d'affaires at the South African Embassy in Moscow, Madivha Aaron Mudimeli, told Sputnik.
"In terms of the effect of the pandemic on the economy, it's really very, very serious - not only for South Africa, but for many countries. In South Africa, we have put a lot of measures to counter this negative effect but it's not enough and it won't be enough. There are plans by our Ministry of Finance to try and help the small and medium enterprises, but we still find it difficult because most of the shops are closed, some businesses closed," Mudimeli said.
The diplomat stated that South Africa's tourism industry, which is crucial for the country's economy, has been severely impacted by the pandemic.
"The effect is very, very serious especially in the aviation industry and tourism industry. Tourism is heavily affected, because we rely much on international tourism. Now we rely on local tourism ... We are still trying to see if we can have a proper recovery plan as most of the countries are doing currently. We've had a couple of meetings as well just to see how we can revive the economy once the borders are open for international travel," Mudimeli said.
The BRICS New Development Bank's Board of Directors approved a $1 billion emergency loan to South Africa in late June to help the country combat the economic disruption caused by the pandemic.
This was followed in July by the International Monetary Fund's decision to award the country $4.3 billion in emergency COVID-19 funding to help South Africa balance its economy and meet payment obligations.
These funds were allocated to help SMEs recover from the crisis and to provide support to the country's poorest households, Mudimeli stated, adding that he was "not sure that our principals will opt for another loan" at this moment.
The South African government has imposed strict lockdown restrictions throughout the pandemic as it attempts to control the continent's largest outbreak of COVID-19.
Public health officials in South Africa have registered more than 630,000 cases of the coronavirus disease to date. The country's death toll sits above 14,300.
