Economics
South Africa Sets $26 Billion Plan to Save Virus-Hit Economy
- Funds will be reprioritized, borrowed, Ramaphosa says
- Central bank expects economy to contract 6.1% this year
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South Africa’s government unveiled a 500 billion rand ($26 billion) package to shore up an economy devastated by the fallout from the coronavirus pandemic and support those who’ve been worst affected.
The plan will be funded by reprioritizing 130 billion rand of expenditure from existing budgets, and borrowing from domestic and international lenders, President Cyril Ramaphosa said Tuesday in a televised address to the nation. There will be 200 billion rand in guarantees for banks to encourage them to lend, a 100 billion-rand allocation to protect and create jobs and an additional 50 billion rand for welfare grants for the poor and unemployed, he said.