Lift the National State of Disaster immediately

Dear Editor

I will this morning meet with President Cyril Ramaphosa during the President’s Coordinating Council, where I will call for the National State of Disaster to be lifted immediately.

South Africans, especially those who are unemployed, should not have to wait until 15 April (and likely longer) because the National Government has simply not done their job in time, despite having months to prepare.

It is concerning to me that despite public utterances that the priority of the National Government is to create jobs, its actions seem to show otherwise. It’s time to bridge this gap and show the courage needed to get our economy growing again.

The Western Cape understands the importance of taking this bold step now.

According to an industry poll conducted by our Department of Economic Development and Tourism, a significant number of businesses in our province have been impacted by COVID-19 lockdowns and related restrictions.

• 81% of respondents cited major disruption to their businesses over the last 18 months, 12% of respondents indicated moderate disruption;
• 85% of respondents indicated that their revenue was impacted upon by COVID-19 in the last 18 months;
• 71% of respondents indicated that their business activity was impacted upon by COVID-19 in the last 18 months;
• In terms of impact on revenue, 38% of respondents indicated that their revenue decreased by approximately 81-100%;
• In terms of employment, 24% of respondents indicated that their staff complement decreased by 81-100%;
• 85% of respondents indicated that business activity decreased in the last 18 months;
• 67% of respondents did not identify new business opportunities because of the pandemic, however, 33% did; and
• 69% of respondents indicated that cancellations (orders/bookings) from customers have increased over the last 18 months.

The President is also wrong if he thinks that the status quo is not hurting the economy, and these are merely health regulations. The events industry, in particular, continues to be impacted by a non-sensical restriction on the size of the gathering. Many countries have lifted these restrictions some time ago.

This is especially problematic if you consider the cultural and creative Industries’ direct contribution to South African gross domestic product and the major decline it has experienced. Indeed, it has declined from R84.3 billion in 2019 to R42.2 billion in 2020 – around 50%.

While there has been some recovery in 2021, which is expected to continue, the impact on these industries on South Africa’s GDP in 2021 is expected to be R46.9 billion – still 44% less than in 2019.

Furthermore, according to the BER Consumer Confidence Index for South Africa, business confidence has declined from -9 index points in the fourth quarter of 2021 to -13 index points in the first quarter of 2022. This is despite a less severe COVID-19 fourth wave.

When one considers the ongoing impact of load-shedding and the global impact of the Russian invasion, ending these regulations will send the right message to the economy, and especially the unemployed, that this government takes creating jobs seriously.

It is now time to walk the talk, without any further delays. It is time to lift the National State of Disaster immediately.

Regards

Premier Alan Winde

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