NEWS & ANALYSIS

Covid-19: Practical steps to limit damage to economy – AfriForum

Measures announced by Ramaphosa will have a definite negative impact on the economy

Covid-19: AfriForum proposes practical steps to limit damage to the economy

17 March 2020

The civil rights organisation AfriForum has written to pres. Cyril Ramaphosa and the Reserve Bank to suggest practical steps to curb the negative impact that measures to contain the spread of Covid-19 could have on the economy. AfriForum earlier said the organisation supports the measures to limit the spread of the virus and emphasised its availability to the Department of Health as a partner in the fight against the virus.

According to Ernst Roets, Head of Policy and Action at AfriForum, the steps suggested by AfriForum are universally applicable and it would contribute to prevent a downgrading by the ratings agencies. “The fact that measures were implemented to curb the spread of the virus should be welcomed. These measures will however have a definite negative impact on the economy. It is therefore now more important than ever to take adequate measures to stimulate economic growth, or at least prevent economic decline,” says Roets.

In AfriForum’s letters to the president and the Reserve Bank, the civil rights organisation suggested the following steps:

Interest rates should be lowered.

Income tax and company tax should be reduced.

Government expenses on initiatives aimed at regulating the economy should be restricted.

Assurance needs to be given regarding the protection of property rights.

Stricter border control should be implemented.

AfriForum plans on submitting a more comprehensive report to Government in the coming months with practical steps that can be implemented to stimulate the economy.

Issued Carina Bester, Media Relations Officer, AfriForum, 17 March 2020