Economic Freedom Fighters statement on South Africa’s economic stimulus and social relief measures

21 April 2020

The Economic Freedom Fighters notes the elaborate economic stimulus package announced by President Ramaphosa on the 21st of April 2020. The stimulus package and social relief package announces a variety of substantial economic interventions and social relief packages aimed at mitigating the economic and social difficulties confronting the people of South Africa due to the COVID-19 Lockdown. While we welcome the core of the aspects announced on social relief, we will await the details of the additional economic measures that the President said will be communicated during the course of the week.

The EFF notes the increase in the health budget, particularly the purchase of critical healthcare essentials such as personal Protective Equipment and Clothing, an increase of healthcare infrastructure and an increase of healthcare personnel. We, however, demand that that South Africa should use this opportunity to localize the manufacturing of all PPEs with an acknowledgment that these will be needed in the entire African continent.

The Industrial Development Corporation and all other State-Owned development finance institutions and financiers should build as a matter of urgency local capacity to manufacture quality healthcare equipment and protective clothing. It will be a travesty of emnomic justice if the increased budget ends up in the pockets of middlemen and external suppliers from China and other parts of the world.

The EFF notes the increase of social grants for all recipients as a step in the right direction because, since the 2014 General Elections, we have been calling for the increase of social grants for all beneficiaries by a minimum of 100%. We believe that this measure will go a long way in mitigating the poverty and starvation that defines a substantial majority of, particularly black people. We also welcome the introduction of a Basic Income Grant for all unemployed South Africans and believe that it should be institutionalised as part of social relief for the unemployed even after the containment of the spread of COVID-19.

We note that the Government is exploring different strategies and plans in the distribution of food, one which will prevent local politicians from ruling parties and administrators from stealing food meant for poor people. We demand that in the ultimate end, no politician should be involved in the distribution of food because they have proven that they do so on a partisan political basis, nepotism, and theft. The technology being explored should lead to a situation where those in need decide what to buy and what intervals.

The most important proposal we make conceming food is that the Government should diversify the entire food value chain in South Africa because it is currently dominated by a combination of predominantly white farmers at the production level, multinational companies at the packaging levels and huge local chain stores at the retail level. The South African Government should engage in deliberate and decisive efforts to diversify the entire food value chain because in its current form it benefits white farmers, multinational corporations and white retail chain stores. The South African economy should begin to be reflective of the demographics of the country in terms of ownership and control. In the immediate, black small scale food producers should be integrated into the value chain and provided all the necessary support they need.

We note the interventions announced in relation to small and medium businesses and will await the details of how this will be implemented to particularly reach impoverished South African Small and Medium Enterprises, self-employed traders majority of whom are females, and young people. The manner in which relief measures are administered to this sector should be organic and must not be vulnerable to abuse by those with internet access and technical capacity to apply in major cities to the exclusion of poor people in townships, informal settlements, and rural areas.

We note the announcement to provide social relief packages to all South Africans in the arts, recreation, and sports fraternity. These measures should be put in place as a matter of urgency and must economically insulate all those who generate their incomes from arts, recreation, and sports.

We note that the President said he will announce the phased re-opening of the economy on Thursday and strongly caution that the considered re-opening should only be based on sound epidemiological and scientific basis rather than the senseless rush for big businesses to continue exploiting our people to make huge profits. We will not agree with a re-opening of the economy that will place our people in danger.

The EFF remains opposed to the consideration of the International Monetary Fund and the World Bank as sources of the economic stimulus and relief package. The IMF and World Bank loans come with restrictive conditionalities, which will deprive South Africa of its fiscal and monetary policy sovereignty in the future.

Lastly, the EFF believes that in his next national address, the President must announce comprehensive and workable interventions that will salvage the 2020 education calendar.

The intervention in all spheres of education should indude the usage of technology and zero-rating of data costs of all educational content. The department of basic education, Technical and a vocational Education and Training (TVET) colleges, Universities and Universities of Technology should maximally use technology to continue with the provision of education and training. Suspending the academic year in its entirety will be dangerous because it will deprive primary school, high school entrants and first test students the much-needed space to start or proceed with education and training.

The EFF remains part of the national efforts to combat the rapid spread of COVID-19 and will consistently and reliably raise issues that the govemment is not paying attention to. We will continuously oversee each and every aspect that is promised so as to ensure that that this process is not abused and hijacked by criminal elements who always see an opportunity to redirect public resources into their personal benefit.

In the collective attempts to reboot South Africa's economy, the Government and the whole of South Africa carry the obligation of ensuring that the post-COVlD-19 economy does not carry the same traits Of an economy dominated by minority white males and rmonopolised in the control of few individuals. Everything that is done should take into consideration that black people and Africans, in particular, are on the margins of economic ownership and control and this should change.

Issued by Vuyani Pambo, National Spokesperson, EFF, 21 April 2020