Business sector welcomes the government’s support measures

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President Cyril Ramaphosa announced a range of measures to support economic recovery and provide relief to the poor and the vulnerable. cyrilramaphosa lockdown Business Report

Business Leadership South Africa said the government’s package of support can be funded from expected additional revenues due to high commodity prices this fiscal year, but with caution.

“There are other things the government can do to help. Some resources have not been spent from the Covid-19 response that can be redirected to support damaged businesses,” Mavuso said. Anchor Capital’s investment analyst Casey Delport said preliminary estimates indicated that the major components of the relief package might be covered by the likely revenue overshoot in financial year 2021/22, based on buoyant commodity prices and an ongoing recovery in general tax revenues.

“Furthermore, in response to the recent unrest, we still see the risks to the economic growth rate as biased towards the downside.

 

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