Covid taught us global solidarity is needed, Ramaphosa says

Against a background of several sectors of the economy still reeling from the impact of the coronavirus – particularly the small, medium and micro enterprises (SMMEs) – President Cyril Ramaphosa yesterday said the global crisis called for “cooperation and dialogue between nations of the world”.

According to a Mckinsey SMME financial pulse survey published in July, 70% of the sector was already cutting back on expenditure and retrenching staff.

Reflecting on the pandemic implications on SMMEs, Lulalend CEO Trevor Gosling has painted a picture of a sector struggling to recover – based on the company’s data collected three months ago: 94% of businesses suffered more than a 50% drop in monthly turnover, with 75% of Lulalend clients indicating that they had seen more than a 75% drop in revenue.

Key industries severely hit were mainly in travel, hospitality, offline (non-essential) retail, consumer goods manufacturing and construction.

Addressing the virtual 12th Brics (Brazil, Russia, China and South Africa) leaders’ summit, Ramaphosa said the pandemic put immense strain on public health systems, with significant resources having to be redirected to contain the spread of the virus.

“Trade and investment has been disrupted, as has global supply and demand,” he said.

“For emerging economies already facing challenges of poverty, inequality and underdevelopment, the pandemic has taken an even greater toll.

“This pandemic has taught us the necessity of strengthening health systems and being prepared for future emergencies of this nature and scale. It has shown us the importance of investing in science, technology and innovation.

“It (the pandemic) has taught us that international solidarity must pave the way to stability, security and economic growth.”

Ramaphosa said South Africa endorsed the call by United Nations Secretary-General António Guterres for “a New Global Deal”.

“This includes a more inclusive and balanced multilateral trading system, the reform of debt architecture and greater access to affordable credit for developing countries. In the spirit of this New Global Deal, we call on the international community and our Brics partners to support a comprehensive stimulus package for African countries.

“This will enable African countries to contain the disease and rebuild our damaged economies.”

In line with the African stimulus package, Ramaphosa said the New Development Bank had “a significant role” to play.

“To date, the bank has approved $4 billion of Covid-related emergency assistance projects, including $1 billion to South Africa to support our health response and social relief measures.

“We welcome the indications from the New Development Bank that it aims to provide up to $10 billion in crisis-related assistance and to support economic recovery efforts.”

He said SA was participating in several research initiatives with continental and international partners, including the global effort to develop and distribute a Covid-19 vaccine.

– brians@citizen.co.za

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