In best case scenario, 250,000 jobs will be lost in Gauteng due to Covid-19, says Makhura

Giving an update on Gauteng’s economic response to Covid-19, Premier David Makhura said in the best-case scenario, about 250,000 are expected to be lost due to the pandemic and in the worst-case scenario, between 500,000 to 600,000 jobs.

“It means that the best-case scenario is not so good itself. So, job losses are inevitable,” Makhura said on Thursday.

Makhura said in the worst-case scenario, Covid-19 would see the food and beverages sector in the province contract by 6.6% and in the best-case scenario by 6%.

In the worst-case scenario, Covid-19 would see the wholesale and retail sector in the province contract by 5% while in the best-case scenario by 3%.

“We are giving this to you to show that every sector in the economy is going to contract,” the premier said.

Makhura noted that businesses in the informal sector and SMMEs, in particular, those in the province’s townships, would have difficulty accessing the relief funds budgeted by the department of small business development because the minister of the latter portfolio, Khumbudzo Ntshavheni, recently announced that the monies are not enough.

The premier said while mainstream businesses in the province would be assisted with accessing the relief funds budgeted by the national department, the provincial government would focus on helping SMMEs in Gauteng, “particularly the small businesses in the townships”.

The measures, Makhura said, the provincial government would take in response to the impact Covid-19 will have on the Gauteng economy include continuing to enable SMMES, in particular, businesses in townships to access the markets.

This will include provincial government departments procuring products in high demand during the Covid-19 pandemic, such as sanitisers and personal protective equipment (PPE), from locally based producers, where possible.

“So this issue of access to the markets is very, very important,” Makhura said.

He encouraged advanced manufacturers in the province to also produce equipment that is in demand during this period, such as ventilators.

Another measure that the provincial government would take is ensuring that SMMEs have access to finance, the premier said.

The provincial government and the South African SMME fund have put together R1 billion rand which is meant to “enable SMMEs in the townships, in particular, that are supposed to be operating as part of level 4 but they don’t have enough credit because there was a shutdown at level 5”.

He said these funds could also be accessed by creatives such as artists and sports clubs, among others.

“This will be a key factor in helping small business in our province to return to some normality in level four,” Makhura said.

The premier said the fund would operate on an ITC platform, which was expected to be launched next week.

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