Ramaphosa faces a tough balancing act in reopening the economy

The Presidential Coordinating Council’s (PCC) announcement to enforce a risk-adjusted approach to economic activity after the lockdown could lead to another extension with amended regulations, according to experts.

Economic and political analyst Daniel Silke said government should offer some amendments to the current regulations to offer South Africans some freedom before they become frustrated, which could lead to social unrest.

“The announcement means there will be a sector-by-sector risk analysis done before everything opens up. The question to ask is what will be safe for South Africans regarding the movement to workplaces,” said Silke.

Industries such as mining, agriculture and energy would most probably resume operations after the lockdown, but careful consideration was needed to avoid putting people at risk of carrying Covid-19.

Silke said if the agricultural sector remained closed, it could threaten food security for the country and government should be prepared to provide a bigger budget and a better rollout programme for food parcels to poor communities.

“Those who have experienced a loss of income will be the ones bleeding the worst. Therefore, government must provide sufficient support to compensate for the emotional and physical stress they must be going through,” he said.

Political analyst Zamikhaya Maseti said the decision by the PCC was a calculated risk which had to balance the economic and health factors.

“President Cyril Ramaphosa is talking about a well-calculated risk in that the country’s coronavirus pandemic curve is slowly heightening and we cannot afford to have an economy that grinds to a complete halt,” said Maseti.

There were critical sectors of the economy that had to be prioritised, such as mining, and agriculture to ensure food security.

“Food security is in serious danger. The harvest season in the grain industry is approaching. We need more maize in the silos and farmers have to prepare the soil for winter crops.

“The health of farm workers is also important, especially those who operate in agroprocessing. So, this calculated risk has got to balance the economic and health factors. Everything possible must be taken into account,” Maseti said.

In a statement on Saturday, Ramaphosa said Cabinet would meet today to discuss the need for an economic reconstruction plan.

Government would also develop an economic recovery plan for municipalities that are expected to bear the brunt of the Covid-19 fallout.

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