President Cyril Ramaphosa has called on South Africans to work together in ensuring economic recovery.

1. MEDIA STATEMENT
TO ALL MEDIA/NEWS EDITORS
TUESDAY 08 SEPTEMBER 2020
GDP DECLINE: PRESIDENT URGES NATIONAL EFFORT TO REBUILD
THE ECONOMY
President Cyril Ramaphosa says the decrease in South Africa’s gross
domestic product during the second quarter of 2020 reflects the severe impact
of the global coronavirus pandemic on the economy and should spur all South
Africans to do all they can to help rebuild the economy.
While the 16.4% contraction in the second quarter (or 51% on an annualised
basis) represents an anomaly due to the lockdown imposed at the end of
March, these figures nevertheless reinforce the importance of enabling a
strong rebound in subsequent quarters.
Countries across the world are facing significant economic disruption as a
result of the pandemic, leading to the worst global downturn in decades.
South Africa has not been spared these realities.
The coronavirus represents a once-in-a-century social and economic crisis,
with disruptions to production, a synchronised decline in export markets and a
prolonged decrease in demand for many service industries. The economic
circumstances created by the pandemic have caused hardship for many
South Africans, and threaten the survival of businesses in sectors that are
worst affected.
Having acted swiftly and decisively to save lives and bring the epidemic under
control, government’s focus now is on economic recovery. The R500 billion
emergency relief package announced by the President in April has prevented
the worst effects of the pandemic.
Over R40 billion has been paid to more than 4 million workers through the
Unemployment Insurance Fund to prevent retrenchments, and more than 5
million beneficiaries have received the Special COVID-19 Grant for Social
Relief of Distress.

2. A total of R25 billion has been paid through top-ups to existing social grants,
as well as an additional Caregivers Allowance for recipients of the Child
Support Grant.
Moreover, tax relief worth over R70 billion has been extended to businesses
in distress. These and other measures have provided necessary relief to
vulnerable individuals and businesses across the country.
As the epidemic continues to stabilise, a strong recovery is possible through
targeted actions to restore economic growth and protect the livelihoods of our
people.
President Ramaphosa stated: “Now is the time to act quickly and boldly to
place South Africa on a rapid growth trajectory. We cannot continue with
business as usual. We will use this moment of crisis to build a new economy,
and unleash South Africa’s true potential.”
Three important processes are underway to support economic recovery.
First, social partners will soon present a Social Compact on Economic
Recovery to the President following discussions at the National Economic
Development and Labour Council. This social compact identifies areas of
convergence, and provides a basis for joint action by all partners.
Government will thereafter finalise its Economic Recovery Strategy, which will
draw on this social compact and outline a clear, action-oriented plan to
stimulate economic growth and enable a rapid rebound.
This strategy will include fast-tracking urgent structural reforms, expanding
employment programmes, facilitating large-scale investment in infrastructure
projects, and implementing measures to promote localisation and enhance
regional and continental trade.
Finally, the Presidential Employment Stimulus will commence implementation
within the next month, and will expand opportunities through public and social
employment to counteract job losses.

3. The President will make further announcements in this regard in due course
and the President calls on all sectors of society to act with unity and purpose
to rebuild the economy for the benefit of all South Africans.
Media enquiries: Tyrone Seale, Acting Spokesperson to the President at
media@presidency.gov.za
Issued by: The Presidency of the Republic of South Africa
Pretoria