Staff Reporter
The Unemployment Insurance Fund (UIF) has paid out R356 million to help employees who are unable to work following the implementation of the national lockdown set to help curb the spread of COVID-19.
Addressing the nation Thursday night, President Cyril Ramaphosa said the UIF has set aside R40 billion to assist workers across different sectors.
He urged businesses to pay for goods and services received so that other companies are able to meet their salary obligations.
“I would like to applaud all those employers who have continued to pay their workers during this difficult time, as well as those employers who are working with unions and government to assist their employees to access these benefits,” Ramaphosa said.
“We must do all we can to ensure that the underlying economy continues to function and to focus support on those small businesses that really need them,” he added.
The president said the Industrial Development Corporation has set aside R3 billion for the procurement of essential medical supplies.
The company has already approved R130 million in funding and expects to approve a further R400 million in the coming week to companies who applied for funding under this special facility.
Ramaphosa said the Small Enterprise Finance Agency has approved the postponement of loan repayments for a period of six months.
“The small business debt relief and business growth facilities are currently adjudicating applications for assistance . . . There is a total of R500 million available in support,” he explained.
The government, according to the president, has also reprioritised R1.2 billion to provide relief to smallholder farmers and to contribute to the security of food supply.
“In addition to these expenditure measures, the Reserve Bank has also lowered interest rates and has taken measures to inject liquidity into the economy,” he said.
Ramaphosa said the government has also been working to provide basic needs such as water and maintain reliable food supplies to the poor.
“We have also expanded the provision of food parcels and we have provided spaza shops with financial support,” he said.
To date, he said, the government has delivered over 11 000 water storage tanks to communities in need across the country with most of them already installed.
In addition, 1 000 water tankers have been provided for the delivery of water and several homeless people have been accommodated in 154 shelters across the country.
The Solidarity Fund — established to mobilise resources from companies, organisations and individuals to combat the coronavirus pandemic — has already allocated around R1 billion to buy sterile gloves, face shields, surgical masks, test kits and ventilators.
The fund already has about R2.2 billion in its coffers.