Finance and Economic Opportunities

With regard to the outbreak of the coronavirus around the world:

1. What is its impact on the Western Cape economy

The Covid-19 pandemic is an international crisis that has impacted on the global economy, and together with the recent announcement by President Ramaphosa of a national lockdown from midnight on the 26 March for three weeks to limit the spread of Covid-19 in South Africa, there has inevitably been an impact on economy in the Western Cape.

The full extent of the impact will only be known once we overcome this challenge, but there is no doubt that all sectors across the Western Cape will be hit hard by the lockdown which is necessary for us to stop the spread of Covid-19 in South Africa. 

2. which industries and regions are mainly affected by it,

With only those businesses providing essential goods and essential services allowed to operate during the lockdown, the Covid-19 pandemic will have significant impact across all industries and regions in the Western Cape.

It is unlikely that any sector will not be impacted by the Covid-19 pandemic as people across South Africa are asked to stay at home to stop the spread of Covid-19.

3. what measures have his government put in place to assist the affected industries and regions?

We are working hard to support businesses, to back businesses and to save businesses, jobs and the economy in the Western Cape.

Since the Premier, Alan Winde, announced on the 11 March 2020, the establishment of the Joint Operations Centre, and workstreams to respond to the Covid-19 pandemic, our economic workstream has been working on a number of priorities to mitigate the impact of the Covid-19 pandemic on the economy.

Our strategy to support businesses in the Western Cape has three aspects:

1. 1. Containment - gathering information from industries to understand their business needs and respond to their needs, and ensuring they’re taking the necessary steps to stop the spread of Covid-19.
       
   2. Adaptation - collating and sharing Frequently Asked Questions, guidelines and best practice on how businesses can adapt to the lockdown regulations and become resilient, and

1. 3. Recovery – identifying actions that need to be taken to ensure businesses have the financial support they need now to get them through this crisis, and the actions needed to drive economic recovery once the pandemic has been contained, e.g. tourism and investment campaigns.

Containment

We have held consultations with representatives from business and industry such as those from Tourism, Shopping Malls and Retail, Agriculture and Agri-processing, Textiles and Manufacturing, and the Services sector including Business Process Outsourcing. In most cases, these engagements are held almost daily as we respond to sector’s questions and concerns in the ever-changing economic environment.

For example, ahead of the lockdown our teams set up a bespoke virtual engagement for this morning where large retailers and property groups were able to meet with a representative from the South African Police Service to answer their questions regarding permitting and essential services.

Adaptation

We are working hard to get further clarity from national government on the regulations for the lockdown and how they impact on businesses and workers in the Western Cape. This information is being added daily to our Frequently Asked Questions (FAQs) that are on our websites:

www.supportbusiness.co.za

www.westerncape.gov.za/coronavirus

In addition to this we send out regular communication to our business networks and our ‘Covid-19 Content Centre for Business’ has responded to over 300 queries from businesses and workers looking for support and advice so far.  Any businesses who need assistance can email supportbusiness@wesgro.co.za.

Recovery

Finally, our teams are also seeking to get clarity from national government on the available financial relief packages they’re putting in place for SMMEs, and we’re then providing support and advice to businesses in need, especially those already in distress, so that they’re able to access this financial support as quickly as possible.