29 JULY 2020
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LEFT: The South African restaurant and tourism sector stood in solidarity on Wednesday 22 July to protest the stringent regulations that are decimating the industry and leading to countless job losses.
RIGHT: Cape Whale Coast tourism manager, Frieda Lloyd with the Deputy Mayor of the Overstrand, Elnora Gillion.
PHOTOS: Taylum Meyer
What began as a peaceful protest in Hermanus soon turned into a heated confrontation as authorities demanded that the roads be cleared. Several restaurant owners such as Petri Hendriksz of Char'd and Pear Tree (pictured here) stood their ground. Read more on P4. VIDEO: Regio TV
Budget to beat Covid Writer De Waal Steyn
T
he Covid-19 pandemic has become a double-edged sword with tough decisions needing to be taken between saving lives and saving livelihoods. While the national infection numbers over the past week have climbed steadily, with between 13 900 and 11 200 new cases recorded daily, in the Western Cape new infections rose by between 550 and 1 500 cases daily over the corresponding period. But, according to figures released by the Western Cape, of the more than 91 100 cases reported thus far, only about 12 600 are active cases. By Monday 2 897 people in the province had succumbed to the illness. A total of 1 062 recoveries had been reported out of the 1 334 cases in the Overstrand. The fight against the pandemic in the province,
which at one time accounted for more than 70% of all reported cases in the country but now stands at 20%, was bolstered last week with the presentation of the province’s special adjustment budget tabled by David Maynier, Western Cape Minister of Finance and Economic Opportunities. According to Maynier, while there are some positive signs that the storm may be subsiding, the province must plan for the worst. “We have a plan and it is this budget that I call ‘A Budget to Beat Covid-19 in the Western Cape’. The budget supports the province’s immediate health, humanitarian, and economic response. We have worked hard to mobilise every cent available and have allocated R3.05 billion to support the fight against the virus,” he said. The adjustment budget makes provision for: • R1.8 billion to the Department of Health for personal protective equipment, temporary field hospitals, testing and screening, and additional bed capacity;
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R400 million to the Department of Transport and Public Works for the hiring of venues and the purchase of services for quarantine and isolation facilities; R310 million to the Department of Education for personal protective equipment, and the sanitisation of schools; R84 million for humanitarian relief.
But while the authorities are doing their utmost, businesses are caught in a life and death struggle for survival. Newly released research by TransUnion shows that 90% of small businesses in South Africa are struggling or temporarily closed because of the impact of the Covid-19 pandemic. Just 9% report that they are operating as normal and less than 1% of businesses say they are thriving. A total of 96% of small business owners reported a decrease in revenue, with 78% saying they have seen a significant decrease. With cash flows being hit so hard, 32% of small
businesses report that they will be able to operate for less than three months at the current rate, and 50% reported extreme concerns with being able to fulfil critical payment obligations. Nearly two thirds (59%) said they will have to cut staff salaries, 44% said they will be unable to pay rent, and 33% said they will have to start downscaling monthly services such as telecommunications and insurance in the next two months. Nonetheless, small business owners remain optimistic about their ability to continue, with 53% indicating that it is likely that they will recover from the impact of the pandemic. Lee Naik, CEO of TransUnion Africa, said the research is designed to help better understand how small businesses have been impacted by the pandemic, the changes they have experienced, and their expectations of how the crisis would affect their operations and subsequent ability to meet their payment obligations. Continues on P 2