Combined fiscal and monetary policy interventions amount to R800bn - Tito Mboweni

Finance Minister Tito Mboweni provided more detail today of the R500bn package of economic measures that were announced by President Cyril Ramaphosa which are aimed at addressing challenges that the economy face which has been hit hard by the Covid-19 outbreak and a recent credit rating downgrade by Moody's. In a web media conference, Mboweni said that the combined fiscal and monetary policy interventions amounted to R800bn. A revised public bill will be tabled to deal with the budget re-allocations. He announced that South Africa could access $4.2bn from the International Monetary Fund, $1bn from the Brics Bank and a smaller loan of between $55-$60m from the World Bank. These offers will be followed up on by the Treasury. With regard to the Landbank, Mr Mboweni said the government and Treasury is involved in lengthy discussions to ensure it can continue to function and will do whatever is needed to support the Landbank. He said the increase in social grants was a temporary measure and they will be reduced by October. Mr Mboweni envisaged a new economy after the novel coronavirus outbreak with more youth employment, less reliance on China and said that structural reforms of the economy will continue. Spaza shops will be brought into the formal economy. He also said that he wanted a labour market that favoured South Africans. - Linda van Tilburg