EDITORIAL: Easing lockdown brings relief — now it’s up to us
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President Cyril Ramaphosa certainly took his time to confirm last week’s reports that South Africans will be able to, legally, enjoy a drink at a bar, travel between provinces and puff on a cigarette.
But the decision — in which he juggled downward trends in confirmed Covid-19 cases, hospital admissions over the last few weeks and the economic destruction due to the lockdown — to further roll back restrictions on businesses and human rights is certainly most welcome.
In his much-awaited televised address on Saturday night, when he extended the state of national disaster by a month hours before it was due to expire, he rightly acknowledged the huge toll the lockdown has taken on the economy while shifting much of the responsibility to contain the virus to individuals and businesses.
It’s been a long time coming for the economy, which Investec says shrunk about 60% in the second quarter. For the full year, the central bank expects the economy to contract more than 7%, one of the largest contractions in generations and risking setting off cascading corporate failures, especially in the tourism, airline and hotel industries, which have been forced into hibernation since end-March.
The alcohol and cigarette sales ban could not have continued much longer, with business — on which the president has staked his reputation to lead an economic recovery, the prospects of which had already been fragile before the pandemic — cancelling or rethinking investment spending.
On the other hand, the ban on the sale of alcohol and tobacco has robbed the SA Revenue Service of much-needed money to plug holes in the national budget while encouraging a thriving black market. Something had to give.
For some in the tourism industry, which contributes almost 9% to the economy and accounts for about 10% of all jobs, the lifting of the restrictions may have come a little too late. The industry has been running on fumes for much of the last five months, triggering a fight for survival even among heavyweight players such as Sun International and Tsogo Sun.
It’s not difficult to imagine that smaller establishments such as bed-and-breakfast joints have permanently shut their doors, especially with international travel restrictions set to keep SA walled off from tourists from the northern hemisphere, which is heading into winter.
Given the important role the industry plays in the economy, it would not have been a bad idea for ...
But the decision — in which he juggled downward trends in confirmed Covid-19 cases, hospital admissions over the last few weeks and the economic destruction due to the lockdown — to further roll back restrictions on businesses and human rights is certainly most welcome.
In his much-awaited televised address on Saturday night, when he extended the state of national disaster by a month hours before it was due to expire, he rightly acknowledged the huge toll the lockdown has taken on the economy while shifting much of the responsibility to contain the virus to individuals and businesses.
It’s been a long time coming for the economy, which Investec says shrunk about 60% in the second quarter. For the full year, the central bank expects the economy to contract more than 7%, one of the largest contractions in generations and risking setting off cascading corporate failures, especially in the tourism, airline and hotel industries, which have been forced into hibernation since end-March.
The alcohol and cigarette sales ban could not have continued much longer, with business — on which the president has staked his reputation to lead an economic recovery, the prospects of which had already been fragile before the pandemic — cancelling or rethinking investment spending.
On the other hand, the ban on the sale of alcohol and tobacco has robbed the SA Revenue Service of much-needed money to plug holes in the national budget while encouraging a thriving black market. Something had to give.
For some in the tourism industry, which contributes almost 9% to the economy and accounts for about 10% of all jobs, the lifting of the restrictions may have come a little too late. The industry has been running on fumes for much of the last five months, triggering a fight for survival even among heavyweight players such as Sun International and Tsogo Sun.
It’s not difficult to imagine that smaller establishments such as bed-and-breakfast joints have permanently shut their doors, especially with international travel restrictions set to keep SA walled off from tourists from the northern hemisphere, which is heading into winter.
Given the important role the industry plays in the economy, it would not have been a bad idea for ...
