Govt making funds available for coronavirus fight, assures Mboweni
Finance Minister Tito Mboweni says National Treasury will put measures in place to ensure that coronavirus does not have a long-lasting impact on the economy.
The Johannesburg Stock Exchange (JSE) plunged 12 percent on Monday after cabinet imposed tough restrictions after declaring a national state of disaster in a bid to curb the spread of the virus.
President Cyril Ramaphosa announced that South Africa would close its borders from Wednesday to all foreigners from countries highly impacted by the COVID-19 pandemic.
Schools are closing down and gatherings of more than 100 people have been prohibited.
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The JSE fell below 38,784 points on Monday, its lowest level since August 2013, following a downward trend in markets around the world sparked by concerns about the economic fallout.
Speaking at a media briefing by ministers in Pretoria on Tuesday, Mboweni said it’s important for the country's economy not to grind to a halt.
This comes as some ports of entry will close, impacting on trade and limiting the movement of people.
"All efforts should be geared towards ensuring that the already weak domestic economy does not grind to a halt,” said Mboweni.
A failure to do so, he added, would further undermine the collection of the tax revenues required to take the actions needed to deal with the health crisis.
Mboweni added that some of the money needed by the disaster management fund will come from various government departments, which will require them to cut down on some of their programs.
"Officials are also in contact with the financial sector regulatory authorities in order to ensure we have a coordinated approach as far as the banking and financial sector is concerned. We need to make sure we don't have a situation where we are unable to procure testing facilities or whatever is necessary.”