DEPUTY President David Mabuza said on Thursday that the Unemployment Insurance Fund (UIF) has set aside R5.3 billion for the extension of the COVID-19 TERS coverage.
Mabuza was appearing before the National Council of Provinces (NCOP) to respond to oral questions for the first time since his return from Russia where he was receiving medical treatment.
Mabuza said the new allocation will mainly cover those who have lost their jobs due to the lockdown and recent looting and destruction of businesses.
He said government remains committed to rebuilding the economy through infrastructure investment and support to small businesses that were left destroyed in the wake of the recent civil unrest in Gauteng and KwaZulu-Natal.
Mabuza said with regards to KwaZulu-Natal, the office of the Premier has advised the Presidency that over 3 000 businesses, including facilities, were looted, vandalised and burn, resulting in more than R15 billion of damage of property and equipment.
He said government was also working with social partners to implement social and economic relief packages that will support households and provide assistance to affected businesses and employees.
Mabuza said the province has developed a plan to renovate and support vandalised township shopping malls and shopping centres that are based in rural areas.
Mabuza said there has been an additional R1.3 billion allocated to the Department of Trade and Industry and Competition for the funding of uninsured businesses that were affected by the riots.
Mabuza said the amount is made up of the reprioritisation of R700 million by the Department of Trade and Industry and Competition and R300million by the Department of Small Business Development.
“Our immediate priority is to accelerate the implementation of our economic recovery and reconstruction plan to revive all destroyed business and create and protect existing employment and drive inclusive growth,” said Mabuza.
“Further to this, government is also working with social partners to implement social and economic relief packages that will support households and provide assistance to affected businesses and employees.”
The deputy president said government’s immediate priority is to accelerate the implementation of the economic recovery and reconstruction plan to revive all destroyed businesses, create and protect existing employment and drive inclusive growth.
This support is directed at:
- Critical infrastructure refurbishment to support bulk infrastructure development in the affected economic areas such as industrial parks, shopping centres and factories;
- An industrial loan facility to support manufacturing companies affected by the looting and COVID-19 with a specific focus at rebuilding of infrastructure for premises, restocking and working capital;
- A Retail Recovery Support Fund, which will provide interest free loans to companies that have been affected by the unrest towards funding for the rebuilding of infrastructure;
- A business survival support programme to assist affected small enterprises with working capital including stock, machinery, equipment, revolving credit facility with a payment moratorium of up to 12 months and a repayment period of up to 84 months.
During his State of the Nation Address in February, President Cyril Ramaphosa announced that more than R57 billion in wage support has been paid to over 4.5 million workers through the UIF Special TERS scheme.
“More than R1.3 billion has been provided in support mainly for small- and medium-sized businesses,” said Ramaphosa.
In addition, over R70 billion in tax relief was extended to businesses in distress.
“Around R18.9 billion in loans have been approved for 13,000 businesses through the loan guarantee scheme.”
- Inside Politics
