News24 reported on a leaked draft document outlining the impact of an extended lockdown period.
News24 has reported on a leaked draft discussion document prepared by the office of the presidency, which states that South Africa's tourism, aviation and creative arts industries will only be able to pay 5 percent of their staff at the end of May if the nationwide lockdown was extended.
The document was prepared as part of a developing strategy for a risk-adjusted approach to resuming economic activity. Presidential spokesperson Khusela Diko is reported in the article as saying the document has since changed significantly and should not be relied upon as a source of accurate information.
Among other things, the discussion document outlines how different sectors of the economy would be affected by a further extended lockdown period. In addition to a 5 percent pay cut for employees in the creative arts, tourism, mining, and oceans sectors, the document finds that the construction industry would likely only be able to pay 15 percent of its workforce.
“In the 27-page document that outlines the impact on lifting restrictions on economic activity, Ramaphosa is advised that if economic activity is allowed to resume unabated there remains a risk of a resurgence of Covid-19 infections. At the same time, some sectors remain vulnerable to retrenchments and business closures,” reads News24 the article.
Meanwhile, the document also predicts the business failure of 45 percent of larger firms and 65 percent of small businesses. The risk-adjusted approach and details of the final document will be elaborated on by President Cyril Ramaphosa on Thursday evening.