# How the government will give R500 billion to citizens and businesses

- Link: https://dearsouthafrica.co.za/2020/04/22/how-the-government-will-give-r500-billion-to-citizens-and-businesses/
- Published: 2020-04-22T00:07:20+02:00
- Author: dearSA

![](https://cdn.dearsouthafrica.co.za/wp-content/uploads/2020/04/20191105/Screenshot-
76.png "Screenshot (76)")

[**President Cyril Ramaphosa has announced**](https://mybroadband.co.za/news/government/348943-r500-billion-coronavirus-plan-announced-special-social-grants-and-more-money-for-businesses.html)
a R500 billion support package to help South African businesses and citizens during
the COVID-19 pandemic.

Ramaphosa said some of the funding will be raised through the reprioritisation of
around R130 billion within the current budget.

The rest of the funds will be raised from both local sources, such as the Unemployment
Insurance Fund, and from global partners and international finance institutions.

The World Bank, International Monetary Fund, BRICS New Development Bank and the 
African Development Bank have been approached, he said.

Ramaphosa said the government’s economic response to the coronavirus crisis can 
be divided into three phases.

 1. The first phase began in mid-March when the coronavirus pandemic as a national 
    disaster was announced. The measures included tax relief, the release of disaster
    relief funds, emergency procurement, wage support through the UIF and funding to
    small businesses.
 2. The government is now embarking on the second phase, which includes the economic
    support package of R500 billion.
 3. The third phase is the economic strategy which will be implemented to drive the
    recovery of the economy as the country emerges from this pandemic.

### How the money will be spent

The President gave a breakdown of how the R500 billion will be made available to
South African citizens and businesses.

 * R20 billion will be directed to fight the pandemic and support infected people.
 * R20 billion will be made available to municipalities for emergency water supplies,
   increased sanitisation of public transport and facilities, and providing food
   and shelter for the homeless.
 * R50 billion will go towards relieving the plight of those who are most desperately
   affected by the coronavirus.
 * R100 billion will be set aside for protection of jobs and to create jobs.
 * R40 billion has been set aside for income support payments for workers whose 
   employers are not able to pay their wages.
 * R2 billion will be made available to assist SMEs and spaza shop owners and other
   small businesses.
 * A R200 billion loan guarantee scheme will be launched in partnership with the
   major banks, the National Treasury and the South African Reserve Bank.
 * R70 billion in tax measures to bring cash flow relief or direct payments to businesses
   and individuals.

The R50 billion to help the most affected by the coronavirus will be handed out 
as follows:

 * Child support grant beneficiaries will receive an extra R300 in May and from 
   June to October they will receive an additional R500 each month.
 * All other grant beneficiaries will receive an extra R250 per month for the next
   six months.
 * A special Covid-19 Social Relief of Distress grant of R350 a month for the next
   6 months will be paid to individuals who are currently unemployed and do not 
   receive any other form of social grant or UIF payment.

Ramaphosa added that they will follow a risk-adjusted approach to the return of 
economic activity.

This will be done through balancing the continued need to limit the spread of the
coronavirus with the need to get people back to work.

[Moneyweb](https://mybroadband.co.za/news/business/348947-how-the-government-will-give-r500-billion-to-citizens-and-businesses.html)