Creating an environment for business to succeed
President Cyril Ramaphosa has emphasised the importance for government to create an enabling environment for businesses to thrive.
“As part of our effort to build a new economy out of this pandemic, we must create the conditions that will enable every individual to thrive in a society that supports, nurtures and helps them to succeed,” the President said on Monday.
In his newsletter to the nation, the President on Monday said small businesses present the greatest growth opportunity for the economy and are a major source of job creation.
“In such challenging times, when many have lost their jobs and the unemployed have found it even harder to eke out an existence, we must act with renewed urgency to support these businesses,” the President said.
He said the concentration of markets and capital in large firms limits the potential of small businesses.
“Then there is spatial inequality, which concentrates poverty in particular parts of our cities, towns and villages. Entrepreneurs in these areas find it difficult to raise the funds to launch and grow businesses and are often far away from the markets where they can sell their products.
“It is not enough simply to urge individuals to take advantage of opportunities or to encourage an entrepreneurial spirit among our youth. We need instead to deliberately build township and rural economies,” the President said.
He said to enable these businesses to thrive, South Africa must tackle the barriers to entrepreneurship.
“When it comes to the township and rural economy, this means providing access to finance for entrepreneurs and the self-employed,” he said.
Since the State of the Nation Address in February, government has made great progress in extending support to 1000 youth-owned businesses.
“We will reach this target by International Youth Day on 12 August, despite the delays caused by the lockdown. It also means expanding access to affordable and high-speed broadband internet, and supporting new technologies – including successful aggregation platforms like SweepSouth or Kandua – which link small businesses to demand.
“It means backing areas of opportunity such as in early childhood development, the food economy and the green economy,” the President said.
The many innovative businesses that have started during this pandemic have showcased the potential of South Africans, particularly the young people, the President said.
“It is our duty as government, business and society as a whole to lend our full support to them on their journey towards self-sufficiency and financial sustainability – both to protect the jobs we have and to replace those we have lost.
“At the same time, this is a rallying cry to other young people out there to take the great leap of faith into self-employment. The best businesses come from good ideas that respond to a community need.”
President Ramaphosa said he was pleased at the combination of foresight, creativity and business acumen displayed by a number of young South Africans, who are coming up with home-grown solutions to address the contemporary challenges faced by the country.
He said a number of young people have started small business ventures because of personal circumstances, such as losing their jobs, and others, who were previously unemployed, are now seizing the opportunity provided by the pandemic to create their own income.
He said South Africa’s economic recovery cannot wait until the Coronavirus pandemic is over. “Our economic recovery needs to start now.”
During the lockdown, government has extended support to Small, Medium and Micro Enterprises (SMMEs) in the form of loans, grants and debt restructuring.
The COVID-19 UIF Relief Scheme has now disbursed R26 billion to more than six million workers across all types of business.
“The R200 billion loan guarantee scheme is being adjusted to make it easier for applicants to receive funding quickly. Through the work of the Department of Small Business Development and its agencies, the Presidential Youth Employment Intervention and other initiatives, we are placing the township and rural economy at the centre of our reconstruction effort,” the President said.
Government aims to support township businesses with skills development and access to markets and infrastructure. This will be done through the Township Entrepreneurship Fund.
“Although its launch has been delayed by the lockdown, we will put it front and centre as we now begin the arduous task of rebuilding our economy,” the President said.
SA records 364 328 COVID-19 cases with 5 033 deaths
South Africa has 364 328 confirmed COVID-19 cases, while the death toll is sitting at 5 033 after 82 deaths were reported on Sunday.
“We convey our condolences to the loved ones of the departed and thank the healthcare workers who treated the deceased,” said Health Minister, Dr Zweli Mkhize
Meanwhile, 191 059 people have recovered since the outbreak, which translates to a recovery rate of 52.4% in the country.
The total number of tests conducted to date is 2 471 747 of which 49 006 were done since the last report.
Gauteng remains the epicentre with the highest number of confirmed cases at 133 617, followed by the Western Cape 85 926, Eastern Cape 63 181 and KwaZulu-Natal 43 215.
The North West has 14 006 cases, Free State 9 993, Mpumalanga 7 129, Limpopo 4 928, Northern Cape 2 266, 67 are still unknown.
According to the World Health Organisation, there are 14 043 176 cases worldwide and 597 583 deaths.
UIF promises to pay all valid claims
The Unemployment Insurance Fund (UIF) has undertaken to pay all valid claims which were not paid, as it begins to wind down the massive campaign of supporting workers through the worst effects of the Coronavirus pandemic.
UIF Commissioner Teboho Maruping said that so far, the Department of Employment and Labour entity has paid out R31 billion in 6 900 391 payments.
However, Maruping noted that, as the department tries to finalise payments that are still outstanding, it has become clear how “certain elements” tried to take advantage of the payments, through fraudulent means.
“For example, it has emerged that some companies tried to claim on behalf of people who are deceased or even with fraudulent or non-existent Identity Document (ID) numbers. We have been assailed in certain quarters – sometimes deservedly so – for not paying on time but in reality, we have had to ensure that the system is not taken advantage of,” Maruping said.
Over 4 000 claims lodged on behalf of deceased
Through the vetting, Maruping said, the department has been able to establish that there were at least over 4 000 claims, including 2 729 in April and 1 944 in May, which were lodged on behalf of deceased persons, and the thorough vetting that has been instituted has picked up all these anomalies.
He said they are following every cent that has been paid out and will continue processing valid claims, but warned that some of the claims cannot be processed for obvious reasons.
Maruping said close to 50 000 (48 189) invalid ID numbers were used in April and this figure decreased to 43 176 in May. In April, 106 488 ID numbers could not be found on any system, and this number went down to 84 278 in May.
Controls to prevent duplicate payments
He explained that the department developed the system in such a way that it would be able to talk to other public service institutions like SARS and the Department of Home Affairs.
Currently, he said, the UIF uses reference and ID numbers to prevent duplicate payments, as well as verification of banking details, password protection and checking claims against UIF and SARS databases.
“As we repurposed the Fund to deliver to laid-off workers, we also needed to build in the necessary financial controls and ensure the liquidity and long-term sustainability of the Fund itself.
“Minister had directed that there will be no payments made by the UIF until the necessary controls were in place, as ultimately they would later be required to account to all government authorities and the Auditor General on systems, processes and control of disbursing such huge amounts,” Maruping explained.
Over 280 000 recently paid on ufiling
Another reason that led to delays, included employees not registered with the UIF of which the Fund has to verify their existence with SARS.
In these cases, and realizing the noble cause for supporting workers, Maruping said they gave employers the chance to declare these workers through ufiling after which, they were able to pay.
As a result, he said, a total of 171 393 for April and 113 856 for May has recently been declared by employers on ufiling and they have either paid them or are in the process of doing so.
“The Unemployment Insurance Act, makes it obligatory for a company to declare all its employees with the Fund and to pay over UIF contributions to the Fund and it has been in contact with these employers requiring them to confirm if indeed these are their employees including some form of proof – whether through their payroll or South African Revenue Service declaration,” Maruping noted.
However, he said that in some cases, the Fund has not received cooperation from employers which begged the question if those workers were really employed at the companies concerned or if some of the companies in question were trying their luck to see if UIF will pay.
“Unfortunately, the regulations were clear right from the beginning that a company or entity had to have been registered for UIF before the 15 March 2020 but in April, 18 648 claims were lodged and 3 052 in May. These cannot be processed,” Maruping said.
He said the April and May applications are closed, but the June applications are still active.
The extra vetting means that instead of paying in 24 hours, the minimum time now is 48 hours, Maruping noted.
Do your part in limiting spread of COVID-19
The Minister of Health, Dr Zweli Mkhize, has appealed to South Africans to work with government in reducing the spread of Coronavirus by observing the COVID-19 guidelines.
“As government, we have mobilised every resource, every faculty and wherewithal at our disposal to effect the necessary interventions. But government cannot manage this unilaterally. Every single South African now needs to focus on adhering to recommendations pertaining to non-pharmaceutical interventions,” Mkhize said on Saturday.
The Minister expressed concern at the fatigue that seems to have set in as South Africans are letting down their guard at a time when the spread of infection is surging.
“We see poor or no social distancing in communities. Masks are being abandoned or not worn properly and there is laxity setting in around frequent hand-washing.
“This will directly influence the rise in numbers in the next two weeks. We must all appreciate that there is a direct causal link between the surge of cases and our ability, or inability, to adhere to these very basic principles,” he said.
The Minister reminded South Africans that there’s no vaccine or cure for COVID-19.
“Our ability to break the cycle of infection depends on our willingness to remain focused and disciplined and take non-pharmaceutical interventions seriously. We can beat this pandemic together.
“We have already proved this during the lockdown. It remains in each and every citizen’s hands to admonish family members, colleagues, friends, who refuse to adhere to measures that protect lives by limiting the spread of this virus,” Mkhize said.
PRASA embarks on recruitment drive for security guards
The Passenger Rail Agency of South Africa (PRASA) has started a recruitment process to employ 3 100 security guards to protect its rail infrastructure and other assets.
PRASA Administrator Bongisizwe Mpondo said insourcing the security function will better secure the agency’s infrastructure while creating much needed jobs.
“Employing our own security personnel will give us greater control of the protection of our network and assets. We have a responsibility to do all we can to protect the public infrastructure as acts of vandalism and theft become worse,” Mpondo said.
He said the agency intends to give preference to qualifying individuals who reside in communities near PRASA’s rail network.
“As the economy sheds jobs as a result of the COVID-19 pandemic, PRASA as a state-owned company has a responsibility to ensure that where it makes business sense, it must provide employment to citizens,” Mpondo said.
The Administrator’s plan to insource security personnel is in line with Minister of Transport Fikile Mbalula’s nine point mandate which he set out for the Administrator when he took over on 9 December 2019.
Appearing before Parliament’s Portfolio Committee on Transport on 4 February, the Minister said the annual investment of approximately R700 million on the part of PRASA must be directed toward creating permanent jobs and sustainable livelihoods for those entrusted with securing the railways.
The contingent will consist of three categories. These include the static and train guards, operations monitoring controllers and armed response guards.
“PRASA’s focus is to ensure a holistic protection service for the organisation’s assets, commuters as well as employees. The new recruits will also focus on general crime prevention which, once rooted out, will most likely see a significant decrease in the vandalism of PRASA’s properties and theft of assets,” the agency said.
The new recruits will add to the already existing Protection Officials, who in recent weeks have arrested 185 suspects and recovered sizeable amounts of stolen cable and other PRASA assets.
“PRASA has taken the issue of beefing up security very seriously, especially after the termination of security contracts which the Office of the Public Protector and the Office of the Auditor-General found to be irregular,” the agency said.
PRASA recently appointed 596 Platform Marshals whose main task is to ensure that passengers comply with COVID-19 regulations on trains and stations.
Potential recruits can get more details on the available protection services jobs on PRASA’s website (http://www.prasa.com/Job%20Opportunities.html).
Tips to boost your immune system during COVID-19
While there is no one specific treatment or preventative measure against COVID-19, a Johannesburg based doctor is advising people to stick to a healthy diet, good rest and exercising within the limits of regulations.
According to the general practitioner, Dr Marlin McKay, there is also some evidence that taking supplements such as vitamin D may help with boosting your immune system against the virus.
“This needs to be in high level, not the one that you buy over the counter as part of the combination,” he explained, adding that you need about 50 000 international units of vitamin D.
He is also recommending a high dose of vitamin C – a minimum of 1 gram, about 100 milligrams of zinc and magnesium.
“And just making sure that you keep your chronic condition under control; if you’re diabetic, make sure your sugar is well controlled. If you’re on blood pressure medication, keep on taking your medication to maintain good blood pressure control,” McKay added.
According to the Department of Health, 8 million people are living with HIV in South Africa, 4 million with diabetes, while one in every three in the country suffers from hypertension.
“Don’t become overweight, keep exercising, try to keep as fit as you can,” the doctor stressed.
Also, drink a lot of liquids to keep dehydration at bay.
Most importantly, if you have not received your shot of a flu vaccine, get one soon.
“The flu vaccine will get you that level of protection at least against influenza in case you get infected with SARS-CoV-2 virus,” McKay said.
McKay shared his views as part of the #ListenToTheDoctor campaign run by the Health Department on social media to spread awareness about the Coronavirus.
According to the World Health Organisation (WHO), regular physical activity is good for your body and mind as millions of people grapple with the infectious disease across the globe.
“It can reduce high blood pressure, help manage weight and reduce the risk of heart disease, stroke, type 2 diabetes, and various cancers – all conditions that can increase susceptibility to COVID-19,” the WHO added.
To maintain a healthy diet, the agency said people should eat a variety of food including fruits and vegetables, limit salt intake, use moderate amounts of fats and oils and cut back on sugar intake.
Also, avoid hazardous and harmful alcohol use and mothers are advised to breastfeed their babies and young children.
“Eating a healthy diet is very important during the COVID-19 pandemic. What we eat and drink can affect our body’s ability to prevent, fight and recover from infections.”
Also, the WHO warns against smoking.
“Smokers have a higher risk of getting Coronavirus because they are constantly putting their hands to their lips.”
Besides, if they contract the virus, they are at a greater risk of getting a severe case because their lung function is impaired.
“Quit today to reduce these risks and start living a healthier life,” WHO added.
According to the WHO, as of Thursday, there were 13 378 853 cases worldwide, with 580 045 deaths.
Defence Minister recovers from COVID-19
Defence and Military Veterans Minister Nosiviwe Mapisa-Nqakula and her husband Charles Nqakula, who is the National Security Advisor to the President, have recovered from COVID-19.
The Minister and her husband tested positive recently and are still in self-isolation.
“We are glad that all their symptoms have cleared and we are looking forward to them finishing their 14 days of mandatory self-quarantine period,” said Government Communications Director-General Phumla Williams.
Both the Minister and her husband have been working from home during this time. Members in the private office of the Minister have also been tested.
“We once again extend our well wishes to all who have contracted COVID-19. We also extend our condolences to the many families, who have lost their loved ones due to Coronavirus.
“As government, we urge all people to play their part by observing all the health protocols of washing hands regularly, wearing a mask covering both the mouth and nose when in public, and practicing physical distancing. Working together, we can beat Coronavirus,” Williams said.
Didiza “not on social media”, denounces fake accounts
Agriculture, Land Reform and Rural Development Minister Thoko Didiza has warned the public about a number of fake social media accounts purported to be hers.
Didiza said she has been inundated with calls from concerned citizens, verifying whether she is the one they have been engaging with on these social media platforms.
The Minister confirmed that she is not on any social media platform, and distanced herself from the fraudsters who are impersonating her.
She also confirmed that there is no European Union Development Funding programme that she is involved in.
“I urge all of you to be vigilant against anyone who impersonates me. These fraudsters are working day and night to get your hard earned money,” Didiza warned.
The Minister has since reported the matter to both the South African Police Service and Facebook.
She further urged all affected people to continue verifying with her office upon receiving such requests and to open criminal cases with the South African Police Service.
Lending a hand this Mandela Day
As the world prepares to commemorate Nelson Mandela Day, Environment, Forestry and Fisheries Deputy Minister Makhotso Sotyu has handed over school desks to two schools in the Free State.
Ahead of Nelson Mandela Day on Saturday, the Deputy Minister handed over a total 250 eco-furniture school desks to Ladybrand and Manyatseng Primary Schools in Ladybrand.
“We were in Ladybrand today in response to the clarion call by the Nelson Mandela Foundation for all of us to be active citizens in our communities,” said the Deputy Minister on Friday.
The donated desks were sourced from the department’s Eco-Furniture Programme, which utilises invasive alien plant biomass to make products needed by government.
This in turn creates work opportunities for previously unemployed individuals as part of the Expanded Public Works Programme.
“Since April 2014, our Eco-Furniture Programme has successfully placed over 600 000 learners behind high-quality desks, most for the very first time in their careers,” said Sotyu.
The high quality, durable, solid-wooden desks are manufactured through the Department’s Working for Water programme. The programme which aims to remove invasive alien plants and mitigate their effects on water quantity and quality, biological diversity and the functioning of natural ecosystems.
“Removing these invasive species that threaten our water security, promotes ecosystem resilience in an area of climate change, while creating much needed jobs. With the wood from these plants, we have been able to manufacture desks,” she said.
Donations of school bags, facemasks and school shoes were also made.
This year’s Mandela Day comes as communities across the world confront challenges brought on by COVID-19.
The Deputy Minister also spent some time at the Manyatseng Old Age Home where she handed-over 50 blankets, groceries, sanitisers, vegetables seeds and garden tools.
Sotyu was accompanied by Mayor of Mantsopa Local Municipality Mamsie Tsoene.
National Lotteries Commission ordered to submit list of beneficiaries
The Portfolio Committee on Trade and Industry wants the National Lotteries Commission (NLC) to provide the list of beneficiaries that benefited from the R150 million COVID-19 relief fund.
Committee chairperson Duma Nkosi said the committee also wants a list of all beneficiaries that received money from the NLC during the 2018/19 financial year.
“This should include the names, the amounts that were disbursed, as well as the categories it was paid out from. It should also include all beneficiary lists that have not be made public up to now.
“Furthermore, the committee requests that the NLC publish the names of beneficiaries in its 2019/20 Annual Report, as required by the Lotteries Act (Act No. 57 of 1997),” Nkosi said.
The committee’s decision follows an opinion from Parliament’s Legal Services, which states the NLC’s financial statements must disclose this information.
In addition, Nkosi said the information must be available to the Auditor-General, as the NLC is subject to the Public Finance Management Act.
Nkosi said the NLC has not disclosed beneficiaries for the past few years.
“The NLC argued that while in the past such lists were published, on consideration of the laws governing private information and complaints from some beneficiaries, it reached the conclusion that the publication of such information was erroneous and not in the public interest,” Nkosi said.
According to Parliament’s legal advice: “The constitutional right to privacy is not an absolute right, but may be limited in terms of laws of general application and must be balanced with other rights entrenched in the Constitution”.
Also, purposeful interpretation of the Lotteries Act shows that a culture of openness and transparency is required.
Nkosi said the committee unanimously agreed that NLC must comply within seven days.