South Africa: Today’s latest news and headlines, Friday 1 May

For the latest news in South Africa be sure to read all about the country’s biggest headlines on Friday 1 May.

As South Africans welcome the first day of lockdown under Level 4, the coincidental  irony of Workers’ Day, at a time when the country’s economy has shuddered to a halt and resulted in widespread retrenchments, is unlikely to be lost on strained citizens.

Today’s latest news in South Africa, Friday 1 May

Sombre Workers’ Day for South Africans under lockdown

South Africans languishing under the immense load of lockdown will have little to celebrate on Workers’ Day. On Thursday, the Standing Committee on Finance, informed by the National Treasury, projected between 3 and 7 million job losses as a result of the coronavirus induced lockdown.

This comes at a time when both businesses and opposition parties beg the government to lighten stringent regulations which are strangling industries.

The Democratic Alliance (DA) has been especially critical of government’s phased approach to lockdown, arguing:

“This underscores how important it is to open up more of the economy safely, as the DA has proposed. We have proposed a model in which businesses which can operate safely be allowed to open immediately, with strict social distancing and personal protection requirements.”

SARS admits its losing billions because of booze ban

While government has remained resolute in its lockdown prohibition of alcohol and tobacco, the South African Revenue Service (SARS) confirmed that it was losing out on a chunk of taxable revenue.

Addressing parliament’s Finance Committee, SARS Commissioner Edward Kieswetter noted that the controversial ban ha cost government R1.5 billion. Kieswetter added to the debate regarding prohibition’s window of opportunity offered to the illicit trade, saying:

“The problem with the illicit sale of cigarettes, given the fact that we cannot claim as a country that we’re on top of that yet, during times like these when the legal sale of these products are not permitted, it encourages the trade of in these products in the illicit economy.”

Kieswetter’s comments come just one day after the National Command Council (NCC) made a sudden U-turn on President Cyril Ramaphosa’s earlier announcement regarding the sale of tobacco products.

The sale of both alcohol and tobacco products still remain prohibited.

Education department puts forward final proposals

The department of basic education, headed by Minister Angie Motshekga, has revealed its proposal to reopen schools to Grade 12 and 7 pupils in June 2020. Motshekga, who briefed the public on her department’s plans on Thursday, reiterated that the final call regarding the 2020 school calendar would need to be approved by the cabinet and NCC. Motshekga elaborated on the tentative dates as follows:

• Education sector reopens on 4 May
• School management returns on 11 May
• Teachers return on 18 May
• Grade 12 and 7 pupils return on 1 June

Government expresses disappointment at S&P downgrade

Government has expressed disappointment at rating agency S&P’s decision to downgrade South Africa’s sovereign rating amidst the COVID-19 pandemic.

Government said it noted the decision by the rating agency to lower South Africa’s long term foreign and local currency debt ratings further into non-investment grade to ‘BB-’ and ‘BB’ respectively.

“Government is disappointed by S&P’s decision to downgrade the sovereign rating at a time when South Africa is facing one of its most challenging times. Government welcomes, however, the revision of the outlook to stable from negative, and considers this an indication that the agency at least recognizes some of government’s fiscal and monetary policy measures as strong points,” said government in a statement issued by National Treasury.

The agency revised the outlook to stable from negative.

According to S&P, the downgrade is a result of COVID-19 related pressures that will have significant adverse implications for South Africa’s already deficient growth and fiscal outcomes. (Source: SAnews)

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