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Mboweni and Mogajane announce R36.2bn in new economic support following unrest

For affected businesses, social relief for poor South Africans as well as more funds for the police and national defence forces.
Finance Minister Tito Mboweni flanked by Treasury director-general Dondo Mogajane is in this file picture, taken ahead of the 2019 budget speech. Image: Elmond Jiyane, GCIS

Finance Minister Tito Mboweni and National Treasury director-general Dondo Mogajane revealed a new financial support package of some R36.2 billion in the wake of the recent unrest and destruction to property in KwaZulu-Natal and parts of Gauteng.

The pair were joined by South African Special Risk Insurance Association (Sasria) and SA Revenue Service (Sars) bosses in a briefing on Wednesday regarding the new package.

Read: Can Sasria honour claims of up to R30bn?

It follows President Cyril Ramaphosa’s announcement on Sunday that further support measures by government were in the works for South Africans and businesses amid the continuing impact of Covid-19 and recent unrest in the country.

The overall package will not only cover insurance claims from affected businesses, but also go towards funding additional social relief for poor South Africans as well as see additional funding for the police and the South African National Defence Force (SANDF).

While Mboweni initially mentioned a figure of R27 billion in further support “needed to fund the system” during Wednesday’s briefing, Mogajane later confirmed that the overall value of the new support package would in fact total more than R32 billion.

Mboweni said that the recent riots and destruction in KwaZulu-Natal, Gauteng and certain other areas in South Africa has “had a major impact on the country’s economic recovery trajectory” especially in the context of Covid-19.

“Damage in Ethekwini Municipality [greater Durban] alone is estimated at some R15 billion,” the finance minister pointed out.

He said that the destruction has been significant with shops, shopping malls, post offices, factories, transport networks and even cellular towers being targeted.

Mboweni condemned the “violent acts of destruction” and added that government “can’t sit back and needs to do something”.

Thus, the new economic support package has been announced together with other measures to curb the unrest, including the deployment of further police and SANDF troops in the affected areas.

Read:
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Sasria: A 40-year story of risk, reward and metamorphosis

“SA is fortunate to have Sasria and insurance claims are being dealt with immediately…. Some R27 billion is needed to fund the system,” he said.

“It is estimated that between R15 billion to R20 billion [in claims] between Sasria and National Treasury will be met,” he added.

Mboweni pointed out that as part of the larger overall economic support package, some R250 million in additional funding would go to the police department and R700 million for the deployment of the SANDF.

Meanwhile, Mogajane stressed that the economic package will be funded “within available resources currently”.

Most of this is expected to come from the spike in tax revenues on the back of the commodities boom.

“We are not going for borrowing at all,” he said.

“All in all… there is about R36 billion worth of support that we are putting on the table,” Mogajane added.

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Where do the anc cultivate their money trees…clowd cuckoo land?

Haven’t you heard the ZUPTAS and GUMAS have paid all the money back so there is plenty

They’re killing the Goose that lays the Golden Egg, we the punch drunk incandescent tax payer

The few left are tired of subsidising 20 million souls who’s only contribution to this country is to vote for the very people who have stolen their future

They are quick to believe and quickly deceived, hence the ill discipline, yet they pile up in their droves to vote thieves back into government..It truly is perplexing

Clowd Cuckoo Land’s kitty is drying up, faster than a hare can run

This is a prime example of skewed incentives. Social support for poor people is one thing, but giving in, after they have burned down a portion of the country, is quite another. The parents who take savings from the piggy bank of the thrifty child to increases the pocket money of the delinquent child, who has thrown a tantrum and burnt down the kitchen, motivates their children to become criminals and arsonists.

How do I teach the value and purpose of peaceful and respectful negotiation to my employees, while the national government rewards hooliganism and extortion?

It definitely a good thing.

That money will creates jobs by initiating spending, helps kickstart the economy and more Tax volumes will come in again.

Almost a different form of the FED buying bonds in the USA.
The FED spends $40 Billion a month.

Why have surplus funds and the country is being burnt down? and it is bad publicity for the country.

It is like the better off financial side of the family helping the poorer side of the family and everyone lives in peace.

And how does the wealthy family member feel, when the guy who benefits from his benevolence abuses him around every corner, steals his property, and demands a ever-increasing share of his wealth?

Hahaha Speculator, if only the basics were right!!! As Sensei puts it, “skewed incentives” to an immature population means this country can never come right! Increase time, more fires and looting. Try reduce it, or do away with it when there are no surplus funds, up goes SA in smoke!

“Why have surplus funds and the country is being burnt down?” Have you looked at the budget deficit and government debt numbers? Where are these ‘surplus funds’ you speak of?

Reward for bad behavior??? We need to learn the consequence of actions. Let us suffer to understand really what the thugs did. I tend to think the ANC is buying the vote again, at the tax payers expense. Nothing wrong to suffer a bit…. it teaches one about appreciation and not expectations. It should be the communities affected, but not involved in looting that feel the pain like many of us, and next time may be we will more proactive in prevention… Don’t rely on a defunct Government, with a good Freedom charter, an uneducated, politically motivated municipal mayor, a police force who has no idea, an army that’s a joke and general leadership that’s not worth a mention.
Cyril… you are a good guy, with a bunch of baddies to deal with

Logic consequence : if we want more of ” dee moonyy ” – we loot and burn some more ! We have so much surplus that we are rated JUNK !

Do you carry Mao’s Little Red Book everywhere comrade?

Phht.

Where are they getting the money? Which government programmes or SOEs have they cut so they can fund this programme?

Simple, it’s a lie, better known as mythomania and pseudologia fantastica..They live in their own world of fantasy

If they weren’t liars, the lie of a Rainbow Nation will be ringing true in a functional clean government and country

They always make it sound as though the anc somehow miraculously saved the day.

Al this is, is an admission that there is no chance to create jobs for these “people” and SA wont be backing a pie.

What SA rather does is divide the ingredients. The milk eggs honey etc. goes to the elite and the looters get the water, salt and baking powder.

It is NOT a good thing but at least it is clear for all to see this lot cant look after themselves.

Talk about egg on the face.

A vote buying exercise.

SAASA needs to make all these grantees reapply. How many dead people are being paid?

I hear the whurrr of the mboweni printing press kicking in to life.
Short ZAR

100% AJ – personally, I thought they’d go to the printing presses in a decade or so. Zuma, ESKOM, COVID and now this tsunami of savagery has taken that decade away. They are going to print HARD. There are no more rabbits left in the hat (actually the hat has been stolen and the rabbits eaten but same same) …

they also cant head to the IMF or world bank…maybe SADC has a few cents lying around or local development banks.

R36Bn damages, R36Bn support.

The people end up paying for the looting.

Not true – the taxpayer ends up paying for everything, and still these ministers drive around in fancy cars and are granted preposterous incomes, and still the government can see their way clear to recover prosecute for thuggery and theft

Make that the tax paying people

It’s expropriation without compensation by another name

End of comments.

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