Covid-19 package: relief and rescue are the foundations of economic recovery

The Institute for Economic Justice (IEJ) reports that only about one-third of South Africa's R500-billion Covid-19 rescue package has materialised, citing a systematic failure in implementation and the impact of austerity measures. The statement asserts that economic recovery is impossible without first providing comprehensive rescue and relief, particularly as unemployment has reached 43% (expanded definition). The IEJ recommends increasing income support, fully allocating the R100-billion job protection fund, expanding public employment programmes, and increasing taxes on wealthy individuals to fund these measures. It also highlights corruption, noting that the Special Investigating Unit was investigating R10.3-billion in spending on Covid-19 goods and services as of February 2021.

• The implementation of the R500-billion Covid-19 rescue package has been insufficient, with the IEJ estimating that only approximately 35% of the package has been utilised to date.
• The 2020 Supplementary Budget provided a net increase to non-interest spending of only R36-billion, which represents less than 1% of GDP, failing to meet the promised R500-billion scale.
• Major components of the rescue package, specifically the R100-billion job protection and creation fund and the R200-billion loan guarantee scheme, have seen only slightly more than 10% materialisation.
• Corruption and mismanagement have hindered the rescue efforts; as of 8 February 2021, the Special Investigating Unit was investigating R10.3-billion of the R30.7-billion spent on Covid-19 goods and services between April and November 2020.
• The economic context is characterized by approximately two million jobs lost and an unemployment rate of 43% based on the expanded definition.

APA

Sibeko, B., Taylor, J., & Lehmann-Grube, K. (2021). Covid-19 package: relief and rescue are the foundations of economic recovery. Institute for Economic Justice. https://iej.org.za/press-room/in-the-media/covid-19-package-relief-and-rescue-are-the-foundations-of-economic-recovery-2/

Chicago

Sibeko, Busi, Julia Taylor, and Katrina Lehmann-Grube. Covid-19 package: relief and rescue are the foundations of economic recovery. Institute for Economic Justice, 2021. https://iej.org.za/press-room/in-the-media/covid-19-package-relief-and-rescue-are-the-foundations-of-economic-recovery-2/.

Wikipedia

{{cite press release |last1=Sibeko |first1=Busi |last2=Taylor |first2=Julia |last3=Lehmann-Grube |first3=Katrina |title=Covid-19 package: relief and rescue are the foundations of economic recovery |publisher=Institute for Economic Justice |date=10 February 2021 |url=https://iej.org.za/press-room/in-the-media/covid-19-package-relief-and-rescue-are-the-foundations-of-economic-recovery-2/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{sibeko2021covid19, author = {Sibeko, Busi and Taylor, Julia and Lehmann-Grube, Katrina}, title = {{Covid-19 package: relief and rescue are the foundations of economic recovery}}, publisher = {Institute for Economic Justice}, year = {2021}, month = feb, url = {https://iej.org.za/press-room/in-the-media/covid-19-package-relief-and-rescue-are-the-foundations-of-economic-recovery-2/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }