AN EMERGENCY RESCUE PACKAGE FOR SOUTH AFRICA IN RESPONSE TO COVID-19

The Institute for Economic Justice argues that South Africa's initial R41 billion COVID-19 rescue package is insufficient and proposes a more realistic injection of at least R310 billion, plus R100 billion in short-term financing. The proposal focuses on four main spending areas: health funding (R20 billion), income support (R211.5 billion), wage guarantees (R60 billion), and business support (R150 billion). To fund this, the IEJ suggests a combination of short-term borrowing, utilizing the Unemployment Insurance Fund (UIF) surplus, issuing 'social solidarity bonds', and implementing a solidarity tax on high earners. The plan also includes measures to stabilize the economy, such as managing capital flows and securing US Dollar swap lines.

• The current government rescue package of R41 billion is considered inadequate compared to other nations and the scale of the crisis; the IEJ proposes an initial injection of at least R310 billion to offset the predicted fall in GDP, with an additional R100 billion for tax and payment deferrals.
• The proposed spending is divided into four priority areas: health funding (R20 billion) for testing and treatment; income support (R211.5 billion) including a once-off universal basic income of R4,500 in May 2020 and increased social grants; wage guarantees (R60 billion) to cover up to 80% of normal wages; and business support (R150 billion) through credit facilities and tax deferrals.
• Funding for the rescue package should be sourced from multiple streams: R100 billion from short-term borrowing, R108 billion from the Unemployment Insurance Fund (UIF) surplus, R50 billion from social solidarity bonds (with the Public Investment Corporation purchasing an initial R50 billion), and R59 billion from a solidarity tax on those earning above R1 million rand.
• To stabilize the economy and manage risks like exchange rate depreciation and rising borrowing costs, the IEJ recommends that the South African Reserve Bank continue purchasing government bonds, the adoption of targeted capital flow management, and securing US Dollar 'swap lines' with the Federal Reserve.

APA

Institute for Economic Justice (2020). AN EMERGENCY RESCUE PACKAGE FOR SOUTH AFRICA IN RESPONSE TO COVID-19. https://iej.org.za/wp-content/uploads/2020/08/IEJ-COVID-19-fact-sheet-1-%E2%80%93-rescue-package-1.pdf

Chicago

Institute for Economic Justice. AN EMERGENCY RESCUE PACKAGE FOR SOUTH AFRICA IN RESPONSE TO COVID-19. 2020. https://iej.org.za/wp-content/uploads/2020/08/IEJ-COVID-19-fact-sheet-1-%E2%80%93-rescue-package-1.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=AN EMERGENCY RESCUE PACKAGE FOR SOUTH AFRICA IN RESPONSE TO COVID-19 |date=17 April 2020 |url=https://iej.org.za/wp-content/uploads/2020/08/IEJ-COVID-19-fact-sheet-1-%E2%80%93-rescue-package-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjustice2020emergency, author = {{Institute for Economic Justice}}, title = {{AN EMERGENCY RESCUE PACKAGE FOR SOUTH AFRICA IN RESPONSE TO COVID-19}}, institution = {Institute for Economic Justice}, year = {2020}, month = apr, url = {https://iej.org.za/wp-content/uploads/2020/08/IEJ-COVID-19-fact-sheet-1-%E2%80%93-rescue-package-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }