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

This fact sheet by the Institute for Economic Justice (IEJ) proposes an emergency rescue package for South Africa to mitigate the economic devastation of the COVID-19 pandemic. The IEJ argues that the government's proposed R41 billion package is insufficient and recommends an initial injection of at least R310 billion, plus R100 billion in short-term financing, to offset GDP contraction and support households and businesses.

• The IEJ asserts that South Africa's proposed R41 billion rescue package is inadequate compared to other nations and the scale of the crisis. They recommend a 'realistic rescue package' of at least R310 billion to match the minimum predicted fall in GDP, along with an additional R100 billion (approximately 2% of GDP) to manage tax and payment deferrals.
• The proposed spending plan prioritizes four main areas: health funding (R20 billion), income support (R211.5 billion), wage guarantees (R60 billion), and business support (R150 billion). Specific income support measures include a once-off 'universal basic income' of R4,500 for adults in May 2020, increasing all social grants by R500 for three months, and distributing two million food parcels monthly for three months.
• To fund the rescue package, the IEJ suggests several sources: borrowing up to 5% of GDP (approximately R268 billion), utilizing the Unemployment Insurance Fund (UIF) surplus (R108 billion), issuing 'COVID-19 social solidarity bonds' (R150 billion), and implementing a 5% solidarity tax on individuals earning over R1 million rand (R48 billion).
• The document outlines necessary monetary and financial stability measures to protect the economy, including the South African Reserve Bank continuing to purchase government bonds, securing US Dollar 'swap lines' with the Federal Reserve, and adopting capital flow management measures to prevent money from leaving the country.

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} }