Covid-19 update: Lockdown closes nearly half of SA's small businesses

Covid-19 update: Lockdown closes nearly half of SA's small businesses

A new study has revealed the extent of damage the national lockdown has done to small businesses in SA. Briefly.co.za explores the latest updates on the coronavirus pandemic in the country.

PAY ATTENTION: Click “See First” under the “Following” tab to see Briefly.co.za News on your News Feed!

South Africa's response to the Covid-19 pandemic was to place the entire country under strict lockdown restrictions.

While this move would limit the spread of the virus, the economic impact of the move is starting to become more and more apparent.

Briefly.co.za explores the latest updates on the pandemic below:

Covid-19 update: Lockdown closes nearly half of SA's small businesses
The report found that nearly half of SA's small businesses had closed due to the pandemic. Image: Matthew Horwood
Source: Getty Images

1. Lockdown sees nearly half SA's small businesses closing down

Finfind, a financial services company, has published its report on how Small, Medium and Micro Enterprises bore the brunt of SA's lockdown.

The study surveyed nearly 1 500 businesses across every major sector, with data showing the first 5 months of lockdown saw a significant decrease in revenue for 76.2% of the businesses.

Read also

Covid-19 update: WHO denied entry into China, Bheki Cele warns SA

35.2% Of the businesses had cash reserves saved but of these 62.6% thought there reserves would only last one and three months.

Debt, a lack of cash reserves, outdated financial, no access to relief funding, and the lockdown forced 42.7% of small businesses to close.

BusinessTech reports that Finfind had signalled that 2021 would be a difficult year for many citizens:

“In the wake of 2020, the coming year will likely be a rocky road for most South Africans, but there is still some optimism from entrepreneurs, who courageously continue to build this vital business sector.”

2. Mkhize on latest statistics

Health Minister Dr Zweli Mkhize has once again updated South Africans on the Covid-19 pandemic.

In a statement released by the Department of Health on Monday evening, the Minister commented that:

"As of today, the cumulative total of COVID-19 cases is 817 878 with 3 313 new cases identified since the last report."

Read also

Covid-19 update: SAPS confirms over 300 officers lost to virus

In addition to the infections, Mkhize also commented on the fatalities recorded in the country:

"Regrettably, 43 more COVID-19 related deaths have been reported: Free State 9, Gauteng 2, KwaZulu Natal 5, Northern Cape 1 and Western Cape 26 which brings the total to 22 249 deaths."

Earlier, Briefly.co.za reported that while the Covid-19 pandemic has devastated the nation, recovery is on the cards and President Cyril Ramaphosa wants everyone to be included.

In his weekly letter to South Africans, Ramaphosa called for the opportunity to be used as an equaliser:

"If we are to ensure that the recovery of our economy and society in the wake of the coronavirus pandemic is meaningful, then we need to ensure that all South Africans are included and that all benefit."

The President explained that this is one of the key views stemming from the meeting of the Presidential Working Group on Disability.

Read also

Covid-19 update: Zimbabwe reimplements strict lockdown amid surge

The meeting had taken place on the International Day of Persons with Disabilities with Ramaphosa further commenting that:

"While the coronavirus pandemic has caused great hardship for all South Africans, the impact has been particularly severe for many persons with disabilities."

Enjoyed reading our story? Download BRIEFLY's news app on Google Play now and stay up-to-date with major South African news!

Source: Briefly.co.za

Online view pixel