Ramaphosa admits that there is no cash to help struggling businesses

Ramaphosa admits that there is no cash to help struggling businesses

- President Cyril Ramaphosa admitted that the government is not able to help struggling businesses financially

- The lockdown has hit the economy was hard and many businesses are struggling to stay afloat

- Industries that have been hit particularly hard by the lockdown are the alcohol, tourism and hospitality industries

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President Cyril Ramaphosa has admitted that the government does not have any money to spare to help struggling businesses hit hard by the Covid91 lockdown.

According to The South African Ramaphosa revealed this during an interview when he was pressed on what the government was doing to help businesses.

“We do not have the money, that’s the simple truth that has to be put out there. We are constrained from a financing point of view,” Ramaphosa said.

Ramaphosa admits that there is no cash to help struggling businesses
President Ramaphosa told South Africa that the government does not have any money to help struggling businesses. Photo credit: Cyril Ramaphosa
Source: Facebook

The support that the government offered last year was equivalent to 10% of the nations GDP. What money the government does have is being put towards efforts to secure Covid-19 vaccines.

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The alcohol ban and restrictions on the tourism and hospitality industries have resulted in many small companies closing and the pressure is mounting as the lockdown continues.

Earlier, Briefly.co.za reported that speculation is high that South Africans will be facing another round of hard lockdown restrictions amid high Covid-19 infections.

The ANC's National Executive Committee has reportedly agreed the country cannot endure going back to hard lockdown.

Nomvula Mokonyane, head of organising in the party, confirmed during a briefing following the meeting commenting that:

"What was raised is that we all have to give the necessary support creating an environment that will not lead to a total shutdown of the economy. Meaning that we can't drive the country to a total shutdown unless otherwise, we have created alternatives, alternatives that currently do not exist."

In other news, the alcohol industry stated that it will be applying for a deferment of their payment of excise tax until the ban on alcohol sales is lifted. President Cyril Ramaphosa announced on Monday that the alcohol ban would remain in place.

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Liquor industry to apply for deferment of tax payment amid ban

Sibani Mngadi, the spokesperson for the South African Liquor Brand Owners Association (Salba), stated that companies are still paying excise tax on their products despite the ban that's in place in South Africa.

Excise taxes are paid to the South African Revenue Services (SARS) for specific goods and services, such as alcohol and tobacco.

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Source: Briefly News

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