Suren Naidoo
4 minute read
23 Feb 2021
7:48 am

R200m Covid-19 loan scheme ‘largely dead’ – Intellidex

Suren Naidoo

Scheme role needs to be ‘reconciled with broader objectives’ of the Economic Reconstruction and Recovery Plan.

Small businesses are in need of financial assistance as Covid-19 brisks the economy. Image: iStock

One of the key things business and economists will be awaiting news of during Finance Minister Tito Mboweni’s 2021 National Budget speech tomorrow is how South Africa’s much-vaunted R200 billion Covid-19 loan guarantee scheme will be overhauled. Only around R18 billion of relief funding from the scheme has been approved by major banks (excluding direct relief offered by banks) for pandemic-hit small-and-medium businesses. Several sectors, including organised business and labour, have called for a makeover of what was meant to be the biggest cog of government’s overall R500 billion Covid-19 relief and economic stimulus package. Financial services and capital markets...