There is no country that is ever ready for a natural disaster or a pandemic of this magnitude. The world could not have foreseen or adequately planned for this disaster that has obstructed livelihoods even in the most developed countries. The resilience of economic, governance and health systems, to name a few, have been tested and in many instances found not to be equal to the task.
However, it is in times like these that statesmanlike and selfless leadership from all sectors is needed as many households find themselves with limited steps to take to improve their livelihoods.
Even though the impact of Covid-19 can be felt by people from different classes, with those from far rural areas being the most affected, it appears little can be done to recover in a reasonable time. The hope of many has been lost, with some seeing only a bleak future. Some households are without any form of income and are no longer pushing with the same strength of thinking out of the box to create opportunities for themselves.
The pandemic continues to be a threat to the future as many businesses have become financially fragile and continue to be hit hardest. Some have been forced to shut down, leaving breadwinners unemployed. Some had no choice but to reduce active staff in large numbers. Statistics reveal that the reality for many in SA is that, for one employed member in a household, there are 10 dependents or more.
This then begs the question, how do they pick up the pieces and align their lives with the new normal? Surviving small businesses still need to adjust to the economic disruptions with lingering questions of how long the crisis is expected to last. For many, the expected length of the pandemic has affected their decision-making where sustainability is close to impossible.
The majority of them had hope when the government led a response team to deal with the threat of the pandemic and introduced the Covid-19 relief fund, which amounted to almost 10% of the country’s GDP. Some thought they could use the money to sustain their businesses while others needed to use it as their head start, however, most of them struggled to get through the long administrative process.
At a joint sitting of parliament in October, President Cyril Ramaphosa announced the establishment of the economic reconstruction and recovery plan (ERRP) to further address the devastation brought by Covid-19.
The ERRP acknowledged that Covid-19 challenges worsened the pre-existing low levels of investment and growth. When the pandemic hit SA, the country was already in a recession and had been downgraded. In fact, I would argue that SA had been in a technical recession for some time, before Statistics SA announced it was officially in a recession. This, coupled with many other economic variables, meant SA was not in a position to weather any type of a storm, let alone a storm of the magnitude of Covid-19.
Although the ERRP and relief fund assisted some South Africans, most rural businesses highlighted that lack of formalised running of their operations placed them at a disadvantage as it proved difficult to access funds prioritised for their recovery.
It is evident that the pandemic has catapulted a new world order, which will require a total overhaul of the way of doing things, by households, business, government, civil society and all other avenues of human endeavour. This is a new order calling for a new normal, but above all, calling for more international solidarity and strengthening of multilateralism.
The government should implement its reforms plan to address some of the structural challenges in the economy to accelerate developmental objectives. There is no better time for SA to operate more collaboratively. All hands must be on deck to assist the most vulnerable among us, lest we are judged harshly by history.
• Tabane is a senior lecturer at the Unisa School of Business Leadership
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