<h3 class="wp-block-heading">Key Points</h3>



<ul class="wp-block-list"><li>Aware of the economic toll being wreaked by the lockdowns, the government has begun lifting restrictions, but South Africa now has 101,590 confirmed cases of Covid-19, the most on the continent.</li><li>Finance Minister Tito Mboweni is set to deliver an emergency budget on Wednesday, and Ramaphosa said that plummeting revenue meant that “difficult decisions will be made in the coming weeks and months.”</li></ul>



South African President Cyril Ramaphosa has warned that “difficult decisions and difficult days lie ahead” as the country stares down the economic fallout from the coronavirus pandemic.



In an address to the nation Monday, Ramaphosa highlighted that businesses in all sectors had announced job cuts or total closures as a result of losses incurred since the&nbsp;<a href="https://www.cnbc.com/2020/03/24/south-africa-deploys-police-and-army-for-3-week-coronavirus-lockdown.html">nation implemented strict lockdown measures</a>&nbsp;on March 26.



Aware of the economic toll being wreaked by the lockdowns,&nbsp;<a href="https://www.cnbc.com/2020/05/26/south-africa-downgrades-lockdown-rules-sending-8-million-back-to-work.html">the government has begun lifting restrictions</a>, but South Africa now has 101,590 confirmed cases of Covid-19, the most on the continent, with 1,991 deaths as of Tuesday morning, according to Johns Hopkins University.



“For a country such as ours, which was already facing an unemployment crisis and weak economic growth, difficult decisions and difficult days lie ahead,” Ramaphosa said.



“We would urge that the difficult decisions to be taken are taken with care and with due regard to balancing the sustainability of companies and the livelihoods of workers.”



He emphasized the importance of continuing measures to aid small businesses, including tax relief, debt restructuring, extended credit lines and retail rental exemptions, along with temporary financial assistance to poor households, but said these measures could only go so far.



Ramaphosa argued that although the economic impact will extend long beyond the pandemic, investments in sustainable infrastructure would form an integral part of the recovery.



A Reuters poll released Tuesday showed that the South African budget deficit is expected to widen to a record 14% of GDP (gross domestic product) in 2020, far outstripping an official estimate of 6.3% for the last financial year.



<h2 class="wp-block-heading">A budget for the ages</h2>



Finance Minister Tito Mboweni is set to deliver an emergency budget on Wednesday, and Ramaphosa said that plummeting revenue meant that “difficult decisions will be made in the coming weeks and months” as the government seeks to reprioritize its programs, manage public spending and “scale back on projects where necessary.”



“The economic hardship that has been forced on a number of companies in the private sector will be forced on a number of entities in the public sector as well,” Ramaphosa said.



“The government, business, labor and civil society will have to deepen their collaboration as never before in driving the national recovery effort.”



At the heart of the budget will be a dispute over financial support from the International Monetary Fund (IMF) to plug the massive gap in government revenues. In a research report published last week, risk consultancy EXX Africa said the budget would be pivotal in determining South Africa’s future direction.



“Opponents of IMF conditionalities favor tapping into state pension funds or stepping up central bank bond buying to make up the shortfall,” said EXX Africa Executive Director Robert Besseling.



“With ‘battle’ lines drawn across the ruling alliance’s ideological divisions, the outcome of the contest will determine the country’s political leadership and economic policy outlook for years to come.”



The South African government has&nbsp;<a href="https://www.cnbc.com/2020/04/23/south-africa-unleashes-largest-ever-spending-plan-to-tackle-coronavirus.html">announced a $30 billion economic and social support package</a>&nbsp;while potentially dealing with $17 billion in lost tax revenue this year, Besseling highlighted.



<figure class="wp-block-image alignwide"><img decoding="async" src="https://image.cnbcfm.com/api/v1/image/106468131-1585649490275gettyimages-1207457483.jpeg?v=1585649638&amp;w=678&amp;h=381" alt="PRETORIA, SOUTH AFRICA - MARCH 16: Finance minister, Tito Mboweni briefs the media on the details of government interventions in various sectors of the departmental portfolios on COVID-19 at DIRCO Media Centre."/><figcaption>PRETORIA, SOUTH AFRICA &#8211; MARCH 16: Finance minister, Tito Mboweni briefs the media on the details of government interventions in various sectors of the departmental portfolios on COVID-19 at DIRCO Media Centre.Phill Magakoe/Gallo Images via Getty Images</figcaption></figure>







IMF proponents argue that these measures are unsustainable without extensive international financial support, which would also anchor policy reform that attracts private creditors.



Mboweni’s supporters in the business community argue that South Africa needs an Egypt-style economic turnaround, according to Besseling, aimed at increasing per capita income, boosting economic growth through an improving business environment, and reducing unemployment and poverty.



“However, unlike Egypt, South Africa’s governing alliance is deeply fractured, and the anti-IMF faction is exceptionally influential,” he explained. “Mboweni is close to President Cyril Ramaphosa, but he lacks the political constituency of his policy adversaries.”



Advocates of state intervention oppose the conditions that accompany international financing from institutions such as the IMF and the World Bank, and instead favor bailouts to embattled state-owned enterprises, aggressive quantitative easing and drawing from state pension funds.



Ramaphosa’s ruling ANC (African National Congress) is still heavily influenced by followers of former president Jacob Zuma, who are mobilizing support in favor of Minister of Co-operative Governance and Traditional Affairs Nkosazana Dlamini-Zuma, Besseling explained.



He anticipates a “bruising battle for control of South Africa’s ruling party and political direction,” and suggested Mboweni’s choice of how to plug the revenue gap and fund economic stimulus would be a crucial moment in determining how this internal division may play out.

Ramaphosa tests negative for coronavirus as South Africa to begin lockdown

CR-lockdown

South Africa’s Ramaphosa warns that ‘difficult days lie ahead’ as crucial budget approaches

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The University of Witwatersrand in conjunction with leading health experts have announced the details of South Africa’s and Africa’s first COVID-19 vaccine trials. Joining CNBC Africa for more is Shabir Madhi, Professor of Vaccinology at the University of Witwatersrand.

SA’s first COVID-19 vaccine trial to start tomorrow

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Lock-down restrictions in South Africa is being eased, so among other things we can go for dinner, go gambling and play contact less sports. It’s to try and get half a million workers back to work and President Ramaphosa said last night announced he was going to look to open up other sectors of the economy. What does all of this mean especially if no one has money right now? Tendani Mantshimuli, Channel Support, Liberty joins CNBC Africa for more.

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<div class="wp-block-image"><figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="737" height="1024" src="https://www.cnbcafrica.com/wp-content/uploads/2020/06/PHOTO-2020-06-15-08-43-05-737x1024.jpg" alt="" class="wp-image-374174" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/06/PHOTO-2020-06-15-08-43-05-737x1024.jpg 737w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/PHOTO-2020-06-15-08-43-05-216x300.jpg 216w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/PHOTO-2020-06-15-08-43-05-576x800.jpg 576w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/PHOTO-2020-06-15-08-43-05-768x1067.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/PHOTO-2020-06-15-08-43-05-696x967.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/PHOTO-2020-06-15-08-43-05-600x834.jpg 600w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/PHOTO-2020-06-15-08-43-05.jpg 921w" sizes="auto, (max-width: 737px) 100vw, 737px" /></figure></div>



This looks like a picture to celebrate happy school days – yet, it is not; behind the smiles was sorrow. The snap was taken outside Morris Isaacson School, in Soweto, on the morning of June 16 1976 as children prepared to march into a day of blood and violence. By the evening three of the children lay bloodied and bruised as police opened fire killing at least 176 school children.



Mary Fisher, who grew up in Meadowlands, Soweto, was crouching to the right of the picture. She lives in Johannesburg and spoke to CNBC Africa about her brush with death during the 1976 uprising and the story behind the picture:         



“We thought this was going to be the last time we were going to see each other. We thought let’s take a memory picture so we won’t forget each other &#8211; I am the one squatting there. So if we lose each other we will at least have a memory. We put our placards on the floor; we took this picture just in case we are not coming back. 



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We had assembly in the morning and during we sang Senzeni Na (what have we done ). We all sang together freedom songs and after that we started lifting the placards and the teachers were standing aside. Then Tsietsi Mashanini  (a Morris Isaacson pupil and one of the leaders of the uprising) says Amandla  and we all said Awethu!



READ:<a href="https://www.cnbcafrica.com/article/2020/06/16/june-16-1976-the-man-behind-the-high-school-that-made-history-who-was-morris-isaacson/">June 16 1976: The man behind the high school that made history: who was Morris Isaacson?</a>



We marched out carrying our placards. We were showing our placards and singing all the freedom songs and walking and with one long, big, voice; there were so many. 



Morris Isaacson was in the lead the other schools followed behind. Children from nearby schools primary schools they all came with their placards. By that time we didn’t know how big this was going to be. We thought it was only Morris Isaacson and Naledi High. We were heading for Orlando West we were supposed to collect other schools   As we got to Orlando we heard gunshots we were in the middle, but most of the guys were in the front…They were so brave that they always wanted to lead. Even, even when thugs wanted to attack the ladies at school they always wanted to protect the girls. We had so much brotherly love for one another. We heard the gunshots, then, we stopped the march. People were saying people are shot and there are two down now. So we started panicking, what I did with my friends, we ran into the schoolyard trying to hide in the classrooms.



As they were shooting we were scattered all over running into the houses… As I looked I saw behind me this dog. I was an athlete at school and thought I could outrun this dog. The dog was about to get my leg and one of the boys hit it with a dustbin. Then the police started shooting I didn’t see because I jumped over the fence. I don’t know if they got this guy.



We could hear helicopters and we thought wow now they are going to bomb the area and we are now going die. We were also aware that anything can happen. They will just come don’t switch on the light because aeroplanes can pass and see where Soweto is so they can drop a bomb. So we already had that fear that anything can happen to us we are not safe…



Everything was quiet at 6pm when we were at home bleeding and shaking with fear. The more they hit us; the more we bled and got angry; there were boys who took a dustbin and a stone thinking it will stop a bullet.



They made us so angry. We felt we did nothing and yet you want to kill us…In my mother tongue, there is a saying that says: &#8216;Don’t die like a sheep, you must die like a horse you must kick.’ You don’t just die, the person who is killing you must also get hurt…So we thought let’s just fight with our little stone. ..We were thinking: enough is enough.



It has made us fight for justice, even in my old age I don’t like bullies. I don’t like to be bullied and don’t stand to see people bullying one another. Sometimes when someone tries to steal my rights I always fight – so I&#8217;m always an activist for justice. I will not sit back and let other people take advantage or take anything that belongs to me.”

PHOTO-2020-06-15-08-43-05

June 16 1976:  A happy picture that masks the sorrow of a bloody and violent day.

As SA commemorates the Soweto uprising of 1976

As SA commemorates the Soweto uprising of 1976, a survivor shares his story

Soweto uprising survivor shares her story

Here’s how Volkswagen SA is lending a helping hand in Africa’s fight against COVID-19

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Tsholo Kubheka, Commercial Director, Virgin Active SA spoke to CNBC Africa’s Fifi Peters about what measures the company is taking to keep its customers safe post COVID-19 lock-down.

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By Penny Mkhize



As we pause to celebrate the spirit of the young of South Africa on Youth Day this June 16 we must remember many of them are suffering in the scary, uncertain, world of COVID-19 with the same underlying iniquities that drove them to rebellion in 1976.  



June looked promising with the prospect of parole from lockdown with the hope of returning to normal in 21 days. It was a risk in this global pandemic; the trends in other countries in lockdown stood as a warning.



Yet, at this time , we must look back in sorrow at the damage of COVID-19 and consider how much it will hurt the youth of South Africa.&nbsp;



Around half of South African companies will go to the wall in the post COVID-19&nbsp; world – whatever that will look like – and millions of jobs will disappear with them.&nbsp;



The youth were struggling to find jobs long before the lockdown in a shaky economy .&nbsp;



You could argue the grandchildren of the young bloods of Soweto have more opportunities without the pass laws and police that haunted their forebears; yet how much opportunity will any have in an economy that is unable to absorb them?&nbsp;



Then there is the question of online schooling for children at home in the lockdown. Not everyone has fibre and an expensive laptop with which to do this. If ever the pandemic exposed, cruelly, the gulf between the haves and have nots – this was it.&nbsp;



On top of this, how do you study, or even social distance or work from home when you live with your parents and ten other family members in a four-room house? That dreadful feeling of knowing you falling behind in everything, be it school work or working for a company, must be soul destroying. It is&nbsp; a struggle for many of the young that persists 44 years after the Soweto uprising.



This struggle takes a toll on the mind as well as the body. We saw an increase in mental health conditions in this pandemic as the youth navigated the uncertainty of the future amidst an academic year turned upside down. Many are seen as the future breadwinners in their families and this responsibility, along with the uncertainty, must have weighed on their shoulders like lead.&nbsp;



Even those who managed to hang onto their jobs, lost income and cowered down as they saw people around them struggling to scrape together money for bread.&nbsp;



This is the reality of our youth. The fight for survival both in the mind and the harsh reality of the streets.



It was a cruel, if unintended, irony that COVID-19 saw soldiers back on the streets of Soweto to enforce the lockdown. It brought back bitter memories of how soldiers once kept the youth in line through the barrel of the gun. But the relentless, brave and undying spirit of our 1976 youth has stood the test of time and the pain of oppression to survive.&nbsp;



The youth is fighting to&nbsp; live and be heard. We witnessed this indomitable spirit in this pandemic that descended like a heavy cloud on poor communities already struggling.



In those difficult days the youth rose to make their voices heard through sharing information and sparking debates on social media by posting vital information on the pandemic. They also raised their voices to government about the high unemployment rate, concerns about their living conditions and the disrupted academic year.&nbsp;



It is safe to say that we are going to make it through this pandemic and that we are all in together. When we say God bless South Africa and her people, it is a declaration of survival. We cannot and will not fail as a people; remember this on Youth Day and be proud of our young.

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Opinion: Youth Day – Why South African youth are still fighting

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Independent candidates can now stand for elections.

Independent candidates can now contest elections

JOHANNESBURG, 11 June 2020:- South Africa’s largest annual study of social media trends has revealed that Facebook remains the social platform of choice for marketing – but TikTok is rising fast among both brands and consumers. According to the 2020 edition of the SA Social Media Landscape, released this week by World Wide Worx and Ornico, almost a third of major brands intend to become active on TikTok, which is also the fastest growing social media platform among consumers. Fewer than 20% of brands have used it in the past year, but none believe they are doing so very effectively. These numbers are likely to change significantly during 2020. It is estimated that around 6-million South Africans are already using the platform. Nine out of ten major brands – just more than 89% – indicated they were active on Facebook, versus 77% on Twitter, 75% on LinkedIn and 68% on Instagram. “There was a common factor across all these platforms, however: a substantial drop in engagement from the previous year,” says Arthur Goldstuck, CEO of World Wide Worx and lead analyst on the project. “The one exception was LinkedIn, which saw a small increase in activity by major brands. LinkedIn also led the way in the proportion of older platforms that were intending to use it for the first time in the coming year: a large 21%. One could argue that LinkedIn is a social platform whose time has come.” Not surprisingly, lack of budget has emerged as the single most significant barrier to implementing social media strategies. A massive 18% are not allocating budget to social media, compared to only 1% last year. While Facebook remains the dominant platform among both brands and consumers, it has lost some appeal in terms of marketing budgets. “Facebook spend has plateaued,” says Oresti Patricios, CEO of Ornico. “This signals how brands are looking at prioritising their budgets across platforms, which can also talk to where brands look to increase their communication.” Patricios believes TikTok is set for explosive growth. “Launched in China in 2016, TikTok is seen as the new kid on the block in South Africa which marketers and communicators are scrambling to understand.” Goldstuck agrees: “The popularity of social media environments for brands has in the past been shown to be directly related to the level of usage of those platforms by marketers. Hence, TikTok is almost non-existent among big brands, as the marketers behind those brands are not active on TikTok.” Twitter and Instagram both showed strong growth in the past year, each reaching a user base of about 9-million. Data analysed for the SA Social Media Landscape 2020 report from the Target Group Index (TGI), a research survey among 30,000 South Africans coducted by Ask Afrika, shows that just over half of Instagram and Twitter users – 4,7-million on each – are highly active on these platforms. Contrary to the view that Twitter is primarily a vehicle for negative sentiment, data on all South African tweets over a 12 month period, provided for the project by audience intelligence company Brandwatch, shows a different picture. Of the tweets reflecting sentiment, 61% comprise positive sentiments, against 39% negative.  However, it is clear that even 39% remains a high proportion, and generates significant shade over the Twitter landscape in general.

Facebook holds on as TikTok invades Social Media in SA

JOHANNESBURG (Reuters) &#8211; ArcelorMittal South Africa will pay a fine of 3.64 million rand ($219,658) relating to charges of exceeding hydrogen sulfide minimum emissions standards at its coke plant in 2016, it said on Wednesday.



“While we acknowledge that emissions at our Vanderbijlpark plant exceeded permissible H2S levels for a period of time in the past, steps were taken to address the problem but unfortunately the initiatives implemented did not adequately resolve the problem,” said Kobus Verster, chief executive of ArcelorMittal South Africa.



($1 = 16.5712 rand)



(Reporting by Tanisha Heiberg; Editing by David Goodman)



This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKBN23H196-OZABS">https://af.reuters.com/article/investingNews/idAFKBN23H196-OZABS</a> and is republished with its permission.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

ArcelorMittal South Africa fined R3.64 million over hydrogen sulfide emissions

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To mitigate Covid-19’s impact on the poorest in South Africa, government increased the amount it pays in social grants. It also introduced a , a special Covid-19 relief grant of R350 a month for those currently unemployed who do not receive any other form of social grant. Minister of Social Development, Lindiwe Zulu joins CNBC Africa for more.

Lindiwe Zulu outlines SA’s plans to help the vulnerable during COVID-19 crisis

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June 9 (Reuters) &#8211; Administrators in charge of South Africa’s Edcon have proposed a sales process that may lead to job redundancies in “significant numbers”, after the retailer filed for a form of bankruptcy protection in April.



Administrators are seeking the sales of the retailer’s divisions as going concerns, according to details of the business rescue plan published late on Monday.



“This may, in turn, result in the dismissals of some or all of the employees, for operational reasons subject to outcome and implementation of the sales process,” the administrators were quoted as saying in the document.



Edcon, which owns department store chain Edgars and budget clothing retailer Jet, entered “business rescue” proceedings after losing an estimated 2 billion rand ($120 million) of sales since the coronavirus pandemic reached South Africa in March.



The administrators, Piers Marsden and Lance Schapiro of Matuson Associates, said the proposed plan will lead to an “efficient rescue of the company” and will balance “the rights and interests of all stakeholders”.



A meeting of creditors and other holders with a voting interest will be held on June 22.



The development comes weeks after administrators said there was a reasonable chance of saving the retailer.



Edcon, hurt also due to a drop in payments from customers who had bought on credit, was unable to pay suppliers and creditors in March and April. ($1 = 16.6582 rand)



(Reporting by Kanishka Singh and Shubham Kalia in Bengaluru; Editing by Kim Coghill and Himani Sarkar)



This article was first published on Reuters <a href="https://af.reuters.com/article/southAfricaNews/idAFL8N2DL68D">https://af.reuters.com/article/southAfricaNews/idAFL8N2DL68D</a> and is republished with its permission. 



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

Administrators propose sales plan for SA retailer Edcon, see potential job cuts

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Southern Africa

South Africa’s Ramaphosa warns that ‘difficult days lie ahead’ as crucial budget approaches

SA’s first COVID-19 vaccine trial to start tomorrow

COVID-19: Does SA have the political will to fix deepening unemployment crisis?

#BusinessTomorrow: What is the future of online and social media in Africa?

June 16 1976: A happy picture that masks the sorrow of a bloody and violent day.

As SA commemorates the Soweto uprising of 1976, a survivor shares his story

Soweto uprising survivor shares her story

Here’s how Volkswagen SA is lending a helping hand in Africa’s fight against COVID-19

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How Virgin Active plans to keep its members safe as it prepares to reopen

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Opinion: Youth Day – Why South African youth are still fighting

Independent candidates can now contest elections

Facebook holds on as TikTok invades Social Media in SA

ArcelorMittal South Africa fined R3.64 million over hydrogen sulfide emissions

How is South Africa responding to social development in level 3 lock-down?

Administrators propose sales plan for SA retailer Edcon, see potential job cuts

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