EFF opposes IMF, World Bank funding in Covid-19 support package
The Economic Freedom Fighters (EFF) has joined other opposition parties in welcoming the Covid-19 economic support package announced by President Cyril Ramaphosa.
The president announced the massive R500 billion economic stimulus package on Tuesday evening.
But the EFF’s Delisile Ngwenya says the red berets remain opposed to the government receiving any funds from the International Monetary Fund (IMF) and the World Bank.
"The IMF and World Bank loans come with restrictive conditionalities, which will deprive South Africa of its fiscal and monetary policy sovereignty in the future,” she explains.
The party says the increase of social grants for the next six months will go a long way to mitigate poverty and starvation especial among black communities.
Ramaphosa announced unemployed South Africans who do not receive any grants from the state and cannot claim from the Unemployment Insurance Fund (UIF) are set to receive R350 a month from government for the next six months.
Ngwenya says government must use the opportunity to localise the manufacturing of all personal protective equipment and clothing as part of the increased health budget.
"The Industrial Development Corporation and all other state-owned development finance institutions and financiers should build as a matter of urgency local capacity to manufacture quality healthcare equipment and protective clothing.
"It will be a travesty of economic justice if the increased budget ends up in the pockets of middlemen and external suppliers from China and other parts of the world.”
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Unemployed to receive R350 a month: Ramaphosa
President Cyril Ramaphosa says the special Covid-19 social relief or distressed grant has been established to assist unemployed citizens affected by the pandemic. It's part of the massive R500 billion economic stimulus package announced by Ramaphosa on Tuesday evening. "The Department of Social Development will issue the requirements needed to access and the application for this funding," said the president.