Discussions are in progress between the Department of Trade, Industry and Competition and the National Treasury to secure additional funds to support firms hit by the Covid-19 pandemic.
This is according to Director General Lionel October, in remarks to members of parliament. ‘We are in discussions with National Treasury to get finances for companies in distress, as part of economic recovery package,’ he said, ‘We must ensure we maintain the industrial base during Covid-19. That is our absolute priority, to assist companies taking massive hits.’
He was accompanied by minister of trade and industry, Ebrahim Patel. Patel said that great damage would be inflicted by the pandemic, but the government would in the coming months be engaged in ‘repairing and repositioning’ the economy.
Estimates of the damage Covid-19 and the associated lockdown will inflict on the country are as much as 10% of GDP. With the fiscus under extreme pressure, it is unclear just how much support the state will be able to extend to South Africa’s distressed firms.