It is not news that the world is battling to control a global spread of the coronavirus pandemic right now, from its quick spread with various degrees of fatalities in various areas and nations to its claiming lives. It all started in 2019 in Wuhan, China and gradually plagued the world, and very fast. Europe, particularly the UK, Spain, France, and Italy, and the US have been hit hardest, notwithstanding their more advanced healthcare frameworks. Africa being one of the continents with the weakest healthcare system compared to the West, has other countries worried about how this pandemic is being managed in these regions. By April 16th of this year, South Africa had already recorded about 34 deaths, 2500 confirmed cases and 410 recoveries.
Consequently, there was a lockdown, social separating practices, and following up with each one of the individuals who have been contaminated before and are out of quarantine. The coronavirus has had a few effects on South African taking into consideration the lockdown, health, environmental, and technical domains. The pandemic has unleashed severe damage on lives and the South African economy as a whole.
The information spans back to the time when President Cyril Ramaphosa ordered a nationwide lockdown to control the spread of COVID-19 pandemic which was at its peak and had closed down everything except those in the essential working field. The South African Reserve Bank expects GDP to fall lower to about 7% this year. Which is the South African economy’s worst since the 1930 great depression. The data has shocked many executes in the nation. Despite this period being the weakest point for the economy of the country, there is anticipation that this fall in GDP is just the beginning. The coronavirus lockdown has cost a large number of job losses and has pressurized many people, who have been compelled to eat into their investment funds to survive, or squandered their savings for daily bread. In an interview with Manu Rochelle, the Chief Market Analyst of ForexTradingBonus, she reveals that the quantity of dynamic forex traders in the country has grown exponentially recently, as people take a look at other approaches to making money. Rochelle who heads the biggest trading business in SA shares tips on how to find regulated and trustworthy South African forex brokers for new traders, so as for them to avoid the risk of falling into the hands of unregulated brokers and getting scammed or losing their money overall, in an economy where there is no coin to spare.
In the second quarter, several leading labour fields plunged even more. Statistics from the administration indicated that mining and manufacturing had also declined. During the lockdown, the president of South Africa had restricted the consumption of alcohol and the sales of tobacco, since these were the two main factors contributing to people gathering in large numbers. However, with many businesses getting affected by the lockdown restrictions, there was increasing pressure for the president to uplift the lockdown ban, and as reported cases were decreasing. The administration measurements office said mining and assembling had ruduced. South Africa is the highest hit country in Africa with a total of about 650,000 cases and over 15,000 deaths. South Africa recorded less than 1,000 daily cases since May, on Monday. However, critical requirements on financial action remain, as well as a curfew. International flights are still restricted in the country since the borders are still closed.
Just like many other continents and Africa in particular, South Africa has been struggling to control the decline of the economy due to corruption. With many unscrupulous leaders coming into power and embezzling state funds while leaving the people wanting for jobs.
The president of South Africa Mr Ramaphosa has been battling to turn the economic mire situation in the country caused by his predecessor around. Jacob Zuma was a very corrupt president and the economy of South Africa experienced stagnation during his reigns. Before the coronavirus pandemic came, the current president was trying to balance out an already broken economy, but things only got worse in the advent of the pandemic. South Africa had just entered its second downturn in the same number of years in the first quarter. Gross domestic product per capita has been declining for the vast majority of the recent years as it neglected to exceed population development. The economy’s returning has been unsteady in the previous week by the most serious blackouts in months as they experienced power outages nationwide.
The Minister of Finance has suggested that the refusal of the ANC to assist in sustaining the economy also resulted in the country’s huge COVID-19 hit. A majority of the South Africans have never experienced this level of financial hardship, as many lose their jobs and businesses. The administration is expected to create a stimulus package to boost the economy, especially small businesses, most of which are shutting down.