The unemployment rate in South Africa can increase from the current 29% to 50% due to the effects of the coronavirus and the isolation period.
Nkosazana Dlamini-Zuma said in a presentation to the National Council of Provinces on Tuesday that about six million South Africans are currently experiencing food shortages, this figure could rise by three million to nine million.
The Treasury is expected to lose up to R250 billion in tax revenue, with businesses in the tourism, entertainment, leisure, and aviation industries, as well as new businesses and informal traders hit the hardest.
Earlier this month, the South African Revenue Service (SARS) painted an even darker picture. SARS head Edward Kieswetter predicts SARS will collect R285bn less tax this year amid the COVID 19 pandemic. Kieswetter attributed this drop of between 15% and 20% not only to the outbreak of the new coronavirus but also to the already struggling economy.
Dlamini-Zuma further said poverty levels would rise substantially and municipalities’ revenues would fall by between 20% and 30%. She has again committed her department to provide guidance in particular regarding financial support to municipalities, disaster management and water supply.
