Johannesburg – Concerns have been expressed over how President Cyril Ramaphosa is planning to guard the stimulus package against corruption.
On Tuesday evening, the president announced a R500 billion stimulus package aimed at keeping the South African economy afloat as the country is facing a war against the spread of the Covid-19 pandemic.
The amount, which equals to 10% of the country’s GDP (Gross Domestic Product) would be split among several programmes aimed at assisting businesses, poor people and municipalities.
Political analyst Somadoda Fikeni said the president announced measures that were unprecedented but warned that there were a number of challenges the government could face.
“Once there is a rumour of money, it tends to generate tension before it even arrives. You’ll find that sectors like the business formations that a lot of tension that comes up, it tends to amply some of the fault lines which are there and it could also come up in the form of race,” Fikeni said