Message from Ubank Chief Executive Officer, Luthando Vutula Response to President Cyril Ramaphosa’s speech on R500bn rescue package and COVID-19 lockdown ending in phases

  • Post Date
    Mon Jun 01 2020

In times of crisis, great leadership is required. Our president, Cyril Ramamphosa has proven over the past few days that he is just the leader that our country needs.  The President’s last two speeches have clearly outlined that not only does he value human life, but our economy too. The measures put in place towards the end of April are without a doubt designed to alleviate the economic downward pressure all businesses currently are facing, Ubank included.

In his speech on Tuesday the 22nd April, he announced that in total, R500 billion rand has been earmarked to COVID-19 relief. The President detailed a carefully thought through economic stimulus package that has been designed to alleviate the current economic crisis brought on by the COVID-19 pandemic. As part of this, he announced a debt guarantee scheme of R200bil. Initially, the scheme will support companies that have a turnover of less than R300m a year. This is expected to support over 900,000 businesses employing over 3 million employees.

For SASSA recipients child support grants have been increased to an extra R300 in May, with R500 being added from June to October. R250 will be added to all other grant beneficiaries for the next 6 months.

For those who are unemployed, and do not have UIF, R350 has been allocated per person for six months as well.

Taxpayers who have given to the Solidarity Fund can look forward to receiving a 10% tax refund over this period. On top of this, there is an R100bn fund set aside for the protection and creation of jobs, that Ubank is proud to have donated towards.

In his speech on the 23rd of April, the President further elaborated on the status of South Africa’s hard lockdown. A five-level plan has been initiated with the intention of slowly getting our economy back on its feet. This will be constantly assessed and may be adjusted according to the infection rate and the ability of our health care systems to cope with the pandemic.

Level 4 of the lockdown plan will kick off on the 1st of May 2020. This will see a certain lifting of restrictions, while still maintaining social distancing and other health practices such as wearing masks. This will obviously have positive implications, not just for the nation, but for all of our staff and customers at Ubank as well.

Ubank welcomes the measures and, ready to service its customers as they return to work, and has full faith that our R2m contribution to the Solidarity Fund will help those affected. Furthermore, I urge the Ubank community to uphold all Lockdown regulations, continue the health and safety regiment we have maintained during stage 5 of the lockdown, and remain safe and disciplined.

We again want to take this opportunity to thank you for your sacrifices and hard work during these trying times.

We have risen to the challenge. Stay positive, there is hope on the horizon.