Thanks to the lockdown you are much poorer and deeper in debt (also the wasteful debts government incurred)

Johannes Wessels (@johannesEOSA1)

South Africa’s economic growth rate has dropped through the floor: the lockdown economy has shrunk in 2020 Q2 by 51% (Q-on-Q annualised). Whilst the third quarter ending 30 September will register substantial growth, it will not bring the country back to where it was prior to lockdown. As cause (lockdown) and consequence (massive unemployment, poverty and the destruction of existing wealth and the means to generate wealth, i.e. businesses) of this economic meltdown mature, the future bill for yesterday’s stupidity will grow exponentially.

And those that will have to foot the bill will be much poorer with SA fast approaching the door to leave the club of upper middle-income countries to join the ranks of the lower middle-income countries.

The government has been blaming Covid 19 (this time apartheid and colonialism cannot carry the can), talking about “unprecedented economic consequences of the pandemic”. Pres. Ramaphosa refers to the economic effects of the global coronavirus pandemic”.  

And Dlamini-Zuma remains on record (National Council of Provinces, 23 June) that the government was “absolutely convinced the Covid pandemic – and not the lock-down measures was causing the economic damage.

That is a lie and StatsSA is correct with their description attributing the decline to “the impact of the Covid 19 lockdown restrictions”.

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South Africa’s lockdown is medically futile, costing lives, wiping out savings & destroying the economy

Public invitation: Launch of The Definitive Lockdown Presentation

TUESDAY, 1 SEPTEMBER 2020

South Africa’s lockdown is medically futile, costing lives, wiping out savings and destroying the economy. In fact, South Africa’s lockdown is turning out to be one of the most harmful lockdowns in the world.

These are some of the points to be made in a new presentation by Pandemic Data Analysis (PANDA) and experts at TransUnion and ETM Macro Advisors, called The Definitive Lockdown Presentation: How lockdown is not helping, costing lives, wiping out savings, and destroying the economy.

The presentation is hosted by the Business for Ending Lockdown (B4EL) campaign.

B4EL invites the media, business representatives, policy makers and the public to the launch of the presentation, via complimentary live-stream, on Wednesday 2 September 2020 at 10:00.

The presentation will be done by Nick Hudson (Actuary and Coordinator at PANDA), Hans Zachar (Head of Emerging Markets at TransUnion Africa) and Russell Lamberti (member of PANDA and Strategist at ETM Macro Advisors).

Viewing or restreaming the livestream

The event will start at 10:00 on Wednesday, 2 September 2020 and a livestream will be accessible from shortly before on various social media channels.

About B4EL

B4EL is an association of business organisations, representing more than 50 000 members, insisting on an immediate and complete suspension of lockdown and the state of disaster. B4EL advocates for the conversion of all compulsory lockdown-related regulations to be converted to voluntary recommendations.

EOSA is a founding member of B4EL and Johannes Wessels of EOSA serves in the Advisory Board of the campaign. Johannes in May already had compared the lock-down strategy to the ill-fated cattle-killing of Nongquase, stating that president Cyril Ramaphosa would become known as Nongquase II.

Statement issued by Piet le Roux, on behalf of the B4EL campaign.

Sin tax to plug the hole in SARS coffer: the government laying the table for a Boston tea party?

Johannes Wessels
@johannesEOSA1

The prolonged lock-down has been a roaring success: not in enabling the public health system with “sufficient beds, ventilators and staff” for the inevitable “Covid-peak”, but in empowering organised crime syndicates.

Not only did the ban on the transportation and sale of liquor and cigarettes provide an unprecedented window of opportunity for already existing smuggling networks to strengthen their production and supply chain networks, they were wholeheartedly supported by the government to expand their client base exponentially.

The government by decree stopped the legal trade in liquor and cigarettes, effectively providing a protected oligopoly for the smuggling networks. Since there was no competition, they hiked their prices. That saw:

  • cigarette cartons that would cost around R450 before lock-down selling at anything between R1 500 to R2 000;
  • Gordons Gin selling at four times the pre-lockdown price, and
  • A litre red Robertson box-wine fetching R1 400, easily beating some of the prices achieved by top wines at the Nederburg Auction.

Patel hounded Dischem, but the smugglers, spazas & tenderpreneurs were the price hikers

Continue reading “Sin tax to plug the hole in SARS coffer: the government laying the table for a Boston tea party?”

Business for Ending Lockdown (B4EL) rejects continued state of disaster

Business for Ending Lockdown (B4EL) notes President Ramaphosa’s announcement of a move to lockdown level 2 commencing 17 August. While the further relaxing of restrictions is an improvement compared to remaining at level 3, B4EL will not thank the government for giving back to the people of South Africa that which belongs to them.

B4EL is a campaign to completely end lockdown. The campaign was founded this week (The Enterprise Observatory of SA is one of the founding members). It is supported by several of the most well-known and largest business organisations, already counting almost 60 000 businesses. For more information, see www.endlockdown.co.za.

The president’s announcement only underscores the fact that the lockdown remains unnecessary, arbitrary, and, by the president’s own admission, fraught with corruption.

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The Vandals are governing

In his weekly letter from the president’s desk (13 April), pres. Ramaphosa lamented the vandalism that had caused the demolition of schools, describing it as “a great indictment of our society”. He pointed to the despicable implications: “When lock-down is lifted and learning resumes, thousands of our children will have no school to return to, depriving them of the right to education…”

The irony of his words is that the government is currently the vandal-in-chief. The damage done to schools in the president’s lament of four months ago is dwarfed into insignificance when compared to the destruction its lock-down strategy is inflicting on South Africans.

The sheer magnitude of their destruction boggles the mind. They have:

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Lock-down is international “worst practice” but Ramaphosa (and key business leaders) maintain it’s the solution

Day 132 after registering the first 100 Covid infections in SA made it clear how unsuccessful the lock-down has been: South Africa’s number of Covid infections/ 10 000 of the population despite the world’s harshest lock-down with a curfew, mandatory face masks and an alcohol ban passed that of a country that has never implemented lock-down, never made face masks mandatory and would have continued to buy South African wines were it not for the SA government that had banned the transport (and therefore export) of wine. (Figure 1)

Like that legendary village in Gaul ( home of Asterix and Obelix) held out against the might of Caesar’s Rome to maintain local culture, Sweden kept the constitutionally protected rights of its citizens intact (freedom to move, associate and work) whilst most of the world capitulated with lock-down measures before the might of fear brought about by flawed modelling of the Covid threat.

South Africa’s government early on sacrificed these rights, transforming its citizens to subjects, all “to ensure that the infection curve would be flattened to get ready for the Covid storm”. Figure 1 clearly shows how the curve was flattened, but today we know that it was not utilised to ensure Covid-ready hospitals with well-motivated staff serving sufficient beds in ICUs and care centres equipped with ventilators and required equipment.

The BBC had shown the world that the “flattening of the curve” was not used for that, at least not in the Eastern Cape.  The Minister of Health, Zweli Mkhize, however disputed the BBC findings, stating that, apart from the fact that the EC hospitals:

  • should follow medical waste protocols;
  • require more beds;
  • needed more nursing staff;
  • had to procure more ventilators, and
  • should get rid of blood on the floor and the rats,

the province was ready for the Covid crisis.

Easier to exterminate hospital rats than tender rats?

Mkhize made no mention that these problems were probably linked to the government’s continued feeding of the tender rats.

Quicker than what a minibus taxi can skip a traffic light, Andile Ramaphosa of Bosasa fame had convinced FNB to sponsor a R6 million contract to install Perspex shields and sanitise equipment in Gauteng taxis. He claims he is not personally benefiting from the contract awarded to SDI Force (an NGO).

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