Western Cape estimated to lose 167 000 jobs and R720m worth of revenue during 2020

A recent report estimates that more than 167 000 jobs and R720 million worth of revenue will be lost in the Western Cape province during 2020 as a result of the novel coronavirus pandemic. Here's what we know.

Job losses in Western Cape


Provincial government officials say the province can expect a sharp economic nosedive, with as an estimated 71 000 tourism jobs and 27 000 jobs in the informal are cut.


Head of Provincial Treasury, David Savage said that models show the "contraction will be persistent", and that the province will only be able to return to "current levels of economic activity" by 2024.


Based on the current forecasts, the Western Cape's R1.8 billion reserve allowed it to sufficiently respond to the COVID-19 pandemic.


"With our 'Budget to Beat Covid-19' in the Western Cape, we have worked hard to mobilise every cent available, and have allocated R3.05 billion to support the fight against Covid-19 in the Western Cape".

Western Cape budget

PPE and sanitisation of schools


The revised budget for the Western Cape put forward on Thursday 23 July, seeks to move funding to critical areas that are most in need during the COVID-19 pandemic.


"With this R3 billion adjustment and allocation that we, of course, have been able to finance our response […] the temporary hospital facilities, the testing and triage facilities, the 130 000 food parcels, the two million meals distributed through school feeding schemes."David Mayner


Western Cape Provincial Minister of Finance and Economic Opportunities, David Mayner said that R310 million was allocated to the Education Department for personal protective equipment and the sanitisation of schools, and R84 million for humanitarian relief.

Isolation facilities, bed capacity and screening


In addition, R400 million will go to the Department of Transport and Public Works for the hiring of venues and the purchase of services for quarantine and isolation facilities.


The budget breakdown includes R1.8 billion set aside for personal protective equipment (PPE), temporary field hospitals, testing and screening, and additional bed capacity. A complete breakdown can be viewed here.


"MEC Maynier's budget involves a prudent three-phase process, reliant on savings and cost containment as well as the invocation of Section 25 of the Public Finance Management Act. This permits expenditure from the Provincial Revenue Fund for the exceptional circumstances we face today. […] Every possible measure must be taken to limit these impacts."DA's Western Cape Committee Chairperson Finance, Economic Development, and Tourism Deidré Baartman


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