COVID-19 Emergency Program Loan for Supporting South Africa’s Economic Recovery from COVID-19
South Africa
Approved
COVID-19 Emergency Assistance
Quick Facts
More About This Project
The country-wide COVID-19 related restriction resulted in slowdown of economic activities and loss of jobs, with the unemployment rate striking a record high by the third quarter of 2020.
To address the challenging situation, the GoSA adopted in October 2020 a comprehensive mid-term strategy, the Economic Reconstruction and Recovery Plan (ERRP). The ERRP embraces multiple sectors of the country’s economy and society while making emphasis on initiatives to generate employment, with the Presidential Employment Stimulus (PES) being the priority program of ERRP. The NDB Loan will be focused on the first phase of the PES (hereinafter – the Program).
The objective of the Program is to support the GoSA in its efforts tocontain the economic fallout of the pandemic and start economic recovery. The Program aims to create job opportunities, sustain private consumption and provide public services, therefore contributing to economic recovery in South Africa.
The Program focuses on creation of employment opportunities in South Africa, in particular about 700,000 jobs in the first phase of the PES, together with social protection measures for active labor market participants that temporarily lost their jobs, in order to help them remain on the labor market.
he main impact of the Program will be to mitigate adverse economic effects of COVID-19 pandemic and to support economic recovery in South Africa. The Program will contribute to creating and supporting employment opportunities in the public sector and to keeping economically active population in the labor force. NDB’s commitment to support member countries to achieve Sustainable Development Goals (SDGs) is emphasized in the Program’s intervention logic. NDB’s financing under the Program is primarily aligned with SDG 8 by promoting full and productive employment and decent work for all.
The Program has been categorized as Category B in line with NDB’s Environment and Social Framework. The E&S impacts will be associated with proposed public works as part of the employment generation program. The impacts will be low due to the nature of the activities. Adherence to the country systems will mitigate adverse E&S impacts.
The Program will also achieve positive socio-economic impacts through creating job opportunities and assisting temporarily jobless persons.
The total loan amount for supporting South Africa’s economic recovery from COVID-19 is up to USD 1 billion.
The Program implementation arrangements rely on existing structures established in South Africa. The main subprogram related to employment creation will be coordinated by the Project Management Office in the Presidency of the Republic of South Africa and implemented by 11 relevant departments of GoSA. The supporting subprogram related to social assistance will be implemented by the Department of Social Development.
| NDB | Borrower | Implementation Agency |
| Africa Regional CentreTshifhiwa Mukwevho | Department of National Treasury of South AfricaWanga Chibi | National Department of Health and Department of Social Development of South AfricaWanga Chibi |