Business concerns rise on looming third wave

THE business sector has expressed its willingness to assist the government with the acquisition and distribution of vaccines as concerns rise about the looming third wave of Covid-19 infections in South Africa, which could dent the nascent recovery of the economy.

Rising infections could result in the introduction of tighter lockdown restrictions, derailing the expected rebound of the country’s economy as other countries’ economies reopen.

Business Leadership South Africa (BLSA) yesterday said it was concerned about the increase in Covid-19-related hospitalisations and positive tests in the Free State and Gauteng.

Data from the Department of Health shows a rise in the average number of Covid-19 cases, from 8 593 cases the past week to 12 531 cases in the past seven days.

BLSA said these figures suggested that the country was facing a third wave of the pandemic, which would require interventions to reduce the risk of transmission.

It said where restrictions in economic activity were required, these should be clearly explained and have end dates to allow businesses to plan properly.

“Of course, a comprehensive vaccine programme is urgent. Business remains committed to supporting the government with vaccine acquisition and distribution,” it said.

“BLSA is a willing partner to the government in considering options to reduce transmission and in assessing the economic impact of such options.”

The Cabinet yesterday was briefed about the increase in infections and the application of response measures to curb the spread.

Phase 2 of South Africa’s Covid-19 vaccination drive is set to begin on Monday, targeting people over the age of 60.

More than 435 000 healthcare workers have been vaccinated with the Johnson & Johnson vaccine to date, while the Pfizer vaccine has been procured for Phase 2.

Rand Merchant Bank chief executive James Formby said rolling out vaccinations as soon as possible was important to restart the economy, particularly industries such as tourism and hospitality, which have been hard hit.

“What does give us optimism is that we are stocking up on Johnson & Johnson and Pfizer vaccines, and that systems are currently being put in place to roll out the vaccination process nationwide.

“By year-end, substantial numbers of people could be vaccinated. This will help shift the narrative of the country as a place to be avoided while its people face severe ‘red list’ travel restrictions,” Formby said.

The South African Liquor Brandowners Association (Salba) said there was an urgent need to intensify the Covid-19 vaccine roll-out.

Alcohol bans as a result of lockdown restrictions have had a cumulative impact on the alcohol industry, putting at risk at least 200 200 jobs supported by the alcohol value chain as sales revenue fell by R36.3 billion.

Salba chairperson Sibani Mngadi said the recent rise in the infection rate was of great concern, and he called on the government to step up the vaccination programme.

“The industry has repeatedly said it is willing to provide whatever logistical assistance the government requires to achieve this huge operational undertaking,” Mngadi said.