It goes without saying that Covid-19 has had a negative impact on South Africa’s economy. Due to the pandemic and the implemented Covid-19 lockdowns, many businesses found themselves indefinitely shutting down their business or filing for bankruptcies, others retrenching their employees and others opting for holiday payment terms offered by banks.
Recognising the denting economic impact that Covid-19 has had on small and medium businesses (SMEs) in South Africa, Business for SA (businessforsa.org) launched an initiative called #Payin30. Recognising that SMEs and entrepreneurs are vital to South Africa’s economic recovery strategy, the #Payin30 statement goes as follows,
“Corporate South Africa recognises that by paying their SME suppliers in 30 days, they can contribute to their survival and the preservation of jobs.”
The campaign’s key driving point is the recognition that access to working capital and cash flow is crucial for the growth and sustainability of SMEs. More so, this campaign understands that SMEs are key job creators in South Africa with a high unemployment rate.
As an SME itself, Relocation Africa fully supports this initiative, calling on corporate companies to join and sign up for the initiative. Relocation Africa is no stranger to the impact of Covid-19 on its business. As a business dependent on open borders and the mobility of corporate employees, the lockdown restrictions and closing of borders have had a negative impact on the economic viability of the business. Having been forced to make difficult decisions such as retrenching employees and enforcing payment cuts, it understands the need for their business to pay their supply chain in or less than 30 days and in turn for corporates to pay SMEs in 30 days.
Director of Relocation Africa, Rene Stegmann says, “Relocation Africa has consultants and a supply network that is mostly SME’s and private individuals, we have decided that for us to have a reliable supply chain we need to ensure that their cash flow is not a reason for them to go out of business”. She goes on to speak about the importance of understanding that most of Relocation Africa’s supply network are breadwinners and job creators themselves, and the #Payin30 initiative creates not only a more reliable supply chain but also an enthusiastic one that knows that they are valued and prioritised by the company.
Well within reason, the campaign has been supported by large companies such as Naspers, SASOL, ABSA, Investec to name a few. An SME such as Relocation Africa supporting and practising this initiative is a display of ethical leadership and the recognition of social responsibility within the workforce. But the hard-hitting question to Relocation Africa is: As an SME itself, does Relocation Africa fear that such a commitment [of the #Payin30] would compromise the economic viability of themselves, especially during this economic crisis brought on by Covid-19? Stegmann confidently states, “We have one big risk, that is if our clients choose to pay us in anything other than 30 days, we are effectively risking our cash-flow, but we are addressing this with our clients and those who choose to #payin30 will be accoladed through the #payin30 campaign. We have converted 75% of our clients to commit to contractually paying us in 30 days and we have a couple more clients to negotiate with.”
“We believe that by us, as an SME, taking a firm step on #pay30, this will have a ripple effect both down and up the supply chains. #Togetherwearebetter.”
Relocation Africa can pride itself on being a leader and approaching this initiative with a bottom-up approach. Understanding the implications of late payments and how it can affect the supply chain, in turn affecting their ability to provide a service they have seamlessly done for 28 years, much is at risk. Stegmann aptly states that the business understands they are not isolated in their existence and that every action has counteraction. Furthermore, as a Global Mobility provider of services to large multinational businesses, the business [Relocation Africa] upholds their business and reputation through ensuring their own SMEs and private individuals who rely on them can survive to deliver the services to them.
There is much to say about how initiatives like that of #Payin30 are exemplary in the action against the capitalistic, exploitative side of the business. Not only an act of ethical behaviour and leadership put an act of compassion for SMEs who are vital in the economic ecosystem. We can only hope that large companies and businesses follow suit and support the preservation of SMEs during these unprecedented times.
For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.
Vaccination Programmes Are Underway Across Africa
Many African countries have received their first shipment of the vaccine although there are concerns regarding the shortage of supply. The deliveries of the vaccine supplies began in February under the Covax programme, which most African countries have signed. The Covax is backed by the World Health Organisation (WHO) and other multilateral bodies.
The Covax programme aims to supply 600 million doses to Africa, which will suffice in vaccinating at least 20% percent of the population. Currently, the Covax initiative has delivered more than 20 million doses of vaccines to more than half of the African countries.
African Country Vaccinate update:
1. Ghana has received more than 600 000 doses, using more than 420 000.
2. Rwanda has received under 400 000 dosses, vaccinated more than 320 000.
3. Mali, Cameroon and the Democratic Republic of Congo has halted the rollout of the Astra Zeneca vaccine due to concerns vaccine on hold as a precaution after concerns were raised in some European countries over its safety.
4. China has donated doses of the Sinopharm vaccine to Zimbabwe, Namibia, Equatorial Guinea, Egypt, Tunisia, Sierra Leone and Guinea.
5. The United Arab Emirates also donated Sinopharm doses to the Seychelles.
6. India has donated the AstraZeneca vaccine to Kenya, Uganda, Rwanda, DR Congo, Ghana, Ivory Coast, Senegal, Mozambique, eSwatini, Botswana, Mauritius and Seychelles.
7. Senegal donated some of the vaccine doses it bought from China to the neighbouring Gambia.
8. Russia donated some doses of the Sputnik V vaccine which were used on an experimental basis in Guinea.
9. South Africa has begun vaccinating after receiving 80,000 doses of the Johnson & Johnson vaccine, which is administered as a single dose and has been shown to be effective against the variant. It delayed the start of its programme because of concerns that the AstraZeneca vaccine, which it had initially purchased, may not be effective against a new variant.
Resumption of Services at Home Affairs Offices
South Africa’s president, Cyril Ramaphosa announced that the country has been moved to Alert Level 1, and Home Affairs has announced that more services will be resumed as of Thursday, 04 March 2021. The Citizenship service remains temporarily unavailable. Under Alert Level 1, eHome Affairs online services have resumed,
In addition, the following services under Alert Level 1, will be resumed:
Home Affairs Signs Historic Agreement for Asylum Seekers
After decades of awaiting decisions on their visa applications, asylum seekers can delight in the fact that Home Affairs and United Nations Refugee Agency (UNHCR) have signed what is described as a historic agreement for asylum seekers. This agreement will see the eradication of delays and backlog in application decisions by 2023.
Home Affairs plans on hiring more staff and getting technical support worth millions of Rands from the UNHCR to combat the appeals process backlog. With 185 000 refugees affected, Minister Motsoaledi says this agreement ensures that every refugee is protected under international law and South Africa’s Constitution and Bill of Rights.
Asylum seekers are rather sceptical of the practicality of this agreement, stating that they have not seen any changes being done by Home Affairs and there are not hopeful that the funds secured will be put to good use. Some asylum seekers are sceptical of the practicality of this decision, citing that they are already living in inhumane conditions and are forced to choose between either ‘reintegrating in South Africa or be repatriated into their home country’ – which ultimately goes against the Geneva Convention. The asylum seekers responding to this ‘historical agreement’ state they want to be resettled into a third country.
This hesitance stems from the Xenophobic undertones and attacks asylum seekers experience in South Africa. They state that authoritative bodies, like Home Affairs and the South African Police Services are doing the bare minimum to protect them.
Minister of Home Affairs, Aaron Motsoaledi disagrees with this notion. Motsaoledi says, “African refugees have the same status as any South African when they come here, except the right to vote.” This ‘citizen status is not permanent and will undergo review after four years.
An SME in full support and practice of the #PAYIN30 campaign
It goes without saying that Covid-19 has had a negative impact on South Africa’s economy. Due to the pandemic and the implemented Covid-19 lockdowns, many businesses found themselves indefinitely shutting down their business or filing for bankruptcies, others retrenching their employees and others opting for holiday payment terms offered by banks.
Recognising the denting economic impact that Covid-19 has had on small and medium businesses (SMEs) in South Africa, Business for SA (businessforsa.org) launched an initiative called #Payin30. Recognising that SMEs and entrepreneurs are vital to South Africa’s economic recovery strategy, the #Payin30 statement goes as follows,
The campaign’s key driving point is the recognition that access to working capital and cash flow is crucial for the growth and sustainability of SMEs. More so, this campaign understands that SMEs are key job creators in South Africa with a high unemployment rate.
As an SME itself, Relocation Africa fully supports this initiative, calling on corporate companies to join and sign up for the initiative. Relocation Africa is no stranger to the impact of Covid-19 on its business. As a business dependent on open borders and the mobility of corporate employees, the lockdown restrictions and closing of borders have had a negative impact on the economic viability of the business. Having been forced to make difficult decisions such as retrenching employees and enforcing payment cuts, it understands the need for their business to pay their supply chain in or less than 30 days and in turn for corporates to pay SMEs in 30 days.
Director of Relocation Africa, Rene Stegmann says, “Relocation Africa has consultants and a supply network that is mostly SME’s and private individuals, we have decided that for us to have a reliable supply chain we need to ensure that their cash flow is not a reason for them to go out of business”. She goes on to speak about the importance of understanding that most of Relocation Africa’s supply network are breadwinners and job creators themselves, and the #Payin30 initiative creates not only a more reliable supply chain but also an enthusiastic one that knows that they are valued and prioritised by the company.
Well within reason, the campaign has been supported by large companies such as Naspers, SASOL, ABSA, Investec to name a few. An SME such as Relocation Africa supporting and practising this initiative is a display of ethical leadership and the recognition of social responsibility within the workforce. But the hard-hitting question to Relocation Africa is: As an SME itself, does Relocation Africa fear that such a commitment [of the #Payin30] would compromise the economic viability of themselves, especially during this economic crisis brought on by Covid-19? Stegmann confidently states, “We have one big risk, that is if our clients choose to pay us in anything other than 30 days, we are effectively risking our cash-flow, but we are addressing this with our clients and those who choose to #payin30 will be accoladed through the #payin30 campaign. We have converted 75% of our clients to commit to contractually paying us in 30 days and we have a couple more clients to negotiate with.”
Relocation Africa can pride itself on being a leader and approaching this initiative with a bottom-up approach. Understanding the implications of late payments and how it can affect the supply chain, in turn affecting their ability to provide a service they have seamlessly done for 28 years, much is at risk. Stegmann aptly states that the business understands they are not isolated in their existence and that every action has counteraction. Furthermore, as a Global Mobility provider of services to large multinational businesses, the business [Relocation Africa] upholds their business and reputation through ensuring their own SMEs and private individuals who rely on them can survive to deliver the services to them.
There is much to say about how initiatives like that of #Payin30 are exemplary in the action against the capitalistic, exploitative side of the business. Not only an act of ethical behaviour and leadership put an act of compassion for SMEs who are vital in the economic ecosystem. We can only hope that large companies and businesses follow suit and support the preservation of SMEs during these unprecedented times.
For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.