While addressing the nation, South Africa’s President Cyril Ramaphosa announced an implementation of a “risk adjusted strategy” through which the government will “take a deliberate and cautious approach to the easing of current lockdown restrictions”.
Ramaphosa announced the country will begin a gradual and phased recovery of economic activity. The president further stated that there will be a national level and separate levels for each province, district and metro in the country to “ensure that our response to the pandemic can be as precise and targeted as possible”.
The country is currently at Level 5, which the president says “requires a full national lockdown to contain the spread of the virus”. This will end at the end of April. Level 4 will begin on May 1st.
Levels explained below:
Read the full speech below:
STATEMENT BY PRESIDENT CYRIL RAMAPHOSA ON SOUTH AFRICA’S RESPONSE TO THE CORONAVIRUS PANDEMIC, UNION BUILDINGS, TSHWANE
My Fellow South Africans,
It has been exactly seven weeks since the first case of the coronavirus was confirmed in our country.
Since then, all our lives have changed in fundamental ways.
As a nation we have been forced to take aggressive action against an invisible enemy that threatened our lives and the lives of our loved ones.
We have been forced to adapt to a new way of living, in a short space of time.
As we enter the fifth week of an unprecedented nation-wide lockdown – and as we look to the future – we should remember why we are here.
The novel coronavirus, which was identified in the Chinese city of Wuhan in December last year, has spread rapidly across the world.
To date, over 2.6 million confirmed cases have been reported worldwide.
The actual number of people infected is likely to be far higher.
The coronavirus causes the disease known as COVID-19, a respiratory illness for which humans currently have no immunity and for which there is no known cure.
The coronavirus is passed from person to person in small droplets from the nose and mouth that can be transmitted by direct contact, on surfaces we touch or when an infected person coughs or sneezes when they are close to another person.
Most infected people exhibit only mild symptoms; some do not show any symptoms at all.
But there are people who develop severe symptoms and require hospitalisation.
These are usually older people and those who suffer from underlying conditions such as heart disease, diabetes, chronic respiratory disease and cancer.
For some of these people, COVID-19 is fatal.
Across the world, more than 185,000 people have succumbed to the disease.
Here in South Africa, at least 75 people have lost their lives.
Because the coronavirus can spread so rapidly through a population, it can overwhelm even the best-resourced health system within a matter of weeks.
This is what has occurred in many countries across the world, and it is precisely what we, as South Africa, have gone to great lengths to prevent.
Very few health systems across the world – if any – are prepared for a sudden and exponential increase in people requiring treatment for a severe respiratory illness.
As a result, if the virus spreads too quickly, there are not enough hospital beds, intensive care units, ventilators, personal protection equipment or medicine for everyone who needs them.
To make matters worse, people who are suffering from other conditions or need emergency procedures are unable to get the care they need.
And in such circumstances, many lives that could have been saved, are lost.
I am reiterating these basic facts – which by now are probably familiar to many of you – because they explain the actions we have taken to date and they inform the measures I am announcing this evening.
From the moment we declared the coronavirus pandemic to be a national disaster on Sunday 15 March, our objective was to delay the spread of the virus.
We have sought to avoid a massive surge in infections and an uncontrollable increase in the number of people needing medical care.
Our approach has been based on the principles of social distancing, restriction of movement and stringent basic hygiene practices.
By delaying the spread of the virus, we have had time to prepare our health facilities and mobilise some of the essential medical supplies needed to meet the inevitable increase in infections.
And it is in so doing, that we hope to save tens of thousands of lives.
There is clear evidence that the lockdown has been working.
Together with the other measures we have taken – such as closing our borders – and the changes in behaviour that each of us has made, the lockdown has slowed the progression of the pandemic in the country.
The World Health Organization has commended South Africa for acting swiftly and for following scientific advice to delay the spread of the virus.
Yet, while a nation-wide lockdown is probably the most effective means to contain the spread of the coronavirus, it cannot be sustained indefinitely.
Our people need to eat. They need to earn a living. Companies need to be able to produce and to trade, they need to generate revenue and keep their employees in employment.
We have accordingly decided that beyond Thursday 30 April, we should begin a gradual and phased recovery of economic activity.
We will implement a risk adjusted strategy through which we take a deliberate and cautious approach to the easing of current lockdown restrictions.
We have decided on this approach because there is still much that is unknown about the rate and manner of the spread of the virus within our population.
The action we take now must therefore be measured and incremental.
This approach is guided by the advice from scientists who have advised that an abrupt and uncontrolled lifting of restrictions could cause a massive resurgence in infections.
We cannot take action today that we will deeply regret tomorrow.
We must avoid a rushed re-opening that could risk a spread, which would need to be followed by another hard lockdown, as has happened in other countries.
We have to balance the need to resume economic activity with the imperative to contain the virus and save lives.
To achieve this, we have developed an approach that determines the measures we should have in place based on the direction of the pandemic in our country.
As part of this approach, there will be five coronavirus levels:
Level 5 means that drastic measures are required to contain the spread of the virus to save lives.
Level 4 means that some activity can be allowed to resume subject to extreme precautions required to limit community transmission and outbreaks.
Level 3 involves the easing of some restrictions, including on work and social activities, to address a high risk of transmission.
Level 2 involves the further easing of restrictions, but the maintenance of physical distancing and restrictions on some leisure and social activities to prevent a resurgence of the virus.
Level 1 means that most normal activity can resume, with precautions and health guidelines followed at all times.
To ensure that our response to the pandemic can be as precise and targeted as possible, there will be a national level and separate levels for each province, district and metro in the country.
We are currently at Level 5, which requires a full national lockdown to contain the spread of the virus.
This is the highest level of lockdown and was imposed when drastic action was necessary to curb transmission.
The National Coronavirus Command Council will determine the alert level based on an assessment of the infection rate and the capacity of our health system to provide care to those who need it.
We have undertaken a detailed exercise to classify the different parts of the economy according to the risk of transmission in that sector, the expected impact of the lockdown, the economic contribution of the sector and the effect on livelihoods.
The relevant Ministers will provide a detailed briefing on the classification of industries and how each is affected at each level.
We will give all industry bodies an opportunity to consider these details and, should they wish, to make submissions before new regulations are gazetted.
The National Coronavirus Command Council met earlier today and determined that the national coronavirus alert level will be lowered from level 5 to level 4 with effect from Friday the 1st of May.
This means that some activity will be allowed to resume subject to extreme precautions to limit community transmission and outbreaks
Some businesses will be allowed to resume operations under specific conditions.
Every business will have to adhere to detailed health and safety protocols to protect their employees, and workplace plans will be put in place to enable disease surveillance and prevent the spread of infection.
All businesses that are permitted to resume operations will be required to do so in a phased manner, first preparing the workplace for a return to operations, followed by the return of the workforce in batches of no more than one-third.
In some cases, a sector will not be able to return to full production during Level 4 while the risk of infection remains high.
These will be spelt out next week following a final round of consultations.
Businesses will be encouraged to adopt a work-from-home strategy where possible.
All staff who can work remotely must be allowed to do so.
The relevant Ministers will provide details on the process for the phased re-opening of schools and other educational institutions.
As we gradually ease the restrictions, it is necessary that many of the measures to contain the spread of the virus remain in place.
When the country moves to level 4 on 1 May:
Our borders will remain closed to international travel, except for the repatriation of South African nationals and foreign citizens.
No travel will be allowed between provinces, except for the transportation of goods and exceptional circumstances such as funerals.
Public transport will continue to operate, with limitations on the number of passengers and stringent hygiene requirements, including that all passengers must wear a face mask.
The public is encouraged to stay at home, other than for essential personal movement, doing essential work and work in sectors that are under controlled opening. People can exercise under strict public health conditions.
All gatherings, apart from funerals and for work, will remain prohibited.
Those who are elderly, and those with underlying conditions, must remain at home and take additional precautions to isolate themselves.
The sale of cigarettes will be permitted.
The range of goods that may be sold will be extended to incorporate certain additional categories. These will be detailed by the relevant Ministers.
It is important to note that several restrictions will remain in place regardless of the level of alert for as long as the risk of transmission is present:
Bars and shebeens will remain closed.
Conference and convention centres, entertainment venues, cinemas, theatres, and concerts will remain closed.
Concerts, sporting events, and religious, cultural and social gatherings will not be allowed until it is deemed safe for them to continue.
The coronavirus is spread by contact between people.
If people do not travel, the virus does not travel.
We know, for example, that just one funeral in Port St Johns and one religious gathering in Mangaung contributed to a spate of infections in their respective provinces.
From the evidence we have, we know that 75 percent of confirmed coronavirus cases are found in just six metro municipalities – Johannesburg, Ekurhuleni, Cape Town, Buffalo City, EThekwini and Mangaung.
It is therefore essential that we do everything in our means to restrict the movement of people and – although it runs counter to our very nature – to reduce the contact that each of us has with each other.
Ultimately, it is our own actions, as individuals, that will determine how quickly the virus spreads.
If we all adhere to instructions and follow public health guidelines, we will keep the virus under control and will not need to reinstate the most drastic restrictions.
We can prevent the spread of coronavirus by doing a few simple things.
Wash your hands frequently with soap and water or use an alcohol based sanitiser.
Keep a distance of more than one metre between yourself and the next person, especially those who are coughing and sneezing.
Try not to touch your mouth, nose and eyes because your hands may have touched the coronavirus on surfaces.
When you cough or sneeze cover your mouth and nose with your bent elbow or a tissue, and dispose of the tissue right away.
As we begin the easing of lockdown restrictions from the beginning of May, we are calling on all South Africans to wear a face mask whenever you leave home.
Our clothing and textile industry – including many small businesses – are gearing up to produce these masks on a mass scale.
The extraordinary measures that we have put in place to combat the coronavirus pandemic have been matched by the extraordinary contributions of many South Africans.
We pay tribute to them, the nurses, the doctors, the scientists and the community screening field workers who are leading our public health response.
We are committed to ensuring that they have all the resources they need – including adequate personal protection equipment and other recognition – to undertake the work that is being asked of them.
As we slowly ease the lockdown restrictions, we are substantially and rapidly increasing our public health response.
We have already seen a huge increase in community screening and testing.
Guided by advice from the World Health Organization and the Africa Centres for Disease Control and Prevention, we have joined other African countries in placing mass screening and testing at the centre of the next phase of our response.
Earlier in the week, I announced an additional allocation of R20 billion to our health response to ensure that we have the beds, medicine, equipment and personnel required when the country experiences the peak of infections.
This evening, I also want to pay tribute to those who are providing essential services and goods – the truck, taxi, bus and train drivers; the workers on farms, in stores, at power stations, at water plants, at petrol stations, in banks and in call centres; the law enforcement officials and security personnel.
It is thanks to your efforts that we have been able to make such valuable progress in combating this pandemic.
As part of expanding this effort, I have employed over 70,000 defence force personnel to assist with various parts of our coronavirus response.
Until now, those defence force members that have been deployed have supported the South African Police Service in their responsibilities.
They will continue to do so, but they will also be providing assistance in other essential areas, such as the provision of water supply, infrastructure maintenance and health services.
This is a crucial moment in our struggle against the coronavirus.
It is a time for caution.
It is a time to act responsibly.
It is a time for patience.
There is no person who doesn’t want to return to work.
There is no company that does not want to re-open.
There is no student who does not want to return to their studies.
Yet, we are all called upon, at some time in our lives, to make great sacrifices for our own future and for the future of others.
There are times when we must endure hardship and difficulty, so that we can enjoy freedom and prosperity into the future.
During the past five weeks, we have demonstrated to the entire world what a nation can achieve with courage, determination and solidarity.
We must not give up now.
I am asking you to stay strong.
I am asking you to remain united.
Stay home, stay safe.
Thank you for all that you have done and continue to do.
May God bless South Africa and protect her people.
I thank you.
ISSUED BY THE PRESIDENCY OF THE REPUBLIC OF SOUTH AFRICA
Facebook Reports Slower Q2 Advertising Growth While Google Reveals A Rare Revenue Decline
The headwinds of Covid-19’s economic impact in the second quarter were strong enough to slow down even the ad-funded tech giants.
In its second-quarter results released on July 30, Facebook reported $18.7 billion in revenue, an increase of 11% despite the slowdown of advertising spend as marketers navigate the ongoing crisis. The results included $18.3 billion in ad revenue, a 10% year-over-year increase. Revenue from other operations totaled $366 million, up 40% from second-quarter 2019.
While Facebook maintained growth during the second quarter, its advertising rival Google did not. Around the same time that Facebook released its results, Google’s parent company Alphabet reported a rare decline in revenue, falling 2% year-over-year to $38.3 billion. Revenue from Google Search and other areas totaled $21.3 billion, down from $23.6 billion in second-quarter 2019. However, ad revenue on YouTube increased 6% to $3.8 billion, which the company said was driven by direct-response advertising.
In a statement, Ruth Porat, chief financial officer of Alphabet and Google, said revenues were “driven by gradual improvement in our ads business and strong growth in Google Cloud and Other Revenues.”
“We continue to navigate through a difficult global economic environment,” she said.
Both Facebook and Google have been known for their steady and massive quarterly growth despite concerns from advertisers, consumers and regulators around issues such as data privacy and content moderation. In 2019, Facebook reported revenue growth of 28% in the second quarter, 28% in the third quarter, and 25% in the fourth quarter. Revenue then grew just 17% in the first quarter of 2020 during the final three months before the pandemic prompted many advertisers to either pause or slow spending on various digital and traditional platforms.
Google’s growth story has been somewhat similar. Year-over-year revenue grew 17% in the first quarter of 2019, 19% in the second quarter, 20% in the third quarter, 17% in the fourth quarter before slowing to 13% in the first quarter of 2020.
On an earnings call today with analysts, Porat said advertising revenue “gradually improved” through the quarter with a “modest” improvement already in July.
“We do believe it’s premature to say we’re out of the woods, given the fragile nature of the economic environment,” she said.
The results come at a time of turmoil for the ad industry during the pandemic. In late June, marketing research firm eMarketer said it expected U.S. digital ad investment to increase just 1.7% this year—or $2.2 billion—compared to the previous growth estimate of 17%, or $22 billion. However, the slowed spending should be no surprise. In fact, during the early weeks of the crisis back in March, a survey of 400 media buyers found that 74% thought the pandemic would have a larger impact on ad spend than the 2008 financial crisis.
Facebook and Alphabet—along with other tech giants like Amazon and Apple—also have been under increased scrutiny by lawmakers. On Wednesday, Facebook CEO Mark Zuckerberg and Alphabet CEO Sundar Pichai along with the CEOs of Apple and Amazon spent the entire afternoon testifying to members of Congress. While the hearing was meant to focus on issues of antitrust, the four executives also touched on other issues ranging including data privacy, content moderation, and political influence.
While ad revenues were slower over the past three months, engagement was not. According to Facebook, engage on Facebook’s properties in terms of daily active users (DAUs) and monthly active users (MAUs) also increased in the second quarter, with DAUs increasing 12% year-over-year to 1.79 billion and MAUs increasing 12% to 2.7 billion. Across its “family” of apps—which includes Facebook, Instagram, Messenger, and WhatsApp—DAUs totaled an average of 2.47 billion for June 2020, an increase of 15% over the same period last year. The family monthly average was 3.14 billion in June—up 14% year-over-year.
According to a Facebook statement about its results, the growth in usage reflects “increased engagement as people around the world sheltered in place and used our products to connect with the people and organizations they care about.” However, the company said it’s recently seen “signs of normalization” as lockdown measures around the world have eased. Meanwhile, total ad impressions in the second quarter increased 40% although the average ad price decreased.
“Our business has been impacted by the COVID-19 pandemic and, like all companies, we are facing a period of unprecedented uncertainty in our business outlook,” Facebook said in a statement about its quarterly results. “We expect our business performance will be impacted by issues beyond our control, including the duration and efficacy of shelter-in-place orders, the effectiveness of economic stimuli around the world, and the fluctuations of currencies relative to the U.S. dollar.”
In July, Facebook has also dealt with a boycott over its practices and policies around moderating hate speech on the platform. The boycott—organized by civil rights groups including the NAACP and Anti-Defamation League—has been joined by hundreds of larger and smaller advertisers. Addressing the boycott on an earnings call with analysts, Zuckerberg said the company has agreed to an audit by the Media Ratings Council, and added that he’s “often troubled by the calls to go after internet advertising, especially during a time of such economic turmoil like we face today with Covid.”
“Some still seem to wrongly assume that our business is dependent on a few large advertisers, and while we value every single one of the businesses that use our platforms, the biggest part of our business is serving small businesses,” he said. “Our advertising is one of the most effective tools that businesses have to find customers to growth their businesses and create jobs.”
When an analyst on the call later asked how the boycott might be resolved, Facebook Chief Operating Officer Sheryl Sandberg said the company is still talking with civil rights groups and advertising trade organizations such as the Global Alliance for Responsible Media. She added that Facebook is “going to keep working hard at this, not because of advertiser pressure but because it’s the right thing to do.”
“It’s an interesting situation we find ourselves in because I think often times when companies are boycotted, it’s because they don’t agree with what the boycotters want,” she said. “And that’s not true at all here. We completely agree that we don’t want hate on our platforms and we stand firmly against it. We don’t benefit from hate speech. We never have. Users don’t want to see it, advertisers don’t want to be associated with it.”
By Marty Swant, Forbes Staff
With proper investment in youth, Kenya’s potential for progress is unlimited
By- Ruth Kagia and Siddharth Chatterjee
Africa’s demographic boom has been hailed as its biggest promise for transforming the continent’s economic and social outcomes, but only if the right investments are made to prepare its youthful population for tomorrow’s world.
Consider this. Every 24 hours, nearly 33,000 youth across Africa join the search for employment. About 60% will be joining the army of the unemployed. Africa’s youth population is growing rapidly and is expected to reach over 830 million by 2050. Whether this spells promise or peril depends on how the continent manages its “youth bulge”.
President Kenyatta once said that “The crisis of mass youth unemployment is a threat to the stability and prosperity of Africa, and it can amount to a fundamental and existential threat”.
Investing in young people especially so that they are prepared for the world of work is the main mission of Generation Unlimited (GenU), a global multi-sector partnership established to meet the urgent need for expanded education, training and employment opportunities for young people aged 10 to 24.
On 05 August 2020, Kenya will launch the Generation Unlimited initiative. This initiative will bring together key actors from the public and private sector as well as development partners to help put into a higher gear this defining agenda of our time to ensure that we have prepared our children for a prosperous future by giving them the education, training and job opportunities that fully harnesses their potential. With a median age of 18, Kenya’s youthful population represents a real potential to reap a demographic dividend and accelerate its economic progress.
Kenya has one of the youngest populations in the world. With the right investment in their talents, skills, and entrepreneurial spirit, young people present an extraordinary opportunity for transformation, growth, and change.
Three quarters Kenya’s population is under the age of 35. Across Africa there are 200 million people between the ages of 15 and 24, a demographic that is expected to double by 2045.
One of the greatest challenges facing governments and policymakers in Africa is how to provide opportunities for the continent’s youth, in order to provide them with decent lives and allow them to contribute to the economic development of their countries. As things stand, around 70% of Africa’s young people live below the poverty line.
In Kenya, the pillars for achieving GenU objectives are in place, with various initiatives for instance to strengthen education system through the recently-launched competency based curriculum and government promotion of programmes to enhance technical and digital skills.
The fruits of such initiatives can be seen through numerous youthful innovations from Kenya that continue to receive international attention. For instance, inspired by his great urge to communicate with his 6-year-old niece who was born deaf, Roy Allela, a 25-year-old Kenyan invented Sign-10, a pair of smart gloves with flex sensors to aid his cousin’s communication with the other members of the family.
The flex sensors stitched to each finger aid in quantifying the letters formed from the curve of each finger of the glove’s wearer. The gloves are then connected through Bluetooth to a mobile phone application that vocalizes the hand movements. This innovation won him the Trailblazer Award by the American Society of Mechanical Engineers.
Gen U’s solution is to forge innovative collaborations with young people themselves. Since launching in 2018, the movement has brought onboard leaders from governments, foundations, and the private sector around the world. Its launch in Kenya underscores its government’s commitment to engage young people in pursuit of the Big 4 Development Agenda as well as Vision 2030.
President Uhuru Kenyatta is a global leader for the Generation Unlimited initiative. In Kenya, Gen U’s activities are coordinated by the Office of the President and the United Nations.
Shifts in today’s global economy demand that young people acquire skills aligned with dynamic labour needs, but local education systems have been slow to adapt. In many countries in Africa, school enrolment is up, but learning outcomes for young people remain poor. Most leave school without the skills the contemporary job market needs, and are ill-prepared for a world in which low-skilled jobs are increasingly automated.
A million young people join the workforce every year in Kenya, applying for jobs in a formal sector that can only absorb one in five of them. Some, however, find work at least intermittently in Kenya’s vibrant informal sector, which accounts for more than 80% of the country’s economy according to the World Bank.
Rather than focusing on opportunities in the formal sector, partners in the Gen U movement will look at strategies for supporting the informal sector with better infrastructure and an improved business environment. In doing so, it is hoped that it will be transformed into a recognised and legitimate sector.
Such initiatives have the full support of the recently launched Kenya Youth Development Policy, which seeks to underscore issues affecting young people. Technology will play a central role, and sector-based strategies will be central to the government’s approach.
The Kenya Youth Agribusiness Strategy, for example, will enable Kenya’s youth to access information technology for various value-addition ventures in Africa’s agribusiness sector set to be worth $1 trillion by 2030.
The Coronavirus pandemic has seen countries face changes in entire social and economic systems. Key industries, including manufacturing, healthcare, public services, retail, transportation, food supply, tourism, media and entertainment have been hard hit by the pandemic. The pandemic is an inflection point that is giving the old system a nudge. The post-COVID-19 world will be founded on a tech-savvy workforce that will inevitably comprise young people.
Calling on urgent action for young people, UN Secretary-General António Guterres has called on governments to “do far more to tap their talents as we tackle the pandemic and chart a recovery that leads to a more peaceful, sustainable and equitable future for all”.
In the run-up to the end of the SDGs era, we must ramp up the current level of investment in young people’s economic and social potential. As the vision of Generation Unlimited states, if the largest generation of young people in history is prepared for the transition to work, the potential for global progress is unlimited.
As President Kenyatta has noted, “the current generation of young people has the potential of expanding Africa’s productive workforce, promoting entrepreneurship and becoming genuine instruments of change to reverse the devastation caused by climate change.”
Ruth Kagia is the Deputy Chief of Staff to President Kenyatta. Siddharth Chatterjee is the United Nations Resident Coordinator to Kenya. Mrs Kagia and Mr Chatterjee co-chair the Generation Unlimited Steering Committee in Kenya.
OPEC And Its Allies Are Ready To Boost Production, But Here’s Why An Oil Market Recovery Isn’t Guaranteed
After record production cuts in April intended to prop up the market amid a demand crisis caused by the coronavirus pandemic, the world’s largest oil producers are expected to ease up on the restrictions and begin to increase their output next month.
- Saudi Arabia, Russia, and the other members of OPEC+ will meet Wednesday to discuss the current market situation and debate future production limits, the Wall Street Journal reported over the weekend, adding that most delegates in the organization support loosening restrictions.
- As lockdown measures ease across the globe, demand for oil is slowly beginning to rise again as shipping and air travel resume.
- Oil prices are still down significantly from pre-pandemic levels, however, with the Brent international benchmark priced at about 30% of January levels.
- The International Energy Agency said Friday that while global demand for oil had recovered strongly in China and India in May, world demand is still projected to decline during the second half of the year before recovering in 2021.
- The recent spike coronavirus cases and new lockdowns are creating “more uncertainty”: additional lockdowns could discourage travel and international trade, which would put more downward pressure on prices.
- The risk to the oil market is “almost certainly to the downside,” the IAE said.
In April, the members of the Organization of Petroleum Exporting Countries (OPEC) and its allies agreed to record oil production cuts of 9.7 million barrels a day as the coronavirus decimated global demand for crude oil. The agreement put an end to a weeks-long price war between Russia and Saudi Arabia that added even more pressure to an already-struggling market.
“If OPEC clings to restraining production to keep up prices, I think it’s suicidal,” a person familiar with Saudi Arabia’s thinking told the Journal. “There’s going to be a scramble for market share, and the trick is how the low cost producers assert themselves without crashing the oil price.”
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