South Africa’s Great “COVID19” Pretenders

It is difficult to comprehend the sudden global sentiment that the worst of the COVID-19 pandemic is over. History and epidemiological study tells us that we are anything but passed the worst of the pandemic. Countries which have seen a substantial reduction in cases as the summer has arrived in the Northern Hemisphere, are likely to see a far more devastating second wave, and even a third wave, should a viable vaccine not be found. The 1918 Spanish Flu saw a first wave in early 1918, a sudden huge reduction in cases during the summer months, and then a catastrophic five-fold, second wave and a third wave in 1919.

So why is there this revised attitude that we have beaten this disease and that things are returning to normal? In truth, it comes down to simple economics. Countries just do not have the capacity to maintain their populations in lock down. In America, the Federal government has released in excess of R100 trillion in stimulus packages over the past three months. In the United Kingdom, they introduced trillions in furlough schemes to save jobs and to assist workers.

It is understandable that in South Africa, our national finances simply did not allow for anything near this level of state assistance. The government took the correct route, that being to assist those most in need. The government urged financial institutions and larger organizations able to assist South African’s during this time of unparalleled crisis, to offer all of the assistance that they were able too.

Our leading financial institutions in particular were asked to “step up”. Given that these banks have been founded on and have grown enormously wealthy off the backs of working South Africans, there was a sense that it was time that they paid back to our society. So for many months these financial institutions have advertised and marketed their unwavering support for the South African population. The reality has proven far different. Despite the bluster and fanfare, there has been little or no assistance for working South Africans or for SME’s, provided by our banks.

It is important for the South African economy that we have strong financial institutions. Part of the reason for this need, is that these banks are able to assist the nation in times of great adversity. Our leading financial institutions have failed South Africa dismally over the lockdown period to date. They have failed the South African public and the bulk of South African businesses. 

These banks have talked a good game; they have laid out their plans, introduced COVID19 assistance forms to their websites and advertised their good intentions. In all this has amounted to very paltry “actual assistance”. The banks forgot the old adage that "talk is cheap, but money buys the whiskey". 

The great concern is that we are far from over the worst of the pandemic. People and businesses still need assistance. Without it people have already been forced to return to work and to open their businesses. There is no way to delay the inevitable re-opening of the economy, but the proper assistance from our financial institutions would have enabled far better preparation. Moreover, thousands of South African businesses are filing for bankruptcy, costing millions their jobs. Individuals are left with the perpetual feeling of having a noose tied around their necks. Had our top banks stepped up to the plate, a great deal of this could have been avoided. They have instead, as usual, placed profits above all else, but at what cost to South Africa?

There was no legislated statute that required banks to assist; but there was, and still is, a moral imperative that if banks claim to offer assistance, that they actually do so, and not that they simply use the pandemic to score cheap points in respect of their corporate social responsibility. The country does not need the pretense of assistance. Individuals and businesses require actual assistance.

Moreover, when the smoke of this pandemic clears, and it will in the not too distance future; there needs to be a public accountability. The South African people need to be made aware of which companies, financial institutions retailers etc. stepped up, which failed, and who the great pretenders were.