Africa Financial Sector Responses to COVID-19 - South Africa

Jul 28, 2020

This page presents measures and initiatives by the South African government, national central bank and Development Finance Institutions (DFIs) in support of a resilient domestic financial sector facing the effects of the COVID-19 pandemic.

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Instrument

Institution

Financing volume

Description 

Multilateral line of credit

International finance corporation (IFC)

USD 185 million

(June 30, 2020) The Standard Bank of South Africa Limited (SBSA) received a USD 185 million loan from the IFC to help it expand its COVID-19 lending program to Small and medium-sized enterprises (SMEs) and companies affected by the pandemic.

Monetary Policy

South Africa Reserve Bank (SARB)

USD 612 million

(June 05, 2020) The SARB purchased government bonds to the value of more than Rand (R) 10 billion (USD 612 million) in May. It continues to inject liquidity into the market in the context of the economic shock of the COVID-19 pandemic.

Monetary Policy

South Africa Reserve Bank (SARB)

N/A

(May 21, 2020) The SARB reduced its main lending rate by 50 basis points to 3.75%.

Monetary Policy

South Africa Reserve Bank (SARB)

USD 684 million

(May 08, 2020) The SARB purchased government bonds to the value of Rand (R) 11.4 billion (USD 684 million) in April. 

Financial support measures for the private sector

Government

USD 1.2 billion

(April 20, 2020) The government has proposed a plan for economic and social support, including a specific section devoted to the financial sector. In particular, the government will offer 200 billion rand in loan guarantees to companies to cover "their operational costs, such as salaries, rents and supplier payments".

Monetary Policy

South Africa Reserve Bank (SARB)

N/A

(April 14, 2020) Reduction of 100 basis points in the SARB's main policy rate to 4.25%.

Monetary Policy

South Africa Reserve Bank (SARB)

N/A

(March 24, 2020) Reduction of the key interest rate from 6.25% to 5.25%.

Monetary Policy

South Africa Reserve Bank (SARB)

N/A

(March 20, 2020)  The SARB initiated open market operations and lowered the refinancing rate for commercial banks.


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