It’s a ripple effect. Large-scale vaccinations will lead to relaxed lockdown regulations, a pick-up in tourism and manufacturing among other vulnerable sectors and a restart to economic recovery and growth.
The latest employment numbers show how desperately we need for the economy to return to “normal”. Easing restrictions to Level 2 in September has allowed for alcohol sales and in-restaurant dining, but we need to move to Level 1 and full-scale vaccinations could just be our only shield to protect our vulnerable industries and our people against an expected fourth wave towards year-end.
Mia Slabber, an economist at the Bureau for Economic Research, told News24 that even if South Africa is removed from the UK red list, real recovery in the tourism industry will only happen if the vaccination drive is ramped up. Currently, about 8.5 million people have been fully vaccinated against Covid-19 (3.77 million with J&J and 4.73 million with two doses of Pfizer), according to the online publisher.
Big corporates are starting to set off the ripple. In a move to enable its employees to travel, global tech and ecommerce giant Naspers became the second big corporate to throw its weight behind the vaccination drive by considering making the Covid-19 jabs mandatory for South African staff. Discovery, which is involved in the country’s vaccine rollout, announced earlier this month that it will make inoculations compulsory for all staff and make its buildings ‘vaccinated-only’ zones from the start of next year. PSG Group chief executive officer Piet Mouton has also expressed his support for vaccinations, saying that it was not only a social and health issue but, more vitally, an economic one.
It’s true, we can’t banish COVID-19, but we can end the pandemic with vaccinations.
Meanwhile in the markets, the climb in US Treasury yields, along with investor jitters as the Federal Reserve gets ready to unwind its crisis-era stimulus, has seen the dollar hold firm, equity markets get battered and commodity prices retreat. “The risk-sensitive emerging market currencies are on the backfoot, with the rand being the biggest loser currently,” says TreasuryONE. The local unit touched R15.16 in the previous session before closing at R15.09 “as off-shore and month-end demand for dollars exceeded exporter supply”. At last count the currency was trading a touch firmer at R15.03/$.
And in breaking news, News24 reports President Cyril Ramaphosa has authorised the release of the Special Investigating Unit’s final report into the health department’s R150 million contract with Digital Vibes, which recommends criminal charges against the former acting director-general Dr Anban Pillay.
Here’s a roundup of the world’s top and most interesting headlines:
SA Business
Appletiser products have been recalled in South Africa – but Coca-Cola won’t say exactly why – Business Insider
‘Middleman’ for Gupta-linked firms in dodgy Transnet contracts arrested en route to Dubai – Fin24
There is a case to introduce a R10 coin in South Africa: Reserve Bank – BusinessTech
Global Business
Evergrande to sell $1.5B stake in Chinese bank as it scrambles to avoid debt default – Reuters
Vietnam’s lockdown ensnares world’s clothing giants – AFP
Elon Musk says Biden administration is ‘biased’ against Tesla – Bloomberg
Markets
Asian stocks down as investors digest US debt ceiling drama – Investing.com
The winners and losers in Asian markets from energy crunch – Bloomberg
Dollar down, but losses capped as markets enter ‘Twilight Zone’ – Investing.com
Opinion/In-depth
How South Africa can power ahead with green energy ambitions through R750bn financing plan – Daily Maverick
China: Big spender or loan shark? – BBC News
EDITORIAL: SA and Africa will be watching Germany’s next move – Business Day
Video
Lego’s earnings double, boosted by adult fans – Reuters
Google and EU head to court to decide the fate of €4.3 billion fine – Euro News
Chinese tech giants turn to robot delivery workers – Reuters
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