The rand took a bit of a tumble after the first coronavirus-related deaths were reported in South Africa this morning.

We expected the economy to take a knock in the wake of the national lockdown and the inevitable fallout, but it’s still a tough pill to swallow considering the country was already in a recession before the virus reached us.

Businesses have had to close down and remote working has become the new normal for those who can work from home.

Some people seem to be having a tough time catching on, but most of us have hunkered down.

Small businesses, in particular, are bracing themselves for massive losses. Some of them were already suffering before we shut down.

Business Day spoke to Winny Makhombothi, who owns a nail and beauty salon in Melville, Johannesburg. Despite taking every preventative measure in the books, including gloves, masks and strict sanitising procedures, her clients were too scared to visit her shop.

On a particularly bad day last week she made R60, a fraction of what she needs to cover her overheads, including the salary she pays to one employee.

The Small Business Institute notes that small businesses make up about 98,5% of the firms in SA. Formal micro, small and medium-sized firm provide work for roughly 3,9 million people.

That’s a sizeable chunk of the population who can’t afford to lose their jobs if these businesses close and are unable to reopen.

Government has announced an economic support package to keep these firm afloat, with R500 million to be made available immediately to those in need following an application process. 

After the lockdown declaration, small business development minister Khumbudzo Ntshavheni announced two facilities intended to help SMEs cope. The first is a business growth and resilience facility to support businesses that make supplies needed to support the fight of the virus — including medical and hygiene products — but also food manufacturers, to help ensure food security.

The department also gave details of an SME relief finance scheme, which will make working capital funding available to small businesses that are 100% SA-owned and employ 70% locally.

Fake news that the companies would have to be under black ownership to qualify started spreading following the announcement, but was quickly refuted.

If you want to do your bit to help, there are a few ways to go about it.

The government has set up a Solidarity Fund to help combat the virus, and to provide support for businesses and individuals whose lives have been disrupted by the pandemic. You can find a more detailed breakdown of all the emergency funding measures in the works, here.

You can also support your favourite proudly South African retailers by ordering goods from them online which will be delivered to you once the lockdown is over.

That money you spend now could come in handy with regards to paying rent, and staff, over the coming weeks. It’s also worth reaching out to your favourite businesses and asking them if they are selling vouchers, or gift cards, which you can purchase now for use further down the line.

Somebody special has a birthday coming up in June? Great – buy that voucher now, lend a helping hand to a business owner who may be struggling, and that’s one less gift to worry about down the line.

To make things a little easier on your pocket, at some local businesses, you can shop using a ‘buy now pay later’ service like PayJustNow.

Simply select it as your preferred payment option when you check out and you can pay your purchase in three easy, interest-free instalments.

PayJustNow is also running a huge sale this Friday (April 3), called PayJustNow Day, with great discounts from local retailers – details here.

No hidden fees, zero interest, and paid over three months.

If you browse PayJustNow’s full list of local merchants, you’ll find iconic local brands like Blu Betty, Veldskoen, Freedom of Movement and Hey Gorgeous.

If we all do our bit to help out, we’ll make it through this in one piece.

Stay safe, and stay home.

[sources:businessday]