Overview
South Africa reported its first confirmed COVID-19 case on March 5, 2020. The government declared a national state of disaster, which at present extends to June 15 2021, and adopted containment measures, including social distancing, travel bans on visitors from high-risk countries and quarantine for nationals returning from those countries, screening at ports of entry, school closures, screening visits to homes, and introduction of mobile technology to track and trace contacts of those infected. A nationwide lockdown was put in place from midnight March 26, 2020, with only critical workers, transport services, banking, essential food and medicine production, and retail operating. On April 27, 2020, a delegation of 217 infectious disease experts arrived upon the request of the government to support its health response to COVID-19.
On May 1, 2020, a phased lifting of the lockdown began, allowing a few sectors to resume operation and others only partially. On May 13, 2020, a further relaxation of the lockdown was announced effective June 1, 2020. On May 24, 2020, it was specified that the June 1 relaxation would be broader than previously announced. Most economic activities reopened under strict health and social distancing practices except for high risk. The sale of alcohol was allowed on a restricted basis while the sale of tobacco remained banned. Remote work has always been encouraged where possible. On June 8, 2020, schools started to reopen and on June 17, 2020, restrictions on sit-down restaurants, hotels, conference centers, casinos, non-contact sports, and personal care services were relaxed under strict adherence to health protocols.
On July 12, 2020, in response to a growing number of COVID-19 cases, a curfew and an alcohol ban were reintroduced and the wearing of facemasks in public was made mandatory. On July 23, 2020, it was announced that, starting from July 27, 2020, most public schools would be closed for one month.
On August 17, 2020, after the number of daily cases declined, the sale of alcohol could resume subject to certain restrictions. Restrictions on inter-provincial travel and the operation of accommodation, hospitality venues, beaches, restaurants, bars, and taverns were relaxed subject to strict adherence to health protocols and social distancing. On September 21, 2020, following a flattening of the infection curve, restrictions were further relaxed. Almost all restrictions including on international travel to certain countries were lifted from October 1, 2020. On October 20, 2020, the list of high-risk countries for international travel was revised and the number of such countries was reduced from 60 to 22.
On December 3, 2020, the Nelson Mandela Bay was declared as a hotspot and new restrictions were introduced. On December 9, 2020, the Health Minister acknowledged the start of the second wave. On December 14, 2020, President Ramaphosa introduced further restrictions in locations with high infections. The curfew was extended to the entire nation (between 11pm and 4 am). To combat the increase in infections driven by the faster-spreading new variant, on December 28 the President tightened restrictions (adjusted Level 3). On February 1st, 2021, restrictions were eased including the lifting of an alcohol sale ban, the reopening of parks and beaches among other public places, and looser restrictions on social gatherings. On March 1st, 2021, most of the restrictions on economic activity were relaxed due a declining number of COVID-19 cases. Wearing of masks remains mandatory and the sale of alcohol is still prohibited during shortened curfew hours.
After an increase in the number of cases which may signal the beginnings of a third wave, on May 31st, restrictions were tightened to level 2. Curfew hours were extended, non-essential establishments such as restaurants, bars and fitness centers, were required to close by 10pm, and social gathering restrictions were made more stringent.
To devise vaccine strategies, the Ministerial Advisory Committee on COVID-19 Vaccines was introduced in September 2020. On November 3, 2020, South Africa’s participation in the World Health Organization’s COVID-19 Global Vaccine Access Facility was announced. South Africa’s vaccine strategy, released on January 3, 2021, targets a minimum of 67 percent of the population to achieve herd immunity in three phases by the end of 2021, beginning with the most vulnerable. South Africa has secured vaccines through COVAX for 10 percent of the population and is in the process of procuring for the rest of the targeted population (57 percent of the population). In early February 2021, agreements for 42.5 million vaccine doses have been announced from a variety of providers and the vaccination program started February 17th with health workers. As of February 28th, 2021, 2-million additional Johnson & Johnson doses were secured and more than 67,000 healthcare workers were vaccinated. After a pause due to concerns with side effects of the Johnson & Johnson vaccine, the vaccination program resumed on April 28, 2021 with an expanded number of vaccination sites. A first batch of 325 260 Pfizer vaccines arrived on May 2 and a total of 4.5 million doses is expected by the end of June. As of June 2, 1117569 vaccines have been administered since the vaccine roll out began in mid-February.
Since the beginning of the pandemic, net nonresident portfolio outflows (bonds and equities) have amounted to around $ 14 billion (4.5 percent of GDP), the sovereign's dollar credit spread increased more than 12 percent to 189 basis points. After a sharp depreciation during the early stages of the pandemic, the rand has appreciated back to its pre-COVID-19 level against the US dollar. Following the government's request, on July 27 2020 the IMF approved emergency assistance under the Rapid Financing Instrument equivalent to US$4.3 billion.