Johannesburg, 22 April 2020: As the country continues to battle the impact of Covid-19, the Johannesburg Stock Exchange (JSE) applauds President Ramaphosa's fiscal stimulus to the economy. The JSE believes that the well timed announcement balances South Africa's fiscal challenges with the need for stimulation and growth in the economy.
The government's R500 billion stimulus package, is a clear indication of government's commitment to stimulating the economy whilst prioritising the fight against Covid-19. The JSE believes that the additional measures mentioned in the stimulus package will be constructive in enhancing both consumer and business confidence through economic and structural mechanisms, including tax reforms, increased grant funding to SME's and loan facilities raised through a collaboration with major banks.
JSE Group CEO, Leila Fourie says "The breadth of coverage of the fiscal stimulus across a multitude of sectors is practical for both building our economy and prioritising the human impact – it is comprehensive and drives medium term growth."
The JSE is keenly aware that this stimulus comes on the back of a challenged fiscal deficit, compounded by the country's recent ratings downgrade.
"This move will create a stronger base on which to foster growth and driving better ease of business. What will be crucial now is the administration and surety that funds will reach intended recipients and provide relief to our most vulnerable businesses and citizens of our country," concludes Fourie.
ABOUT THE JSE
The Johannesburg Stock Exchange (JSE) has a well-established history operating as a market place for trading financial products. It is a pioneering, globally connected exchange group that enables inclusive economic growth through trusted, world class, socially responsible products and services for the investor of the future. It offers secure and efficient primary and secondary capital markets across a diverse range of securities, spanning equities, derivatives and debt markets. It prides itself as being the market of choice for local and international investors looking to gain exposure to leading capital markets on the African continent. The JSE is currently ranked in the Top 20 largest stock exchanges in the world by market capitalisation, and is the largest stock exchange in Africa, having been in operation for 130 years.
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