South Africa Ends State of Disaster on Declining Covid Cases

(Bloomberg) -- South African President Cyril Ramaphosa announced an end to the state of disaster he declared more than two years ago to manage the coronavirus pandemic.

Transitional measures, including the wearing of face masks at indoor public spaces and limits on gatherings, will remain in place until new regulations are promulgated next month, Ramaphosa said in a speech broadcast on state radio on Monday. The announcement enables all economic activity to continue as normal.

“The end of the state of disaster is a firm commitment to rebuild our economy even while the coronavirus exists among us,” he said.

The rand gained 0.4% to 14.5361 per dollar by 11:26 a.m. on Tuesday, while the benchmark government 10-year bond yield dropped five basis points to 9.89%, the lowest in more than a month.

The government introduced a series of strict lockdowns under the state of disaster, including restrictions on business activity that led to the biggest economic contraction in at least 73 years in 2020.

South Africa has had 3.7 million confirmed coronavirus cases so far and more than 100,000 of those who were diagnosed with the disease have died, although excess-deaths data show the true toll is probably about three times higher. About 44% of adults have been fully vaccinated.

The highest number of Covid-related deaths during the fourth wave of infections in February was 240, compared with 420 during the third wave in July 2021, Ramaphosa said. In the past week, the highest daily number of fatalities was 12.