Thursday, 09 April 2020

COVID-19 and small business support: South Africa needs a credit guarantee scheme

  • Year: 2020
  • Author(s): Saul Levin (TIPS)

This policy brief identifies the benefits of implementing a comprehensive credit guarantee scheme that would move the needle in small business support and improve liquidity. Three possible measures that could be used are proposed: a credit card that is guaranteed by the government; a guarantee for trade credit providers; and a credit guarantee for bank SME portfolios. These are by no means the only measures needed, with multiple others required which could include grants, venture capital finance, and improving demand through general stimulus measures.

Download a copy or read the policy brief online.

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