Coronavirus fears shake South African economy

The Johannesburg Stock Exchange has started to slump as the deadly coronavirus continues to spread through China, South Africa’s biggest trading partner. 

Investec Bank economist Lara Hodes says that the virus “will generally affect financial markets and, in turn, impact commodity prices and the exchange rate”. She has called the situation a ‘wait and see’ scenario. 

It is estimated that the comparable Sars epidemic cost global markets $40bn in 2002. 

African governments are on high alert, with the virus having infected almost 6,000 people in China and killed 132. It was first identified on New Year’s Eve in the city of Wuhan in Hubei Province. 

Prof Cheryl Cohen of South Africa’s National Institute for Communicable Diseases says the country is taking necessary precautions, particularly at Africa’s busiest airport in Johannesburg.

“We have noted the four cases of novel coronavirus that have recently been confirmed in Australia," she said. "These were anticipated due to the proximity of Australia to Asia. We would like to assure South Africans that South Africa is prepared for any eventuality of an outbreak. We have put in place systems to rapidly identify, detect and respond to any imported cases that may reach our borders."

No cases of the virus have yet been reported in South Africa but patients are being treated for suspected infections in Ethiopia and Kenya.

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