The National Coronavirus Command Council (NCCC) and Cabinet have been advised to lift the alcohol and cigarette sale ban and to move the country to lockdown level 2.
President Cyril Ramaphosa is expected to announce his decision this week.
During the last week, fewer positive coronavirus cases have been reported on a daily basis. Also the national health system seems to be coping better than expected.
The country has lost billions of tax revenue due to the ban on alcohol and cigarette sales. It has also had a huge impact on the South African economy with thousands of jobs lost and businesses closing. The ban on alcohol and cigarette sales can now no longer be justified, according to a source.
The Western Cape High Court is expected to rule on an application made by the British American Tobacco to have the sale of cigarettes unbanned this week.
The economy is mostly open, with a few sectors remaining.