By Zivanai Dhewa
….. As global economies recede due to covid19
Due to the challenges that have confronted the country’s economy from multiple fronts, with the major one being the Covid19 pandemic, Government has come up with strategies to preserve lives and livelihoods.
Speaking during the virtual 2020 annual meeting of the Boards of Governors of the African Development Group, Minister of Finance and Economic Development and African Development Bank Governor Prof Mthuli Ncube, shed light on Government strategies to cushion people and save livelihoods.
“In view of the impact of the Covid19 pandemic on the economy, Government has come up with mitigatory measures to cover both prevention and support to productive sectors in order to save lives and livelihoods, as well as support of production in order to limit deeper damage to the economy.
“To this end, direct support amounting to ZWL$2.5 billion went to various Ministries/Departments, as follows, Covid19 Risk allowances; Capacity building of health and laboratory equipment including consumables; procurement of Personnel Protective Equipment; rehabilitation and construction of isolation units; drilling of boreholes by DDF and Production of Person Protective Equipment, especially face masks and sanitizers by our local universities among others,” said Prof Mthuli.
He further added that “Government, in line with this year’s Annual Meeting theme, “Building Resilience for a Post-Covid19 Africa”, has also unveiled a ZWL$18.2 billion Stimulus Package, amounting to 28.6% of the 2020 National Budget.
The Package is aimed at scaling-up production levels across all sectors of the economy, addressing the constraints faced by a large section of small-scale industries and improving health facilities,” said the Minister.
Minister Mthuli Ncube also revealed the breakdown of the Stimulus Package disbursement.
“The Package was allocated as follows; Agriculture Sector Support, (US$6.1 million), Working Capital Fund for Industry (US$3.0 billion), Mining Sector Facility (US$ 1.0 billion), SMEs Support Fund (US$0.5 billion), Tourism Support Fund (US$1.0 billion), Liquidity from Statutory Reserves (US$2 billion), Health Sector Support Fund (US$1.0 billion), Broad Relief Measures (US$1.5 billion), Covid19 Cash Transfer (US$2,4 billion) as well as Arts and Sport Grant (US$0.2 billion).
“Government also relaxed import duty on selected raw materials imports for the three quarters up to the end of 2020 to cushion producers and to manage imported inflation considering that the trade has been affected by the Covid19 pandemic,” said Minister Mthuli.
Meanwhile the country’s economy has suffered major shocks from a number of other challenges, which include the Impact of climate change in the form of 2019/20 drought and Cyclone Idai; Energy challenges and currency volatility among others.
