Zim govt extends lockdown, puts in place economic stimulus package

Harare (New Ziana) –Zimbabwe will observe a further 14 day lockdown period while an $18 billion economic rescue and stimulus package will be put in place to support industrial and agricultural production in light of the Coronavirus pandemic, President Emmerson Mnangagwa announced on Friday.

Zimbabwe, which currently has 34 Covid-19 cases including four deaths and five recoveries, was due to complete an extended five week lockdown on Sunday.

President Mnangagwa said the extension was necessary, but would be implemented under relaxed conditions.

This, he said, was informed by the need to reduce transmissions while ensuring the gradual restart of the economy.

“It is imperative that our nation continues to act on two fronts, namely saving people’s lives on one hand, and saving the national economy, on the other hand,” he said.

“Noticing that there is now a gradual increase of infections, the lockdown will continue for the next 14 days, however relaxed to Level 2. This entails the following adjustments; All people must wear masks of any type, including home-made ones, outside their homes and the re-opening of industry and commence, provided that companies must ensure mandatory Rapid Diagnostic Testing of all employees, social distancing in the workplace, sanitization and that all employees wear masks.”

President Mnangagwa said all businesses would operate from 8am to 3pm.

“For the avoidance of doubt the informal sector remains closed, except the agriculture and food supply chains (markets). All those who are vulnerable should approach the Department of Social Welfare to register for assistance,” he said.

“Public buses only, will be the mode of public transport. Omnibuses, (Kombis) and smaller taxis are still not permitted to operate. Bus operators must ensure that their buses are disinfected twice daily, and that commuters wear masks, have their temperatures checked and hands sanitized before boarding buses. Social distancing must also be maintained within all buses.”

President Mnangagwa said Industry, commerce and bus operators would be allowed to operate after meeting strict health regulations.

Churches, gyms, bottle stores, bars, beer halls and other leisure and recreational facilities remain closed, while gatherings of less than 50 people are to be maintained.

“This partial relaxing to Level 2 is designed to restart certain sectors of the economy, while recognising the compelling credence in maintaining the lockdown,” he said.

He said mandatory, quarantine protocols in line with regional and international standards will continue applying to returning residents and international travelers for 21 days.

Turning to the stimulus package, President Mnangagwa said it had been put in place as a direct response to Covid-19.

“The package is proportionate to the disruption the virus has caused in our national economy,” he said.

“The package will also be used to address the needs of the small-scale industries, improve health facilities, reduce poverty and hardships and assist vulnerable groups in our society. While most countries will continue to benefit from financing packages from multilateral lenders like the IMF, World Bank and AfDB, Zimbabwe will, unfortunately, not benefit.”

He said the rescue package was based on the need to meet the diverse requirements of the national economy that include capacitating the micro, small and medium enterprises as well as those in the informal sector.

“These institutions have borne the worst brunt of the lockdown due to the Covid-19 pandemic. An amount of ZW$500 million of the package has been set aside for the Micro, Small Medium Enterprise sector to assist this sector,” he said.

“The lack of income for the small companies and individuals has resulted in an increased number of vulnerable households in the country. This situation has been worsened by the ongoing drought which has led to huge food deficits requiring imports to bridge the gap of our requirements. Government is therefore introducing a food grant programme to the tune of ZWL$2.4 billion for the rest of 2020.”

He said another ZWL$500 million would be set aside for the tourism and hospitality industry, while the mining sector will receive a credit support facility of ZWL$1 billion.

“This is designed to support large and small scale miners, as well as speed up the implementation of a computerized Mining Cadastral System,” he said.

“To ensure employment levels are maintained or even increased where possible, an amount of ZWL$3 billion will be for the manufacturing sector to assist with funding to cover capital and operational expenses.”

At least, ZWL$6.1 billion shall be dedicated to stimulate agricultural production.

“Over and above the efforts made to date to strengthen the health sector, government is enhancing funding to the health sector by an additional ZWL$1 billion from the facility which will see the up-scaling of the country’s hospitals and other healthcare facilities.

“The funds will also be used to procure the much needed Covid- 19 testing kits, Personal Protective Equipment for the medical personnel, and for the purchase of drugs. An income tax break is hereby instituted with immediate effect for healthcare workers and health care institutions, for at least 6 months.”

The funds being availed to the productive sectors of the economy will be accessed through normal banking channels, President Mnangagwa said.

“Concessional terms and conditions that include interest rate of 10 per cent per annum, will apply. A grace period of 6 months and repayment periods varying from one to four years, depending on the nature and scope of business to be financed, will be applicable.”

Turning to the education sector, President Mnangagwa said the responsible Ministries were still consulting with parents, guardians, teachers and other relevant stakeholders.

“However, it is clear that our country is not yet in a position to re-open schools, colleges and universities. A number of health conditions must be met first to guarantee the safety of pupils, students, teachers, other workers in the education systems and the entire nation,” he said.

“Government is aware that there are final examination classes which are scheduled to complete their studies this year, including others who were left with a few weeks to complete their programmes. The reopening strategy will thus, prioritize students who are taking their final examinations this year.”

Furthermore, he said, government was working to put in place online and distance learning facilities to ensure that the students continue having access to learning materials.

“The announcement of the reopening dates will be made at the appropriate time, but for now, schools remain closed,” he said.
New Ziana