Industry proposes loan facility to cushion firms

By ZBC Reporter
A survey to capture the effects of the Covid-19 pandemic on the private sector has come up with recommendations for a facility to cushion businesses from revenue losses.
The survey states that the proposed drawdown or loan facility will be administered by the Industrial Development Corporation (IDC) and funded through proceeds from the 2 percent tax.
While the report also reveals that the Covid-19 pandemic has had some negative impact on the economy and scaled-down operations, Employers Confederation of Zimbabwe (EMCOZ), President Dr Israel Murefu, says rescue packages are of greater importance.
“Any rescue package is welcomed during this time of need remember it is not only Zimbabwe but the entire world has also been affected by the pandemic,” he said.
Economist, Mr Zack Murerwa says Fiscal, Monetary and other policy measures to prevent long term damage for the industry due to Covid-19 will be good for the eventual recovery of the economy.
“It is all about commitment and what can be done to unlock value arising from the current mess or damage,” he said.
Results of the survey indicated that business had endorsed partial lockdown with expectations being on reduced interest rates, review of the exchange rate, restoration of consumer spending, sustainable jobs, reduction in transaction fees, effective government spending policy among others.