The Zambian government has taken additional measures to mitigate the impact of COVID-19 given that the country has continued to witness disturbing developments of the increased number of confirmed cases which are currently at 65 with 35 recoveries and 3 deaths as at April 20, 2020.
Minister of Finance Dr. Bwalya Nga’ndu has disclosed that the ministry has released K500 million to the Public Service Pensions Fund to pay over 1,500 retirees or their beneficiaries, K170 million to Banks to clear third party arrears and K140 million to various road contractors adding that the fund are part of the K2.5 billion which had previously been announced by President Edgar Lungu in his last address to the nation.
Adressing the media on the country’s economic update on April 20, 2020 in Lusaka, Dr. Nga’ndu said the treasury will now focus on completing the ongoing verification exercise which will permit payment of K1 billion to various suppliers of goods and services to Government.
He said tight liquidity conditions continue to impact on businesses and households and the financial sector hence to alleviate the economic pressures associated with the Covid-19 induced liquidity challenges and in particular to prevent liquidity constraints to financial institutions degenerating into a solvency problem.
Other measures taken by government include waiving of tax penalties and interests to assist companies and businesses manage their cash flows during this period when they are faced with reduced revenues.
The finance minister said Government has decided to waive tax penalties and interest on outstanding tax liabilities resulting from the impact of Covid-19 and that the Zambia Revenue Authority – ZRA will soon issue guidelines on the criteria on who qualifies, the period of relief and other related modalities.
“The current situation also provides Zambia with a new opportunity for domestic agricultural and locally manufactured products to be sold in great numbers in the major chain stores found in the shopping malls. At the same time, we are faced with an opportunity as never before to begin to build distribution value chains for local products that are sustainable going forward,” He said
He disclosed that Zambia has also applied to the World Bank, the African Development Bank and Afrexim bank to be considered for support under their various Covid-19 Emergency Funds. Some of the support needed is suspension of debt servicing until the economic conditions improve.
“Bilateral discussions have also commenced with a number of G20 countries on the postponement or rescheduling of debt service payments over a period to be agreed. Engagement with the bilateral partner’s center around the possibility of them meeting the financing gap arising from the adverse effects of Covid-19. I will provide an update as and when we reach agreements,” He added
