The continued rise in the number of new cases of the COVID-19 across the globe and in Zambia threatens to bring the economy to a halt and something needs to be done. Local and private businesses risk losing their capital during this difficult period.
So far, government has curtailed certain businesses and social activities deemed to be high risk of facilitating the spread of COVID 19 as the minister of health announced safety measures to prevent further spread. The three edged sword of COVID19, Kwacha depreciation and escalating inflation is already breaking down some businesses.
Some of the businesses that attract huge crowds such as bars, nightclubs, casinos, cinemas, and gyms have been shut down for an initial period of 14 days. Revenues for these businesses have disappeared overnight leaving the employees and taxman grappling.
This move has hit harder on the business owners, with some of even finding themselves on the wrong side of the law, some abrogating the health directives just so that they can survive and be able to keep their staff.
Small and Medium scale traders that deal in imported goods are equally affected by the Pandemic due to restrictions in the movements of both people and goods, across countries. Though some measures have been put in place for trucks to relay the goods, this is mostly for large businesses that can negotiate for these provisions.
Zambian Business Times-ZBT spoke to some local traders on March 27, 2020, who sell fruits such as, Bananas, Oranges, Apples and Nuts at City Market and Town Center and they expressed concerns that it has become so difficult to order and restock their wares now, unlike before.
One trader identified as Samuel Mulenga told ZBT that the price of Bananas and oranges has swiftly gone up due to COVID-19 presence. He said this has badly affected his income. ‘‘I cannot manage to pay all the bills and rentals now, because we are barely breaking even, profits if any is very small. Before, I used to make 50% to 70% return from one order, now am making only 20% before costs of operations due to the fall in Kwacha against the dollar.
The problem with our business is that some fruits are not locally produced and with restrictions in movement, it means at some point, imported fruits may completely stop getting into the country, so we may be forced to divert to new businesses which is not an easy thing,’’ he said.
Another trader, appealed to government to consider the economic stability of especially private citizens and business owners, saying people will soon be left homeless, as they will be evicted from houses due to non-rental payments, which will pose a further risk of disease contraction.
“I am not against the preventive measures that government is undertaking, but, my concern is that about more or less 70% of people live in rented houses in this country and these people are rooted into self-employment. Very few are into formal jobs, so basically its very tricky to just leave them like that, some solutions need to be found.
Personally I sell Nuts that come from South Africa and Mozambique and it has been in low supply to almost extinct of late after COVID 19 outbreak, so no income at the moment ,’’ he said.
The country’s economy has continued to receive economic shocks, it has just recovered from chemical and gas attacks on citizens across the county and is now faced with the spread of the coronavirus.
