Zambia’s Finance Minister Dr. Bwalya N’gandu has outlined government’s financial and fiscal measures meant to aid the country as it goes through the heavy impact of the coronavirus – COVID 19 global epidemic.
Dr. N’gandu stated that these are initial measures and that follow through actions will be announced in due course as the health and economic environmental effects unfolds. The briefing was attended by the Zambian Business Times – ZBT. Below are the measures implemented to mitigate the impact of COVID-19.
The finance minister echoed President Lungu’s 7 point plan to combat the spread of covid-19, and that the finance ministry working with other ministries has taken the following measures:
1, Set up an epidemic preparedness fund under the ministry of health amounting to k57 million;
2, Cabinet approved a covid-19 contingency and response plan with a budget of k659 million under the disaster management and mitigation unit;
3, The government has started mobilizing funds through the budget and engagement with various local and international stakeholders.
4, Government is in the process of making applications to multilateral partner and lender organizations for covid-19 support. As announced, the international monetary fund is making available a total of $50 billion to affected countries via rapid disbursing emergency facilities while the world bank group has approved support of up to $14 billion under a fast track covid-19 facility.
5, To support the easing of liquidity in the face of the adverse effects of covid-19, Dr.N’gandu stated that government will release K2.5 billion to:
Reduce domestic arrears owed to domestic suppliers of goods and services;
Reduce outstanding arrears to pensioners under public service pension fund and retirees under ministry of justice; and
Reduce outstanding third-party arrears and other employee related commitments.
In addition, k140 million will be released to pay local contractors in the road sector.
ZBT will give more details on the effects of some of the key proposed actions that included changes in tax rates and other fiscal measures. Missing conspicuously was the Bank of Zambia governor who also needs put on the table some immediate actions under monetary policy.
