As Ministry of Finance commences the revision of the 2020 National Budget that has gravely been impacted by the effects of Covid-19, financial analyst Maambo Hamaundu has advised on the need to consider putting the country back on a path of economic recovery and support local businesses who have been the most hit.
Hamaundu stated that given the impact that the outbreak has had on the domestic economy, it is only prudent that government makes funds available that could stimulate internal activities such as dismantling of domestic arrears.
He told the Zambian Business Times – ZBT in an exclusive interview that there is need to also create a path for commencement of business activities with the domestic economy which has extremely become low resulting from complete closure of some businesses and loss of income amid Covid – 19.
Hamaundu said the call for help by SME’s is justifiable as they are facing a number of challenges and that the provision of the K10 billion facility by the Bank of Zambia – BOZ may only favor a few large businesses.
He added that in order for most businesses to return to their feet, grants and other ways to inject activity is going to be appropriate as opposed to loans which have obligations of paying back.
“We must prioritize the local business sector when revising the 2020 budget and ensure enough funds are being allocated to local businesses because the K10 billion facility has an obligation of paying back and most of the affected businesses especially bars have completely lost their revenue on closure hence only a grant is ideal for them because they have fallen back on rent and salaries, He said.
He further said that as government prepares for the 2021 budget, there is need to target the Agricultural, Energy, Manufacturing and Tourism sector as they have potential to generate revenue in the country.
Secretary to the Treasury Fredson Yamba last week announced that ministry of finance has commenced preparation for the 2021 budget and that in order to ensure broad-based consultations, it is calling on the general public, companies and non-state actors to make proposals for possible inclusion in the 2021 National Budget.
