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Oliver Kazunga, Senior Business Reporter
BUSINESS leaders in Bulawayo have welcomed the fiscal interventions put in place by Government to fight the spread of Covid-19.

They, however, warned that some of the measures pose a serious threat to the performance of some economic sectors.

On Monday, Finance and Economic Development Minister Professor Mthuli Ncube announced that Government had come up with $500 million and approved the recruitment of 4 200 health workers as part of a broader Covid-19 mitigation interventions including redirecting the 2020 national budget expenditure and chanelling all proceeds from the two percent Intermediated Money Tax towards consolidating the national response strategy against the disease.

Treasury has also announced duty reprieve on imports and related materials linked to boosting the country’s health system.

In separate interviews yesterday, business leaders welcomed the decision by Prof Ncube but said some economic sectors were bound to suffer as a result of the move.

Association for Business in Zimbabwe chief executive officer Mr Victor Nyoni said:

“I think thats a very important decision that he (Prof Ncube) has taken particularly in view of the pandemic that we are facing as a country

“So, it’s the right thing to do let’s concentrate all resources in the fight against Covid-19.”

He said his association was in the process of mobilising resources for humanitarian assistance.

Zimbabwe National Chamber of Commerce (ZNCC) regional chairman for Matabeleland Mr Godwin Muoni said while Government efforts are a step in the right direction, the fiscal interventions Treasury has adopted are a drop in the ocean.

“While it is commendable that Government has through Treasury come up with some interventions to cushion the economy from the effects of Covid-19, the measures are just a drop in the ocean.

“Right now the country is on a lockdown for 21 days and as such there is no production taking place and the proclamation that the two percent Intermediated Money Tax will be channelled towards Covid-19 related mitigatory expenditures is a step in the right direction. However, the resources from such a tax will be paltry on account that there is no economic activity or movement to talk about in the country for the next 21 days, so proceeds from such tax normally come from services like EcoCash and other electronic payment platforms. The question is where is it going to come from when people will be locked down in their homes,” he said.

Mr Muoni said it was imperative for the Government to come up with a robust stimulus package for business revival adding that the economy was headed for the worst after the Covid-19 era.

Zimbabwe has joined forces with the rest of the world in taking measures to curb the spread of Covid-19 which first broke out in mainland China last December and has since spread across all continents.

The country has since confirmed eight Covid-19 cases and one death prompting Government to take drastic measures in a bid to contain its spread.

In order to augment resources required to alleviate the impact of the pandemic, Treasury has also proposed expenditure re-prioritisation or redirecting capital expenditure.

Prof Ncube said Treasury was redirecting capital expenditure allocations under the 2020 National Budget towards health-related expenditures including water supply and sanitation programmes.

However, he said Government will continue implementation of selected priority programmes and projects to sustain the economy and such programmes include roads and dam construction, irrigation and water and sanitation projects, among others.

In the initial stages, Prof Ncube said Treasury would also avail US$2 million for urgent and immediate health-related imports and will continue to mobilise and ring-fence the necessary foreign currency required for additional imports for the short to medium term.

Confederation of Zimbabwe Industries national vice president Mr Walter Chigwada said the fiscal interventions by Government in the fight against Covid-19 was something they were waiting for to save the country from the deadly virus. — @okazunga.