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BUUMBA CHIMBULU writes@SunZambianMODALITIES to enhance cheaper funds under the current and future stimulus packages should be worked on immediately to support key economic sectors following the continued negative sentiments in the business environment characterised by poor liquidity, among others.This is according to the Zambia Chamber if Commerce and Industry (ZACCI) president, Chabuka Kawesha.Dr Kawesha observed […]
BUUMBA CHIMBULU writes@SunZambianMODALITIES to enhance cheaper funds under the current and future stimulus packages should be worked on immediately to support key economic sectors following the continued negative sentiments in the business environment characterised by poor liquidity, among others.This is according to the Zambia Chamber if Commerce and Industry (ZACCI) president, Chabuka Kawesha.Dr Kawesha observed the need for Government in collaboration with key economic players to work on modalities of reducing the cost of accessible funds under the current and future stimulus package.He explained that this would assist business whose environment sentiments had continued to be negative due to poor liquidity in the economy affecting demand for goods and services, depreciation of the Kwacha and load shedding, among others.Dr Kawesha said this during a press briefing in Lusaka recently.“This will support industry across all levels large, medium and small find some areas of comfort whilst effectively contributing to the tax base amidst and post Covid-19,” Dr Kawesha said.Government has since the onset of the Covid-19 put in place relief packages such as the K10 billion Medium Term Refinancing Facility and the K8 billion Covid19 Bond.Dr Kawesha said the Business Confidence Index (BCI) survey for both first and second quarter of this year revealed that businesses expected the overall performance of the economy to deteriorate going forward.The BCI is the ZACCI proprietary tool that measures the level of confidence of business executives in the business environment and predicts short term business trends.The survey, Dr Kawesha said, revealed that COVID-19 outbreak led to reduced demand for goods and services, delayed delivery of goods and services due closures of borders as well as closures of some businesses due to reduced cash flows.“Companies employed survival mechanisms such as laying off some workers, salary cuts, putting some workers on hold, diversifying business operations, proactive marketing and borrowing to sustain business operations.“Other factors affecting businesses included depreciation of the Kwacha against major convertibles, high taxation, loading shedding, high fuel costs and high electricity tariffs,” he said.
The Sun