Africa’s copper hotspot, Zambia on 20 April unveiled an array of fiscal stimulus measures to fight COVID19 effects. Speaking in a press briefing in the capital Lusaka, Finance Minister Dr. Bwalya Ng’andu announced measures in consultation with the private sector and various bodies to include suspension of tax and interest penalties incurred during the coronavirus period for which the Zambia Revenue Authority – ZRA will guide on in due course. The MinFin head further announced suspension of customs duty and medical levies of products that will be used to fight the disease pandemic. Further Dr. Ng’andu said medical supplies such as test kits, thermometers and disinfectants to include patient monitoring equipment will not be subjected to import duties.
The former central banker gave a detailed breakdown of liquidity unlocked through dismantling of arrears to 1,500 retirees to the tune of K500million, while also releasing K170million to banks for the payment of third party arrears and K140million towards various contractors. The government is currently in the process of verifying suppliers that it owes K1billion for which payment is to been released.
In addition to the central bank life line in a medium term lending facility of K10billion to commercial banks, the MinFin head requested banks to exercise forbearance to counterparty’s in extending moratoriums and extension of loan facilities.
In conjunction with the Ministry of Commerce with the aim of ensuring increased value addition and local products on super market shelves, a taskforce comprising South African chain store owners, Zambia Association of Manufacturers (ZAM), Zambia Chamber of Commerce and Industry (ZACCI) and Zambia National Farmers Unions (ZNFU) has been constituted to actualise this requirement.
The Kwacha Arbitrageur