A raging pandemic — unleashed by a highly contagious Covid-19 virus — has triggered unprecedented restrictions not only on the movement of people but also on a range of economic activities.
The pandemic will have differentiated employment and income effects, even in most developed economies. Evidence suggests that those at the lower end of the income distribution will suffer the most. Lower-income workers tend to enjoy less labour market protection — a considerable share of them work in informal sectors where protection is minimal; and even for those in the formal sectors, many are paid by the hour, with typically little or no paid sick leave in some countries. Furthermore, a high share of lower-income workers is employed in industries that are most affected by the pandemic, such as retail sales and food service industries, which require close physical proximity to others.
The above statement is from an article by the United Nations Department of Economic and Social Affairs Economic Analysis on the business environment in the world on the wake of the Covid-19 pandemic. It has been clear that no single economy in the world has been spared from the adverse effects of the pandemic, which has forced virtually all countries to impose travel and trade restrictions at home and abroad in a bid to combat the spread of the virus.
Nonetheless, a number of countries have come up with measures to protect businesses from total collapse due to loss of business, and the Government of Zimbabwe has also dutifully come up with safety nets to limit the damage, socially and economically. That is a welcome development.
The Government has put in place measures to cushion health personnel and other Government officials whose nature of jobs have direct contact with Covid-19 (coronavirus) patients, as part of measures to further prevent the spread of the pandemic.
Finance and Economic Development Minister, Professor Mthuli Ncube is on record as saying Government was working on coming up with a comprehensive insurance cover for health personal. Prof Ncube also revealed that Treasury has provided $50 million to the Premier Services Medical Aid Society (PSMAS) for preparedness against the coronavirus and to cater for the health requirements of civil servants who constitute a majority of members of the medical aid provider.
“Treasury is currently engaging the Health Service Board and the Public Service Commission to urgently put into place a comprehensive insurance cover for all Government employees whose nature of work involves direct interaction with Covid-19 patients in line with international best practice,” he said.
In addition, more than $600 million will be extended to small businesses, vendors and the elderly by Government as part of elaborate interventions to compensate for loss of income during the coronavirus-induced 21-day national lockdown. We reported last week that the ministries of Public Service, Labour and Social Welfare; Women Affairs, Small and Medium Enterprises, as well as local authorities are working on a database for the affected groups. Beneficiaries would soon start receiving cash benefits.
“The Ministry of Public Service, Labour and Social Welfare is working with the Ministry of Women Affairs, Small and Medium Enterprises, local authorities and relevant associations to come up with the database of those affected by the 21-day lockdown,” said the Ministry of Public Service.
“We are still in the process of compiling the lists. The disbursements are set to start soon. Once we have received the data and verified it, then we will start disbursing the grants.
The payment will be done within the 21-day (lockdown) period. This programme is targeting those whose livelihoods were affected by the lockdown. The assistance they will get is short term.”
Ministry of Women Affairs, Small and Medium Enterprises Dr Sithembiso Nyoni said associations that represent small businesses were compiling lists of members expected to benefit from the facility.