The Sunday News
Njabulo Bhebe, Business Reporter
COMPANIES have started implementing strategies aimed at surviving the effects of Covid-19-induced loss of business as they try to remain operational.
Business executives said most companies are mooting cutting staff while some are negotiating with their creditors to delay payments until after the effects of the pandemic have been minimised. Zimbabwe is among other countries whose economies have taken a toll from the effects of Covid-19.
In his mid-term Budget and Economic Review delivered last week, Finance and Economic Development Minister Professor Mthuli Ncube pointed out the many sectors of the economy that have taken a knock due to the pandemic.
“Besides the loss of life, the pandemic destabilised global economies through disruptions in trade, tourism, production, productivity, supply chains and other various integration mechanisms,” he said.
Speaking to Sunday News Business, Association for Business in Zimbabwe (Abuz) chief executive officer Mr Victor Nyoni confirmed that firms had adopted different measures in ensuring that their business remained relevant even during the lockdown period.
“Different companies have done different things to survive this difficult period. Those in the tourism sector have cut down salaries and even laid off their employees as a way of managing costs. Other companies have negotiated with their creditors to delay paying certain obligations so at large the measures put in place have been about management of costs,” said Mr Nyoni.
He also said his association was pleading with the Government to come up with policies that will assist firms as they try to stay above water in these trying times.
“Abuz is appealing to the Government to give companies some tax holiday particularly covering the period under lockdown. For example, if Government declared Pay As You Earn tax holiday on employees, this will improve purchasing power and in turn increase demand on products we produce as industry,” he said.
Meanwhile, responding to questions during an online conference hosted by Global Renaissance Investment, Confederation of Zimbabwe Industry (CZI) president Mr Hendry Ruzvidzo said despite the challenges industry was facing during this period it was high time it adjusted into the “new normal” as it also presented some new opportunities.
“What has happened across the world presents challenges at the same time presenting opportunities in that supply chains have been severely disrupted and we are now getting more enquiries from within our borders for products which were previously sourced outside. Increasingly there is an awareness that having our own capacity within the region is very important whereas in the past we were looking at the world as a global village in which by a touch of a button you would always get your product and we have seen the challenges in which some countries are restricting export of some products from their own countries. So there is a renewed interest in developing capacity within the country and also in the region for certain critical products which is also good for the development of our own economies,” said Mr Ruzvidzo.
