Sadc advises collaboration over pandemic

Thupeyo Muleya Beitbridge Bureau

The Sadc Business Council says the private sector and regional governments should work together to minimise economic effects brought about by the Covid-19 pandemic.

The council said this in a statement issued last week following an online meeting by its directors and those representing business associations in the region held on April 1.

The meeting discussed issues around the regional and national preparedness and responses to the outbreak of Covid-19 in the SADC region and its impact on regional economies.

The body said it was critical for governments and the private sector to come up with interventions at the national and regional levels to minimise the economic impact during the Covid-19 emergency and support the quick recovery of businesses post the Covid-19 emergency.

“The directors of National Private Sector Apex Body and Regional Business Body Associations in SADC note that Covid-19 has affected most SADC countries resulting in national shutdown as of April 1, 2020,” read the statement.

“They acknowledge the paramount importance of protecting the health, and safety of the Southern African people and, as the regional private sector, we commit and join hands with the Governments to ensure that the business community complies with the measures to protect the lives of SADC citizens and the global community.

“Further noting that the ongoing Covid-19 presents a significant challenge to SADC economies, disrupting global and regional value chains thereby impacting business operations from supplies, production capacity, distribution channels and utilisation of resources.”

The Sadc BC said governments should consider tax bailouts and exempting SMEs from loan repayments for six months to enable their recovery.

According to the statement, central banks in the region are also urged to lower interest rates to encourage lending and quick recovery of the business.

In addition, the organisation called on Social security/national governments to subsidise informal sector wages for six months and to consider putting together stimulus packages to aid business revival post-Covid-19 crisis.

“We, the SADC Business Council and our member federations reiterate our full commitment to supporting our respective governments and international institutions,” it said.

“On-going dialogue with business, employees and their representatives on the scope, content, and implementation of extraordinary measures is essential to mitigating the negative impact of COVID-19 on employment and business.”

The Sadc BC said it was also important to regional governments to utilise rail as a preferred transport solution to minimise human contact during the movement of regional cargo.

The body said there was need to facilitate the clearance of trucks carrying cargo across the region and to prioritise clearance of essential cargo freight at border posts and to ensure the protection of drivers.