ZAMBIA'S BUDGET THROWN INTO DISARRAY DUE TO CORONAVIRUS - PRESIDENT

Lusaka, ZAMBIA

Zambia’s budget has been thrown into disarray by the economic blow from the coronavirus outbreak and the government needs to take action to support businesses, President Edgar Lungu said on Friday.

The southern African country has confirmed 84 cases of COVID-19 infections and three deaths from the lung disease.

Lungu said he had directed Finance Minister Bwalya Ng’andu to set up a coronavirus recovery fund to assist businesses and ordered the state Citizens Economic Empowerment Fund to invite more proposals for funding.

“Our expenditure on COVID-19 has been unplanned. Our exports are constricted. Copper prices are at all-time low. Tourism has been run aground,” Lungu said in a live radio and television broadcast to the nation.

On Monday Ng’andu said Zambia, Africa’s No.2 copper producer, would hold talks with the International Monetary Fund on its request for an economic programme.

To cushion local businesses from the fall-out of the pandemic, Ng’andu said Zambia had waived tax penalties and interest on outstanding tax liabilities and would suspend tax on medical supplies used to tackle the coronavirus.

The government will strike a balance between implementing health measures and ensuring that the economy keeps running to sustain people’s livelihoods, Lungu said.

He lifted a suspension on religious gatherings but said bars, casinos and gyms would remain closed to curb the spread of COVID-19.