Advisory by Economic Planning Board on the Economic Impact of COVID-19 in Tanzania & Zambia

With the spread of COVID-19 (Coronavirus) across 182 countries, the economic impact is global and is expected to result in slow economic growth in the coming months. The progression of the virus has is leading to medium-term economic uncertainty.

Aga Khan Economic Planning Board would like to offer the following advisory:

  • Certain countries have already place travel restriction in and out of their respective countries. As the outbreak spreads globally, consumer sentiment may weaken further.
  • Jamati members involved in businesses such as travel, tourism, hotel and hospitality, retail, restaurants, logistics and agricultural exports should be prepared for reduced demand of their services for the foreseeable future. There are bulk cancellations of hotel bookings and the suspension of incoming flights.
  • Business owners should review their businesses to assess the risk and impact of COVID-19 on operations and cash flow. Focus on cash flow as a priority and be financially prudent. It is advised to avoid unnecessary expenses at this time.
  • As the likely economic impact is highly uncertain, it may not be a good time to be making new commitments until the outlook is clear.
  • The Employment and Labour Relations Act 2004 indicates the procedures on retrenchment and sick leave. However, it does not detail unpaid leae. Company employment contracts and policies may have provisions for unpaid leave and other leave entitlements. The Association of Tanzania Employers continues to consult with the government and the trade unions on the situation and its effects on business.
  • Goods from China and elsewhere may experience supply shortage and higher prices.

Jamati members involved in the trade should consider disruptions in their supplies and explore diversifying suppliers, if possible.

  • The Jamat is urged to maintain their savings as a financial cushion against unexpected job or business loss.

A detailed advisory is being prepared by EPB on implications and analysis of government policies, business environment, and practical tips, which will be circulated next week.

EPB is monitoring the situation and will continue to keep the Jamat informed on any further developments.

error: Content is protected !!