AfricaPress-Tanzania: THE government through the Ministry of Finance and Planning has formed a special task force for evaluating the economic impact of the Covid-19 crisis so that mitigation and rescue measures could be taken as soon as possible.
Lockdowns around the world have placed the global economies at a standstill, and Tanzania, which has reported 24 Covid-19 cases so far, is not immune to the looming economic slump.
Finance and Planning Minister, Dr Philip Mpango told Parliament yesterday that his office was aware of economic impacts that are caused by the deadly virus and that appropriate measures are being taken to help blunt its effects.
The minister said forming the task force was inevitable as the government contemplates on measures that will be needed to blunt the economic impact brought by the coronavirus crisis.
“We have decided to form a special task force that will make an evaluation on the situation,” he told the House, noting that the team would advise on the proper way to address the situation by giving recommendations on the best programme to be used in tackling the impact of COVID-19.
The team comprises members from both parts of the United Republic of Tanzania, thus Zanzibar and Tanzania mainland.
He said a number of sectors have been badly affected and that the team is working day and night to come up with suggestions on the best strategy to address the crisis.
He mentioned some of the sectors that have been affected already such as tourism, air transport, industries, horticulture sector, revenues from different businesses in and outside the country and many others.
The government has already instructed the Central Bank to collect opinions, views, recommendations and pieces of advice from different institutions such as Tanzania Association of Tour Operators (TATO), Tanzania Bankers Association (TBA), Tanzania Private Sector Foundation (TPSF), Tanzania Horticulture Association (TAHA) and many other institutions.
Just recently, the International Monetary Fund (IMF) announced that the global economy is heading towards recession while the United Nations projects the collapse of the economy of the developing countries by 2.3 per cent.
He added that the government is currently engaged in talks with the World Bank (WB) and the International Monetary Fund (IMF) under the rapid credit for low income countries so that the country could benefit from the relief grant for fighting the scourge.
Another measure that is being taken by the government to reduce the impact of the economic recession that may face the country includes taking action on tax collection so that the private sector could continue to operate without problems.
The minister added that the government has identified three main areas that will help to address the situation, revealing that currently the focus is on financing special and basic needs for personal protective gears.
Dr Mpango said the move will involve the construction of emergency service centres and purchase of required protective gears, adding that the government is also boosting the budget for hiring more doctors and other health service providers.
He mentioned sources of the income as government budget, voluntary contributions, soft loans from various financial institutions, contributions from councils, companies and many other sources.
According to the minister, Twiga Minerals Corporation has already donated over 1m US dollar (about 2.3bn/-) for supporting the fight against the disease.
Moreover, the minister added that the government is focusing on renovating infrastructure so that it could be easier for traders to transport goods from one place to another at an affordable price.
He added that the government is also insisting on preserving food and control budgets so that there could be no problem in future.
The third main measure that is taken by the government is to protect the financial institution and the value of Tanzanian shilling.
He said the government through the BoT is applying all possible strategies that will enable all commercial banks to continue operating without problems.
“Generally, the government is always awake, we are working tirelessly to address this problem and the task force will come with a special programme that will guide us in addressing the problem,” he said.
Earlier, the debate on the Premier’s Office budget estimates was dominated by COVID-19 on which almost all MPs wanted to hear what the government was planning to do to rescue the country’s economy.
Both MPs from the opposition and the ruling party used much time to advise and give useful information on how the government could address the problem.
Dr Mpango told MPs yesterday that the government is aware of their concern and that soon the special team will come up with a programme on the matter.
“This team will tell us where we should concentrate, we need to study the situation and understand where and how to start,” he said.
Dr Mpango was speaking during the winding up of the Premier’s Office budget estimates, which was passed by Parliament yesterday.
