Zim employers send SOS message

Business Top Stories Zimbabwe

ZTN Reporter

Employers in Zimbabwe warn that they will struggle to pay salaries because of the lockdown.

The lockdown in the Southern African country, which will reach five weeks this Sunday, has left many employers with reduced income but an almost constant wage bill.

Employers Confederation of Zimbabwe (EMCOZ) president, Dr Israel Murefu told ZTN that to salvage the situation a raft of measures need to be put in place immediately.

“Most employers through a survey that was conducted by one of our business member organisations indicated that after April they will find it difficult to sustain salaries and wages if the lockdown continues at the level it is now,” said Dr Murefu adding that they have since submitted their proposals to government.

“One of the recommendations we made was to put a stimulus package for businesses. This is to enable employers to access working capital. We also highlighted that there is need to consider tax based incentives, lowering of interest rates and also relaxing statutory contributions such as National Social Security Authority. This will reduce demand on cash flows,” he said.

The views of the employers come a few days after Finance Minister, Professor Mthuli Ncube indicated that government is working on a stimulus package.

“Another leg of saving livelihoods is to support companies so that we can retain jobs as we don’t want our people to lose jobs.

“We want to create more jobs, which is precisely why we want to support companies to retain, expand and access working capital. You will see us in the next few weeks announcing the recovery package to deal with those issues and watch the space for that,” said Minister Ncube.