Finance Minister Dr Bwalya Ng’andu says there has been low uptake by Businesses of the K10 Billion Stimulus Package set aside by the Bank of Zambia for economic recovery amidst the Coronavirus pandemic.

Dr Ng’andu says the lack of information on the stimulus package among the intended beneficiaries has led to few of them accessing the facility from Commercial Banks.

He said at a media briefing that the Government will now increase the number of non bank financial institutions that will participate in the disbursement of the money because most of the small and medium enterprises access loans through such facilities.

Dr Ng’andu said most SME’s do not access loans through Commercial Banks and expressed hope that the engagement of non Bank Financial Institutions will increase the uptake of the facility.

Early April 2020, the Bank of Zambia announced that it has established a Targeted Medium-Term Refinancing Facility with an initial amount of K10 billion to provide medium term liquidity in light of the Covid-19 outbreak.

In a statement, Bank of Zambia Governor Denny Kalyalya said the K10 billion was part of a comprehensive list of measures that the central bank was taking to respond to the Covid-19 crisis.

Dr Kalyalya explained that this is a three to five years Facility that will be available to eligible Financial Service Providers to enable them restructure or refinance qualifying facilities or on-lend to eligible clients and that the amount will be reviewed as conditions warrant.

President Edgar Lungu has been urged to begin the gradual but cautious reopening of key sectors of the economy during this COVID-19 pandemic period.

In a statement released by Young African Leaders Initiative (YALI), Government has been reminded that the continued partial shutdown of some sectors continues to adversely affect Zambia’s socio-economic sectors which are vital for national development.

YALI President Andrew Ntewewe said his organisation was alive to the fact that the partial shutdown is having a toll on the ability of citizens to live normal lives and that the effective functioning of the formal sector is directly dependent on a thriving informal sector.

“We recommend the reopening of schools to pupils in examination classes, colleges and universities and the sale of alcohol in bars, night clubs, lodges and hotels with adequate space on a take-away basis,” he said.

YALI said it supported the scaled-up approach by Government based on fact that Government took into account the plight of ordinary Zambians who depended on the informal sector for their daily living.

“It would have been naive for Government to succumb to pressure from those who have never run Government before, to effect a total lockdown based on emotions rather than the evidence-based approach and logic advocated by the President,” said Ntewewe.

Mr. Ntewewe said having seen the evolvement of the pandemic, it was clear that the government strategy was well-informed and intelligent.

“It has become apparent that we all must change our way of life by adopting the new normal as there is no telling when the COVID-19 will come to an end, he said.

YALI has warned that the continued shut down of the informal sector will hurt the Zambian economy further and make businesses fail to survive the post COVID-19 period.

The government has said that a complete lockdown of the country’s businesses can cause more damage to the economy. Finance Minister Bwalya Ng’andu said that business entities should turn their operations around and learn to adapt amidst the pandemic.

Speaking during a joint briefing held at the Ministry of Information and Broadcasting Services in Lusaka, the Finance Minister bemoaned the slow uptake of the 10 billion Kwacha loan facility made available by the Bank of Zambia through Commercial Banks.

Dr. Ng’andu attributed the slow uptake of the loan facility to low levels of sensitization on the facility.

He said the Central Bank intends to increase the number of non-financial institutions in the disbursement of the loan facility as most SME’s acquire loans from such institutions.

Dr. Ng’andu said the Bank of Zambia will also engage business associations such as the Zambia Association of Manufacturers to familiarise them with the process of accessing the facility.

He encouraged SMEs to take advantage of the 10 billion Loan facility to sustain their businesses through the Covid-19 period.

And, Dr. Ng’andu said the establishment of the COVID 19 Fund is underway, in line with the presidential directive and awaiting cabinet approval of the proposals.

Former Finance Minister in the MMD administration Katele Kalumba has appealed to the government to avail guidelines on the accessibility of funds released to boost Small and Medium Enterprises (SMEs) affected by the Covid-19.

Dr. Kalumba , who has praised the government for releasing the relief funds to SMEs, however, laments that lack of information will make SMEs, especially in rural areas to miss out on the fund.

Dr. Kalumba, who is also Headman Natende Walushiba was speaking when Luapula Province Minister Nickson Chilangwa called on Senior Chief Puta of the Bwile people in Chienge District.

He explains that while the move by the government is well-intended, the lack of information especially for SMEs in rural areas defeats the purpose of the fund.

And Dr. Kalumba has lamented the lack of adherence to physical distancing and other Covid-19 regulations.

Dr. Kalumba has since thanked President Edgar Lungu for instructing his Cabinet Ministers and Members of Parliament to go round the country and sensitize the people on Covid-19.

And Mr. Chilangwa has assured the people of Change of President Lungu’s resolve to construct the Kashikishi – Chienge – Lunchinda Road.

Mr. Chilangwa, who is on the tour of the Province to raise awareness on the Covid-19, explained that the Head of State is fully aware that the Kashikishi – Chienge – Lunchinda is an economic road that will boost economic activities in the area once complete
.

He said to follow the investment Expo held in 2017, over 10 firms have expressed interest in investing in various sectors such as fisheries, mining, and salt production in Chienge District.

Meanwhile, Mr. Chilangwa has praised Senior Chiefs Puta and Mununga for running robust sensitization programs on coronavirus in their chiefdoms.