#COVID-19: ACT-Wazalendo proposes measures to help Tanzanian and Zanzibar businesses and workers

ACT-Wazalendo has warned the Tanzanian government against the dangers of continuing with “business as usual” during the current global pandemic, urging authorities to take measures to stimulate the economy during the crisis and provide relief to the most vulnerable.

During a live-stream address from Dar es Salaam on April 15, 2020, ACT-Wazalendo’s Secretary General Mr. Ado Shaibu and the party’s deputy Secretary General (Zanzibar) Mr. Nassor Mazrui said that both economies –that of Tanzania Mainland and Zanzibar’s — are projected to be affected significantly by the global pandemic.

According to official government reports as of April 17, Tanzania Mainland had recorded a total of 147 cases of coronavirus with a total of five deaths. According to authorities in Zanzibar, as of April 19, 2020, the islands have recorded a total of 58 cases of coronavirus with three deaths.

As efforts continue to ‘flatten the curve’, ACT-Wazalendo has urged both the Union and the Zanzibar governments to put plans in place that will stimulate the economy and provide relief to groups which are likely to be highly affected by the pandemic.

The proposal for stimulus packages follows recommendations made by ACT-Wazalendo for effective containment of the pandemic which include a partial lockdown of cities like Dar es Salaam, Mwanza, Dodoma and Arusha and total lockdown for Zanzibar for a period of not less than thirty days.

“Because the steps (lockdown) we are suggesting will no doubt affect people without formal employment — a section which forms the majority in the country’s population — we urge the government to give money to these people so that they can be able to keep up with the lockdown measures,” said Mr. Shaibu and Mr. Mazrui in their joint address.

According to estimates, during a lockdown, each household can receive a total of Sh300,000 every month for two months. Such an amount will only cost the fiscus USD2.3billion in total, less than half of the Gross Official Reserve.

Given the fact that the country’s private sector will be hardest hit by these measures, thus rendering them unable to pay their employees, the party suggests that in the period of three months — from May to August — all employees should receive their salaries directly from the National Social Security Unemployment Fund.

“This will enable businesses and organisations to escape the huge burden of operational costs and thus enable them to invest more once the pandemic is over,” said Mr. Shaibu and Mr. Mazrui. “Also, this step would prevent workers from losing their jobs.”

Other measures proposed include the Bank of Tanzania (BoT) to issue a directive to all banks in the country which lent individuals personal loans to temporarily stop the collection of the dues for three months, starting on April 2020. The party also recommends that The Tanzania Revenue Authority (TRA) and its Zanzibar counterpart the Zanzibar Revenue Board (ZRB), should stop collecting taxes from companies doing business on tourism until October 2020.

As far as Zanzibar is concerned, ACT-Wazalendo recommends that the entire archipelago should be placed on total lockdown. As on the Mainland, the party suggests that each household should receive a stimulus package of Sh300, 000 monthly paid for by the Union national reserve.

Also, all workers who contribute to the Zanzibar Social Security Fund (ZSSF) should receive their monthly salaries directly from the Fund.