The World Bank Africa has been studying the effects of the Covid 19 pandemic on Zimbabwe. Their findings are not very encouraging, however they say not all hope is lost and shared some recommendations.
In their economic Update on Zimbabwe, the World Bank noted that the number of extremely poor citizens has risen to 7.9 millions. A major contributing factor to this is the effects of Covid 19. Up to 500 000 households are said to have one member that lost their jobs. This might seem like its not a train smash, however, considering the unemployment rate which is said to average 95% percent, this is a pretty big deal.
However, despite the negatives, the World Bank issued out recommendations that can help reverse these effects. The recommendations included the following:
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Domestic policies which support price stability and the optimal use of public resources are key, especially given large financing needs to prevent a deterioration in human capital.
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Reallocate spending from inefficient, distortive subsidies to targeted measures that limit the toll of the pandemic, provide social safety nets and food security, and prevent a learning crisis that risks undercutting long-term growth and productivity
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Adopted policies should take into account the country’s limited fiscal space and the significant financing required to arrest further deterioration of social service delivery
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As it is currently facing tight public finances and limited recourse to external financing, Zimbabwe will need to rely heavily on reallocating domestic resources to optimal public uses, mobilize humanitarian support to prevent increasing fragility and leverage private financing where possible to stimulate growth
They shared the following on their twitter page:
🇿🇼 NEW REPORT: Despite the impact of #COVID19, including an increase in extreme poverty, #Zimbabwe is poised for recovery. Read more ⬇️ https://t.co/C0y3USBrOq
— World Bank Africa (@WorldBankAfrica) June 10, 2021
Many people are hopeful of a better tomorrow saying that the measures being taken by the Government will better the economy.
The Financial Analyst, Eddie Cross shared similar sentiments in his report on Zimbabweans Economy. He expressed his conviction that the systems that have been set in place are almost guaranteed to take the nation far.
What are your thoughts?
Let us know in the comment section below.