The Zimbabwe National Chamber of Commerce (ZNCC) has cautioned the government against printing money to fund the ZW$18 billion Covid-19 Economic Recovery and Stimulus Package saying such a move will have consequences more devastating than the pandemic.
In its submission to the Ministry of Industry and Commerce, titled High-Level Summary of Submissions Regarding the Modalities of Industry Funding From The ZW$18 Billion Stimulus Package, the ZNCC said:
Business has indicated that Covid-19 weighed down on operations. It is our belief that the funds will be easily accessible with no need to resort to printing since the negative impact of printing money can be worse than the effect of COVID-19.
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It is our hope that some of the millions of funds that have been extended to Zimbabwe from financiers such as Afreximbank, AfDB (expected to provide close to US$14 million) and other financial institutions would also be utilised to fund industry.
President Emmerson Mnangagwa announced the stimulus package to provide relief to distressed sectors of the economy as a result of the Covid-19 pandemic.
Zimbabwe’s rate of inflation has spiked to over 670 per cent since the reintroduction fo the Zimbabwe dollar nearly ago and this has partly been caused by money printing.