ADDIS ABABA – Ethiopia should prepare rescue package for its economic ills that have been worsened due to coronavirus, said experts.
Kidist Mariam University Business Department Assistant Professor Tilaye Kassahun told The Ethiopian Herald that the country’s relief measure is vital to stop coronavirus layoffs and to prevent fuelling recession.
He, therefore, said the government has to come up with a rescue package sooner than later, adding that to overcome the profound economic impact of COVID- 19, it should also start working closely with stakeholders to maintain the productivity of higher industries and small scale enterprises across the country.
Moreover, banks need to reduce the interest rate and extend the credit period. The interest rates of banks are high and it is better to be stimulated by low interest rates as to him.
Tilaye further underscored the need for maintaining the productivity of agriculture through cooperative work and called on professionals and farmers to work in a spirit of cooperation to increase agricultural productivity.
The government needs to invest its resources in agriculture to produce the necessary daily commodities that could be hit severely by the Coronavirus pandemic aside from enlarging extensive farming and developing various strategies to address the economic challenges related COVID-19,.he noted.
For his part, Addis Ababa Chamber of Commerce Former President Kibur Genna said people have stopped working and so the economy is at high risk and the country should come to work soon like Saudi, Norway and Japan that have been fighting the virus issuing social restrictions that would not much affect the working environment at all.
“If the current bad economic situation continues until the virus puts under control, we may not have a country”. If we can’t back to work within a short period of time, the economy will suffer most.
It is not possible to recover a broken economy seeking help from other countries. It is best to find solutions from now by ourselves,” he noted.
He added that the action that is being taken by the government to combat COVID19 is important, but not by stopping work, maintaining social distance and applying what health professionals say is essential to prevent coronavirus.
Also Tilaye said that investors should help the government to curb COVID-19 by all means and health workers as well as the community should talk openly about preventing the disease as much as possible.
As to him, even if the COVID 19 epidemic will be put under control within five and six months, it takes two or three years to improve the impact on the economy.
Coronavirus has been devastating the global economy, particularly in developing countries. Because the capacity of such countries and the readiness of health centers are low so, they can be easily harmed.
So it is better the governments spend their resources on protecting it. Especially for healthcare professionals, they have to allocate enough resources. If possible, they should be allocating to protect about 10 percent of their countries GDP, Tilaye noted.
The Ethiopian Herald April 14/2020
BY ESSEYE MENGISTE
