Addressing a press conference in Dar es Salaam yesterday, TCCIA President, Paul Koyi called upon its members and non-members to submit challenges affecting businesses during Covid-19 pandemic to its councils in districts and regions across the country.
He said that the move is geared towards coming up with a package of challenges that will later be addressed in collaboration with regulatory bodies and the government.
“This is the best time we evaluate the problems brought by this pandemic and this will help us easily address some of the policy and legal issues that businesses were facing during the pandemic,” he said.
He said TCCIA was aware of impacts brought by the pandemic saying its members must use this opportunity to list the challenges down and send them as announced.
He further said regulatory institutions needs to come up with ways to mitigate the impact of the pandemic on businesses giving an example of the Bank of Tanzania (BOT) imposed monetary policy measures to offset the impact of coronavirus in the economy.
Koyi further said they will keep on conducting such researches as they are crucial in informing policy makers and the private sectors on appropriate measures that they should take to mitigate the impact of Covid-19
According to Koyi, on the study they conducted in collaboration with East African Business Council (EABC) on the impact of Covic-19 business and investment established 63- per cent drop in cash flow in the retail sector.
The data on the survey was collected using an online survey whereby questionnaires were sent out to EABC members and non-members from different sectors across the region.
Other sectors that experiences drop in cash flow include real estate 60- per cent, finance 50 per cent, construction 40- per cent, event management and ICT 40 percent, manufacturing 36 per cent and consultancy 24 per cent.
According to the response from the respondents, the reduction of cash flows will continue disrupting value chains and may lead to the closure of businesses and investment projects. It may also increase the rate of unemployment if EAC partner states do not come up with appropriate measures to mitigate the impacts of the pandemic.
Already, 55.9 per cent of businesses surveyed in the study reported declines in sales while 55.9 per cent also said they have seen increased cross border restrictions and challenges as 44.1 per cent of the interviewed companies said they were facing a challenge in the sourcing of raw materials.