‘LOCKDOWN EXTENSION MEANT TO SECURE JOBS’

MBABANE – The 21-day extension of the country’s partial lockdown is meant to secure people’s jobs and sustain salaries but there will be no significant economic activity.

This is the view of economists in reaction to government’s decision to extend the lockdown by 21 days.
Thembinkosi Dube, an independent economist, said the move by government was basically focused on the basic life of the persons employed in the low-risk businesses that had been allowed to operate during the partial lockdown period.

These are construction companies, handcraft and food vendors, stationery shops, repair shops, cleaning services, breakdown services, hawkers, car wash, clothing shops and car dealerships.

He made reference to the construction companies whose employees would go back to work and be salaried.
“Some of these employees are paid daily and they will now be able to buy essential needs with their earnings and save the situation at their homes.

Benefit

“It will benefit the employees but there will be minimal enhancement to the economy,” he said.
However, he stated that the partial lockdown would not be of much benefit to some of the sectors mentioned. He made reference to the handcraft and food vendors, whose businesses depend on huge traffic.

“People are at home because of the partial lockdown, where will these vendors find the customers? It will be worse for those vendors targeting scholars because pupils are at home. The reality is, they will be making more losses,” he said.

Another economist, who spoke on condition of anonymity, shared the same sentiments. She said the extension of the partial lockdown was just to counteract that people did not lose jobs but it would have minimal impact on the economy. She said salaries would be sustained and people would be able to buy essentials but that was as far as the economic activity would go.

She said Eswatini was highly dependent on South Africa and as long as the borders of the neighbouring country remained closed, the country would be directly affected.

“The fact that SA has downgraded to junk status, we are directly affected,” she submitted.
She said some of the businesses which were allowed to operate, like the construction companies, got their input from South Africa and their operations might be disrupted by lack of working material.
“For construction companies, it also means if the COVID-19 persists, there would be no new jobs for the companies because many people and businesses will be financially unstable.

“For now, they will be pushing the works that were left hanging when their operations were suspended in the initial partial lockdown and that would be roughly the next two or three months. What will happen if the virus persists?” The economist said the extension was meant to push forward the adverse impact of the COVID-19 and buy time for government.

Highlighted

This was also highlighted in Prime Minister Ambrose Mandvulo Dlamini’s statement when announcing the extension of the lockdown yesterday.
He said this extension of 21 days would buy the country more time to contain the spread of the virus and avoid overwhelming the country’s health system. 
He also said it would give the country enough time to flatten the curve, allow it to aggressively fight the virus, train more health workers and acquire the requisite medical equipment to help emaSwati face this virus head-on.

However, it is worth mentioning that not all the non-essential businesses were lucky as bars, salons, beauty shops, night clubs, cinemas, travel agents and dobha phansi are regarded as high risk and are to remain closed until further notice.

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