Analysts have said the assessment report on the impact of coronavirus pandemic to industrial sector by the Confederation of Tanzania Industries (CTI) will shed light on post recovery plan.
The report showed that almost 98 percent of the respondents confirmed that their businesses have been affected by virus contagion indicting dropping of sales revenue and production by over 50 per cent.
Also they envisaged to cut jobs by over 50 percent.
An investment banker at the TIB Development, Dr Hildebrand Shayo said in Dar es Salaam yesterday that CTI has provided their reaction on Covid-19 on businesses which is a good beginning of an understanding of the magnitude of the challenges that lies ahead for manufacturing sector.
The impact of Covid-19 to manufacturing sector will be felt in the second half of the year but this depends much on government interventions to rescue the situation.
He said loss in sales, production and employment stated in the report is tip of the ice.
“CTI report should have been more useful if it would have related its findings with previous economic losses from past epidemics. As it is hanging,” Dr Shayo said.
The estimated costs of epidemics vary significantly, depending on their severity and how they were dealt with.
“…Manufacturing firm’s will experience full knock effect especially caused by the second waives facing supply chain disruptions, more changes will be anticipated in the third and fourth quarters [of this year],” Dr Shayo said.
He however, said the report didn’t indicate local solutions since the country hasn’t imposed total social restriction.
“One should have expected CTI based on this survey to put before the government especially during this budget session with practical ideas that can be accommodated in the tax measures. “Similarly, local context ideas, which could fit in with our banking structure,” Dr Shayo said.
Although, he said, CTI has provided their reaction on Covid-19 on businesses which is a good beginning of understanding of the magnitude of the challenges that lies ahead for manufacturing sector.