Private Sector Federation mulls ways to support employees affected by COVID-19
Monday, April 13, 2020
Some of the most hard-hit sectors by the lockdown include public transport, which has been suspended.

On Thursday, April 9, Oxfam published a report indicating that globally, half a billion people could be pushed into poverty by coronavirus. The report warned that between six and eight percent of the global population could be forced into poverty as governments shut down entire economies to manage the spread of the virus. 

The report indicated that the situation could set back the fight against poverty by a decade, and as much as 30 years in some regions such as sub-Saharan where Rwanda belongs.

The report also stated that women are on the front line of the coronavirus response and are likely to be hardest hit financially.

On March 21st, Rwanda imposed countrywide lockdown to contain the virus. Only non-essential services were allowed to continue operating.

Employees who were involved in for instance hospitality and transportation sectors were the most hit.

Thousands of employees are stuck at home and their sources of income were drained, and with no hope of returning to work even after the deadly virus has been contained.

As a response to tackle the issue, the Private Sector Federation is discussing with the government on how to support employees whose jobs have been affected by COVID-19.

Speaking to The New Times on in phone interview, Theoneste Ntagengerwa, the spokesperson of the Federation, revealed that discussions to find out how the federation can partner with the government to support such affected employees are ongoing.

Some of the suggestions being put forward, he said, include exempting or subsidising companies from paying some taxes and utility bills such as electricity and water to use the money to pay their employees instead.

"Companies have trouble with paying employees because they are also not making profits. We are discussing ways to support them and hopefully, by the end of April, discussions will have been fruitful,” he explained.

He additionally explained that concerned companies such as industries, hotels, among others, are part of negotiations and will be consulted.  

Although there is none to blame in such conditions, Rwanda Civil Society Platform suggests that an emergency fund be initiated to support workers who were severely affected by COVID-19 lockdown.

John-Bosco Nyemazi, Executive Secretary of the Platform sees the situation as an eye-opener to always have an emergency fund ready to support vulnerable people.

"Agaciro Development Fund was an example that solidarity is possible.  We can do the same for this whose lives were affected by the lockdown,” he said.

Rwanda has so far recorded 126 COVID-19 cases and 25 recoveries, as of Monday, April 13th. COVID-19 has claimed over 114,000 deaths with over 1.8 million COVID-19 confirmed cases worldwide, according to the World Health Organisation.