‘Lockdown to increase burden on livelihoods'

USAID food security arm, FEWS NET, says the food assistance need in urban areas will rise substantially on the back of COVID-19 impacts and the continued fall of macro-economic conditions.

In its April update, FEWS NET said most urban poor who moved to their rural homes following the pronouncement of the national lockdown would be unlikely to return to urban areas, putting an additional burden to rural livelihoods and support systems.

“The population in need of humanitarian food assistance especially in urban areas is likely to be higher than previously anticipated throughout the outlook period as a result of the impacts of COVID-19 restrictions and the associated loss of income coupled with the poor macro-economic conditions and consecutive years of drought,” FEWS NET said.

“Humanitarian food assistance currently planned for April is expected to maintain stressed outcomes across much of the country through May, whereas crisis outcomes are anticipated in areas where food access is still poor. Most typical rural and urban income sources are expected to remain low during the outlook period through September.”

FEWS NET added: “Below-normal labour opportunities and other income sources and increasing prices are expected to drive poor households purchasing power. In many areas, the main harvest is expected to be limited and poor; however, many poor households are expected to consume own foods for one to two months in many typical deficit areas and two to four months in typical surplus areas”.

In the report under review, the lockdown limited the movement of people and goods resulting in most livelihood activities in urban and rural areas, both formal and informal, being severely affected.

The Zimbabwe National Chamber of Commerce estimates that 75% and 25% of jobs in the informal and formal sectors would be lost due to the COVID-19 pandemic.

While the lockdown was extended to May 17 with a partial lifting of the measures, the Confederation of Zimbabwe Industries reported that over 80% of local businesses could not afford paying staff if the lockdown is extended further.

And, despite government promising cash transfers of $200 to vulnerable households from a $600 million fund, these monies are yet to be disbursed 35 days after the measure was announced.

"International and domestic remittances are expected to be lower than earlier projected in response to disruption of livelihoods internationally and locally, impacting both rural and urban household incomes, especially in southern areas bordering South Africa," FEWS NET said.

Government has since announced a $18 billion stimulus package that is meant to help industry recover though the amount is significantly below expectations.

In order to improve the situation, government brought back the US dollar last month, yet, the Zimbabwean dollar continued to depreciate , plunging by about 20% in April, putting further strain on urban households.

“Consequently, prices of most goods and services continued to increase in ZWL terms during the month. The national lockdown-related panic buying has also led to increased commodity shortages and prices in the country,” FEWS NET said.

Experts blame this on the US dollar as good money, chasing away the local currency which has now become bad money as it continues to rapidly lose value.

“THE population in need of humanitarian food assistance especially in urban areas is likely to be higher than previously anticipated throughout the outlook period as a result of the impacts of COVID-19 restrictions and the associated loss of income coupled with the poor macroeconomic conditions and consecutive years of drought.”