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Delta wave in Rwanda hits businesses again, leads to more job cuts

Monday July 26 2021
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The lockdown will see thousands of employees across sectors and daily wage earners lose income as only a few eligible essential services providers are allowed to operate only at 30 per cent. PHOTO | CYRIL NDEGEYA

By RWANDA TODAY

Restrictions imposed to control the highly contagious delta variant in Rwanda have stoked concerns of hurting livelihoods and the economy's recovery as the new wave sends thousands of families out of employment yet again.

It is particularly a difficult for businesses in key economic sectors which had tapped into the Rwf100 billion State’s Economic Recovery Fund hoping to recover from the pandemic losses only to be hit by more closures and restrictions that could see them go bankrupt.

“If you look back in December, and the re-opening of the airport in August, there was hope for most businesses in the Tourism and Hospitality Sector to return to normal business within at least six months.

However, by the end of the year, a second wave set in around Christmas and New year throughout January and February. There hasn’t been any business so to speak, and now restrictions extend into the high season, which tells you how things are bad,” Aimable Rutagarama, Chairman of the Rwanda Chamber of Tourism, told Rwanda Today.

Players in the sector fear the worst as banks go on to capitalise loan interests accrued during crisis times like lockdowns when most hardly get business, thereby making loan’s total costs and repayment a heavy burden.

Mr Rutagarama, who expressed concerns over likely travel cancellations that could make things even worse for the hospitality industry sub-sectors going forward, said the chamber seeks to engage government ahead of operationalizing additional Rwf350 billion ($350 million) stimulus plan earmarked for pandemic hit businesses in this year’s budget.

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The lockdown will see thousands of employees across sectors and daily wage earners lose income as only a few eligible essential services providers are allowed to operate only at 30 per cent upon application and authorisation by the trade ministry.

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