Addis Ababa, August 25/2020(ENA) African companies are shifting in the direction of new applied sciences in response to COVID-19 within the continent, a report issued by the Financial Fee for Africa (ECA) and Worldwide Financial Consulting Ltd indicated.
In accordance the second complete survey carried out on-line on the COVID-19 pandemic and its financial affect throughout Africa goals at offering insights into the consequences of the pandemic on financial exercise for companies throughout the continent, figuring out the challenges they face and their responses.
Diminished alternatives to fulfill new prospects; drop in demand; and lack of money circulate are the highest three challenges confronted by the businesses within the continent, the survey outcomes indicated.
Corporations have confronted severe disruptions in each provide and market because of COVID-19 with unfair pricing are additionally seen as a serious concern.
Suggestions from firms about authorities help is combined with almost two-thirds of the respondents indicating from reasonable to no satisfaction.
As a consequence, “50 percent of the respondents approached financial institutions from which 25 percent got positive responses; among the latter, 42 percent were not satisfied with the service due to high interest rates, delays and collateral requirements,” identified the survey.
On the subject of their efficiency, firms are presently working at about half their capability.
The survey indicated that two-thirds of the surveyed firms have recognized new alternatives in response to the disaster.
These alternatives attest to a transparent shift in the direction of new applied sciences, significantly the event of on-line platforms for e-commerce.
Whereas, the present share of e-commerce revenues stay comparatively small (16 p.c) because of challenges round web connectivity, fee gateways and logistics.
It was identified that almost half (47 p.c) of the businesses are shifting or planning to maneuver in the direction of progressive/digital options by means of collaborations and partnerships.
Economics Affairs Officer on the Regional Integration and Commerce Division in ECA, Simon Mevel, stated: “Very interesting to note that firms involved in goods and medium and small scale enterprises (MSMEs) are displaying the highest shares in terms of new opportunities identified following the crisis, which in turn is expected to be positive from a gender point of view as women are primarily engaged in MSMEs dealing with goods”.