The results of a recent online survey conducted by the United Nations Economic Commission for Africa (UNECA) in conjunction with International Economics Consulting that explores the effects of Covid-19 on economic activity for businesses across Africa are not all bad news.
It’s the second such survey and was conducted from 16 June to 20 July to provide insights and identify challenges. The results are published on the UNECA website.
While reduced opportunities to meet new customers, a drop in demand, and lack of cash flow are identified as the major challenges, on the positive side two-thirds of the surveyed companies indicated that they had identified new opportunities in response to the crisis.
“Very interesting to note that firms involved in goods and MSMEs (Micro, Small and Medium Enterprises) 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,” said Simon Mevel, economics affairs officer at the regional integration and trade division in ECA.
“Those opportunities attest to a clear shift towards new technologies, particularly the development of online platforms for e-commerce,” according to the report. “While the current share of e-commerce revenues remains relatively small (16%) - essentially due to challenges around internet connectivity, payment gateways and logistics/transport/deliveries - nearly half (47%) of the companies are moving or planning to move towards innovative/digital solutions through collaborations and partnerships.”
