Ask Africa CEO on the impact of lockdown on business outlook

The global business landscape has been deeply impacted by the COVID-19 pandemic, with CEOs grappling to navigate through uncertainty and unprecedented challenges. A recent survey conducted by YPO, a global leadership community of 28,000 Chief Executives, reveals that 49 per cent of CEOs across 100 countries hold a significantly more negative business outlook compared to the first of March. This pessimism persists despite some positive signs of economic recovery and growth projections from international institutions like the IMF. Andrea Rademeyer, YPO Member and CEO of Ask Africa, sheds light on the overarching sentiments among business leaders, highlighting the profound impacts of lockdown measures on business operations and strategic thinking. She emphasizes that the relationship between governments and businesses has been redefined, with businesses recognizing the critical role of government decisions in shaping the economic landscape. Key Points: 1. Adaptability and Agility: The pandemic has underscored the importance of flexibility and quick decision-making in business operations. Rademeyer points out that the ability to pivot swiftly in response to the crisis was essential for survival. Companies that embraced agility were able to navigate the changing market dynamics and continue serving their clients effectively. 2. Employment Challenges: The employment outlook remains daunting, particularly in Africa where job losses have been pronounced across various industries. Sectors like manufacturing, automotive, air transport, entertainment, and hospitality have witnessed significant disruptions, leading to job cuts and economic strain. The recovery of these industries is expected to be gradual, requiring concerted efforts from both businesses and governments. 3. Collaborative Recovery Efforts: Rademeyer emphasizes the critical need for closer collaboration between businesses and governments to fuel economic recovery. She stresses that while governments create the enabling environment for job creation, it is businesses that drive employment opportunities. Enhanced collaboration on labor laws and flexibility is essential to facilitate a smoother recovery process and support businesses in adapting to the new normal. Reflecting on the sentiments shared by CEOs in the survey, Rademeyer echoes the call for practical and impactful interventions from the government to support businesses. She highlights the importance of creating tailored tax systems for small and medium enterprises (SMEs) and the informal sector to stimulate growth and foster resilience in the business community. As the global economy grapples with the aftermath of the pandemic, the shared commitment towards rebuilding and strengthening economic foundations remains paramount. The path ahead is laden with challenges, but the resolve to innovate, collaborate, and adapt stands as a beacon of hope for businesses striving to thrive in a post-COVID world.