The Coronavirus disease (Covid-19) continues to disrupt markets across the globe, and Africa is no exemption. The virus has devastated markets. The virus has spread in all markets across the continent, with top spots illustrated below.
As Covid-19 crisis unfolds in Africa, what is the impact on markets across the continent? Any crisis goes through different phases. In Africa, the Covid-19 crisis is still building up. This may go on for some time before it slows down. Containment measures are key and most important now.
What are some of the new realities that markets should expect in the region? At Episodes Research & Consulting, we some significant across the continent. Here are few select highlights:
- Sectors that directly serve end-users / consumers such as retail, education, real estate, media, travel, and hospitality are undergoing significant changes. They will not operate ‘business as usual’.
- Travel and hospitality may in the short-term concentrate on local / regional strategy. This could include incentive to attract local / regional more than international visitors.
- The digital footprint is spreading fast. Integration and enabling multi devices operations and experiences (especially mobile based) should be a priority to reach the target audience.
- Localized approaches to products and services. As witnessed, local manufacturing and development of cottage industries is rising, a positive impact from this crisis. Disruption in global supply chain affected imports. It is therefore an opportune time to push (as well as source) local products rather than imports, nurture these local establishments, and develop new income streams.
- Payments methods, processes and platforms may witness a significant shift. Mobile phone-based payments will continue to grow at a higher rate than other methods of payment. The linkages across platforms will help move money faster, both within as well as across boundaries.
- Income inequality in many markets across the continent will grow during and after this crisis. The gap between the rich and the poor will widen. Bottom of the pyramid will be heavier, especially among the urban poor. Restriction of movement has led those who depend on daily wages facing a hard reality of lack of income with little alternatives. This shift in composition of consumer pyramid implies marketers need to review their products portfolio and SKUs post the Covid-19 crises.
- Economic slowdown will lead to a period of slow growth. This will have an impact in the short to medium term before a recovery is realized.
This is an evolving crisis, with an exponential propagation of the virus disrupting life of many across the continent.
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