Revenues decrease more than 10% next month in 70% African businesses

Crisis Management for African Business Leaders in a live poll conducted by Africa.com on 22 April as part of its webinar series nearly 70% of the participating webinars expected that their sales would decline by more than 10% next month. 47% indicated that their sales would decline by more than 25% next month and 24% estimated that revenue would decline by more than 50% next month. Just 20 per cent anticipated revenues to remain the same or rising. 

Around 1,500 business leaders took part in the poll. Participants came from 41 countries across Africa, followed by South Africa, Kenya, Ghana, and Ethiopia, representing the largest countries from Nigeria. The following names are present in 60 per cent of participants: Chairman, Managing Director, President, Chairman, Partner, CFO, President, Chief Executive Officer, Team Leader, General Manager or Administrator. Of the remaining 40%, analysts and consultants are the leading names. 

Financial services and medical services, and energy and manufacturing are the main sectors listed. A smaller community included land, education, agriculture, tourism and the media, arts and entertainment. 

The live session followed a Liquidity Management Cash Flow panel discussion, chaired by Kunle Elebute, Chairman of the KPMG, with panelists such as Welela Dawit, CFO and GE, Admassu Tadesse, Chairman and Chairman of the Eastern and Southern African Trade and Development Bank (TDB) as well as Sim Tshabalala, Chief Executive Officer, Standard Bank Group. 

Teresa Clarke, President and CEO of Africa.com, commented: “The findings from the survey are backed by qualitative data from the 10,000 Webinar registrants. We asked registrants what they are most worried about COVID-19. The replies were available and we got 10,000 responses ranging from 10 to 100 words. The main problem was by far the drop in wages. But, surprisingly, many commented that while they were worried about wages, it was because they were worried that their workers should pay. The panel discussion is part of an online four-part crisis management series produced by Africa.com and three faculty members from the Harvard School of Business. The next webinar will take place on Wednesday, April 29, with Hakeem Belo-Osagie, Chairman of the Senior Business Management Board of FSDH Merchant Bank and the Harvard Business School as moderator. The title of this webinar is “It’s not the West-how the Informal Sector of Africa responds to COVID-19.”

For more information and free registration, please visit virtualconferenceafrica.com.

Data source: APO and africa.com