Reviving the economy post Covid-19

With the after-effects of lockdown still being felt nationally and across the City of Ekurhuleni, the Ekurhuleni Aerotropolis Chamber of Commerce and Industry (EACCI) hopes to assist businesses where it can.

Founded over 80 years ago, the NPO serves businesses and the community in the city.

The EACCI promotes local socio-economic growth and development.

CEO of EACCI and Edenvale business owner Vincent Marino said the service industry or those providing services to others were the ones hardest affected by the pandemic.

An example of the work the chamber is doing is how it recently assisted a Wadeville businessman.

“The business owner, who is a member, approached us asking for some seed money hoping to expand his operation.

“Initially, he was running an eight-hour shift but after the expansion, he now runs a 16-hour shift.”

Marino explained the chamber takes a small commission on investments it makes into businesses.

ALSO READ:

Importance of having a valid Will

“People in the beauty, fitness and entertainment industries took the toughest knock, especially during the first few months of lockdown.”

Marino said from what he has seen and heard there are several industries which continued to thrive and generate a profit.

“These industries ran stocks low and are running things to the minimum before ordering new supplies,” said Marino.

“Making use of the just-in-time inventory system the businesses can match orders of their unprocessed materials from the supplier with their production schedule.

“This increases efficiency and ensures there is no excess stock on the shelves.”

Although this worked for some industries, Marino warned that if there was one slip in communication the entire system could collapse.

Another method business owners, specifically landlords, were using to ensure the survival of the economy and their town was diversifying tenants.

“If we look at what has happened in Germiston, the area has degraded. One of the reasons is the wrong product mix.

“Landlords weren’t selective enough in the mix of their tenants and focused too much on the money.”

Marino advised landlords and property owners to put their differences aside and work together on strategies and solutions that could not only benefit their buildings but also benefit their towns.

How to rebuild the economy post lockdown:

“Small businesses need to learn what they can from the effects of lockdown and Covid-19.
“In business school, many entrepreneurs talk about not diversifying, focus on what you are good at and you will succeed. But we can no longer live like that.

“We need to be able to diversify slightly and have a second form of income to pay the bills in case we find ourselves in a bad situation again.”

Speaking on rebuilding the economy, Marino said there is no magic wand or silver bullet which would miraculously turn things to the way they were.

Advice Marino gave included:
• Go back to the basics of business.
• Focus on marketing and promotions.
• Know your customers and consumers.

“What is extremely important is transparency between the government and businesses. Businesses need to have a clear understanding of what is in store for them if they are to plan accordingly.”

Also follow us on: