Will Amanzimtoti survive the Covid-19 pandemic?

The Covid-19 pandemic has wrecked havoc on everyday life, careers and income. Will South Africa and Amanzimtoti ever recover financially from the effects?

The SUN asked Durban South Business Forum vice-president, Andre Beetge if there is a light at the end of the dark tunnel.

“Experts predict it will take several years for not only a developing country like ours to recover, but developed countries in a similar predicament, although with more available capital. Expectation is that some of this capital could make its way into our economy, as being part of the global village, the entire world needs to recover the effects of the pandemic.”

More importantly for the village, will local small businesses be able to recover?

“They are more likely to recover faster, possibly even thrive, as opposed to those in the medium sector where there are more overheads to the point where many have just not been able to ride out the wave. My advice to a small business owner is go back to basics, with an exceptional focus on customer service, coupled with safety measures. People have become obsessed with safety and those who can provide products in line with expectation best, will certainly attract more attention.”

READ ALSO: Clarity over lockdown regulations

Asked how will owning a business or doing business differ when everything is back to normal, Beetge admitted that as South Africa has not experienced anything in comparison to Europe, which is the economic hub of the world, it is a difficult query to answer.

“History, although due to different circumstances, paints a picture of economic dips and spikes in 2008 and then again in 2013 – the economic cycle fluctuation in seven to eight-year periods. Life as we knew it changed in the blink of an eye. We are currently living history and likewise so the way that we do business.

“We have been given a serious wake-up call and a reminder that the way we used to do things in the past were not necessarily the worst Technology almost surpassed human interaction and the result is that now people are, for the moment, being more courteous, looking each other in the eye, although from a distance, and dealing with those they know better. Negative perceptions and selfishness at the expense of others’ safety, are currently the big enemies.”

And what businesses does he think have more chance of surviving?

“One would be tempted to say the liquor industry, but that’s really a tongue in cheek remark. The food industry will continue to thrive, however, with a possibly increased focus on the daily staple foods, as opposed to high-end luxuries. With money being tight across all sectors, it would appear food, shelter and personal (hygienic) safety are top priorities.

Undoubtedly the effects of lockdown will move us to a more of a work-from-home future, as with government actually encouraging the same, there would also have to be relaxation on certain restrictions, which could in turn see a boom in the home-based industry.

READ ALSO: Kingsway Hospital manager shares feelings on closure

The downside being that there could be increased noise levels in residential areas and as for landlords, they could experience a reduction in tenants, thus forcing consideration towards more affordable retail space, the effect of which could see a downward trend in consumer pricing. For the immediate future, pricing will definitely be a considering factor.”

He said of serious concern is those whose investments were devastated by the collapse of the markets. “What was supposed to be retirement or saving for a rainy day, suddenly became a necessity to merely survive. The long-term effect could be devastating and it is recommended that those who are able to afford saving or reinvest do so ASAP, as the investment market is not currently booming with reported return of up to 27% in certain sectors. The world stock exchanges have already recovered and, although the JSE is currently slightly behind, all indications are positive.

“With the inflation rate of 3.5% being at its lowest point since the 1950s, one would expect either a downward spiral or at least stability in the process of consumer items. In reality, supply and demand, however, dictate retail pricing and this has been observed in the ever-increasing prices of the booming sanitation and personal protection markets.

Opportunists are also capitalising on the continued restrictions of certain products that favour the black market economy, yet often at devastating effect to disposable income towards the regular market economy.”

Long-awaited income-boosting projects for the South like the Illovo Automotive Supplier Park will have to take a backseat, as available expenditure would have to now be re-evaluated.

Beetge believes now is the time for South Africans to start producing more of our own products. “We have become far to reliant on the Asian market dictating to us what we should need, as opposed to what we actually need. Our continued exposure to these quick and cheap markets making products available that we don’t need to have, but rather want to have has made us forget that not long ago, we were able to supply our own needs through local manufacture. The time to support local has never been more important than now.

“Tourism plays a vital role in sustaining our local economy. As much as visitors might frustrate us with their persistent noise, late night parties, over crowding our parkings, beaches, shopping centres or whatever else disturbs our normal routine, they remain the lifeblood of our economy.

Not only the economic sector, but the whole Toti community should rally behind any form of tourism initiatives, not limited to monetary contributions, but any that could better prepare us to enhance our area as a destination of choice if and when the situation so allows. And of course support local.”

DID YOU KNOW?
Click on the words highlighted in red to read more on this and related topics.
To receive news links via WhatsApp or Telegram, send an invite to 061 694 6047
The South Coast Sun is also on Facebook, Twitter, Instagram and Pinterest – why not join us there?

Do you have more information pertaining to this story?
Feel free to let us know by commenting on our Facebook page or you can contact our newsroom on 031 903 2341 and speak to a journalist.

To receive our free newsletter click here

(Comments posted on this issue may be used for publication in the Sun)