Progressive Africa volume 2

African Debate AGN Global Network Date: 25 April 2020 Place: The Official Whatsapp group of Aido Global Network. Participants: participants to the discussion are AIDO members and they are debating in their personal capacities.

This forms a summary of the discussion/debate that occurred as mentioned above. These are views expressed by members of AIDO Global Network in their own capacities. These notes do not follow any particular order but merely follows the discussion as it took place. These notes are not altered and therefor display the actual debates in the Whatsapp group. The names of the debate participants are at the conclusion of this document.

F.R Jones posted: I attended a Webinar by IMF, this morning. Key takeaways are as follows. General Outlook
1.Africa seems to be supressing the curve so far. It looks like it might escape the worst of the pandemic, but will have to be cautious about it.

2. Possibility of W Curve – i.e. There is a good chance of re-occurrence of the virus, which could see a possibility of regular lockdowns. Businesses need to plan accordingly.

3. Capital will look for countries that are less battered. Western economies are badly battered while countries in Africa, etc are not so battered. Global Capital could flow there, if we can act efficiently to pull it.

4. Emotional and Economic backlash against China is expected. Already, countries and companies are working on strategy to pivot away from China as part of their supply chains. Japan Government has announced packages for its companies bringing back manufacturing home. Businesses need to keep this in mind and work accordingly.

Discretionary Spending

1. For individuals, health and safety will become No.1 on their agenda from the 3rd of 4th place. There will be more spending on this area and reduction in other discretionary spends.

2. The ticket size of spending will drop for a while. People will spend on cheaper goods than on expensive goods, or delay spending for a while.

3. Extreme acceleration in digital economy. I.e. Home education, home entertainment, home fitness, etc

4. Loyalty shock. People will be less loyal towards brands as other aspects will take over. People will switch brands faster due to various other concerns like safety, etc.

5. General Trust deficit. There will be trust deficit amongst stakeholders like vendors, customers, employees, borrowers, banks, etc. Banks will have trust deficit with borrowers, companies will have trust deficit with suppliers, etc.

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