Ghana and Nigeria brace for the economic nightmare ahead, even as the region’s billionaires, entrepreneurs and innovators chip in for the fight against Covid-19.



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The Labadi Beach Hotel, set amidst landscaped tropical gardens in the heart of Accra, is unusually quiet on the Tuesday morning FORBES AFRICA visits in mid-March. The usual bustle of the morning breakfast buffet frequented by the city’s elite has all but disappeared, and in its place, an air of uncertainty about the future of one of Accra’s longest-running hotels, at least in the interim.



You cannnot enter without going through the new mandatory protocols in place: hand-sanitizers, individual temperature screenings and metal detectors.



“Unfortunately, we are no longer accepting outside guests and the hotel will be closing until further notice,” says the bartender. The usually-packed lobby has only two in-house guests already scheduled to leave the hotel.



Ghana’s thriving hospitality industry was one of the first victims of the outbreak of the Covid-19 pandemic, once President Nana Akufo-Addo banned mass gatherings and ordered the closure of airports. Hotels in the Greater Accra region closed down, sending thousands of workers home, and leaving management to contend with the challenge of paying salaries and taxes sans customers.



It’s in stark contrast to 2019, when Ghana’s international PR campaign, The Year of Return 2019, brought in an additional 237,000 visitors representing an estimated $1.9 billion into the economy, according to Barbara Oteng Gyasi, Ghana’s Minister of Tourism. Most of the money was spent on the hospitality sector with the average spend per tourist estimated to be around $2,590.



And now, with the slow demise of the hospitality sector, a host of ancillary services are also feeling the pinch. Rashad McCrorey is the founder of Africa Cross Culture, a travel company that helps African-Americans reconnect to their roots by visiting countries on the African continent. He was one of those seduced by Ghana’s call to reconnect with the continent on the 400th anniversary of slaves landing in the United States, and so he arrived in Ghana with the goal of promoting his tourism business.



Ghana imposed a lockdown on movement in its two largest cities, Accra and Kumasi, from March 30, and effected a travel ban on people traveling from countries overseas with cases of Covid-19. In addition, the United States (US) State Department advised its citizens to return home immediately or face staying abroad for an indefinite period. “I was shocked. My initial thoughts were fear and panic. I was seeing all the development in the US, and New York has the highest amount of cases. The National Guard and US army had been deployed in the streets and my home was basically ground zero for the deadly virus,” says McCrorey.



After weighing his options, he made the decision to stay on in Ghana instead of returning home.



“At the time, ticket prices surged from $500 to about $6,000 and I was scared of exposing myself more to the virus. Also, going back meant that I risked spending the pre-paid money of my customers and that was also not ideal,” says McCrorey.



Gregory Lamptey, the founder of Black Cab, a logistics company providing transportation services to customers and businesses in Accra, is facing a similar conundrum. “Business has all but stopped since the lockdown in Ghana last week. I do not think we will be able to make it to the end of the year and I have had to start looking at other alternatives to make ends meet,” he rues.



In Ghana, there were 4,700 confirmed cases with 22 deaths as of May 12. Ghana has undertaken 160,501 tests since the outbreak as of this date, a figure the president lauded as the highest per million people than any other country in Africa.



But as elsewhere on the continent, it’s the workers in the informal sector that are most at risk.



“They face a very difficult choice: keep going to work and risk contracting or spreading the virus, or stay at home and risk their family starving,” observes Nana Kwame Bediako, the founder of Kwarleyz Group, an umbrella company which encompasses Wonda World Estates and Petronia City Development that has designed and developed over 500 residential and retail units in Ghana. The company is currently negotiating to pledge one of its premier properties, Number 1 Oxford Street, five-star luxury serviced apartments, as a quarantine location, isolation center, temporary hospital or safe place for nurses, doctors and other medical personnel should the need arise.



“This is the most challenging economic downturn globally,” says Franklin Cudjoe, President of Imani-Africa, a leading think-tank in Ghana. “This is going to affect businesses all over the world in a much more significant way than ever before.”



This was perhaps the rationale behind Ghana easing its lockdown restrictions in less than a month to allow people to return to work. There is, however, still a ban on public gatherings and a national requirement for face masks to be worn by everyone.



But Kwame Ofori, a financial analyst with the Ghana Stock Exchange, is currently on the fence on how the Ghanaian economy will recover.



“Everything depends on how long this period lasts, but if it goes on for a long time, it’s going to be a big financial and economic crisis for Ghana. Most businesses in Ghana cannot realistically afford a lockdown,” avers Ofori.



It is within this context that Ken Ofori-Atta, Ghana’s Minister of Finance, said in a Financial Times interview that Africa has reached a “break the glass moment”.



Through a partnership between the ministers of finance and economic planning on March 30, a series of strategies were outlined, which includes fiscal measures to mitigate the impact of the coronavirus pandemic including the Coronavirus Alleviation Programme. Consequently, the government estimates of the immediate impact of Covid-19 is a decline in GDP growth from a projected 6.8% to 2.6%.



Along the pristine coastline of the Labadi Beach, sits a five-storey apartment complex boasting beautiful ocean views, underground parking for tenants, a gymnasium, two restaurants and a supermarket. The developer, Kofi Appiah, is a British-Ghanaian architect who relocated to Ghana two years ago.



“I started building and selling a couple of years ago in Ghana and things were great. Right now, we cannot even get anyone to come and look at our developments. I have had to lay off the entire sales team and we are now depending on social media to attract buyers,” says Appiah.



“Buyers need to imagine themselves living in the apartments and this is very difficult to imagine with just videos and pictures on Instagram. I don’t imagine we are going to be selling any of these units at least for the next six months.”



About 40 minutes from Ghana, Nigeria, Africa’s most populous country, is also battening down the hatches. With plunging oil prices caused by the price war between Russia and Saudi Arabia, and the novel coronavirus outbreak, Nigeria is in a much more precarious economic position.



Nigerian stocks have gone through weeks of losses with the fall in oil prices from $57 to $30 per barrel subsequently leading to an increase in external debt and a depreciating currency. This year, Nigeria’s budget stood at $37 billion based on oil prices staying at $57 per barrel. With the sharp decline in these prices, Nigeria cannot currently fund its budget.



“Nigeria might very well be in trouble here. Even though Parliament recently granted President Muhammadu Buhari’s request for $22.7 billion in foreign borrowing, the significant fall in global oil prices will erode any boost from this stimulus. Many analysts are of the opinion that the Nigerian naira has deteriorated markedly and remains set for a sharp fall this year if current conditions persist,” says Ofori.



One of the major side-effects of this in the country is a US dollar shortage that is creeping up with the informal dollar dealers on the black market. Nigeria’s official exchange rate which is fixed by the central bank, has stayed at around N360 to the dollar since the country emerged out of recession in 2017. Today, the rate is N445.



“Everyone is currently hunting for dollars and we don’t have any more. Even the agents we get them from are not releasing the dollars because they believe the rates will go even higher so this is becoming a big problem,” says Audu, a black-market agent.



The coronavirus is simply adding insult to injury for Nigeria’s economic woes. As of May 12, there are over 5,000 confirmed cases of Covid-19 in Nigeria. The country issued a nationwide lockdown between March and April but similar to Ghana, has eased restrictions on movement to enable its 200 million population to return to work while practising social distancing.



Billionaire Jack Ma, founder of Alibaba, announced a donation of essential medical supplies to help fight the pandemic. Along with making global headlines, his actions have also galvanized other private businesses and Nigeria’s most successful entrepreneurs to utilize their assets and funds for social good amid the devastating outbreak.



Tony Elumelu, Chairman of Heirs Holding and United Bank for Africa (UBA), announced N5 billion ($12.8 million), through the UBA foundation, to kick-start a comprehensive pan-African response to the fight against the coronavirus. The donation is aimed at providing significant support to Nigeria and other African countries through the provision of critical care facilities and materials.



“I believe we all have a part to play in this global crisis and I hope that this is the time the private sector and government work together to help the most vulnerable people to battle the virus. We need to act fast and we commend the work the government is already doing to ensure we stem the spread of this global pandemic,” says Elumelu.



For African countries, this virus is expected to overwhelm an already insufficient healthcare system and reverse the economic growth that many countries have been experiencing in recent years. The United Nations Economic Commission for Africa (UNECA) has revised Africa’s growth, falling from 3.2% to 2%.



“We need to deal with the human crisis first before we can begin to address the economic impact of the virus on us. I am confident we will pull through this crisis just like we have in several other adverse situations that have come before,” says Oscar Onyema, CEO of the Nigerian Stock Exchange.



Nigeria’s richest woman, Folorunso Alakija, is also stepping in to help fight the pandemic. Through her Famfa Oil, one of the leading indigenous exploration and oil production companies in Nigeria, she has pledged N1 billion ($2.56 million) to support Nigeria’s fight against Covid-19.



“These are truly difficult times for us. As the world rallies to deal with the health security, economic and social implications of the coronavirus, it is clear we feel the effects more deeply than most of the developed world. Managing a crisis of this magnitude means that the strength of our response will determine our ability to weather the storm but I believe with God, nothing is impossible,” says Alakija.



“Millions of Nigerians are under 30 and live from hand-to-mouth and quite frankly, cannot afford a lockdown. They depend on going out each day to earn a living on the streets as well as buying food from crowded markets. If this lockdown continues, there could be a mass unrest which could further cripple Nigeria,” says Idrisu Bello, a Nigerian economist.



President Buhari in an address in March ordered financial intervention schemes to be rolled out for the most vulnerable.



“This represents about 10,695,360 individuals in 35 states across the country as the poorest and most vulnerable Nigerians,” says Bello.



The Aliko Dangote Foundation (ADF) has also pledged N200 million ($516,000) to support the current effort of the Nigerian government to fight the disease.



Zouera Youssoufou, Managing Director and CEO of ADF, says the donation is part of the foundation’s cardinal objective of partnering with governments to combat the disease.



“The Dangote Foundation has been at the forefront of helping Nigerians fight against diseases and providing economic development for Nigeria. At this very difficult time, we are committed to providing the much-needed support to help the government provide help to millions of vulnerable Nigerians,” says Youssoufou.



As corona cases continue to rise, Nigeria, along with other African countries, has also shut its airports and air travel.



The International Air Transport Association (IATA)&nbsp; estimates that around 330,000 jobs and $1.2 billion are at stake in Ethiopia’s economy, around 190,000 jobs and $3.8 billion in South Africa’s economy, around 138,000 jobs and $1.1 billion to Kenya’s economy and 91,000 jobs in Nigeria with $650 million lost.



Then there is the worrying problem of medical care.



Lagos-based air ambulance and offshore medical solutions contractor Flying Doctors Nigeria, founded and run by entrepreneur Ola Brown, is calling this a true pandemic.



“Africa has to be cautious because of the challenges we have in our healthcare. There are significant deficits and a huge lack of medical and financial resources which means we face an unprecedented time ahead,” says Brown.



However, in spite of the insurmountable challenges, a number of local entrepreneurs are providing innovative solutions to help the government in its fight against the disease.



Accra-based company DTRT Apparel is gearing up to manufacture a range of personal protective equipment (PPEs) to supply Africa and the rest of the world. DTRT supplies products to major US and EU-based brands via a global network spanning three continents. The company employs over 2,000 people in West Africa, procures textiles from Asia and exports primarily to the EU and US markets.



“Now is the time for companies all over Africa to work together for the greater good of the continent. We want to do our part to ensure we are contributing to the fight against this pandemic by providing resources to the healthcare system,” says Salma Salifu, Managing Director of DTRT.



In Nigeria, Bamigbose Adams, a furniture-maker, has begun turning old metal drums into custom hand-washing basins to be sold in Lagos.



Around 157 million Nigerians lack access to proper hand-washing facilities, according to a 2018 report by WaterAid Nigeria and Adams saw this as an opportunity to innovate to survive.



“Business has been slow for a while so I was looking at different ways of making money to feed my family. I got the idea to use the drum from my local area where some people use them to store water. I created the first drum and it worked and then the publicity began to create a demand,” says Adams.



His main clients are local businesses that want a temporary solution to help combat the spread of the virus.



As governments rally to find solutions to help their economies, it is very clear that the way we live and do business will not be the same. Ever again.

GHANA-HEALTH-VIRUS

Fast Virus. Slow Growth: Ghana And Nigeria Brace For The Economic Nightmare Ahead

The Nigerian entrepreneur and banker, a former FORBES AFRICA cover star, has founded a think tank to catalyze his country’s response to the coronavirus pandemic.



It was not until February that Atedo Peterside, Founder of Stanbic IBTC Bank and Chairman of Anap Jets and Anap Foundation, began to take the global coronavirus pandemic seriously. Until then, he had received several reports from his Vice President at the Anap Foundation, a non-profit organization committed to promoting good governance in Nigeria, but like many others, believed this was a foreign issue that would not make its way to Africa.



He is of the view that Nigeria should have acted sooner in its Covid-19 response.



“This is a race against time. If Nigeria had stopped international flights coming into the country maybe two weeks earlier than we did, it would have been 520 people who would not have entered the country,” says Peterside.



“There is a saying that when Nigeria sneezes, the rest of Africa catches a cold and this is true. With falling oil prices coupled with the Covid-19 pandemic, we will be lucky if we have anything close to the 2008 financial meltdown,” says Franklin Cudjoe, founder of the IMANI Center for Policy and Education.



To curb the spread of Covid-19, the Nigerian government imposed lockdowns and curfews but the restrictions were short-lived as it put pressure on many of the country’s 200 million inhabitants, who were struggling to survive.



“I think it is important to emphasize that a complete lockdown is not sustainable in Nigeria. I believe we are dealing with a marathon and not sprint. If it is a marathon, a complete lockdown is not sustainable because people will not cooperate after a while. They will die of hunger,” says Peterside.



According to him, the science suggests that the fight against the coronavirus may last between 15 to 18 months and the only way to control the spread is by ramping up testing.



“The Covid-19 fight in Nigeria is a campaign to get people to change their behavior and you cannot achieve that in one day or one week. It is something that has to be sustained. There is a reason why the governor of New York is on TV every day. In most of the countries where this has been successful, there has been effective communication and it is not enough to just come out to threaten people with a full lockdown,” says Peterside.



That need to change behavior and provide a solution that will help contain the spread of the virus is one of the reasons behind the Anap Foundation Covid-19 Think Tank.



“We established the Anap Foundation Covid-19 Think Tank on the 22 of March 2020, as a catalyst to help Nigeria respond to the coronavirus disease. The Think Tank is comprised of 18 members drawn from across the six geopolitical zones and the diaspora (US and Germany),” says Peterside.



Collectively, the Think Tank has a wealth of expertise in medicine and logistics amongst other areas of specialization that Peterside hopes will aid the government’s fight in testing and best practices to tackle the pandemic.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">&#8220;The Covid-19 fight in Nigeria is a campaign to get people to change their behavior and you cannot achieve that in one day or one week. It is something that has to be sustained.&#8221;</blockquote>



“Lagos cannot feed itself so you can never have a complete lockdown. The reason why a complete lockdown worked in China is because the Chinese government can deliver everybody’s needs to their door. If you cannot do this, then we can’t have a complete lockdown. This means we need Think Tanks like these to come up with other innovative solutions that are specific to our individual needs,” says Peterside.



One of the areas where the Think Tank is hoping to make an impact is to act as a mediator between the government and private sector to resolve certain key issues that will aid in its fight against the pandemic.



“We entered this battle without having enough doctors and yet it seemed as if our doctors were rejecting offers of health from Chinese doctors. We have one of the lowest doctor-to-patients ratio for any large country in the world. Italy, a country with a very large doctor-to-patient ratio, still took doctors from Cuba and China to help in its fight and Nigeria must also accept help if it is given to us,” avers Peterside.



A key goal for the Think Tank is to advocate the adoption of all health measures and behaviors necessary to ensure that Nigeria keeps the infection rate down, a feat that may prove difficult given the many infrastructural and health challenges facing many countries in Africa.

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Atedo Peterside On Covid-19: ‘Nigeria Must Also Accept Help If It Is Given To Us’

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Ethiopia&#8217;s first female president, Sahle-Work Zewde, spoke to FORBES AFRICA&#8217;s Managing Editor, Renuka Methil, on the country&#8217;s plans to combat Covid-19 and resuscitate one of the fastest growing economies in Africa.



Zewde, listed as one of Africa’s ‘50 Most Powerful Women’ in the March issue of FORBES AFRICA, says while the virus didn&#8217;t warrant the nation going into complete lockdown, it has hit some sectors of the East African country&#8217;s economy, affecting its GDP growth. 



In early May, the government announced a package to bolster healthcare spending, food distribution, rebuild SMMEs, etc to support the country&#8217;s most vulnerable. Zewde also shares her views on women in the front lines, as well as reimagining education.

Renu and Zewde

Ethiopia’s First Female President On Plans To Combat Covid-19 And Resuscitate The Economy

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Covid-19: Beyond The Lockdown: What Big Business Is Doing Now

Coronavirus has affected everyone in the UK, but not everyone has been affected in the same way.



This is starkly apparent when it comes to money. Eight million people are on furlough, receiving 80% of their normal pay from the government’s job retention scheme, while thousands more have been made redundant.



Many self-employed individuals and business owners are likewise under extreme financial pressure because of the lockdown.



But for others, the coronavirus has been a very different experience. Millions have been able to work from home on full pay but with significantly reduced outgoings – no commuting, no expensive coffees or sandwich shop lunches, no dry cleaning bills.



With shopping and entertainment options severely curtailed, general spending has dropping dramatically. According to pollsters YouGov, 1 in 6 people have been able to add to their savings, while 1 in 10 have managed to pay of their debts.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="960" height="480" src="https://www.forbesafrica.com/wp-content/uploads/2020/05/960x0-1.jpg" alt="" class="wp-image-45517" srcset="https://cms.forbesafrica.com/wp-content/uploads/2020/05/960x0-1.jpg 960w, https://cms.forbesafrica.com/wp-content/uploads/2020/05/960x0-1-300x150.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2020/05/960x0-1-600x300.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2020/05/960x0-1-768x384.jpg 768w" sizes="(max-width: 960px) 100vw, 960px" /><figcaption>44% of respondents feel less secure about their financial situation   YOUGOV</figcaption></figure>



Perhaps not surprisingly, white collar professionals have been better able to improve their finances. Those in manual occupations are more likely to have continued going into work rather than working from home and enjoying the associated cost savings.



Worryingly, YouGov found that 36% of Britons have dipped into their savings to meet their bills during the pandemic, with 44% feeling less financially secure as a result of the crisis.



Additionally, 16% have reported that their debts have gone up, while over a third (35%) have reported that their incomes have decreased.



Government intervention



The financial situation for many people would undoubtedly have been worse had it not been for swift intervention by the government on an unprecedented scale.



The job retention scheme, originally due to run until the end of July, has been extended until the end of October – although from August employers will be expected to contribute towards the cost.



Businesses are also able to access a range of loans underwritten in full or in part by the government, including the&nbsp;<a href="https://www.forbes.com/sites/advisoruk/2020/05/04/how-to-contact-your-bank-for-bounce-back-loan-details/#11cce61b1f87">Bounce Back Loans Scheme</a>&nbsp;and the&nbsp;<a href="https://www.forbes.com/sites/advisoruk/2020/05/19/government-increases-loans-limit-refunds-sick-pay-as-jobs-data-triggers-gloomy-forecasts/#734d76484e4e">Coronavirus Large Business Interruption Loan Scheme</a>, where the maximum loan size was increased from £50 million to £200 million earlier this week.



Additional funding has also been made available to large corporations by the Bank of England.



Other government measures include the&nbsp;<a href="https://www.forbes.com/sites/advisoruk/2020/05/13/income-support-scheme-for-uk-self-employed-goes-live/#25de46e032b1">Self Employment Income Support Scheme</a>. However, at present, this only provides payments to cover the months of March, April and May, and there has been no suggestion that it will be extended in the same way as the job retention scheme.



Mortgage payments holiday



The government is planning to extend its&nbsp;<a href="https://www.forbes.com/sites/advisoruk/2020/05/22/fca-proposes-to-extend-access-to-mortgage-payment-holidays/#299ed5084c47">mortgage payments holiday initiative,</a>&nbsp;whereby banks and building societies are instructed to allow borrowers to miss repayments on the understanding they will make up the accrued capital and interest debt over the rest of their loan.



The scheme was originally due to run until 20 June 2020, but under propoals expected to be rubber-stamped this week, those who have already taken payment holidays will be able to apply for an extension of up to three months, while those who have not yet applied will be able to do so until 31 October 2020.



UK Finance, which represents lenders, says 1.82 million mortgages were subject to a payments holiday as of 20 May – roughly 1 in 6 of all mortgages.



The three-month payment holiday for credit cards and other credit-based products is under active review – we may hear more on that from the Financial Conduct Authority in the coming days.



Impact on motoring



One area of the economy that has seen a huge contraction is motoring, from car sales to fuel consumption.



The number of new car registrations collapsed in April, the first full month of the lockdown, falling 97.3% year on year, from 161,064 in 2019 to 4,321 in 2020.



The restrictions imposed by the lockdown inevitably led to most people driving less or not at all, which had a knock-on effect on sales of petrol. The reduction in supermarket pump prices to below £1 a litre earlier in May was a clear indicator that supply was well ahead of demand.



Research from Lloyds Bank suggests fuel spending in April was down 58%, while day-to-day commuting expenditure was 86% lower.



Online car retailer CarWow reckons more than two fifths of Britons have spent less than £10 on petrol during the last month, with a third purchasing no petrol at all.



Vix Leyton at CarWow, said: “After more than two months in lockdown, the idea of a regular petrol station top-up no doubt seems like a distant memory to the millions of British motorists who’ve not needed fuel &#8211; or perhaps even driven &#8211;&nbsp;for weeks.”



With some of the lockdown restrictions beginning to easy, Leyton suggests now might be a time to fill up: “For those wanting to take advantage of low pump prices, now is arguably the time to do so &#8211; providing you can do so safely &#8211;&nbsp;before lockdown measures are eased even further and long queues begin forming.”



Bike use &#8211; and thefts &#8211; on the up



Another effect of the lockdown has been an rise in the number of people cycling for their permitted daily exercise, but a consequence of this has been an increase in the number of bicycles being stolen.



David Fowkes of insurer Admiral said: “Several cycle retailers have reported that they’ve sold out of many models. We’ve seen a 46% increase in the number of bicycle theft claims over the last seven weeks compared with the same period in 2019. That’s incredible when you consider that overall theft claims have fallen during the lockdown as people have stayed at home, deterring burglars.”



Admiral won plaudits in April when it became the first UK insurer to give&nbsp;<a href="https://www.forbes.com/sites/advisoruk/2020/04/21/uk-car-insurer-admiral-announces-customers-refunds-and-support-for-key-workers/#d4367ac6af35">a cash rebate (£25)</a>&nbsp;to all its car insurance policyholders. Only LV has made a similar pro-active gesture, leading the Financial Conduct Authority to impose a&nbsp;<a href="https://www.forbes.com/sites/advisoruk/2020/05/14/fca-unveils-measures-to-help-insurance-policyholders-hit-by-covid-19/#76d28bd731e3">package of measures</a>&nbsp;that require insurance companies to provide support to customers in financial distress as a result of the pandemic.



Energy bills



With more people working from home and staying at home in line with government stipulations, there has been an increase in domestic energy consumption, with comparison site Compare the Market suggesting annual bills could rise by £400.



However, global demand for energy has reduced sharply, with factories and offices mothballed and travel services limited.



Stephen Murray, energy spokesperson at MoneySuperMarket, says cheaper domestic energy deals are available as a result:&nbsp;“A cocktail of factors have come together to make this is a great time to switch supplier.&nbsp;



“There’s been a major drop in the wholesale element of domestic energy prices of nearly 40%- something partly explained by oversupply in the market due to declining business energy usage as a result of the coronavirus crisis.”



As economies gradually emerge from lockdown and energy demand increases, there is likely to be an impact on prices in the opposite direction.



Tips to keep your finances in shape



Here’s a to-do list for anyone wanting to save money and get their finances in the best possible shape:



<ul><li>Compare energy prices:&nbsp;use a comparison site to see if you can save money by switching. If you’ve never switched or haven’t switched for two or three years, there are likely to be cheap fixed rate deals available</li><li>Talk to your insurer about saving money:&nbsp;the regulator has told car and home insurance companies to help customer whose finances have been harmed by coronavirus, but it’s up to you to contact them to discuss the options, such as reducing the estimated annual mileage on your car insurance and getting a premium refund</li><li>Don’t automatically renew insurance:&nbsp;whenever a car or home insurance policy comes up for renewal, run a quote on a comparison site to see if there’s a better deal out there</li><li>Get the best broadband deal:&nbsp;check you’re on the best deal, especially if you’re working from home or using streaming services more than usual. You need the best combination of speed, capacity, reliability and price. See if your existing service provider can improve its offer</li><li>Talk to your lender:&nbsp;if you have debt, such as a mortgage, personal loan, credit card balance or car finance, and you are struggling to meet your repayments, talk to your lender to see what options are open to you. Don’t be tempted simply to stop making payments as this will have a long-term effect on your financial record.</li></ul>



If you are in financial distress as a result of the pandemic, or it has made your situation worse, contact a debt charity such as <a rel="noreferrer noopener" href="https://www.nationaldebtline.org/" target="_blank">National Debtline</a> or <a rel="noreferrer noopener" href="https://www.stepchange.org/" target="_blank">Stepchange</a> for advice and support.



&#8211;<a href="https://www.forbes.com/sites/kevinpratt/">Kevin Pratt</a>, Forbes Staff, <a href="https://www.forbes.com/sites/advisoruk/">Advisor UK</a>



Contributor Group, <a href="https://www.forbes.com/personal-finance">Personal Finance</a>

Piggy bank, laptop, purse with money, coffee cup on wooden table top.

Finances And Coronavirus: Threats And Opportunities In Lockdown Era

Last year, Bill Gates named his 10 breakthrough technologies for the year. Among the technological developments he outlined were robot dexterity, new-wave nuclear power, customized cancer vaccines and the cow-free burger. It was the first time that the list, usually compiled by MIT Technology Review, was created by a guest editor. It is no wonder that Gates rightly predicted that home computers and the internet would infiltrate much of our lives. Yet, when I went through this list, it was not necessarily universal. Many of these breakthrough technologies made sense through Western lenses. We have to ask, which of these breakthrough technologies will have the most significant impact on the African continent?



Perhaps the most pressing issue for Africa now is agriculture. Climate change has had a devastating impact on the agriculture sector, which is particularly concerning when you consider that most African economies still heavily depend on it. A study by McKinsey &amp; Company found that more than 60% of the population of sub-Saharan Africa is smallholder farmers, and about 23% of sub-Saharan Africa’s gross domestic product (GDP) comes from agriculture. Yet, increases in temperatures, changes in precipitation patterns and extreme weather events not only disrupt entire industries but reduce food availability and impacts food quality. This, of course, is coupled with the fastest-rising population, which places more strain on resources.



We have already observed in the last few years how devastating a drought can be. South Africa has become a significant food importer, while Kenya and Zimbabwe are on the verge of starvation. This has seen the regional and national economic growth take a severe knock. Yet, as the United Nations put it, “the continent has enormous potential, not only to feed itself and eliminate hunger and food insecurity but also be a major player in global food markets.” So how do we go about this? I would argue that tapping into the technologies of the fourth industrial revolution (4IR) does not just serve as a way of revitalizing the agricultural sector but also realizing its potential. As the American financier Bernard Baruch once put it: “Agriculture is the greatest and fundamentally the most important of our industries. The cities are but the branches of the tree of national life, the roots of which go deep into the land. We all flourish or decline with the farmer.”



I have just bought a farm and have been looking at ways in which artificial intelligence (AI) can make farming more efficient. Farmers can tap into AI to combat disease and pests, which have been made worse by climate change and pesticide use. Drones and other robots equipped with computer vision can collect data points from the farms’ existing crops. If you were to ask me to spell out some breakthrough technologies, many of them would be inextricably linked with the agricultural sector.



For instance, it is estimated that humans would need to plant over 1.2 trillion trees to combat climate change. Here, we could use AI to automate this process.



Airlitix is a South African AI software that is currently being used in drones to automate greenhouse management processes. We could take this a step further. Airlitix can collect temperature, humidity, and carbon dioxide data as well as analyse soil and crop health. 



Elsewhere, similar technology has been adopted. The Third Eye project in Kenya uses near-infrared cameras mounted on drones to survey and diagnose the plants for pests and diseases, water stress and nutrient deficiencies. This requires a combination of historical data and the use of AI. Last year, IBM developed an AI-powered app to test the quality of their soil and water on location, in real-time. The AgroPad is a technology that can rapidly perform chemical analysis of water and soil samples. In California, Ceres Imaging has mapped fields using images of farms, which are analysed using AI to ascertain whether crops are getting enough water. This technology helps farmers decide when to plant, water, spray and harvest their crops.



This conversation crops up as we scrutinize what it means to have a green economy. The 4IR does not merely provide tools for efficiency, but it presents a unique opportunity to interrogate how we can transform the industry as our natural environment deteriorates.



To a large extent, we underestimate the importance of the agricultural sector. Yet, without it, we would not have food security, we would see our economies crumble and there would be untold job losses.



-Tshilidzi Marwala

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Op-Ed: How To Be A Major Player In Global Food Markets

It was
recently reported by ratings agency S&amp;P Global that the coronavirus
outbreak has plunged the world into a recession. On the home front, a sudden
surge in COVID-19 cases in the country resulted in the President of South
Africa imposing a 21-day country-wide lockdown, starting from Thursday, 26 March
2020. Combine this with the fact that the country also recently announced to be
in its third recession since 1994 it’s safe to say that many businesses are
beginning to feel the effects of the pandemic.



The impact of the coronavirus on small
businesses is likely to be substantial, especially for local businesses who are
already feeling the pinch, as financial and market uncertainty can easily
translate into an emotional crisis that can overwhelm our systems. However,
help is on the way as the Department of Small Business Development announced
that a Debt Relief Fund has been set up to assist small, medium and micro
enterprises impacted by COVID-19.



While this
relief is welcomed, it is still vital for leaders to step up. The
world has been through crises before, but during these significantly difficult
times, the economic impact may be as severe or possibly worse. As such, those
in leadership positions must use past crises as examples and apply what was
learnt to keep the country on course and minimise the impact of the pandemic.



Karl Westvig,
CEO at<a href="http://www.retailcapital.co.za/" target="_blank" rel="noreferrer noopener"> </a><a href="http://www.retailcapital.co.za/" target="_blank" rel="noreferrer noopener">Retail Capital</a>, has pinpointed the visible areas that are affected
and outlined a few pointers to help small business owners weather the storm.



Liquidity



The first
victim of panic is liquidity – banks, asset managers and funders stop lending.
When they cannot calculate the potential risk, they will not lend.&nbsp; Therefore,
it is critical to shore up cash by drawing down on available facilities and
suspending any unnecessary investments. Reduce expenses and manage cash flow
daily.



Get Your Best
Team on It



When a
business is growing, we tend to shift our best people into roles linked to
growth and new initiatives. In a crisis, these people need to move into the
highest priority roles. These roles would include collecting from customers,
raising facilities or engaging key clients.



Morale and
Communication



People need
leadership. This would include authentic and regular communication about the
situation, what the business requires and how this will be achieved. You can’t
control the circumstances, but you can control the response and actions. This
will create more certainty. 



Hands-on



Events evolve
quickly and every day is critical. Leaders must be hands-on. They have to be in
touch with customers, suppliers, funders and staff. They have to collect data
on everything – the mood, the financial metrics, even customer stories. Some of
the best information is anecdotal, not just big data. 



Policies



It’s tough to
lead when you don’t understand all the underlying levers. These can change in a
crisis. What worked in a stable environment can go out of the window in an
instant. The best approach is to start again, listen to customers and then
adapt your policies within your framework.



“This is not a manual on how to handle the current crisis, but hopefully, the points mentioned above can add to what you are already doing. In simple terms, it is easy to be overwhelmed, so tackle a few things very quickly and with commitment. This will create certainty and lead to action. The alternative is paralysis,” concludes Westvig.

Businessman holds SMEs Small to Medium Enterprises.

5 Tips For SMEs To Counter The Covid-19 Crisis

Credit ratings agency Moody&#8217;s has downgraded South Africa to junk status on day 2 of the country&#8217;s nationwide lockdown. 



President Cyril Ramaphosa&#8217;s economic reform plans have been slowed by the coronavirus pandemic. The downgrade adds salt to injury for South Africa as it currently struggles with a recession it slipped into in early March. 



&#8220;The unprecedented deterioration in the global economic outlook caused by the rapid spread of the coronavirus outbreak will further exacerbate South Africa’s challenges&#8221; said Moody&#8217;s.

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Moody’s Downgrades South Africa To Junk

Landmark transaction, largest Social bond transaction to date in capital markets



Abidjan, Côte d&#8217;Ivoire, 27 March 2020 &#8211; The African Development Bank (AAA) has raised an exceptional $3 billion in a three-year bond to help alleviate the economic and social impact the Covid-19 pandemic will have on livelihoods and Africa’s economies.  



The Fight Covid-19
Social bond, with a three-year maturity, garnered interest from central banks
and official institutions, bank treasuries, and asset managers including
Socially Responsible Investors, with bids exceeding $4.6 billion. This is the
largest Social Bond ever launched in international capital markets to date, and
the largest US Dollar benchmark ever issued by the Bank. It will pay an
interest rate of 0.75%. 



The African
Development Bank Group is moving to provide flexible responses aimed at
lessening the severe economic and social impact of this pandemic on its
regional member countries and Africa’s private sector.



“These
are critical times for Africa as it addresses the challenges resulting from the
Coronavirus. The African Development Bank is taking bold measures to support
African countries. This $3 billion Covid-19 bond issuance is the first part of
our comprehensive response that will soon be announced. This is indeed the
largest social bond transaction to date in capital markets. We are here for
Africa, and we will provide significant rapid support for countries,” said
Dr.&nbsp;Akinwumi Adesina,&nbsp;President of the African Development Bank Group.



The order book
for this record-breaking bond highlights the scale of investor support, which
the African Development Bank enjoys, said the arrangers.



“As the Covid-19
outbreak is dangerously threatening Africa, the African Development Bank lives
up to its huge responsibilities and deploys funds to assist and prepare the
African population, through the financing of access to health and to all other
essential goods, services and infrastructure,” said Tanguy Claquin, Head of
Sustainable Banking, Crédit Agricole CIB.



Coronavirus
cases were slow to arrive in Africa, but the virus is spreading quickly and has
infected nearly 3,000 people across 45 countries, placing strain on already
fragile health systems.&nbsp;



It is estimated
that the continent will require many billions of dollars to cushion the impact
of the disease as many countries scrambled contingency measures, including
commercial lockdowns in desperate efforts to contain it. Globally, factories
have been closed and workers sent home, disrupting supply chains, trade,
travel, and driving many economies toward recession.&nbsp;



Commenting on
the landmark transaction, George Sager, Executive Director, SSA Syndicate,
Goldman Sachs said: “In a time of unprecedented market volatility, the African
Development Bank has been able to brave the capital markets in order to secure
invaluable funding to help the efforts of the African



continent&#8217;s
fight against Covid-19. Not only that, but in the process, delivering their
largest ever USD benchmark. A truly remarkable outcome both in terms of its
purpose but also in terms of a USD financing”.



The Bank
established its Social Bond framework in 2017 and raised the equivalent of &nbsp;$2 billion through issuances denominated in
Euro and Norwegian krone. In 2018 the Bank was designated by financial markets,
‘Second most impressive social or sustainability bond issuer” at the Global
Capital SRI Awards.



“We are thankful
for the exceptional level of interest the Fight Covid-19 Social Bond has raised
across the world, as the African Development Bank moves towards lessening the
social and economic impact of the pandemic on a continent already severely constrained.
Our Social bond program enables us to highlight our strong development mandate
to the investor community, allowing them to play a part in improving the lives
of the people of Africa. This was an exceptional outcome for an exceptional
cause,” said Hassatou Diop N’Sele, Treasurer, African Development Bank.



Fight Covid-19 was allocated to central banks and official institutions (53%), bank treasuries (27%) and asset managers (20%). Final bond distribution statistics were as follows: Europe (37%), Americas (36%), Asia (17%) Africa (8%,) and Middle-East (1%).



Press Release by the African Development Bank

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What You Need To Know About AfDB’s $3 billion “Fight COVID-19” Social Bond

While discussing the measures that the government would be taking to combat COVID-19, South Africa&#8217;s president Cyril Ramaphosa said in a statement to millions of citizens watching and listening to his speech &#8220;The National Coronavirus Command Council has forced a nationwide lockdown for 21 days with effect at midnight on Thursday March 26, 2020&#8221;. 



<figure class="wp-block-embed-twitter wp-block-embed is-type-rich is-provider-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">President <a href="https://twitter.com/hashtag/Ramaphosa?src=hash&amp;ref_src=twsrc%5Etfw">#Ramaphosa</a>: The nation-wide lockdown will be enacted in terms of the Disaster Management Act and will entail the following: &#8211; From midnight on Thursday 26 March until midnight on Thursday 16 April, all South Africans will have to <a href="https://twitter.com/hashtag/stayathome?src=hash&amp;ref_src=twsrc%5Etfw">#stayathome</a>. <a href="https://twitter.com/hashtag/COVID19?src=hash&amp;ref_src=twsrc%5Etfw">#COVID19</a> <a href="https://twitter.com/hashtag/CoronaVirusSA?src=hash&amp;ref_src=twsrc%5Etfw">#CoronaVirusSA</a>&mdash; The Presidency 🇿🇦 (@PresidencyZA) <a href="https://twitter.com/PresidencyZA/status/1242152975361081344?ref_src=twsrc%5Etfw">March 23, 2020</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Earlier in the day the country&#8217;s Health Minister Dr Zweli Mkhize released a statement via his twitter account that the number of confirmed coronavirus cases had risen by 128 to 402. The first case of COVID-19 infection in South Africa was reported on March 5, 2020.



<figure class="wp-block-embed-twitter wp-block-embed is-type-rich is-provider-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Latest confirmed cases of <a href="https://twitter.com/hashtag/COVID19?src=hash&amp;ref_src=twsrc%5Etfw">#COVID19</a> as at 23 March 2020 <a href="https://t.co/ryb8WUvQv6">pic.twitter.com/ryb8WUvQv6</a>&mdash; Zweli Mkhize (@DrZweliMkhize) <a href="https://twitter.com/DrZweliMkhize/status/1242055979811966984?ref_src=twsrc%5Etfw">March 23, 2020</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Social media users took to twitter to voice their concerns asking the president to shutdown the country. Shortly afterwards, the hashtags #CyrilRamaphosa #ShutdownSA and #ShutdownSouthAfrica began trending. 



While addressing the nation Ramaphosa stated that the lockdown is &#8220;a decisive measure to save lives of South Africans from infections and save the lives of hundreds of thousands of our people&#8221;. The president further stated that while this measure will have a considerable impact on the livelihoods of citizens of the country and the economy, &#8220;the human cost of delaying this action would be far far greater&#8221;. 



What does the lockdown entail? 



From midnight the following will happen:



<ul><li>The lockdown will come to effect on midnight &#8211; Thursday, 26th March 2020 until midnight on Thursday April 16, 2020. </li><li>All South Africans will have to stay at home</li><li>The people exempted from the lockdown include health workers in the public and private sectors, emergency personnel, those in security services such as the police, traffic officers, military medical personnel, soldiers, and other persons necessary for the country&#8217;s response to the pandemic. This also includes those involved in the production, distribution, and supply of food and basic goods. Essential banking services, the maintenance of power, water and telecommunication services, laboratory services and the provision of medical and hygiene products. </li><li>Individuals won&#8217;t be allowed to leave their homes except under strictly controlled circumstances. </li><li> For the homeless, either their existing locations or, where available, alternative temporary accommodation sites, will be used for their 21-day “stay-at-home” period. </li><li>During this period, clinics, pharmacies, food-stores and hospitals will remain open. </li><li> Health care will be provided through triage to obtain “centralised treatment” for severe cases and “decentralised primary care” for mild cases. &#8211; A key objective is not to overwhelm hospitals with unnecessary care seekers. </li></ul>



Ramaphosa further stated that the Oppenheimer and Rupert Foundations will provide R1 billion (over $56 million) each to assist small businesses and their employees affected by COVID-19. 



<figure class="wp-block-embed-twitter wp-block-embed is-type-rich is-provider-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/hashtag/BREAKING?src=hash&amp;ref_src=twsrc%5Etfw">#BREAKING</a>: <a href="https://twitter.com/hashtag/Coronavirus?src=hash&amp;ref_src=twsrc%5Etfw">#Coronavirus</a>: President <a href="https://twitter.com/hashtag/CyrilRamaphosa?src=hash&amp;ref_src=twsrc%5Etfw">#CyrilRamaphosa</a> says the Oppenheimer and Rupert Foundations will provide R1 billion (over $56 million) each to assist small businesses and their employees affected by COVID-19. <a href="https://twitter.com/hashtag/Lockdown?src=hash&amp;ref_src=twsrc%5Etfw">#Lockdown</a> <a href="https://t.co/0oTksyoRQj">pic.twitter.com/0oTksyoRQj</a>&mdash; Forbes Africa (@forbesafrica) <a href="https://twitter.com/forbesafrica/status/1242153956865908737?ref_src=twsrc%5Etfw">March 23, 2020</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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Ramaphosa

#Coronavirus: South Africa Imposes 21 Day Lockdown After Confirmed COVID-19 Cases Rise By 128 to 402

Topline:&nbsp;As the coronavirus pandemic wipes out markets, closes schools and colleges, suspends major conferences, sports leagues and cultural events as well as upends the travel industry, businesses losing out on cash flow have started laying off workers.



Here’s who’s axed staff so far:



<ul><li>Workers at&nbsp;<a href="https://www.washingtonpost.com/politics/mar-a-lago-shuttered-as-trumps-clubs-and-restaurants-suffer-from-coronavirus-fallout/2020/03/20/dae785c0-6ad2-11ea-b313-df458622c2cc_story.html" target="_blank" rel="noreferrer noopener">President Trump’s hotels</a>—160 in Washington, D.C., 51 in New York City and an unknown number at his Las Vegas, Nevada location—were laid off.</li><li>Over 1,200 workers were laid off from&nbsp;<a href="https://www.nytimes.com/2020/03/21/nyregion/coronavirus-airport-workers-ny-nj.html" target="_blank" rel="noreferrer noopener">OTG</a>, which staffs restaurants and stores in New York City’s LaGuardia International Airport and John F. Kennedy International Airport, along with New Jersey’s Newark International Airport.</li><li>Workers have also been laid off from&nbsp;<a href="https://www.inquirer.com/health/coronavirus/coronavirus-layoffs-phl-airport-american-airlines-seiu-32bj-20200319.html" target="_blank" rel="noreferrer noopener">Philadelphia International Airport</a>,&nbsp;<a href="https://www.orlandosentinel.com/coronavirus/os-ne-coronavirus-airport-worker-layoffs-20200320-6pjs5hmaojhajbmltczllbomiu-story.html" target="_blank" rel="noreferrer noopener">Orlando International Airport</a>, and&nbsp;<a href="https://www.baltimoresun.com/coronavirus/bs-md-coronavirus-airport-0321-20200321-mud54d4acffkncxagrechfwxwi-story.html" target="_blank" rel="noreferrer noopener">Baltimore-Washington International Thurgood Marshall Airport</a>.</li><li>Over five dozen workers were laid off Friday from West Virginia’s&nbsp;<a href="http://wvmetronews.com/2020/03/21/coronavirus-impact-forces-layoffs-at-oglebay-resort/" target="_blank" rel="noreferrer noopener">Oglebay Resort and Conference Center</a>.</li><li><a href="https://www.hollywoodreporter.com/news/paradigm-implements-layoffs-paycuts-coronavirus-shutdown-1285721" target="_blank" rel="noreferrer noopener">Hollywood talent agency Paradigm</a>&nbsp;laid off around 100 employees and reduced payroll for the remaining 500.</li><li><a href="https://www.cbc.ca/news/canada/british-columbia/more-than-5-100-air-canada-flight-attendants-to-be-laid-off-amid-massive-covid-19-slowdown-1.5504051" target="_blank" rel="noreferrer noopener">Air Canada</a>&nbsp;will lay off 5,100 members of its cabin crew, about half of its current roster, as its&nbsp;planned flights for April have been cut by nearly 80%.</li><li>Montreal-based circus producer&nbsp;<a href="https://www.forbes.com/sites/iainmartin/2020/03/20/cirque-du-soleil-lays-off-95-of-staff-over-coronavirus-pandemic-shutdown/#506616eb5304">Cirque du Soleil</a>&nbsp;will lay off 4,679 people—95% of its staff.</li><li>The&nbsp;<a href="https://twitter.com/anastasiat/status/1240645951309701120" target="_blank" rel="noreferrer noopener">Metropolitan Opera</a>, considered the U.S.’ largest performing arts organization, on Thursday laid off its union employees, including its chorus singers and musicians.</li><li>The&nbsp;<a href="https://www.hollywoodreporter.com/behind-screen/estimated-120000-iatse-jobs-lost-pandemic-1285229" target="_blank" rel="noreferrer noopener">International Alliance of Theatrical Stage Employees</a>, IATSE, estimated that 120,000 jobs for film workers, including technicians, artisans and other crew positions have been&nbsp;<a href="https://www.forbes.com/sites/maddieberg/2020/03/18/coronavirus-has-hit-entertainment-hard-audiences-may-never-be-the-same/#6d82266c57de">eliminated</a>.</li><li><a href="https://www.thedp.com/article/2020/03/penn-dining-bon-appetit-laid-off-workers-coronavirus" target="_blank" rel="noreferrer noopener">Bon Appetit Management Company</a>, a retail dining employer for college campuses, laid off 140 workers from the University of Pennsylvania.</li><li><a href="https://www.wsj.com/articles/marriott-starting-to-furlough-tens-of-thousands-of-employees-11584459417" target="_blank" rel="noreferrer noopener">Marriott International</a>, the world’s largest hotel company, said tens of thousands of hotel workers will be furloughed, and will lay off a number of those workers.</li><li><a href="https://twitter.com/AliVelshi/status/1240332776328626176" target="_blank" rel="noreferrer noopener">Danny Meyer’s Union Square Hospitality Group</a>&nbsp;on Wednesday laid off 2,000 workers, which is 80% of its workforce.</li><li><a href="https://www.latimes.com/business/story/2020-03-17/coronavirus-forces-marriott-to-furlough-workers-other-hotels-close" target="_blank" rel="noreferrer noopener">Pebblebrook Hotel Trust</a>, which owns 54 hotels, laid off half of its 8,000 workers and may need to cut an additional 2,000.</li><li><a href="https://dcist.com/story/20/03/17/coronavirus-is-causing-industry-wide-layoffs-in-d-c-hitting-service-workers-particularly-hard/" target="_blank" rel="noreferrer noopener">Compass Coffee</a>, a Washington, D.C. Starbucks competitor, on Tuesday laid off 150 of its 189 employees—equaling 80 percent of its staff.</li><li><a href="https://dcist.com/story/20/03/17/coronavirus-is-causing-industry-wide-layoffs-in-d-c-hitting-service-workers-particularly-hard/" target="_blank" rel="noreferrer noopener">Eatwell DC</a>, a District of Columbia-based restaurant group, let go of 160 employees over Sunday and Monday.</li><li>Minnesota-based cabinetmaker&nbsp;<a href="http://tcbmag.com/news/articles/2020/march/wayzata-home-products-ceases-operations" target="_blank" rel="noreferrer noopener">Wayzata Home Products</a>&nbsp;had to lay off its entire 141 person staff.</li><li>Laura Ashley, the British homewares and bedding maker,&nbsp;<a href="https://news.sky.com/story/coronavirus-laura-ashley-set-to-become-first-retail-casualty-of-crisis-11958881" target="_blank" rel="noreferrer noopener">filed for administration</a>&nbsp;(the U.K.’s version of bankruptcy) Tuesday, after rescue talks were impeded by the coronavirus outbreak.</li><li>Dixons Carphone, a second British retailer that sells telecom and electrical goods and services,&nbsp;<a href="https://www.bbc.co.uk/news/business-51923295" target="_blank" rel="noreferrer noopener">laid off 2,900 workers Tuesday</a>.</li><li>New York City bookseller McNally Jackson, which operates four locations, temporarily laid off its employees due to the outbreak, but intends to hire them back “as soon as we can,” according to the&nbsp;<a href="https://www.instagram.com/p/B90HQzQp7Ge/" target="_blank" rel="noreferrer noopener">company’s Instagram account</a>.</li><li>Portland,&nbsp;<a href="https://www.oregonlive.com/business/2020/03/powells-expands-coronavirus-layoff-warns-it-will-be-several-months-before-normal-operations.html" target="_blank" rel="noreferrer noopener">Oregon-based bookseller Powell’s Books</a>, which operates five locations, said some of its layoffs would be permanent and that it would take several months for normal operations to be restored.</li><li>Stena Line, a European ferry operator,&nbsp;<a href="https://www.reuters.com/article/brief-stena-line-announces-950-planned-j-idUSFWN2B91E3" target="_blank" rel="noreferrer noopener">announced Monday</a>&nbsp;that 950 jobs would be cut in Sweden due to a sharp decline in travel bookings.</li><li>The&nbsp;<a href="https://www.kvue.com/article/news/health/coronavirus/circuit-of-the-americas-layoffs-coronavirus-closure/269-6caf01ed-7fa8-42da-a0d8-b03b21c1fcd0" target="_blank" rel="noreferrer noopener">Circuit of the Americas</a>, an Austin, Texas-based concert, automobile racing, conference and entertainment complex, said Monday it was laying off an undisclosed number of workers after being indefinitely closed due to coronavirus.</li><li><a href="https://www.forbes.com/sites/marisagarcia/2020/03/15/with-traffic-essentially-non-existent-sas-will-reduce-staff-by-up-to-90/#5f6b2617a4ca">Scandinavian Airlines</a>&nbsp;said Sunday it will temporarily lay off 10,000 employees, equal to 90% of their staff,</li><li><a href="https://ewscripps.brightspotcdn.com/68/8c/dfd9e0464556893c25b0941b2fd6/bill-letter-03.13.2020_FINAL.PDF" target="_blank" rel="noreferrer noopener">MGM Resorts said Friday</a>&nbsp;it would furlough workers and begin layoffs on Monday, but immediately let some staffers go from undisclosed parts of its business.</li><li>The&nbsp;<a href="https://www.reviewjournal.com/business/casinos-gaming/caesars-begins-layoffs-during-coronavirus-crisis-1982207/" target="_blank" rel="noreferrer noopener">Las Vegas Review-Journal</a>&nbsp;reported that Caesars Entertainment Corp. has also begun coronavirus-prompted layoffs.</li><li>Kimpton Hotel Aventi in Manhattan, owned by the InterContinental Hotels Group,&nbsp;<a href="https://www.wsj.com/articles/hotels-turn-to-layoffs-room-rate-cuts-as-business-staggers-11584108223" target="_blank" rel="noreferrer noopener">reportedly laid off</a>&nbsp;40 employees, while the Ian Schrager-owned Public temporarily laid off an undisclosed number of workers.</li><li>SoftBank-backed Oyo Hotels&nbsp;<a href="https://qz.com/1813349/softbank-backed-oyo-lays-off-thousands-in-china-amid-coronavirus/" target="_blank" rel="noreferrer noopener">laid off 3,000</a>&nbsp;of its China employees earlier in the month, equaling 30% of its workforce there,&nbsp;<a href="https://qz.com/1813349/softbank-backed-oyo-lays-off-thousands-in-china-amid-coronavirus/" target="_blank" rel="noreferrer noopener">part of a global layoff of 5,000</a>.</li><li><a href="https://www.forbes.com/sites/lisettevoytko/2020/03/12/norwegian-air-axes-up-to-50-of-employees-as-coronavirus-layoffs-begin/#1587fa32a8b8">Norwegian Air said Thursday</a>&nbsp;that it would temporarily lay off up to 50% of its workforce, meaning 7,300 workers, and suspend 4,000 flights due to the pandemic.</li><li>Scandic, the largest hotel operator in Europe’s Nordic countries,&nbsp;<a href="https://www.wsj.com/articles/hotels-turn-to-layoffs-room-rate-cuts-as-business-staggers-11584108223" target="_blank" rel="noreferrer noopener">also said Thursday</a>&nbsp;it would give termination notices to 2,000 Swedish employees.</li><li>At least 50 employees of music and culture festival South By Southwest were let go after this year’s event was canceled, the&nbsp;<a href="https://www.washingtonpost.com/business/2020/03/11/layoffs-coronavirus/" target="_blank" rel="noreferrer noopener">Washington Post</a>&nbsp;reported.</li><li>Union leaders at a&nbsp;<a href="https://lfpress.com/news/local-news/coronavirus-cami-auto-plant-union-seeks-two-week-layoff-to-help-nix-covid-19-spread" target="_blank" rel="noreferrer noopener">General Motors plant</a>&nbsp;in Ontario, Canada have recommended a two week layoff due to concerns over the virus.</li><li>The Port of Los Angeles let go of 145 drivers after ships from China stopped arriving.</li><li>Christie Lights, an Orlando, Florida, based stage lighting company, laid off 100 employees.</li><li>HMSHost, a Seattle, Washington, global restaurant-services provider&nbsp;<a href="https://www.seattlebusinessmag.com/workplace/least-400-jobs-are-chopping-block-seattle-area-new-year-kicks-gear" target="_blank" rel="noreferrer noopener">said it would lay off</a>&nbsp;200 people and an area corporate shuttle service would lay off 75,&nbsp;<a href="https://www.huffpost.com/entry/coronavirus-layoffs-us-economy_n_5e69e685c5b6747ef1175a57" target="_blank" rel="noreferrer noopener">HuffPost reported</a>, while an area hotel chain eliminated an entire department, according to the&nbsp;Post.</li><li>Travel agencies in Los Angeles, California, along with Atlanta, Georgia, had to let employees go as the pandemic battered their industry.</li><li>Aid workers in&nbsp;<a href="https://www.8newsnow.com/coronavirus/coronavirus-cancellations-force-layoffs-people-reaching-out-for-help-across-las-vegas/" target="_blank" rel="noreferrer noopener">Las Vegas</a>&nbsp;are reportedly seeing a surge in requests for food assistance and other help as events and trade shows get canceled.</li></ul>



What to watch for: If any U.S. airlines end up laying off workers. <a rel="noreferrer noopener" href="https://news.delta.com/delta-actions-address-financial-impact-covid-19" target="_blank">Delta Airlines</a> said Tuesday it was cutting flights and freezing hiring. <a rel="noreferrer noopener" href="https://www.dallasnews.com/business/airlines/2020/03/10/american-suspends-more-flights-to-china-and-europe-as-coronavirus-saps-demand/" target="_blank">American Airlines</a> is also cutting flights, and delaying trainings for new flight attendants and pilots.



&#8211;<a href="https://www.forbes.com/sites/lisettevoytko/">Lisette Voytko</a>, Forbes Staff, <a href="https://www.forbes.com/business">Business</a>

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Coronavirus Layoffs: Trump Hotels, Airports Latest To Shed Jobs During Pandemic

The coronavirus could mean the end for a number for vulnerable retailers.



With millions of Americans forced to stay home to help prevent the spread of COVID-19, foot traffic to malls and downtown shopping areas is quickly evaporating, a potential deadly blow for those chains teetering on the edge of bankruptcy.



A new monthly report from S&amp;P Global Market Intelligence, which tracks the publicly-traded retailers that are the most likely to default in the next year, offers a glimpse at those most at risk during the coronavirus outbreak. Several large mall-based brands sit atop the list, including: Victoria’s Secret’s parent company L Brands, Francesca’s, Ann Taylor’s parent company Ascena Retail Group, J.Jill, JCPenney and The Children’s Place.



While many of these retailers have been on bankruptcy watch for months—typically due to some combination of falling sales, low cash reserves and too much debt—the coronavirus could fast-track their demise.



In recent days, Victoria’s Secret and Ann Taylor have&nbsp;<a href="https://www.forbes.com/sites/laurendebter/2020/03/16/coronavirus-store-closing-tracker-patagonia-warby-parker-and-other-chains-temporarily-close-up-shop/">joined a parade of retailers</a>&nbsp;to announce voluntary two-week store closures to help slow the spread of the virus, wiping out any shot at in-store sales. Their best hope is to recoup sales on the web. While more shoppers may flock online while they’re stuck at home, there is no mistaking their reliance on stores. According to the National Retail Federation, 89% of total retail sales still take place at brick-and-mortar stores.



At the same time, retailers are stuck with rent and other fixed costs of running a sprawling fleet of stores. Most retailers have said they will continue to pay employees while stores are closed. However, those who have a meager amount of cash on their balance sheet to fund operations could quickly find they are unable to pay their bills. Large amounts of debt put further strain on balance sheets.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="960" height="723" src="https://www.forbesafrica.com/wp-content/uploads/2020/03/SPGlobal.jpg" alt="" class="wp-image-43263" srcset="https://cms.forbesafrica.com/wp-content/uploads/2020/03/SPGlobal.jpg 960w, https://cms.forbesafrica.com/wp-content/uploads/2020/03/SPGlobal-300x226.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2020/03/SPGlobal-600x452.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2020/03/SPGlobal-768x578.jpg 768w" sizes="(max-width: 960px) 100vw, 960px" /><figcaption> S&amp;P GLOBAL MARKET INTELLIGENCE </figcaption></figure>



There have already been eight retail bankruptcies this year. Pier 1 has&nbsp;<a href="https://www.forbes.com/sites/warrenshoulberg/2020/02/17/wholl-buy-pier-1-as-it-files-bankruptcy-and-puts-itself-up-for-sale/#5adea2d21aee">put itself up for sale</a>&nbsp;and will permanently close 450 of its stores. Art Van Furniture, which was purchased by a private equity firm in 2017,&nbsp;<a href="https://www.forbes.com/sites/neilstern/2020/03/09/art-vans-furniture-from-powerhouse-to-liquidation-in-just-three-years/#322921e16384">will close all of its stores</a>.



“We haven’t seen any bankruptcies tied to coronavirus yet because it’s fairly new,” says S&amp;P data analyst Chris Hudgins. “However, we might see more as time goes on. The ones that have more cash on their books and less leverage are going to be the ones that do better in times like this.”



&#8211; <a href="https://www.forbes.com/sites/laurendebter/">Lauren Debter</a>, Forbes Staff, Retail

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These Struggling Retailers May Suffer Their Final Blow From The Coronavirus Lockdown

Topline:&nbsp;Following his annual letter to Berkshire Hathaway shareholders over the weekend, billionaire investor Warren Buffett told CNBC in an&nbsp;<a href="https://www.cnbc.com/2020/02/24/warren-buffet-interview-live-updates.html" target="_blank" rel="noreferrer noopener">interview</a>&nbsp;on Monday that the coronavirus is “scary stuff” for businesses and investors, but that the outbreak has “not changed” his long-term optimistic outlook on stocks.



<ul><li>Stocks plunged on Monday, with all three major U.S. benchmark indexes <a href="https://www.forbes.com/sites/sergeiklebnikov/2020/02/24/markets-plunge-dow-drops-900-points-as-global-coronavirus-outbreak-worsens/#353cf5f46658">losing more than 3%</a>, as a rising number of coronavirus cases outside of China stoked fears that the outbreak could turn into a global pandemic.</li><li>Speaking with CNBC on Monday morning, Buffett <a rel="noreferrer noopener" href="https://www.reuters.com/article/us-berkshire-buffett/warren-buffett-calls-coronavirus-outbreak-scary-stuff-but-says-he-wont-be-selling-stocks-idUSKCN20I1AB" target="_blank">called</a> the coronavirus “scary stuff,” saying that the outbreak is now “front and center” the main threat to U.S. companies and the economy.</li><li>He further <a rel="noreferrer noopener" href="https://www.cnbc.com/2020/02/24/warren-buffett-says-us-economy-is-strong-but-a-little-softer-than-it-was-6-months-ago.html" target="_blank">warned</a> that a “very significant percentage” of Berkshire Hathaway’s businesses—it owns more than 90, from American Express and Coca-Cola to Geico and Dairy Queen—could “very well” be negatively impacted by the coronavirus, though he remains optimistic about their long-term prospects.</li><li>More broadly, Buffett said that the U.S. economy is <a rel="noreferrer noopener" href="https://www.cnbc.com/2020/02/24/warren-buffett-says-us-economy-is-strong-but-a-little-softer-than-it-was-6-months-ago.html" target="_blank">still “strong,”</a> though it had become “a little softer” than it was six months ago: “Business is down but it’s down from a very good level,” he described. </li><li>Despite the coronavirus’ impact on markets, Buffett, who is famous for his long-term  investing, <a rel="noreferrer noopener" href="https://www.cnbc.com/2020/02/24/warren-buffett-doesnt-worry-how-current-events-will-affect-the-market.html" target="_blank">said</a> that investors shouldn’t panic by selling stocks based or get caught up in “today’s headlines.” </li><li>The Oracle of Omaha actually sees a positive in the ongoing market sell-off, <a rel="noreferrer noopener" href="https://www.cnbc.com/2020/02/24/warren-buffet-interview-live-updates.html" target="_blank">telling</a> CNBC that Berkshire Hathaway would “certainly be more inclined” to buy stocks at the lower prices caused by the coronavirus.</li></ul>



 What to watch for: Buffett also <a rel="noreferrer noopener" href="https://www.cnbc.com/2020/02/24/warren-buffett-says-apple-is-probably-the-best-business-i-know-in-the-world.html" target="_blank">spoke</a> to CNBC about some of his favorite investments right now. He called Apple, which is Berkshire Hathaway’s third-largest holding (with a roughly 5.5% stake) behind insurance and railroad companies, “probably the best business I know in the world.” Buffett added that he especially likes bank stocks, which are a big part of Berkshire Hathaway’s portfolio—with big names like Goldman Sachs, JPMorgan Chase and Bank of America among its top holdings. Buffett <a rel="noreferrer noopener" href="https://www.cnbc.com/2020/02/24/warren-buffet-interview-live-updates.html" target="_blank">called</a> banks “very attractive compared to most other securities I see.”  



Surprising fact:&nbsp;Buffett also recently spoke about the coronavirus to his “science advisor,” billionaire Microsoft founder Bill Gates: “I talked to him in the last few days about it, and he’s bullish on the long-term outlook for a universal prevention of it,” he&nbsp;<a href="https://www.cnbc.com/2020/02/24/warren-buffet-interview-live-updates.html" target="_blank" rel="noreferrer noopener">said</a>.



Crucial quote: “We’re buying businesses to own for 20 or 30 years,” Buffett, who Forbes estimates has a <a href="https://www.forbes.com/profile/warren-buffett/#3a87d5e14639">net worth</a> of $87.3 billion, <a rel="noreferrer noopener" href="https://www.cnbc.com/2020/02/24/warren-buffet-interview-live-updates.html" target="_blank">said</a> on CNBC. “We think the 20- and 30-year outlook is not changed by the coronavirus.”



Key background:&nbsp;Stocks&nbsp;<a href="https://www.forbes.com/sites/sergeiklebnikov/2020/02/24/markets-plunge-dow-drops-900-points-as-global-coronavirus-outbreak-worsens/#353cf5f46658">plummeted sharply</a>&nbsp;on Monday, amid news that the coronavirus outbreak has now infected more than 79,000 people globally and killed over 2,600. The number of cases outside of China surged over the weekend, causing concern among global investors as countries like Italy, South Korea and Iran emerge as new coronavirus hot spots. The Dow Jones industrial average fell more than 1,000 points, dropping 3.5% for its worst day since February 2018. The S&amp;P 500 similarly fell 3.5%, its worst drop since October 2018. Monday’s sell-off completely erased both indexes’ gains so far in 2020. The Nasdaq Composite index, on the other hand, declined 4%.&nbsp;



Tangent:&nbsp;Buffett was also asked about U.S. politics during his&nbsp;<a href="https://www.cnbc.com/2020/02/24/buffett-on-bernie-sanders-us-can-do-better-for-those-left-behind-but-cannot-kill-capitalism.html" target="_blank" rel="noreferrer noopener">interview</a>. The billionaire investor said he would “certainly” vote for Mike Bloomberg. “I don’t think another billionaire supporting him would be the best thing to announce,” Buffet&nbsp;<a href="https://www.cnbc.com/2020/02/24/buffett-on-bernie-sanders-us-can-do-better-for-those-left-behind-but-cannot-kill-capitalism.html" target="_blank" rel="noreferrer noopener">said</a>, “but sure, I would have no trouble voting for Mike Bloomberg.” While he said he sympathizes with Democratic front-runner Senator Bernie Sanders’ (I-Vt.) message about income inequality, Buffett doesn’t think socialism is the answer,&nbsp;<a href="https://www.cnbc.com/2020/02/24/buffett-on-bernie-sanders-us-can-do-better-for-those-left-behind-but-cannot-kill-capitalism.html" target="_blank" rel="noreferrer noopener">saying instead</a>, “I don’t believe in giving up the capitalist system.”



Further reading: <a href="https://www.forbes.com/sites/sarahhansen/2020/02/22/buffetts-letter-to-berkshire-shareholders-reveals-5-billion-in-stock-buybacks-and-plans-for-his-berkshire-stake/#140c5c2d39d4">Buffett’s Letter To Berkshire Shareholders Reveals $5 Billion In Stock Buybacks And Plans For His Berkshire Stake</a> 



&#8211;<a href="https://www.forbes.com/sites/sergeiklebnikov/">Sergei Klebnikov</a>, Forbes Staff, <a href="https://www.forbes.com/markets">Markets</a>.

Conference On Issues Affecting U.S. Capital Markets Competitiveness

Here’s What Warren Buffett Says About The Coronavirus And His Outlook On Stocks

Colorful baskets ready for sale

The Baskets Holding Them Together

Japan, a tea-drinking nation, is one of South Africa’s biggest importers of rooibos tea. In 2018, a record high of 2,000 tonnes of the homegrown blend was shipped off to the land of the rising sun.



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A tea room filled with reverence for the traditional Japanese tea ceremony. 



But first, the facts. To understand tea-drinking in Japan,
it is important to go through the following motions, starting with the communal
practice known as chadō (the way of tea) that is older than 800 years, in
which, in a hand-decorated cast iron bowl, green powder, known as matcha, is
whisked to make a dark green tea to be offered to guests. 



Tea was first brought to Japan from China in the seventh
century for medicinal purposes, and was regarded as a commodity that was
exclusively accessible to the noble and elite. 



According to Japanese historical beliefs, Myōan Eisai, a
Buddhist priest who introduced the school of Zen Buddhism to Japan, was one of
the first to inculcate the culture of tea in Japan. 



He wrote a book on the health benefits of drinking tea, as
well as the cultivation and preparation of green tea. 



By the thirteenth century, the tea drinking culture grew in
popularity among warriors and the elite, and by the sixteenth century, tea had
become a favorite for all social classes. 



Tea schools opened and the art of making tea gradually
evolved to more than just being a spiritual practice in Japan. 



It became one of respect with shared peace and friendship. 



The tea room is traditionally surrounded by a garden with a
tranquil atmosphere, emphasized by dull flowers without strong scents, to avoid
distraction.



A low entrance into the tea room suggests that guests are to
bow as a gesture of respect for the ceremony. 



Every movement, gesture and aesthetic, from the preparation
to the enjoyment of the tea, is designed to express friendship and
harmony.&nbsp; Guests watch on as the host
shares the moment and finally presents it to them, kneeling on cushions.



Once the bowl has circulated among the guests, it is handed
back to the host.The tools are cleaned and the ceremony is closed.



The Red Bush



Over 14,000kms away, across the Indian Ocean, a South
African enjoys a hot cup of ‘red tea.’



Its preparation may not be as dramatic as it is in Japan,
but it evokes the same sense of calm and serenity. It’s simply made by adding
tealeaves or a tea bag into a cup of boiling water, a few teaspoons of sugar
and having “a date with time”, as Swaady Martin, the founder of Yswara, an
African tea and teatime company, puts it. 



Martin, who has been in the tea industry for seven years,
with a focus on gourmet African teas, has tasted and sourced blends from
Malawi, Kenya and Rwanda but the South African rooibos is her favorite. 



“Rooibos is not a tea, it is a plant. I find it a miraculous
and wonderous plant. The fact that it only grows in one region of South Africa,
and that it has all these incredible properties, makes it a plant I love
dearly. I drink rooibos almost every day,” she says.&nbsp; 



Located in the heart of Johannesburg’s central business
district (CBD), Martin’s tea room, which is currently being refurbished,
embodies what she calls a meditative appeal that coincides with the tranquil
properties of tea. 



Tea lovers step into a room filled with silence and walls
done up in light pink hues representing a sunset in the desert.&nbsp; 



This is to encourage focus on the tea, as it represents the
removal of&nbsp; barriers between the
different social classes. 



“We have suffered in South Africa and also around the world,
with so much exclusion, the one thing that was important for Yswara was to give
inclusive luxury. For me, inclusiveness means being in a place where everyone
could have access.



“Being in town (CBD) was just that expression of being in
the midst of everything and everyone; and at the junction of what represents
the new South Africa,” Martin says. 



A South African Rooibos Council (SARC) industry fact sheet
published in 2018 states that the country’s geographical areas provide the perfect
environmental conditions for rooibos cultivation. 



The plant can be found in the Cederberg and Sandveld regions
of the Western Cape and the Bokkeveld area of the Northern Cape.



“The vital characteristics of this environment are the
Mediterranean climate with a winter rainfall between 200mm and 450mm per year;
deep, coarse and acidic sandy soils; and temperatures that can range from zero
degrees Celsius in winter months, to up to forty-five degrees Celsius in
summer,” the report says. 



Due to the indigenous properties of the Rooibos bush,
industry regulations stipulate that the term ‘rooibos’ be used responsibly. 



“The terms ‘Rooibos’, ‘red bush’, ‘Rooibostee’, ‘Rooibos
tea’, ‘rooitee’ and ‘Rooibosch’ may only be used when the dry product, infusion
or extract is 100% pure rooibos. Furthermore, the notice stipulates that the
above terms (referring to rooibos) can only be used when the product was grown
in the geographic area as described in the application, i.e., the winter
rainfall area of South Africa,” the SARC report states. 



This uniquely-grown product is becoming&nbsp; a big deal across the globe, and the
tea-drinking nation, Japan, has fallen in love with the health benefits that the
South African tea provides. 



In 2016, rooibos exports increased to over 30 countries
across the globe; with Germany, Netherlands, Japan, the United Kingdom and the
United States (US) being the biggest importers. 



In 2018, one of the largest tea-drinking nations recorded
over 2,000 tonnes that were shipped into the Japanese shores, making it the
largest export since rooibos was first introduced to the Japanese 39 years ago.




For Martin Bergh, the Managing Director of Rooibos Limited
and the Chairperson of the SARC, the tea has been up against competition in the
Japanese tea market, which has over 26 different types of teas to consume,
ranging from the traditional green tea varieties to Jasmine and Barley, or the
sacred Mugicha. 



“The general trend toward natural health and wellness
products continue to exert a growing influence on purchasing patterns in the
region and as more of Rooibos’ health benefits become known in the East, we
anticipate the demand for the product to grow,” says Bergh.



Bergh points out that the Japanese are purists and therefore
prefer to drink rooibos tea unflavored, without milk or sugar.



“In the past, rooibos was consumed more in summer for
hydration, but has now become an all-year-round tea product consumed by all age
groups. A market as big as Japan’s 126 million-strong tea-loving population, is
always eager to experiment with new products. 



“Local retailers like Peacock Coffee &amp; Tea Traders have
adapted to the experimental flavors to quench the insatiable thirst of the
local and international market.” 



Kelebogile Monyaysi, the manager at Peacock Coffee &amp; Tea
Traders in Rosebank, Johannesburg, attentively prepares a cup of tea when we
visit. 



The loose tea leaves are cautiously stirred in a tea pot and
served at a small coffee table. &nbsp;



One half of the store is dedicated to coffee and the other
for tea. 



The smell of freshly-brewed coffee overpowers the aromatic
smell of tea. 



Tea sets range from vintage English style ceramics to
Japanese cast iron teapots.



A selection of rooibos tea blends with various flavored
options, ranging from organic rooibos to creamy caramel, as well as herbal
blends. 



This includes a Nelson Mandela range. 



The caffeine-free tea, according to Monyaysi, is popular in
the Japanese markets because of its natural healing qualities. 



Despite coffee being a popular beverage for sit-in
customers, rooibos tea is the most sought after locally too. 



“It (rooibos) is the center of attraction. This is a word
that they (tourists) can grab and not forget, so when they walk in here, it is
all they ask for,” she says. 



It took some time for Monyaysi to be stirred by tea.&nbsp; 



“I was not much of a tea-drinker. I only started to enjoy
tea when I began working here. Now, the first thing in the morning, I have to
drink a cup of tea and in the evening, before I go to bed. It is a habit – if I
don’t drink tea, I get a headache,” Monyaysi says, preferring the original
rooibos blend. 



Jessica Bonin, the founder of Lady Bonin’s Tea, a Cape
Town-based company that sources, blends, packages and distributes full leaf
teas, either loose or in biodegradable tea bags, offers more on the world’s
fetish for rooibos.



Lady Bonins’ teas and herbals are sourced locally and
internationally from farms that are organic without adding additives or
products that harm the environment. 



The rooibos is sourced by using a method known as “wild
pickings” – the process of collecting the rooibos that grows naturally in the
mountains. Due to the increase in demand for rooibos and rooibos products
globally, commercial farmers have scaled production unsustainably, leaving
environmental and societal damage in their wake. 



Bonin says that in countries like Japan and Thailand, black
tea is preferred, and it is predominantly used for the health benefits – making
it a herbal infusion. 



“They are buying it solely on the principle that it is a
caffeine-free, non-tea beverage. People are buying it as an alternative and
they are transfixed by its health properties. 



“It is enabling people who naturally use plants as medicine
for many years. In any Western country, you will need to justify the health
benefits, but in the Asian countries, it is the medicine they are interested
in. People are very healthy in Japan,” she says.



&nbsp;Although Bonin is
facing difficulties&nbsp; entering the export
market in Japan due to the high number of monopolies and conglomerates in the
industry, small amounts of exports also go to Germany and the US. 



Rooibos is a unique product that has infused the signature
South African taste and its ambience with the rest of the world. 



The Japanese may have their unique tea-drinking ceremonies and traditions but in Germany and the other countries that import the plant in millions, rooibos offers a cupful of experience that is incomparable and uniquely South African.  



&#8211; Gypseenia Lion

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