EXCITING NEWS: TNG WhatsApp Channel is LIVE…
Subscribe for FREE to get LIVE NEWS UPDATE. Click here to subscribe!
By Oluwaseun Adesanya
In the early 2015, one of the most adorable personalities in the world, Bill Gates came on TED to discuss on “The Next Outbreak? We’re not ready”. This particular event was immediately after the world survived the outbreak of Ebola, and he explained how we reacted to the emerging epidemic with detailed statistics but even upon such efforts, he still believed that we are far from being ready for another epidemic or a pandemic!
Fast forward to the year 2020, the starting tone of Covid-19 was like a flame without a fire but suddenly has now become famous with the entire world standing still even with “Compulsory Holidays” being declared in most countries and no logical end in sight to the pandemic! Guess, if Bill Gate was to be one of those Religious Pastors or Prophets, the entire world would have become his congregation by now and of course, with plenty prophet offerings!
According to Wikipedia, Coronavirus disease 2019 (COVID-19) is an infectious disease caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The disease was first identified in December 2019 in Wuhan, the capital of China’s Hubei province, and has since spread globally with common symptoms including fever, cough and shortness of breath. Other symptoms may include fatigue, muscle pain, diarrhea, sore throat, loss of smell and abdominal pain. The time from exposure to onset of symptoms is typically around five days, but may range from two to 14 days. As of 10 April 2020, more than 1.6 million cases have been reported in more than 200 countries and territories, resulting in more than 95,700 deaths!
The virus is mainly spread between people during close contact, often via small droplets produced during coughing, sneezing, or talking. While these droplets are produced when breathing out, they usually fall to the ground or surfaces rather than being infectious over large distances. People may also become infected by touching a contaminated surface and then their face. The virus can survive on surfaces for up to 72 hours. Coronavirus is most contagious during the first three days after onset of symptoms, although spread may be possible before symptoms appear and in later stages of the disease.
The effect of Covid-19 pandemic on business environment
The emergence of the mighty Covid-19 has definitely altered the cause of global lifestyle especially the business environment which has now become more challenged since no one knows how long this will end for life to come back to normal again! But even in the currently reality that looks like challenging, it has further created opportunities for some industries who are enjoying tremendous cashflow despite the suffering the world is enduring.
Imagine what the current situation would have turned into if there was no access to communication through technology in order to facilitate access to information, online platforms for e-commerce activities and trainings, electronic financial services and other financial services.
Definitely, the Financial Industry has helped in a tremendous way in stabilizing the economy from collapsing through their various deployed channels such as the use Internet Banking, Point of Sales (PoS), Automatic Teller Machine (ATM), Mobile Banking Application and USSD. These channels through the Industry have helped in managing the flow of demand and supply of money within the various economies of the world towards preventing another global economic recession or meltdown!
In complementing the effort of the Financial Industry, the Fintech companies has deployed innovative solutions that have helped businesses continue and enable consumers to have more convenient ways of performing electronic financial transactions. Most innovative of such is Paylink, a payment solution for anyone to receive money INSTANTLY into your bank account from Anyone, Anywhere, Anytime! This particular payment solution has become the delight of crowd founding platforms, social entrepreneurs, religious organisations and other businesses in such a time like this (restricted movements and social distancing).
Topmost business losers from the Covid-19 pandemic
For the industries that the pandemic negatively affected, the list is definitely unending but in order to kick-start the discussion, here are the possible top business losers:
Aviation Industry:
The industry is one of the world most capital intensive institutions and it’s operation cost is not a joke! The nature of the business involves continuous maintenance, high taxation, increasing operational and administrative cost which are the reason why most of the airline operators are using debt financing or currently in huge debt with the only option of bailout or liquidation. So, with this outbreak of the Covid-19, it has worsen and complicated the struggling cashflow (revenue) of the airlines with several operators finding it difficult to be able to survive even when the business operation resumes again as their recovery will definitely be for a long term period!
Small & Medium Enterprises:
The SMEs have been the backbone of many economies as their activities has also created employment opportunities and facilitates daily livehood for many. However, with the total lockdown, most of the SMEs have been struggling to adjust current situation as closure of business premises and markets, have reduced patronage and sales.
Although, once the business operation resumes, it might be a slow start for them but definitely their recovery will be for a short term period!
Religious Organisations:
Their major sources of income have always be the donations and contributions of their members and followers in terms of voluntary and mandatory giving through their various believes and principles which have made several of them even richer than most of the organisations in the real business world!
Definitely, they were shocked that such an outbreak could turn their worship centers and venues into ghost sites with many of them now, embracing and adopting technology to reach out to their challenging members due to the current epidemic. Yet, since their members were also affected financially, the impact is several on most (if not all) of the religious organisation. However, their recovery can be a medium term period as they will need time to convince their members to continue in the believe and obedient of their doctrinal principles of giving!
Entertainment Industry:
They were one of major cashcow industries before the advent of Covid-19 with several shows, albums and events to promote their brands visibility and definitely, make more money. The industry has produces more celebrities and overnight millionaires with little or no knowledge of wealth or fame management!
With the believe that all you need is just to have a talent and the world is at your feet, but the reality is the industry is a Red Ocean with several people struggling for the same audience. At the moment, it is even difficult because the lockdown and social distancing measures have put shows and events to standstill with the hope that when we survive this period, people will not have phobia or nurse any fear again.
Regardless, the industry will still continue to survive through more creativities and innovations that can create a new path to Blue Ocean within the medium term period but definitely, not in the short term!
Transportation & their Unions:
It was necessary to specifically separate this from Aviation Industry and combined it with Unions especially if you are from this part of the world where National Union of Road Transport Workers (NURTW) are major stakeholders in the affairs of the state! Outsiders things the members are illiterates but majority of the leaders have all their family members citizen abroad and their children schooling oversea. Yet, we think they are not that smart but indeed, they milk money like the milk from a Texas farm cows through extortion and harassment of motorists!
However, since the Covid-19 has created lockdown through various measures by several governments to limit the spread of the pandemic, it has been very challenging for the transport operators and their unruly unions in making their daily living. But once this period phased out, their business will resume as usual and their recovery will definitely be a short term!
Top business gainers and next emerging opportunities
While some will definitely find it hard to recover immediately after normalcy returns, there are few that the new season will create huge opportunities for them to be the “Next Cashcow Industries”! These business gainers are:
Food & Beverages Industry:
The demand in consumption will increasing as people will put survival as top on their list and access to market will increase demand for food items.
Communication:
There will be change in culture and attitude in some areas such as work pattern, education, commerce and access to information, where people will prefer online channels which in return will increase demand for data.
Lending industry:
With many current loans going bad as a result of several collapsed businesses and loss of jobs, the lending business will be the next patronized industry by people who are currently being affected and are looking for possible means of starting all over again or surviving.
Logistics and distribution industry:
Commerce and demand for commodities across locations as a result of the impact of current situation and fear of unknown will create an increasing need for logistics and distribution of commodities.
Lottery industry:
People will be desperate and looking for quicker ways of making money which will make lottery an interesting avenue that gives hope even when it will end up to worsen their situation.
So, while we can’t change the reality of challenges from Covid-19 Pandemic, we can at least get wisdom to prepare towards joining the wagon of the “Next Cashcow Industries” when the season changes for good!
The next season is just around the corner! Are you Ready?
Oluwaseun Adesanya
+234-701-399-0127
Lagos, Nigeria
(An International Consultant with great wealth of experience across several countries with special focus on Fintech, Financial Inclusion, Insurance, Innovation, Financial Services, Strategy, Social Impact, Business Transformation and Technology. He is currently, the Group Head of Strategy & Innovation for the leading innovative Software Company in Africa, SystemSpecs – Owner of HumanManager, Remita and Paylink)