Petros Piki, CA(Z), MSc, RPA

The Coronavirus is one of most easily transmittable viruses in history and the growth of this virus has been exponential. In a country that starts with 1 case in a few days that number would have increased many times over. Like any other virus or disease when you seeing it on Television and reading in the news it would just be like any other statistic until it hits close home that is when people will move from denial, skepticism to realisation. It reminds me of the AIDS pandemic when it first hit Africa, people were in denial (accusing each other of witchcraft and voodoo) until chickens came home to roost.

<script async src="https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js"></script>
<ins class="adsbygoogle"
     style="display:block; text-align:center;"
     data-ad-layout="in-article"
     data-ad-format="fluid"
     data-ad-client="ca-pub-9909000456991631"
     data-ad-slot="2895459834"></ins>
<script>
     (adsbygoogle = window.adsbygoogle || []).push({});
</script>

 As the coronavirus was ravaging China most people including influential people thought it was just some virus, a flu maybe but as the virus hit closer to their homes people have moved from denial to realisation and worse still to panic buying. In some countries like Zimbabwe even if you want to do panic buying most are already squeezed financially so they can as well just remain in panic without any buying! But it is recommended to start buying slowly just to be prepared. As people are panicking Governments are responding in various ways and this also have an impact on everyday life of their citizens. The virus problem has grown to become more a systematic financial problem than a virus problem. The response to the virus is bringing with it shocks to the stock, debt and commodities markets as we have already covered in our previous blogs. World economic recession is now most likely a view shared by many financial analysts.

Travel Advisories and Restrictions

Most Governments are putting travel advisories to certain destinations alerting their citizens of Covid-19 dangers in various locations. The US has put these in place even for travel to and from Europe, China etc. South Africa has put strict travel restrictions with countries like Italy, not even offering VISAs to most of these affected countries citizens. Beijing recently implemented similar measures in response to potential imported cases. In South Africa’s Case they have left the Gateway to Africa Boarder (Beit Bridge Boarder) open but this can also be the Gateway to exportation of the virus from South Africa into the region. But then the question is “how do we trade if we close all boarders”. Japan has cancelled have cancelled already issued Visas to European citizens. Countries like Zimbabwe have not yet issued any travel restrictions probably because they are no official cases. A recent close issue was that of a British tourist who tested positive after they travel from Victoria Falls in Zimbabwe.

Paid Leave, Unemployment Assistance

In countries like the USA the government is offering paid leave and unemployment assistance. Helicopter money is the approach the US Government is working on. One consideration is paying old citizens $1000 each as a way to stimulate the economy and sustain demand. The US Government is also considering waivers on student loans interest and the like. Most affected countries are applying social security nets to lighten the burden on the citizens. Some countries may not have the capacity to undertake some of these programs.

Encouraging People to Work from Home

Most countries are now encouraging people to work from home reducing potential conduct. This works for jobs that do not require face to face interaction. Most companies like Apple, Google and others are asking their employees to work from home. This virus will have serious economic consequences that will remain with us for some time.

 Lockdown Strategy and Quarantines

China swiftly placed a whole province of 45 million people under lock down. In an attempt to contain the Wuhan coronavirus, China issued the largest quarantine in human history, locking down an estimated 45 million people. The US announced plans to temporarily bar foreign nationals who have been to China in the past 14 days, and if necessary, quarantine up to 1,000 people returning to the US from China. Quarantines have been used to prevent the spread of disease for hundreds of years. The first formal system was established in Venice during the 14th Century. The massive Chinese lockdown is credited for reducing the fast spread of the disease inside and outside China. Italy recently locked down the whole country. Lockdown can be depressing to the citizenry especially when one is not prepared because there will be limited movement and if you are caught by a lockdown without provisions you will be in trouble. For this reason, most citizens go into panic buying once there is potential fear of lockdown. This is upsetting lots of value chains. Our advice is that keep essentials and don’t panic should any eventuality happens. If you try to buy provisions during that time you may not be able to afford. Most people fear the disruption in supply chain may cause another problem, that of lacking of basic things like food for the poor populace.

Cancellation of Public Events and Sporting Activities

Most Governments are cancelling sporting activities like soccer, EPL, EUFA etc. are some examples of sporting activities that have been put on hold. In South Africa the government has banned gathering of more than 100 people and Church Easter events have been cancelled like ZCC Moria cancellation. The question is whether Governments will respect and enforce the cancellations.

Our view is that in all this confusion the most important thing is to ensure own personal safety first. You are responsible for your own life. Take precautionary measures that protect your personal interests. Avoid unnecessary panic and always be prepared in case of any eventuality…

… We will be looking at myths, symptoms and precautionary measures one must take to equip our readers with knowledge in the next blog. Always remember to was your hands and avoid unnecessary contact.

Most people have lost their companies due to lack of knowledge! Who does your company secretarial work? Engage us for corporate secretarial work that cover your back!

Contact us today for Consulting| Call +263 718 110 832| Email ppiki@neverlank.co.zw

Follow us on twitter, LinkedIn, Facebook and Instagram

Always visit https://www.neverlank.co.zw/ to stay informed

Here for people with dreams!

Company Secretarial (Including Company Registrations). Tax. Audit. Accounting. Advisory