Business As Usual Is Now Business As Unusual

2020 begun on a good note until the deadly virus caused fear and panic all over the world. The pandemic claimed the lives of many, destroyed businesses and brought the world to a stand still as to what is to be expected tomorrow.

The outbreak which was first identified in Wuhan Hubie province in  China,in December 2019 has infected more than 828,284 people around the world and nearly 174,448 have recovered, with 40,731 death cases as of March 31. Not only is coronavirus claiming lives with the more than 828,284 confirmed cases of the pandemic, but businesses are also coping with lost revenue and disrupted supply chains as factory shutdowns and quarantine measures spread across the globe, restricting movement and business activity.

Since the outbreak of the pandemic, it’s hardly for you to hear pundits and personalities talk about “when things will get back to normal”. There hasn’t been any assurance that things will get back to normal after the pandemic. There has been  big shifts in stock markets, companies which trade in shares and their  investors have been affected as well as individual savings and loans firms.

Due to the closure  of companies from Europe and the USA that are based in  China, their shares have fallen 40% of their value. Factories in China slowed down due to the outbreak making industrial production, sales and investment all falling in the first two months of the year. Investors fear the spread of the pandemic will destroy economic growth and government action may not be enough to stop the decline.

The travel and tour industry has been badly damaged with airlines cutting flights and tourist cancelling trips and holidays. Governments around the world have introduced travel restrictions to try to contain the virus and this has affected the supply chains of big companies such as carmaker Nissan and Tesla. In Ghana, the president has also banned travellers from affected countries from entering into the country and closed its boarders as well.

Whereas commodity prices have declined in China, in response to a fall in China’s consumption of raw materials,  producers are considering cutting out due to the virus. African countries that are affected are taking advantage of the pandemic to exploit consumers. Since the outbreak of the pandemic, measures from health experts were put in place to minimize the spread of it, and that demand the use of Personal Protective Equipment’s (PPEs). Retailers of these PPEs have decided sell them at exorbitant prices because the demand for it is now high, they no longer consider the vulnerable who can’t afford them at higher prices because they do not have the means to. The increment on the prices of the PPEs is as damaging as the outbreak itself .

As the government is putting measures in place to end the spread of the virus other individuals are taking advantage to be rich all in the name of the shortage in the market, they no longer get goods due to the closure of the boarders. Similarly, in Ghana, when the president addressed the nation and announced a two week partial lockdown in Greater Accra and Greater Kumasi, traders of various foodstuffs decided to use that opportunity to increase the prices of commodities that will be purchase for the lockdown to the extent of increasing the price of commodity such as Gari from Ghs8 to Ghs22.Consumers  and low income earners who cannot  afford other foodstuff like rice complained about how the prices of Gari and other foodstuff has increased that much.

Due to the outbreak China’s Gross Domestic Product (GDP) fell by 0.5 and in Ghana, the impact of the virus on the real sector shows that the 2020 projected real GDP growth rate could decline from 8 percent to 2.6 percent according to the finance minister. He also stated that the government had raised an additional 9.5 billion cedis to fight the virus and the effect of the pandemicon the economy will worsen due to two week partial lockdown. After the pandemic is over, is this going to be the new normal or the prices of these commodities are going to be reduced?

    Credit: www.worldometers.information.

                                                        Picture credit: PRI.org

                                                        Anagli Francisca Emefa

                                                        The Ghana Institute of Journalism

                                                        Level 300