For small businesses the world over Covid-19 has been disastrous. In Africa, where many governments are not in a position to offer bailouts or furloughs, the lockdowns have been especially hard to bear for the person on the street and small businesses.
In this report, compiled by the bespoke, full service commercial law firm Duale, Ovia & Alex-Adedipe in Lagos, in co-operation with the innovation-driven pan-African law firm Vazi Legal, the impact on African start-ups is examined.
The article reflects on how the pandemic is fuelling the growth of the tech sector, which, they conclude, will be the big winner as the world adjusts to a “new normal”. This was a sector already flourishing in many parts of Africa as communities upskilled, embraced tech and governments developed broadband infrastructure.
The authors consider the situation in Nigeria, Kenya and South Africa, examining how governments and the business communities in the three countries have responded, especially with regards to keeping their economies afloat.
For small businesses with big loans, there is advice on how to restructure terms and come out alive on the other side of the lockdown.
How this will all end, no-one knows, but, the authors agree, the appetite for risk will wane in the wake of the pandemic. Nevertheless there will be opportunities and new industries will emerge – ensuring that the entrepreneurial spirit, so embedded on the continent, continues to flourish.
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