A recent study on C-Suite perceptivity of the economic impact of COVID-19 revealed that revenue connected to tourism, aviation, property sales and entertainment all decreased by over 90% in the first and second quarters of 2020.
Conducted by industrialisation and supply chain expert Professor Douglas Boateng, the purposive study also explored the perceptions of Ghanaian C-Suite executives and their experiences related to the business and economic impact of the Coronavirus pandemic.
“Bar a couple of exceptions, the findings clearly indicate that virtually all sectors researched have been negatively impacted by the pandemic. Operational impact, declines in revenues and job losses were reported in among other industries manufacturing, mining, hotels, entertainment, funeral services, publishing and media,” Prof. Boateng said.
According to the study, a negative impact has been experienced across the board in the hospitality and tourism industry with hotels, restaurants, bars, car-hire, and cultural-related businesses (art/sculpture/etc.) all indicating that the Coronavirus pandemic has negatively affected their organisation, led to job losses and reduced revenue.
Music, film, cinema, concerts and sports-related entertainment revenue has had a significant knock – with C-Suite executives indicating a drop of over 90% in revenue; wholesale and retail property sales and leasing have been adversely impacted in both the commercial and home markets. Construction in these markets has been similarly affected, with revenues down by over 30%.
According to the study, the organisational, revenue and job loss impact of the virus on the aviation as well as oil and gas industries has been significant – with C-Suite executives indicating an over-30% reduction in revenue for both industries. Mining revenue is also down by over 30%, the study revealed.
While the majority of industries examined in the study indicated that they had been negatively affected by the Coronavirus, a few exceptions emerged.
“Although most industries have had to deal with job and revenue losses over the last two quarters, some sectors have seen an increase in sales and revenues,” Prof. Boateng said.
Some of these increases have been experienced as follows:
- Roads and infrastructure construction businesses have experienced an increase in revenue;
- Agriculture has seen an over-20% increase in revenue across crops, livestock and fisheries;
- Agro-processing and electronics manufacturing revenue was up by over 20% during the 2nd quarter of 2020;
- Online education, electronic media, communications and gaming have all experienced positive growth during the pandemic;
- Healthcare revenues have increased – especially in the areas of pharmaceuticals, nutraceuticals (+80%), phytoceuticals (+75%) and antibacterials (+80%); and
- Face protection masks (FPM) and personal protective equipment (PPE) revenues have increased by 50% in the last two quarters.
“Though these sectors have experienced increases in revenue, the only sector to experience job increases was the healthcare sector – specifically phytoceuticals, antibacterials and FPM/PPE. All remaining industries indicated a reduction in job opportunities,” Prof. Boateng noted.
Based on this study, and the perceptivity of C-Suite executives in the country, the Coronavirus has had a significant impact on multiple areas of Ghana’s economy. While some sectors have thrived during the pandemic, the majority of C-Suite representatives participating in the study revealed substantial revenue reductions and job losses.
According to Prof. Boateng, this pattern of economic disruption is not specific to Ghana and similar perceptivity has been expressed by C-Suite executives operating in Nigeria, Kenya, South Africa, Tanzania and other African economies.
“What has happened to Ghana is certainly no different in other economies. With a second wave expected, it is looking increasingly likely that it will get worse during the 3rd and 4th quarters before it gets better. However, I am optimistic that Ghana will emerge stronger from this unprecedented global crisis to implement our ‘Beyond Aid’ agenda,” Prof. Boateng concluded.