The ILO Director-General, Guy Ryder said,

This is no longer only a global health crisis, it is also a major labour market and economic crisis that is having a huge impact on people.

What actions must we take now to mitigate the loss of well over 10 million jobs that could be lost in Africa?

First is visionary leadership from governments to define reality and provide hope, that will provide options of intervention responses and packages.

The financial institutions, commercial banks, venture capitalists, should include an investment incentive to support small and medium businesses. By setting up an SME Relief Fund to support and assist small-medium enterprises impacted by the pandemic crisis. This could be set up jointly by the Government and the private sector.

As we all know, Small and Medium Enterprises are very important drivers of the economic growth of Africa, as they account for well over 80 per cent of all businesses in the market. Naturally, with the pandemic crises globally this powerful sector will be hit the hardest.

One of the ways Small Medium Enterprises (SMEs) can cushion the effect of the restrictions and man­age the impact on their busi­nesses is through the adoption of technology. That is to say, remote communications, which is e-commerce. Electronic commerce can provide the needed hidden upside for businesses because it relies on various information and communication technologies (ICT), and it has the potential to improve trade efficiency and improve business perfor­mance. Downsizing is rather difficult but survival is the most important thing during the crisis. This means reducing expenses and managing cash flow daily. Remain in contact with your customers, suppliers, funders. Also look for ways of raising funds, sourcing for grants.

We understand that that the first victim of panic is liquidity, thus bank will not lend. This will be harder on all microfinance banks, as this is the only business for them. Commercial banks, MFi, development banks and investors should strongly consider investing more into female-owned businesses in Africa. Especially the female entrepreneur in the agricultural and food chain business.