In order to better understand the challenges and needs of the various business sectors within the province, the EDTEA Executive authority conducts weekly engagements with selected sectoral and industry representatives.
The weekly engagements have been complemented by a provincial survey to establish an evidence-based understanding on the effect of COVID-19 on the provincial business spectrum. The survey confirmed that at a high level, some of the top challenges confronting business in the province include:
● cancellation or reduction of orders due to subdued demand on the back of low levels of incomes among the public, a considerable number of whom have not been working during Lockdown Levels 5 and 4. The other reason is that a substantial part of the population are still skeptical about venturing in the public due to fear of contracting the dreaded virus.
● cash flow constraints. Most companies have reported that the eligibility criteria for most relief funds offered by the government exclude a number of them further worsening their cash flow positions. In cases where business establishments have accessed the government relief funds, they have reported that the funding instruments are not agile enough to respond to the real and immediate business challenges.
● A number of businesses report difficulties relating to employees contracting the COVID 19 virus compelling them to further shut down for building disinfection in line with the provisions of the lockdown regulations. This negatively affects productivity at the same time creating heightened safety anxiety amongst other staff.
● Most companies are facing closure and we are seeing spikes in Section 189 processes -retrenchments