Making money after COVID-19 pandemic

Knight Frank’s virtual meeting gives ideas to business operators

Kampala, Uganda | JULIUS BUSINGE | There is life after COVID-19. Business owners should think about adjusting their mode of operations to serve their clients better if they are survive.

These are general views that came up during a discussion about the impact of COVID-19 on the retail property sector in Uganda organized by property manager, Knight Frank.

With a total lockdown that started in March this year, most shopping malls, arcades, and business hubs closed as part of the measures to stop the spread of the pandemic.

As of July 17, the country had registered 1, 051 COVID-19 cases with zero deaths. On the same date, some businesses were still suspended and those that opened were struggling to make money.

Judy Rugasira, the Knight Frank Uganda managing director, said that any disruptions registered in the economy directly impacts businesses and the real estate market. She said the idea behind the virtual meeting was to share ideas on how businesses could survive during and after the COVID-19 era.

Marc du Toit, the head of retail at Knight Frank Uganda said that COVID-19 will not easily go away and that businesses must prepare for the worst case scenario.

He said landlords that have not thought of giving rent concessions or wavers to tenants for the lockdown months should do so to support their recovery after coronavirus era.

He said that trading pattern is fast changing and online buying and selling of goods and services will gain momentum. In a bid to ensure customer retention and boost their confidence, business owners should put in place standard operating procedures (SoPs) like sanitizing, ensuring social distancing, and washing hands and more, he said.

“This will make customers feel comfortable,” he said.

Toit said business actors should think deeply about changing operations in relation to charging rent in foreign currency, understanding each other’s businesses and formalizing partnerships as a password to boosting business growth in times of crisis. He also said interest rates for banks especially for the local currency must always be reviewed depending on the prevailing business environment.

Jamil Alibai, from Eye Care Centre, said retailers/businesses will have to thrive on innovations to attract customers to survive the post COVID-19 era. He also said that the government should extend tax rebates to businesses. Land lords should reduce rental changes for some periods and commercial banks should reduce and cut interest rates for clients. He also said business owners should review their orders with suppliers and re-assess their insurance and related policies. He also said that going online fully to do business would be a good idea for cutting costs such as rent. He added that staff training on how to handle online transactions and implementing the coronavirus SoPs should be a priority.

He also said businesses should not expand before thinking deeply about it this year and next year. “2021 is an election year and is likely to be tough,” Albai said.

Everest Kayondo, the chairman of Kampala City Traders Association (KACITA) said that landlords are willing to abide by the standard operating procedures for COVID-19 as government moves to open all businesses. He agrees with Alabai, saying that banks and landlords should remove interest and rent fees respectively for the period of time that the country was locked. Kayondo is hopeful that business will pick up starting next year after travel and related restrictions are lifted.

As a lesson from the COVID-19, Kayondo said, business owners should develop a culture of saving to be able to jumpstart their businesses in times of crisis and after.

Nozipho Makhoba, the portfolio and business manager (Rest of Africa) at Stanlib said the government needs to quickly formulate a comprehensive regulatory framework for the real estate sector to guide its operations.

She also said it is important for businesses to plan for disasters in terms of having enough stock, savings and related variables. She also said that businesses must be flexible while setting targets for businesses in terms of revenue, expenditure and profitability. Tenant assistance packages is also key in times of crisis.

The online meeting came at a time, the government and its agencies had put in place some measures to ensure businesses remain as a going concern.

For instance, the Uganda Revenue Authority put in place measures of a tax administration nature to support taxpayers in meeting their obligations during this COVID-19 unprecedented time. These include; extension of time within which to file tax returns; deferment of payments agreed upon by way of a memorandum of understanding; encouragement of use of online services; waiver of penalty and interest on voluntary disclosures.

Bank of Uganda on the other hand said it would intervene in the foreign exchange market to smoothen out excess volatility arising from the global financial markets. It would put in place a mechanism to minimise the likelihood of sound business going into insolvency due to lack of credit and provide exceptional liquidity assistance for a period of up to one year to financial institutions supervised by BoU that may require it among others. It would engage Mobile Network Operators (MNOs) and commercial banks to further reduce fees on mobile money transactions and other digital payment charges in order to limit the use of cash and bank branch visits.

The National Social Security Fund indicated that with effect March 31, it would allow Ugandan businesses facing economic distress to reschedule their NSSF contributions for three (3) months without accumulating penalty.

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