Mbabane: The Southern African Research Foundation for Economic Development (SARFED) has warned that the COVID-19 third wave might further dampen the economy.
In its weekly Economic and Business Commentary, Volume 5, issue 9 of March 2021, SARFED said the country was not yet out of the woods, and advised that firms to seek alternative measures.
Since the relaxation of the COVID-19 restrictions on 18 March, 2021, business seems to have come back to normal. The traffic trading has gradually increased, sending a possible shoot of infections if both business and general public do not continue with health precautions against the spread of COVID-19.
With this, SARFED says high uncertainty to economic growth being caused by COVID-19 crisis leaves many companies and businesses with no option but seek cost-effective measures for survival.
SARFED recommended that firms should seek market resistant investment options which will act as safety zones for their portfolios during pandemic period. Business owners should understand that in any economic crisis like the COVID-19, always have both the social and economic aspect of things are affects both negatively and positively.
This would mean an emergency of transitional shift in both markets and industries of which the process would crease both losses and gains on the stock.
SARFED further advises that Strategic downsizing would help in the event that the firms would continue to operate while adopting the new market and industrial shift. This would mean the doubling efforts in promoting research and development activities which would make the firms more innovative and creative at the same time.
The business commentary also stated that retrenching might not be the best option during this crisis. Retrenching creates labor gaps which would demand long time for the business to rebound. Also, adaptability will be the best option to most firms especially those which were fragile to external shocks.