Author: kapil

It gives us great pleasure to be on this new and exciting journey as we unveil a new brand identity for I&M Bank on all our digital channels.

This new digital brand identity is OUR CUSTOMERS CHOICE! We asked our customers a few months back for their valued opinion on how the future I&M Bank brand should look like and it was their majority preference that prevailed in our choice of how the digital I&M Bank logo would look like. We appreciate our customers for caring about I&M Bank.

So why are we refreshing our digital look? The I&M Group has over the years achieved many milestones all aimed at fulfilling our purpose To be partners of growth for all our stakeholders – customers, shareholders, employees and the community.

We have grown our footprint in 4 countries (Rwanda, Mauritius, Tanzania and Kenya) and are now planning our expansion into Uganda. Through the Bank’s digital innovation engine, we have delivered and will continue to add on market-driven solutions and robust IT systems geared to giving you a seamless banking experience as you interact with our technology-driven products and services. In addition, last year, the Bank was ranked as a Tier 1 or Large category bank which is humbly attributed to your continued belief in us and our solutions.

As the Bank continues its growth trajectory and while we appreciate the strength of the I&M brand as it stands currently, we feel that it is time to change our brand look to embody the growth that we have achieved over the years and the vibrant progressive future that we aspire to grow towards.

We are therefore now changing the I&M Bank logo and brand colours to a more vibrant look on different digital facets of the brand, which we believe will continue to build the Bank’s brand value.

This new look will now be applied on all our digital platforms i.e. website, social media pages, ATMs, mobile and internet banking. We will gradually extend this new logo and brand colours to our branches in the coming year.

The new brand visual identity, is an evolution of the old logo that draws inspiration from a DNA strand. This signifies a seamless transformation of the old I&M logo, to represent the stability of the I&M Group in spite of change in perspective and growth over time. Through this new look, we would like to reaffirm our commitment to be your financial growth partner driven by our brand promise to you – We are on your side. This new identity will help us live through the Bank’s values namely: Mutual Trust, Innovation and Fairness, that form the pillars to meeting your financial and lifestyle requirements.

Our new brand identity also underlines the Bank’s continued focus on customer centricity and we would like to reassure our customers that we shall continue to service them with utmost professionalism, through delivery of consistent and reliable levels of customer service and delivery of innovative market-driven solutions. We therefore hope that even with this new identity, our customers shall continue to build your loyalty and trust in the Bank and its financial solutions.

We do not take our customers support for granted and continually strive to be worthy of the trust bestowed on us to be their financial growth partner.

According to the 1,000 Day Survival Guide For Startups – Courtesy of Sanjay Mehta, If a startup is able to survive for 1000 days, then it is built to last. Now that your business has survived beyond the 1000 grey days, what next? For most of us, the epitome of the current pandemic has definitely changed the game for business models. Getting the right set of customers, investors, and other fundamental stakeholders that keep the business income flowing has not come without challenges. If this was the year you decided to set up a business because you heard your peers mention the famous Kenyan quote, Biashara ina pesa, then think again. Don’t get us wrong, we aren’t asking you to retract but rather assess your business model for long-term survival and health.

That said, let us look at financial health in this context. This refers to the dimensions of the monetary affair of a business - determined by:

• Profitability - the ability to yield profits
• Liquidity – the ability to convert assets into cash while retaining their intrinsic value
• Solvency – ability to finance debts and financial obligations in the long term
• Operating efficiency – ability to deliver products/services cost-effectively

So, what are the measures of business financial health? The fact remains, there is no sure way to determine a business’s financial health. However, there are significant indicators of strength or vulnerability. These are profitability and liquidity.

So many businesses have failed or stagnated, including those, we previously considered to be giants. One of the main causes of business failure that we have witnessed is a change in economies, whereby the economic environment influences purchasing habits, therefore, affecting supply and demand. We are currently witnessing the dynamic effects of COVID-19 uncertainties in the economic system owing to imposed lockdowns and curfew in a bid to control the spread of COVID-19. All is not lost and we have to find ways to adapt to the current economic environment and lead even at the edge of chaos.

We would, therefore, encourage you to assess the competitive ability to generate profits for your business as you strategize your new model. This will help you identify the balance of power, attractiveness, and profitability of your business in the market place. A great way to do so is using Porter’s 5 forces of competitive analysis to determine the following forces:

• Threats of new entry - how easy it is to enter your market and threaten the current position of your business, as well as a number of barriers to entry
• The threat of substitution - how easy it is to replace your current products/services.
• Bargaining power of suppliers - where supplies are controlled by a few players in the market place
• Bargaining power of buyers- where few buyers control a large percentage of the volume market
• Competitive rivalries - the intensity of competition in the industry

This said, what can you do to safeguard or improve the financial health of your business? If anything, prevent business failure?

• Monitor the cash flow of your business - never underestimate the power of cashflow
• Review your non-performing assets
• Measure your financial performance – Return on Equity (ROE)
• Instill the culture of accountability/transparency in undertakings
• Provide customer-centric products and services
• Take stock of your value chains, lifetime value of customers, churn rates, net promoter score, and sales pipelines
• Learn from your competition
• Get business insurance to minimize financial losses in the event of diverse risks
• Create a Continuous Improvement Plan - Plan, Do, Check, Act – continuously study and learn from current efforts to improve future outcomes

 Why, therefore, is it important to monitor your business’s financial health?

• It is a crucial and cautionary step to prevent business failure
• It helps you make informed short- and long-term decisions to drive the business forward
• When you know your business inside and out, only then can you position it for success
• It plays a vital role when making timely growth plans
• Tracking Financial health transforms a culture of innovation and transparency amongst teams.
• It eliminates unwanted and unjustified overhead costs
• It helps to evaluate asset quality
• It clearly reveals vital indicators of the performance of the business – These details are very important for shareholders.
• It is an indication of good business compliance with the set laws in the nation

As we end this blog, we would like to leave you with some food for thought. Would you rather be the biggest or the best in your industry? We task you to marinate on that.

Your bank buddy

IMBA

We Are On Your Side!

Hey, it’s been a minute but it’s always my pleasure to interact with you. Hope you’ve been well, personally I am better now than I was months ago. I bet every business man can now afford a small sigh of relief. When a business man tells you things have been thick, trust me they have been thicker than type K copper pipe… Don’t ask me how I know about copper pipes, I bet I have been subconsciously learning from my engineer friends. Lavington

They say every mess carries with it a message and COVID-19’s message has been loud and clear. Most business people had certain measures, policies and procedures put in place in case of a crisis but what they hadn’t factored in is a pandemic. Especially one that minimizes human interaction, is deadly and can be contracted in a blink of an eye. “Factor in a virtual working plan for your business”…That was COVID-19’s message to most businesses.

I believe most business owners have learned their lesson from the University of Life… Of course no one gets a certificate from that university, experience suffices and with that, I’ll share with you few tips on how to cushion your business against a pandemic or crisis.

For starters, be as transparent as possible with your employees and customers. Without these two sets of people you won’t have a business to run. Your customers need to understand why there is a change in operation, for example if they used to come to your store to shop, but you want to stop physical shopping and adopt online shopping, you need to communicate prior so that they understand why the need to change, for how long that will be etc. This will make them feel you care about them. Your employees also need to have clarity of the situation and you can seek their opinion where possible on how to mitigate certain challenges.

Same way human beings need healthy blood flow in their bodies to operate is the same way businesses need healthy cash flow to stay afloat. Protect your cash flow as much as you can. Reduce cost and minimize expenses where you can to ensure the rate at which money is coming in balances with the rate at which money is going out.

Go digital and be virtual if your nature of business can allow. Instead of paying office rent, your employees can work from home. Instead of having a gigantic retail store you can scale down and branch into ecommerce…The beauty of going digital is that it saves you some coins and allows you to reach a wider customer base.

Last but not least, guess work is the recipe for disaster! Have a proper business continuity plan. This mostly goes out to medium and small businesses. They are the ones often guilty of operating by faith and not having a business crisis management or continuity plan. Have clear set procedure on what needs to be done when there is a crisis and how to resume once the dust settles.

As the country opens up, not all businesses will resume, some died during the pandemic, others are on their death beads while others are heavily panting after a vigorous fight with the challenges the pandemic brought their way. For those who made it the other side props to you! For those who didn’t make it or are struggling, it’s not a loss. Your business might not have made it but your business management skills have been sharpened. They say nothing beats experience, out of it you learn and strategize better.

Before I call it a wrap, you can check out these business solutions https://bit.ly/36KqIa0 The E-commerce service came through for my buddy big time when he decided to go digital with his business. With that said, thank you for reading, catch you later!

Your bank buddy

IMBA

We Are On Your Side

As we dive into this new month of September, let us delve into the impacts of COVID-19 on the global financial system. For many of us, it has been a pretty long 6 months of uncertainty. As the pandemic continues to play out, we cannot fail to point out how our lives and the economy at large have changed. Just like other countries in the world, Kenya has faced its own share of economic downturns owing to the COVID-19 pandemic. The disruption has immensely struck businesses’ supply chains most especially industries such as Hospitality, Education, among others – leading to a major economic disruption.

According to a press release by World Bank in April, Kenya’s gross domestic product (GDP) is projected to decelerate substantially in 2020 due to the negative impact of the COVID-19 (coronavirus) pandemic. This is inevitable following the shift of focus to strengthen the healthcare system first as well as Fiscal measures taken by the Central Bank of Kenya to mitigate the situation such as easing Bank lending. Despite the provision of the stimulus packages, a reduction of economic activity in the country owing to lockdown has led to poor purchasing power and as a result, has slowed down the Kenyan economy.

Some of the common impacts we have witnessed so far are:

• Productivity is perceived to drop since some companies are unable to access government support.
• Downturn in the respective markets
• Reduced global economic output

On a global outlook, the grass is not looking any greener either. The US economy for instance is faced with deteriorating infrastructure, disruption of financial markets, induced market instability, wage stagnation, mass unemployment, mass eviction crisis and lock downs.

The coronavirus pandemic slapped the Spain economy quite an unprecedented blow.

It was one that they never saw coming since this financial crisis intensity can be described as no other, given the uncertainties. The Italian economy has sank owing to the economic costs of containing the pandemic – Lockdown. The cessation measures were just lifted recently in mid-June, longer when compared to other countries, meaning that the first half of the year saw a harsh reality - an economic deterioration owing to the strict restrictions.

 Italy, being among the most affected countries with the COVID-19 outbreak, is facing a pang of devastating impacts to its economy. As a matter of fact, the Bank of Italy said it expects GDP to fall by 9.2%. As per the International Trade Administration (ITA), Italy's third-largest destinations for exports is the US. Now, as per a research by Globe Newswire, the SMEs in this trade contribute one third of value to the Italian economy and half of total employment in the country. Following the high death toll, the Italian government was forced to impose a nationwide lockdown and cessation of movement to mitigate the situation. As a result, most factories and businesses were temporarily shut down – therefore, leading to the inevitable; significant shrinking of the economy.

We have all experienced a certain level of hardship or challenges in one way either from a business and/or personal perspective, right from the time the pandemic hit home. Let us not lose hope. If anything, let us grab the available opportunities, experience and experiment and constantly keep looking into improving them.

We shall emerge from these devastating impacts stronger and wiser.

We are on your side!

Hey, nice to catch up once again… I hope life has been kind to you, if it has, well and good. If it hasn’t, don’t worry, the storm never lasts forever, sunny day are coming. Speaking of storms and sunny days, I think the Covid-19 storm is not as bad as it was initially. The fact that we are now registering recoveries, businesses are slowly opening up, we can travel internationally once again etc. that is a sign of our sunny days approaching.

If someone was to tell you that the pandemic would string along some positivity you wouldn’t believe them. Of course the bad side of the pandemic has been really bad because lives have been lost, however, there has been a positive side to the pandemic as well.

One can argue that Coronavirus has been a huge catalyst for digital transformation. Yes, we had digitized some processes and ways of working but COVID-19 took digitization to a whole new level. For example,

• -Most ventures have invested more in cashless transactions and remote shopping.
• -Our children are now home schooling and having online classes. This one in particular is very interesting since for most of us home schooling was a thing prominent with celebrity kids in the west, now all of our children have to study from home and parents have added a new teaching skill under their belt of skills.
• -Working from home and virtual meetings is the new normal. Most companies and employees are now heavily relying on the internet and virtual working solutions now more than ever before.
• -Telemedicine is now a thing! Isn’t it just so convenient how you can now access your doctor and his services from the comfort of your house!
• -Digital banking is now the way to go. In as much as this service existed pre-coronavirus, its usage has gone up ever since the pandemic hit us.

The pandemic came as a wakeup call to most governments when it comes to the state of their nation’s healthcare systems. We have seen more resources being pumped into the healthcare systems to enable them be able to provide to the much needed healthcare service. At least we can say in as much as most countries’ healthcare systems have experienced a strain during this period, most will be better post the pandemic in comparison to pre the pandemic.

Most private sectors have risen up to social causes. Aside from most company’s CSR activities, we’ve seen them donate money and other materials to help the government help its people during such trying times. Our first president was a strong believer of the Harambee spirit which means "all pull together" in Swahili and indeed the private sector has actually depicted this more in 2020 than they have ever done before. If Mzee Jomo Kenyatta was here he would be proud of us.

Our hygiene levels have really gone up. We are more cautious of what we touch and how we interact with other people. We are constantly washing and sanitizing our hands and our homes just so as to keep the virus at bay. The good thing is that as we do that, we are also minimizing the contraction of other diseases cause by germs and bacteria.

These are just but a few of the positive side of Covid-19, the list is much longer but I’ll end it here for now. They say an optimist sees a glass filled halfway with water as half full and a pessimist sees it as half empty. As I step away I’ll encourage you to adopt an optimistic approach to the pandemic, focus on the good and try to better the bad. Thank you for taking time to read. Adios!

Your bank buddy

IMBA

We Are On Your Side

Howdy, hope you’ve been holding up well. The Coronavirus pandemic is still here with us but hey, stay, positive I believe we will rise above it. All the other aspects of our lives have been challenged in bits over the years but 2020 has clearly been the year that our health has been greatly put to test.

We may not have all contracted the virus but we have all been affected by it in one way or another. For some the blow of the pandemic has got their backs on the ropes but we should try be strong, fight back and help others where we can.

They say our greatest wealth is our health but most people don’t value it until sickness sets in. Today I’ll wear a fitness coach hat and give you a few pointers on how to invest in the holistic health of your mind and body.

Let’s start with your inner self... I remember back in the days when I was taking computer lessons, we were taught about GIGO – Garbage In, Garbage Out. If you input wrong data you get wrong output. Our bodies are not so different from computers, if we feed it with unhealthy food it will give us unhealthy results. I am not saying that we shouldn’t enjoy our buggers and pizzas, once in a blue moon.. However, let’s eat more healthy and nutritious foods that boost our body’s immunity. Plug in regular detox to help remove impurities from our systems. I recommend you try Kreo Cleanse’s scientific detox. Your body will thank you for it.

Once you have your food in order and your detox ongoing, switch it up with some regular exercises. I know working out is not as easy as it sounds but try push yourself to do it. It doesn’t have to be an intense daily work out. Start small with simple exercises then graduate gradually. As you start your workout journey I recommend you get a professional trainer to walk you through. That way he will guide you on the exercises best suited for your body type. I started my journey by subscribing to a health membership club at Hilton Hotel. I got a good trainer, the gym facilities are the best and the group work out classes just gives me psych to keep on going since I get to work out with my friends.

Gyming has been proven to be therapeutic for the mind. There is that energy and psych one gets after a good work out session. In addition to that I would recommend you try yoga as well. It will help you calm your mind and focus on what you need to for that day. You can do yoga from your living room, all you need is a workout mat which you can get from Nairobi Sports House; You can get your workout clothes from there too.

For great results I would recommend you consistently practise these healthy habits. We may not have the cure for Coronavirus but you have the power to do what is necessary to boost your immunity and promote your general health. As you start your holistic health journey, you can visit Kreo Cleanse, VLCC, Hilton Health Club and Nairobi Sports House and enjoy great discounts if you are an I&M bank customer.

For more details on these discounts click here. As I take off my fitness coach hat, thank you for reading.

Your bank buddy

IMBA

We Are On Your Side

Ambition in business: An important intangible asset you need to keep your business going.

Ambition in business: An important intangible asset you need to keep your business going

This is not just one of those ‘I have heard it all’ blog pieces. Ladies and gentlemen, you just got into a rich content zone. Stay tuned to find out more about this particular topic. I understand that you have so many questions and if you are like me, you are seeking every probable answer to the uncertainty surrounding us. I don’t have all the answers but I can tell you for free that my aim is to ensure that you gain as much knowledge to apply in your business as possible. This way, you can adapt to the new normal and apply an informed approach in the way you conduct business. You have probably read one too many articles on how to sustain your business while maintaining competitiveness during these times. However, very few talk about those intangible assets in your business that do not necessarily come with monetary value but elevate your brand. In this blog, we are going to look at brand affinity as a crucial part of your business. Brand affinity refers to values that enable you to build that fundamental emotional connection with your customer, in a bid to boost customer loyalty in the long run.

Why is this emotional connection so important? This is why; If a potential consumer believes that a brand shares common values with him/her, chances are, the client will take the product or service up, repeat the purchase again and even refer several friends. If brand affinity isn’t a gem, I don’t know what is!

If you are still not convinced, let us jump right into a great example. Have you ever wondered why you keep purchasing a certain brand in your household over and over again? Think about it, why do you keep purchasing these items despite the availability of alternative brands that suit the same purpose? Most likely you have invested your emotions in the brand and their associated value proposition resonates with your needs.

That said, what do you think top brands both in the local and worldwide context have in common? They maximize on their ability to connect with their customers on an emotional level, as a matter of fact this bond is so strong such that it can be described as a ‘gut feeling’. This invaluable asset emanates from their ability to deliver mind blowing customer experiences. Imagine having such power to drive repeat purchase! I can picture you already naming a few brands in your mind.

Therefore, there is no gainsaying that brand affinity is the ultimate intangible asset you need to attract a loyal customer base, especially during this pandemic. So, the question is, how do you build brand affinity? Here’s how:

• Great customer service – Add that personal touch to satisfy the needs of your clients. Tend to their needs, listen to what is being said about you in the market environment and do the needful, based on the feedback you receive. A great way to get this feedback is through surveys. Remember your that they chose to do business with you because they believe that you are on their side, so work on retaining them. In other words, don’t preach wine and take water.

• Credibility – Trust is a universal key in every relationship. It all starts with a promise. Keeping a promise then builds relationships and ignites the emotional connection spark! Now that is trust. A great way to maintain credibility is to: delivering value propositions, be consistent in communication, share customer testimonials, use your logo in communications to customers for the purpose of maintaining your brand identity, etc.

• Quick complaint resolution - Resolve complaints within a reasonable timeline. Time and efficiency go hand in hand. A great way to get started is to invest in Customer Relationship Management (CRM) systems that are make it easy to retrieve customer information, therefore, resolving issues faster. Imagine having to wait for hours to have an issue resolved; not a great feeling.

• Easy access – Ensure that customers can purchase or consume the product/service conveniently.

• Great communication – It is important to keep clients updated regularly across relevant channels.

• Corporate Social Responsibility – Society is a backbone of any business. Giving back to the community really elevates the reputation of a brand. Acts of goodwill especially during this epitome will go a long way. Let us uphold that moral obligation and assist when we can.

• Customer centricity – ensure that the products and services you provide are customer driven. How can you do that? Foster positive customer experiences, personalize your messages to clients, offer after sale services, think ahead of the customer – this will help you to anticipate their needs, etc.

You are now set with the toolkit to take your business to the next level. Make good use of the indispensable assets to drive that necessary ambition in your business!

Thank you for choosing us.

We are on your side!

Hey, I am your bank buddy IMBA and I want to tell you all about Trade Finance today, and along the journey, I hope this helps your business. Trade finance can be for any business that has a finance gap, between providing goods and services and actually receiving the final payment. Around 80% – 90% of world is reliant on trade and supply chain finance which is estimated to be around 10 Trillion dollars a year.

At I&M Bank, we can help your business with all the support your business needs to grow. So what do we offer? In a nutshell, we offer Letters of Credit and Letters of Guarantee which are two of the most common trade finance products used across the globe: Other services under Trade finance include, Bonds, Documentary Collections (Import and Export) Bill Avialization and invoice discounting etc

I want to explain some of the concepts behind trade finance. So how does it work? A trade finance transaction requires:
Goods and services, A buyer, A lender, such as I&M Bank who would come in and fund this trade and A seller

Trade finance is relevant where a seller requires the buyer to prepay for goods that are to be shipped while the buyer wants to reduce their risk by asking the seller to document that the goods have been shipped. I am going to show you how a simple trade finance deal could work, although there are many different forms of trade finance:
Let’s assume, your business deals in toys for children. You as the buyer (in Kenya) agree to purchase the toys from the seller who is in ChinaThe buyer in this case (your business) will approach the lender and you will then agree terms with the lender after which the lender will pay the seller upon shipment of the toys.Once you receive the toys and sell to your customers, you will then repay the lender on the due date. It is as simple as that!

So, if your business purchases/imports goods from abroad, you might use trade finance facility to mitigate and reduce your risk. I&M Bank can assist you with bridging this financial gap and take on the responsibility to ensure the trade is safe, effective and secure. These include, controlling some financial elements on the trade, keeping a close eye on the trade cycle throughout the transaction and ensuring the security of goods.

If you are wondering how your business will benefit, see below:
It will improve operational efficiencies and cash flows, increased revenue and earnings.It will help remove the supply risk from you as the buyer and payment risk for the exporterProtects both your business and the seller from the inherent risks present in international trade. These unique risks related to currency fluctuations, political stability, issues of non-payment, or the creditworthiness of parties involved.It allows you to produce more working capital and improve the management of cash flowYour company will be able to full fill large orders that would usually not be possible which will allow you to achieve higher profit margins because the facility allows both buying of products and advance payment which can be great for economies of scale.Relationships between your business and the seller is strengthenedYour business will be more efficient and competitive in the marketThere will be fewer bad debts, late payments from debtors, excess stock and this could all bring down the problems associated with demanding creditors.

Now that you know how trade finance works, lets see what lenders generally ask for? We generally find that having prepared the following, lenders can make a quick assessment and help your business get trade finance. Here is what you should be able to provide.
Audited financial statementsFull business planFinancial forecastsCredit reportsDetails and references of directors andInformation on assets and liabilities etc

Thanks for reading through. Let us know how we can grow your business.

Your bank buddy
IMBA

We Are On Your Side

Here is the thing about change; it is inevitable and comes with a package of impacts. We were going about our businesses as usual until boom! A new reality hit us; COVID-19. This is how it must have felt like to our ancestors 100 years ago during the last worldwide Spanish flu pandemic of 1920 that decimated anywhere between 17 and 50 million people………but without the internet age in which we are living in today and the mass personal travel available meaning that the spread of this novel virus was transmitted at the speed of light!

Positively though advances in medical sciences in the last 100 years also means that we have better protocols of managing the medical cases arising from COVID-19 (as well as other viral infections) and in all possibility restricting the devastation and number of deaths worldwide.

We are now living in uncertain times brought on by COVID-19 and we find ourselves faced with the reality of a new normal. The sad reality is that we didn’t see it coming….after all who anticipates such things!!

Businesses, sole proprietors, corporates, individuals etc, are all seeking insights and solutions on how to adapt to this new normal. As an inevitable part of their role, business leaders have to find ways to navigate through the crisis in a bid to sustain business continuity…..a difficult job at the best of times and doubly so now.

The world is changing around us, but let’s not forget that so is the novel COVID-19. So, what do we do? How do we go from here? So many questions running through our minds and even more confusion fueled by all kinds of conspiracy theorists which isn’t helping matters much…………. including the price of oil!

The time to face the unpleasant truths and to look past the brick and mortar way of doing business has come. Let us forge a new path ahead, beyond the uncertainty we are in. Do we have all the answers? Well, one thing is for sure, we can certainly point you in the right direction because we are on your side!

Now, let me take you through the global context of current happenings as well as a few pointers to help you navigate through this difficult and evolving economic situation. I’ll try to keep it simple so that I don’t lose too many of you along the way……….. more so those working from home!

The Global Context

Right from the onset of the pandemic, various economies around the globe experienced an economic downturn. As a matter of fact, the consensus position from business commentators predicts a recession and in the worst-case scenario, an economic depression. There’s a struggle to sustain businesses owing to imposed curfews, restrictions and lockdowns, such that businesses have been forced to respond in ways that have led to inevitable effects to the labour market. One of the major implications that cuts across the business landscape is the significant number of layoffs in an effort to cut on costs of operation. In case you were affected by this unprecedented effect, do not lose hope for we will eventually find ways to navigate through the pandemic.

There has also been major disruption in supply chains, resulting in a knock-on effect on various industries owing to unprecedented outcome with respect to the pandemic. For instance, insurance and oil markets have experienced major setbacks. Insurers are not receiving claims as people reluctant to visit hospitals in the fear of being infected. In some cases, global policies are actually implementing this limiting measure to avoid overwhelming the health systems, more than they already are.

While we have seen reduction in oil prices, this price dipping effect was felt way before the epitome of the coronavirus pandemic. Price wars within OPEC, arose from issues revolving around overproduction. In the new dawn, immediate effect was however suddenly felt owing to the unexpected outcomes travel restrictions that suddenly led to reduction in particularly personal transport, hence low demand for oil.

On the bright side, there have been attempts by governments and central banks around the world to mitigate the effects of the coronavirus pandemic.

Like with every crisis, particularly arising from health issues, we expect changes to take root in terms of ways of working around the pandemic. Immediate focus by different governments is to quickly get economies back on track. This is expected to take all sorts of forms; the principal ones being fiscal and monetary policy measures, to allow business to recover from trade shocks.

Some of the measures taken to contain the economic damage on a global landscape are but not limited to:Tax reduction to encourage circulation of moneySovereign guarantees to support affected businesses such as additional funding to health sectors and assistance in the form of unemployment benefits.Tax deferrals to allow companies that are in the business of supplying essential services to defer payment of profit tax for a specified period.Introduction of policy measures which have been occasioned by Central bank trying to lessen the impact of the crisis on economies. E.g. reduction of interest rates.Stimulus packages aimed at cushioning individuals and businesses against the impact of COVID-19

Still on a positive note, we have witnessed the green effect of cleaner air as land borne/airborne/seaborne pollution emissions have reduced. On the social front, families are spending ample time together. Other positive effects would be the realm of changes on business models. Businesses have been forced to rethink their business models on ways to work better to enhance business continuity. An evident outcome of the reassessing process is allowing work on a virtual basis while maintaining the desired level of productivity, which is by far a great way to cut on costs.

Despite the uncertainty, some businesses are actually thriving despite the given circumstances, having been lucky enough to experience a rise in demand for essential goods and services.  So, in the next blog article, we shall have a look at which some of these businesses are and most especially, how these businesses are grabbing the available opportunities in order to boost business continuity.

Stay tuned for the next issue!

Until then, stay safe!