Africa Battles COVID-19: What are the effects of Corona Virus on global supply chain?
The Coronavirus (COVID-19) has resulted in mass production shutdowns and supply chain disruptions due to port closures in China, causing global ripple effects across all economic sectors.
In the final episode of end to end series on the COVID-19 pandemic, we take a look at how the COVID-19 pandemic has affected businesses across Africa.
China is the biggest trade partner of Africa, big and small businesses all across the continent. Due to the Corona virus, factories were shut in China affecting millions of Industries and traders across the world.
Africa may be hard hit economically due to the disruption of global supply chains. This is a reality that Joseph Wamala is dealing with, Joseph, a Ugandan citizen, who runs a shoe shop in Nairobi, Kenya, is feeling the pinch as his shoe stocks dwindle.
“We have been running short of supplies because of the virus. Like now we are running short of shoe sizes. When a customer walks in they want a specific size, we don’t have it. The store is not doing well, because of the virus. We are running short of supplies, and you know people want to see something new,” said Joseph.
The situation is no different in Uganda where Joseph brother, Charles, is also running on empty when it comes to his stock, Industrial Glue, Charles though is optimistic he is planning a trip to China in the midst of the pandemic to secure more supplies for his clients. Charles is positive that this COVID 19 will pass over and things will settle down and business can flourish once again.
“The economy has to be revived. Because the majority of African countries, notably Uganda, depend on China for almost everything.” Says Charles.
Healthcare and Pharmaceuticals
COVID-19 has already begun to impact on the global pharmaceutical sector, with the prices of pharmaceutical ingredients manufactured in China rising or being unavailable after extended factory closures and supply chain disruptions. Drug manufactures in South Africa already feeling the pinch, some essential components of the drug industry are imported form China and with the factory shutdown in China the pharmaceuticals companies in the world are a worried lot.
South African drugmaker Aspen Pharmacare pioneered the way for generic ARVs in South Africa, making treatment accessible, and bringing hope to many who were dying.
The halting of exports from China and India could not have come at a worse time. According to Stavros Nicolaou, The Group Senior Executive, Aspen Pharmacare, “China supplies India with key starting materials or intermediates as they call it. India then uses those intermediates to produce the final active pharmaceutical ingredient. That then gets shipped off to us here in South Africa, and reproduce the antiretroviral finished product.” This disruption will put millions of lives at risk.
WHAT DOES THE FUTURE HOLD?
The positive news that can be learnt from the COVID -19 pandemic is that the war can be won, China has managed to stop the rise of new corona virus cases, but putting stringent measures in place, slowly the country is bouncing back industries are re-opening and life is slowly coming back to normal. The world can learn from how the Chinese have handled this pandemic and managed to stem the transmission of the dread virus.
