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The International Road Transport Union (IRU) welcomed the Commission’s guidelines on green lanes and the announcement that all freight qualifies to access those green lanes, but stated that “We know by experience that maximum 15 mins per truck will continue to result in huge delays and the situation will remain unchanged. There shouldn’t be any systematic checks at borders” (see Fresh Plaza, 24 March). IRU General Delegate Raluca Marian said that “harmonising EU transit rights for non-EU vehicles serving European countries remains a matter of urgency. The support of third country nationals is of vital importance and application of rules should not be made conditional. Adopting any unilateral restrictions without coordination must be avoided at all costs.”
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A change in the Maximum Residue Limits (MRLs) for imazalil and fipronil on several crops will enter into force in the coming weeks. The lower MRLs mean that they can no longer be used on these crops when the produce is being exported to the EU. Note that it does not affect their use on crops destined for the domestic or regional market in countries where they are registered for use by the national authorities; MRLs in ACP countries are generally set according to internationally agreed standards (CODEX).This news provides information for ACP producers who are using these plant protection products on crops for export to Europe. It is important to be aware of the changes, and to make any necessary adjustments to production (using alternative control methods) in good time to ensure compliance with EU regulations. CHANGE OF MAXIMUM RESIDUE LIMITS (MRLS) FOR IMAZALIL On September 25 2019, the European Commission published a regulation setting new MRLs for imazalil. This change enters into force on 16 April 2020.Transitional measures are in place allowing the old MRLs to apply to products that were imported into the Union before 16 April 2020, except in the case of grapefruit, oranges, apples, pears, medlar, bananas, and potatoes. For these crops, the new MRL is applicable from 16 April.Imazalil is a fungicide used to control a wide range of diseases on fruit, vegetables and ornamentals. It is widely used in ACP countries and is of particular importance for the management of post-harvest diseases such as crown rot in banana.The table below lists the MRL changes that have been identified by COLEACP as most critical for ACP countries. The full list of changes can be seen in the new EU Regulation.In banana, for example, the new MRL is set at the limit of determination (LOD - 0.01 mg/kg). This means that it will no longer be possible to use imazalil for post-harvest treatments on banana destinated for the EU-market.Operators in ACP countries that use imazalil on these export crops must take note of the changes, and ensure that they use alternative control methods. If you require additional information, or face particular problems as a result of these changes, please contact COLEACP at: network@coleacp.org (link sends e-mail).Table 1. EU MRL changes for imazalil affecting key ACP export crops, coming into force on 16 April 2020
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Logistics remains the main problem for Kenya’s vegetable exporting producers. Commercial passenger flights have not been allowed to land in Nairobi since last Wednesday. This was the most common means of transport used to send vegetables to Europe. Members of FPEAK (Fresh Produce Exporters Association of Kenya) are convinced that they can easily fill a plane (100 tons) several times a week.All stakeholders in the Kenyan horticultural sector are mobilizing to try to maintain jobs and incomes and avoid unemployment and social unrest.According to the AEA (Agricultural Employers Association) supermarkets mainly in the UK, Sweden and Russia have maintained orders for Kenyan fresh produce. The organisation says it is confident that, after some adjustments, European demand for fruit and vegetables should pick up again. In contrast to the flower sector, where the situation is considered catastrophic.
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SOUTH AFRICAAs the country most affected in Africa by Covid-19, an unprecedented three-week containment was decreed. The government has banned the sale of alcohol and cigarettes and all travel. The authorities have planned an aid plan to make it easier for banks to borrow and lend.BENIN Containment officially began on March 30, 2020. It is not a general confinement, only twelve cities in the south of the country, including Cotonou, Ouidah, Allada and Porto-Novo, the capital, are concerned. A cordon sanitaire has been set up around this area. The police are organising the controls: no exits and no entries into this area, except with a derogation from the prefects. CAMEROON On 31 March 2020, a transport strike notice was filed in response to the more restrictive anti-coronavirus measures taken against the transport sector: disinfection of compulsory transport vehicles and the presence of hydro-alcoholic products at bord ; prohibition of surcharges ; taxis are limited to 4 passengers on board and buses to 50 passengers in intercity transport buses. CONGO-BRAZZAVILLE Containment became official on 31 March 2020 for a period of 30 days with a night curfew from 8pm to 5am. A “state of public health emergency” has been declared in view of the risk of spreading the coronavirus. Containment concerns the entire population except for people working for organisations providing essential goods and services. GHANA Two regions are affected by the containment decision which started on 30 March 2020. Traffic is restricted for two weeks for two days in the Greater Accra Metropolitan Area and the Greater Kumasi Metropolitan Area. Only exits for essential purchases are allowed. GUINEA The state of health emergency obliges taxis to take only three passengers (previously six) and minibuses to take seven (previously 10). This limitation caused a transport strike in Conakry. KENYA Curfews have been imposed at night and Kenyans are moving away from major cities by public transport. Kenya has seen a severe decline in its exports of fresh fruit and vegetables to the EU. Complete or partial blockades by European countries have forced some importers in Europe to cancel or reduce their orders. MADAGASCAR The inhabitants of the capital Antananarivo have been going to the countryside for several days. Checkpoints have been set up on National Road 7 to monitor the temperature of people travelling to the other provinces. MAURITIUS Producers are suffering because the pineapples are ripe and ready to be harvested. But there are no buyers. The growers are allowed to go alone to the fields, respecting the usual precautions to avoid the spread of the corona virus. MAURITANIA Since 29 March 2020, it has been decided to prohibit the movement between the regions of the country, except for medical teams, heavy goods vehicles and special teams responsible for water, electricity and telecommunications services. A decision was taken to close schools, universities, land and sea borders and airspace to commercial flights. NIGERIA Containment began this Monday evening, March 30, in Nigeria in the cities of Lagos, Abuja and Ogun State. Financial activities that do not require the public to enter are being maintained. In Lagos, schools, public places and non-food shops are closed. Trains and airports are at a standstill. TOGO The decisions to close borders will have an impact on Togo’s agricultural export products (cotton, coffee, cocoa), creating significant losses of income. The country’s domestic markets will no longer be able to be supplied, and food security is likely to be seriously affected. Solutions are already being proposed for the long term by promoting the local production of rice substitutes such as cassava and yams, developing local fish farming, developing a local fertilizer industry, implementing a product storage strategy (6 months) to maintain acceptable prices.SMEs are concerned about the long-term consequences for their activities and are calling for measures to cushion their impact (reduced taxation, lower social security charges, lower fuel prices, suspension of bank loans).Crop production is likely to be delayed due to the delay in fertilizer imports.Already some companies have ceased their activities while others have put their staff out of work. On 1 April, the President of the Republic announced the setting up of a Recovery and Solidarity Fund of 400 billion CFA francs to be financed by the State, international donors and the national and international private sector. (Sources : Agridigitale Info) ZIMBABWE On 30/03/2020, the government decreed a total confinement of the population for 21 days. Only health and safety personnel will be allowed to go to their workplace. In Harare, all shops are closed except for supermarkets in the city centre. During the last weekend, many inhabitants of the capital went to the provinces. There is a risk that many people living on informal activities that do not have regular salaries will not be able to buy provisions for long periods of time. In addition, some areas of the capital are without electricity and running water, which makes it difficult to store goods. Zimbabwe allows the purchase of local products in foreign currency. The risk could be a weakening of the national currency exchange rate.
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“Since the Coronavirus started, we have seen a drop in demand from our clients.Especially, the exports to Morocco and Germany which have basically been put on hold due to the lock down.Our local processors have also reduced their intake because there is one flight leaving Ghana. Even the juicers like Pinora have had to cancel programmes due to decreased demand on Europe as they are not able to trade right now.So, we have lots of fruit on the field which are rotting. So, we are just drowning in costs. We also have not other choice but to continue to fertilize our plants not knowing when or if demand will increase. Which means more costs with no income coming in.Easter is also our peak and we have lost that due to the Corona. We are currently loosing approximately 3 containers export and 1.5 containers for local processors per week.”
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An update provided by Union Fleurs – International Flower Trade AssociationThe global flower market situation has continued to wither during weeks 13 and 14 with the UK going into shutdown and an increasing number of countries worldwide implementing measures to combat the spread of COVID-19 and closing in particular all non-essential shops. Supermarkets are at the moment the only viable channel sustaining exports and sales of flowers in most countries around the world, and even there flowers are said to compete for space and exposure with other commodities, in particular from the food section. The Dutch flower auctions report activity down 70% than usual, and prices about 20 % lower. The regulation of supply enforced since mid-March, a temporary and extraordinary emergency measure introduced to keep the destruction of flowers and plants to a minimum and to restore price formation, continues to be in effect and is reviewed on a daily basis to evolve in line with the development of demand per product group on the market.The massive ‘domino effect’ is continuing to unfold and hitting flower-supplying countries in Africa and South America particularly hard, with a devastating socio-economic impact. With the cancellation of most international passenger flights worldwide, which flower exports usually use extensively to ship to the destination markets, only cargo airfreight is now available for flower exports from African and South American. Given the importance of the flower industry to the economy, industry associations the Kenya Flower Council in Kenya and Asocolflores in Colombia have successfully managed to obtain from their government a continued access of flower trucks and shipments to outbound international airports in their country despite the implementation of curfew measures. But great pressure on airfreight costs and space availability is now being reported: freight rates are estimated to have increased by 25% to 30% and flowers have to compete for space on cargo aircrafts with other commodities and express shipments.In Kenya, flower farms are reported to lose some 20 million KES every day and have had to send home more than 30,000 temporary workers and put 40,000 permanent staff on annual leave to insulate themselves from further damage. Flower farmers are incurring huge losses as the crisis deepens. Since the Dutch auctions collapsed on 13 march, farmers have been forced to dispose of their flowers while a few of them are still able to export little volume to supermarkets in Europe and to Japan. Meanwhile and until the global market situation gets restored, flower plants need to be kept alive and healthy, otherwise they will die, and the Kenya flower industry will lose its ability to supply flowers when the markets open up. The Kenya Flower Council reports that “Every hectare of rose plants costs 100,000 USD and each plant is expected to last five years. The total area of roses under cultivation is in the region of 2,000ha and this alone represents an investment of 200million USD.” Despite the lack of sales, growers must still water, fertilise and look after the flowers, otherwise, the plant deteriorates and will not deliver flowers in the future. Security must also be maintained to protect the farm infrastructure and people. Labour is still required to perform these tasks so that once the pandemic passes, production and sales can return to expected levels. These ongoing operational costs exceed by a clear margin of the revenue from reduced sales. The Kenya Flower Council continues to urge the Kenya government for urgent support to the flower industry. President Kenyatta has recently issued a directly on VAT refunds and tax breaks ( the Kenya government owes the flower sector an estimated 9 billion KES in refunds which has taken ages to be effected) but a wider range of measures are urgently being called for to help rescue the industry , including tax rebates, cash injections, loans and loan guarantees and zero-rating of all farm inputs . The impact of the global COVID-19 crisis puts in peril one of Kenya’s most successful and internationally acclaimed sector, which earned the country in 2018 113 billion KES , contributing around 1.07 per cent to the country’s GDP and is the fourth largest contributor of foreign exchange after diaspora, tourism and tea.The COVID-19 crisis is also heavily affecting other African flower exporting countries such as Ethiopia, Uganda and Rwanda. UEFA (Uganda Flowers Export Association) reports that all exporting flower farms have laid off approximately 30 per cent of their workforce due to the inability to sustain salary payments during this pandemic. The floriculture sector has reached a near total collapse, seeing a drop of 90 per cent in the industry’s exports and 50 per cent drop-in price rate. If intervention measures are not taken to mitigate losses, about 10,000 to 15,000 people will lose their job in the flower industry in Uganda, taxes will be affected and foreign currency worth 84.98 million USD incoming to the economy will be lost. Rwanda’s rose-farm Bella Flowers, established in 2016 and a remarkable success story since then, has been heavily hit as well. The farm exports 85% of its production to the Netherlands and has seen its exports completely stopped since 20 March. “One time a week, we can send maybe one pallet to the auction in the Netherlands. But this is just to be there, to keep our farm name in the minds of the buyers.” Currently, the only thing they can do is keeping their crop in good condition so that it will be ready for the times when demand increases. By maintaining it, quality of the product can be kept and be ready when demand will re-start.To infuse some much-need positivity through these harsh times, a variety of promotional initiatives are currently being taken by the flower industry worldwide to remind people of the importance of flowers and their universal language to show love and friendship, gratitude, support, consolation and hope. The campaigns “Let hope bloom” by the Flower Council of Holland, “Bond with flowers” by Asocolflores in Colombia and “Flowers of Hope” in Kenya have recently been initiated and several videos are largely spread over social media to bring sparks of colour and joy in these turbulent times and ensure that consumers will not forget about buying flowers when the situation stabilises again.
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There is no evidence that food is a likely source or route of transmission of the virus. According to the European Food Safety Authority (EFSA), experience from previous outbreaks of related coronaviruses (e.g. SARS and MERS) has shown that transmission through food consumption did not occur, and there is no evidence to suggest that COVID-19 is different. The European Centre for Disease Prevention and Control (ECDC) explains that the virus is transmitted from person to person mainly through droplets that people sneeze, cough or breathe out.Scientists and authorities around the world continue to monitor the spread of the virus, and no cases of transmission through food have been reported. More information on coronavirus and food can be found in this FAQ from the German Federal Institute for Risk Assessment (BfR).
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UK supermarkets are confident that they can cope with the effects of COVID-19 on the supply chain and that shopping patterns will eventually return to normal. But the coronavirus pandemic has awakened wider fears about the strength of the complicated supply chains that modern societies depend on (see BBC News: Business, 26 March). Half of the food consumed in the UK comes from overseas, with 30% coming from the European Union. The government is treating logistics workers as key workers, in the same way as emergency services and health staff. There is also spare capacity: for example, the closure of car plants means that their fleets of supply trucks will not be needed for the duration. Suppliers to the restaurants, bars and cafes that have been shut down already have the facilities and equipment to deliver food to supermarkets – refrigerated vans, food handling systems, warehousing. And the fall in the number of cars on the road means easier and speedier deliveries.As borders across Europe have been sealed, exceptions have been made for the trade in goods. Goods are still arriving in the UK from Italy, for instance, even though the country is in shutdown. But it would only take one country to start banning the export of food for the whole system to be at risk, as others retaliate to secure their own supplies.According to Peter Alexander, global food security expert, “If coronavirus has shown us anything, it is how complicated and delicate supply chains have become. After this crisis has passed, there is bound to be immense pressure on companies and governments to strengthen and simplify them.”The UK Government is relaxing competition regulations to allow retailers to work together during the coronavirus outbreak (see The Guardian, 19 March). Supermarkets will be allowed to cooperate to keep shops open, to share distribution depots and delivery vans, and to share data with each other on stock levels. The Department for Environment, Food and Rural Affairs (Defra) is working with local authorities to extend the hours that deliveries can be made to food stores. The Department for Transport is also easing restrictions on delivery drivers’ working hours during the crisis.UK retailers are also asking for relaxation of grocery code regulations. The code was developed to prevent big grocers abusing their power over suppliers. They cannot, for instance, halt orders without reasonable warning. The supermarkets say they now need the ability to make changes quickly so they can switch away from more obscure products to focus on essentials. The industry regulator, the Groceries Code Adjudicator, is expected to take a “pragmatic approach” to what counts as reasonable notice during the crisis, rather than alter the rules.
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Given the international nature and the very high degree of integration of the global flower supply chain, the high perishability of the products, and the very complex just-in-time logistics, the global flower industry has been hit hard by the escalating COVID-19 crisis since mid-March (see Statement from Union Fleurs, 24 March). An unprecedented and massive “domino effect” is now in effect at all levels, affecting all European countries and the main flower supplying countries in East Africa (Kenya, Ethiopia) and South America (Colombia, Ecuador). This is a direct result of the complete collapse in demand and consumption in most EU Member States, the United States and the rest of the world following the large-scale closure of all non-EU stores – an essential part of containment measures – and the subsequent abandonment of sales and distribution channels.On the European market, the ramifications are immense at all levels, for EU producers, wholesalers, importers and exporters, and affect the ornamental sector as a whole – cut flowers, indoor and outdoor ornamental plants and all related products. Sales in the European market are currently estimated to be 80% below average. Demand was temporarily kept at acceptable levels during week 12 with Mother’s Day in the UK on March 22, but this is now over and market prospects for future spring celebrations linked to flowers (Easter, Mother’s Day, May 1) are more than uncertain. Production costs cannot be covered and planning for future production cycles is suspended. This crisis could not have occurred at a worse time of year – spring (March to May) is the period when most of the turnover is made within the sector (50–70% of annual turnover). Mass destruction of production and stock is now inevitable in the EU and beyond. Supply chain businesses (production, wholesale, trade, distribution channels and retail stores) face bankruptcy, including those that are financially healthy, and related jobs are at stake. The ornamental sector as a whole provides around 760,000 full-time equivalent jobs in Europe, and the annual turnover of the sector is estimated at €48 billion.The shock wave is particularly intense for the market-leading Dutch ornamental industry. Daily losses in auctions are said to be over 75% since March 13, and prices for cut flowers, potted plants and bedding plants remain under strong pressure. The situation has led Royal FloraHolland to intervene: for the first time in the Dutch auction system’s 100-year history it is regulating the market and limiting the offer through a quota system (maximum daily volume per product group and producer, based on total supply volume in 2019 – direct sales and clock sales combined).Emergency support is currently being requested from EU national governments to support companies in production, wholesale and international trade and help them survive this very difficult time. The Dutch Government is actively involved, and last week announced a €20 billion package of financial measures to help Dutch flower companies deal with huge liquidity problems. In addition, an emergency fund for the ornamental sector as a whole is currently under discussion with the Dutch Government. The situation of the ornamental sector was discussed at the video meetings of all EU agriculture ministers on 25 and 27 March, and a special request was made by the Netherlands, supported by other countries from the EU and by various industrial organisations such as Union Fleurs, to provide extraordinary short-term financial support to the ornamental sector. As the sector does not fall under the existing framework of support measures for the EU’s common agricultural policy, no guarantee of support or timetable for such extraordinary measures has yet been given, but the European Commissioner for Agriculture and Rural Development, Janusz Wojciechowski, is attending closely to the situation in the sector.The main flower supplying countries in East Africa and Latin America are directly affected by this unprecedented crisis and are faced with a massive impact on production, exports, corporate financial liquidity and the workforce. The Kenya Flower Council reports that all Kenyan farms have significantly reduced their export volumes to less than 70%, with a considerable number of these farms completely suspending exports and destroying production. The pressure on businesses and the associated workforce is immense, as the Kenyan flower industry directly employs about 150,000 people, mainly women, and creates jobs for more than a million people overall, which has an impact on more than 4 million lives. The Kenya Flower Council has requested the Government of Kenya to provide a package of financial and fiscal emergency support measures to support the industry and help mitigate the impact on Kenyan flower businesses and associated workers.A report by the Kenya Horticultural Inter-professional Association states that in the last month alone, flower farms have lost more than 70% of their turnover due to the loss of market share in Europe. This has been caused by the closure of retailers and the collapse of auction prices. Vegetable and fruit markets remain sluggish. Exporters are shipping 25–30% of their produce and dumping the rest locally.Most farmers have sent seasonal workers home, while permanent workers have been given up to 30 days paid leave. 350,000 jobs are at risk. Currently, over 150,000 seasonal workers have been sent home and 80,000 permanent workers are on paid annual leave pending final decisions. The value of the 150,000 workers is a total of KSh 2.4 billion per month (at KSh 16,000 per worker). The country is on the verge of seeing an increase in poverty, insecurity, hunger, inability of families to meet their basic needs, and emigration to urban centres and internationally due to unemployment.The Ethiopian Horticultural Exporting Producers Association (EHPEA) reports that the Ethiopian flower industry is on the brink of disaster, with nearly $11 million in losses suffered in the past two weeks due to the global drop in demand and closure of international passenger air cargo. A total of 150,000 employees are on the verge of losing their jobs. The Ethiopian flower industry is highly dependent on the Dutch clock system, and 90% of its rose exports are shipped via the Netherlands. The Ethiopian flower industry is pleading for support from the Ethiopian government.
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In a statement on the COVID-19 pandemic, the Secretary General of the ACP Group of States, H.E. Georges Rebelo Pinto Chikoti, announced a collaboration with the European Union to mobilise an additional €25 million for the ongoing ACP Programme to Strengthen Health Systems for Universal Health Coverage in ACP States. The programme is funded by the 11th European Development Fund, with the World Health Organization as the main implementing agency.The ACP Group of States is particularly concerned by the state of preparedness of at-risk countries – those with low-income and/or weaker health systems – many of which are ACP Member States. The additional funds will support countries to accelerate the implementation of their National Action Plans for Health Security (NAPHS) through the strengthening of health systems; and to enhance country, regional and global health emergency preparedness beyond COVID-19.
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Due to the coronavirus pandemic, officials in Africa are now resigned to delaying the launch of what is set to become the world’s largest free-trade bloc, the African Continental Free Trade Area (AfCFTA) (see Politico, 24 March). Trade talks aimed at launching the bloc on 1 July are now on hold. However, the intention is still for the AfCFTA to launch this year, with the hope that talks could resume by the end of May.The pandemic is predicted to have a profound effect on economies worldwide, with the UN scaling back its projection of Africa’s GDP growth this year from 3.2% to 1.8%.But according to Wamkele Mene, recently elected as the first Secretary-General of the AfCFTA, “Africa should not despair and fall into despondency. From a trade perspective, we should see this crisis as an opportunity – through the AfCFTA we have an opportunity to reconfigure our supply chains [and] to reduce reliance on others.”According to Politico, perhaps the biggest challenge will be to ensure that the benefits of the AfCFTA reach the small-scale businesses and farmers that form the backbone of most of the continent’s economies. Fatma Ben Rejeb, CEO of the Pan-African Farmers’ Organization, says “What is most important is how we are going to guarantee the involvement of family farmers in the whole value chain. In our own countries we still have enormous challenges to access markets for smallholder farmers. […] It needs to be a bottom-up discussion and not a top-down discussion.”
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The COMESA Business Council has published a Business Insider Special Edition, “Business Insights of the COVID-19 Virus”. At the international level, a snapshot of trade disruptions between the Common Market for Eastern and Southern Africa (COMESA) and its key trading partners due to COVID-19 describes a significant drop in international trade (imports and exports) due to logistical and control measures put in place by export destinations. Kenya’s cut flower exports are singled out as a key example, with the Kenya Flower Council highlighting that exports of flowers to the European Union have reduced by almost 50%. The industry is estimated to support more than 500,000 people in terms of direct employment, some of whom are on the brink of investment and job losses. More generally, COMESA suggests that the disruptions caused by COVID-19 will lead to a decrease in the availability of import products, disrupting supply and value chain networks and increasing the cost of raw of materials, products and services to industry and consumers.At the regional level, airline cancellations, port closures and other transport limitations are affecting the movement of goods. South Africa, a gateway to Southern Africa, has closed 35 ports, affecting trade with Eswatini, Lesotho, Mozambique and Botswana. Several countries in COMESA are landlocked and there is great reliance on corridor networks, cross-border transport and logistics services. Although some of the large borders and ports are still functioning, most are downscaling their services. Beitbridge, Chirundu and Malaba border posts are some of the busiest in Southern and East Africa, providing links across the North-South Corridors and Northern Corridors covering more than ten countries. Limiting these routes will have large effects on trade and the supply of products across countries.COMESA makes the following recommendations to governments and the private sector to mitigate the drastic effects on businesses and the economy at large. National safety nets to support businesses. The World Bank Group has set aside US$8 billion as a stimulus package for financing companies in the wake of the pandemic to cushion its possible effects. It will be imperative to ensure some companies in Africa are able to access the financing options through this vehicle. Focus on alternative sourcing markets and intra-regional trade partnerships. The upcoming African Continental Free Trade Area presents an opportunity for maximising regional partnerships and trade. Focus on a business continuity plan that takes into consideration the newer models of digital meetings, remote operations managements, virtual office spaces, etc. Focus on restructuring business models. Focus on increased local production. Focus on access to credit and servicing of debt. Business readiness in the area of contractual obligations. Businesses should ensure a strong financial position so that they can still effectively carry out their operations, and should keep partners and stakeholders informed of any major changes likely to affect the business position. Increased engagement and open communication among all stakeholders.