African SMEs bearing the brunt of COVID-19 pandemic

The COVID-19 pandemic has undoubtedly brought about unprecedented challenges to businesses and economies around the world, leading to layoffs, closures, and economic uncertainty. In a recent interview on CNBC Africa, Iris Irumva, Managing Director of ITM Africa, shared insights on the impact of the pandemic on African SMEs and the important lessons that can be learned from this crisis. Irumva highlighted the importance of history repeating itself and the need to learn from past mistakes in order to improve crisis management strategies. She pointed out that when the COVID-19 outbreak first occurred in China, many believed it was a distant issue that would not affect other regions. However, African countries can now take proactive measures to protect their economies in the face of similar crises. One key lesson that has emerged from the pandemic is the critical role of human resources in organizations, especially for SMEs. Irumva noted the challenges faced by SMEs that lack dedicated human resource professionals to handle employee-related issues during the crisis. She emphasized the need for leadership to prioritize crisis management training and invest in staff development to better handle such situations in the future. The interview also addressed the impact of the pandemic on industries such as hospitality, aviation, and tourism, which have been significantly affected by the global lockdowns and travel restrictions. As a result, many businesses have been forced to lay off employees, leading to increased pressure on human resource professionals to support and guide affected workers through these challenging times. Irumva emphasized the importance of government support for laid-off workers and struggling SMEs, suggesting measures such as tax holidays and social security funds to ease the economic burden. She noted the need for strategic partnerships between governments and businesses to ensure the continuity of essential services and the protection of jobs. When discussing the future of work and the shift towards automation and remote operations post-pandemic, Irumva stressed the importance of empathy and understanding in managing remote teams. She highlighted the need for leaders to show compassion towards employees facing uncertainty and anxiety about their jobs, as well as the importance of setting clear expectations and fostering flexibility in work arrangements. In conclusion, the COVID-19 crisis has underscored the need for organizations to prioritize human resources, crisis management, and employee well-being in order to navigate future challenges effectively. By learning from the lessons of this pandemic and implementing proactive strategies, African SMEs can build resilience and adaptability to thrive in a rapidly changing business landscape.