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How these SA industries gained and strengthened during the COVID-19 lock-down
Eight million South Africans returned to work under level 3 lock-down on the 1st of June, which is contributing to an increase economic activity. But, they have been some industries that gained and strengthened during the lock-down and joining CNBC Africa to unpack which industries weathered the Covid-19 storm is Andries Kotzee, Chief Investment Officer at Celerity Investments.
Fri, 12 Jun 2020 10:42:59 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The demand for electronic and digital connectivity has surged during the lockdown, leading to opportunities for hardware and software companies to support remote work.
- The shift towards local production and supply chains has created opportunities for South African producers and helped boost industrialization.
- The rise of online shopping has led to increased demand for distribution, warehousing, and logistics services, with private courier companies seeing significant growth.
The COVID-19 lockdown has brought about significant changes to the economic landscape of South Africa. While many industries have suffered, there have been some that have thrived and strengthened during this challenging time. One of the key industries that has seen significant growth is electronic or digital connectivity. With the shift to remote work, platforms like Zoom, Microsoft Teams, and Google Meet have become essential tools for businesses and individuals alike. This increase in demand for online connectivity has led to a surge in the need for hardware and software to support these platforms. Companies like VOTOCOM, MTA, and CLC have been working tirelessly to improve connectivity, especially in residential areas, to meet the growing demands of people working from home. The investment in infrastructure to support this digital connectivity has been substantial and has provided a boost to the technology sector. Another industry that has seen positive growth during the lockdown is the move towards local production and supply chains. The global trade tensions between the US and China have prompted many businesses to look for local suppliers instead of relying on international sources. This shift has led to opportunities for South African producers to fill the gap and supply local businesses with the goods they need. This move towards local production could help with industrialization and contribute to the growth of the economy. The rise of online shopping has also been a significant factor in the industries that have thrived during the lockdown. Distribution, warehousing, and logistics for online retailers have seen increased demand as more consumers turn to e-commerce for their shopping needs. The convenience and safety of online shopping have become more apparent during this time, leading to a surge in online purchases for essential and discretionary items. Private courier companies have been particularly successful in meeting the increased demand for deliveries and are expected to continue growing as online shopping becomes more popular. Overall, while the COVID-19 lockdown has presented many challenges, it has also created opportunities for certain industries to thrive and innovate. The shift towards digital connectivity, local production, and online shopping has reshaped the economic landscape of South Africa and provided a silver lining in the midst of a difficult time.
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