(Ecofin Agency) - A recent survey conducted by PricewaterhouseCoopers revealed that 54% of Chief Financial officers of companies operating in Africa expect a 10-50% decline in turnovers. In detail, 38% of people interviewed forecast a decline by 10 to 24.9% while the rest see between 25 and 50%.
Of the CFOs interviewed, 86% say their companies are setting up a response plan that seeks to reduce spending and 60% of them announce a suspension in investment. In-depth information indicates that the forecast rate of corporate spending cuts is higher in Africa than in the rest of the world.
For the respondents, 52% say reducing salaries will be the second priority of the spending reduction plan, after reducing investment. The survey also shows that the African corporate world is more committed to complying with the prevention measures such as the wearing of masks and social distancing.
Many countries on the continent have not issued accurate data on the impact of the coronavirus pandemic on their economies so far. And figures are likely to be high, especially where governments have imposed total lockdown while accompanying budgetary measures have not been put in place. The publication of the first-half 2020 results by listed companies will provide an overview of the situation.