Aruba Research: Network as A Service Adoption to Accelerate by 38% Within the Next Two Years as Businesses Adapt to COVID-19

Media Outreach
-
0
  • 74% of organizations reported moderate to significant impact to their employees due to the pandemic
  • In response to COVID-19, 38% of IT leaders plan to increase their investment in cloud-based networking, and 35% in AI-based networking, as they seek more agile, automated infrastructures for hybrid work environments

SINGAPORE – Media OutReach – August 24, 2020 – Businesses will experience profound changes as employees’ transition to hybrid work environments following COVID-19, in turn changing the way IT teams procure and consume networking solutions. In response to the pandemic, IT leaders are now investing more in cloud-based, analytics and assurance, edge compute and AI-powered networking technologies as business recovery plans take shape. That’s according to a global survey of 2,400 IT decision-makers (ITDMs) commissioned by Aruba, a Hewlett Packard Enterprise company.

As IT leaders respond to the challenges associated with enabling a highly distributed workforce and the emergence of the hybrid workplace — with people needing to move seamlessly between working on campus, at home and on the road — they are looking to evolve their network infrastructure and shift away from CapEx investments towards solutions consumed ‘as a service’. The average proportion of IT services consumed via subscription will accelerate by 38% in the next two years, from 34% of the total today to 46% in 2022 globally, whereas from 35% to 48% in APAC, and the share of organizations that consume a majority (over 50%) of their IT solutions ‘as a service’ will increase by approximately 72% in that time both globally and in APAC.

“With the emergence of the hybrid workplace, IT leaders in Singapore are being asked to deliver a delicate balance between flexibility, security and affordability at the edge,” said Justin Chiah, Senior Director, South East Asia, Taiwan and Hong Kong/Macau (SEATH), for Aruba, a Hewlett Packard Enterprise company. “It has become increasingly clear that to support these new needs, IT decision-makers are attracted to the reduced risk and cost advantages offered by a subscription model. While 85% of organizations surveyed in Singapore (77% for global) have delayed or postponed projects because of COVID-19, businesses remain resilient and are already looking for ways to remain agile, as seen from their increased investment in cloud-based networking (38%), analytics and assurance (42%), edge compute (40%) and AI-based networking technology (28%).”

The report, which surveyed ITDMs in over 20 countries and eight key industries, looked at how they have responded to IT and business demands in the wake of COVID-19, what investment decisions are being made as a result, and the consumption models now being considered. A number of key findings stood out:

IMPACT OF COVID-19 HAS SIGNIFICANT IMPLICATIONS

ITDMs reported that the impact of COVID-19 has been significant both on their employees and short-term network investments:

  • 22% describing the impact on their employees as ‘significant’ (widespread furlough or layoffs), while 52% considered it ‘moderate’ (temporary reductions in some functions), and 19% ‘low’ (very few jobs impacted).
  • ITDMs in India (57%) and Brazil (34%) were most likely to cite a significant impact on their employees, while those in Hong Kong (12%) and Mexico (10%) reported the least, highlighting a massive swing in experiences between regions.
  • 78% in APAC markets said that investments in networking projects had been postponed or delayed since the onset of COVID-19, and 27% indicated that projects had been cancelled altogether.
  • Project cancellations across APAC markets were highest in India (37%) and lowest in Australia (17%), showing there are also significant disparities between countries within the same region, while 37% of ITDMs in education and 35% in hotels and hospitality globally said they have had to cancel network investments.

THE FUTURE IS BRIGHT: INVESTING FOR EMERGING NEEDS

By contrast, future plans are aggressive, with the vast majority of ITDMs are planning to maintain or increase their networking investments in light of COVID-19, as they work to support the new needs of their employees and customers.

  • An astounding 38% globally will increase their investment in cloud-based networking, with 45% maintaining the same level and 15% scaling back. The APAC region was the global leader with 45% stating an increased investment in cloud-based networking, rising to 59% among ITDMs in India. With cloud solutions allowing for remote network management at large scale, these capabilities are particularly enticing for IT teams when being on-premises is not possible or challenging.
  • ITDMs are also seeking improved tools for network monitoring and insight, with 34% globally planning to increase their investment in analytics and assurance, 48% indicating that they will maintain their level of investment and 15% reducing it. This allows IT organizations to troubleshoot and fine-tune the network more efficiently, as demands on it are augmented by a distributed workforce. 
  • There is also an emphasis on innovative technologies that simplify the lives of IT teams by automating repetitive tasks. We found 35% of ITDMs globally are planning to increase their investment in AI-based networking technologies, with the APAC region leading the charge at 44% (including 60% of ITDMs in India, 54% in Hong Kong, and 28% in Singapore).

ADOPTION OF NEW CONSUMPTION MODELS IS ACCELERATING

As ITDMs shape their investment plans, they are looking at alternative modes of consumption to achieve the best balance of value and flexibility.

  • 59% in Singapore say that they will explore new subscription models for hardware and/or software, 61% managed services for turnkey hardware/software and 34% financial leasing — all as a result of the impact of COVID-19. This reflects the increased need for more financially flexible models in a challenging environment.
  • Networking subscription models are more popular in APAC (61%) than in the Americas (52%) or EMEA (50%), and at a country level the highest demands are in Turkey (73%), India (70%) and China (65%).
  • The industries most likely to be considering the subscription model are hotels/hospitality (66%), technology and telecom (58%) and education (57%). The impact of COVID-19 on IT behavior has made the desire for flexibility and predictability in spending, while reducing risk from initial capital costs, greater than before.
  • In stark contrast, just 8% globally plan to continue with only CapEx investments, though the proportion is higher in the Netherlands (20%), US (17%), Spain (16%) and France (15%). Across industries, 15% in retail, distribution and transport will continue to focus solely on CapEx investments, versus just 5% in IT, tech, education and telecoms, and 2% in hotels and hospitality.

“With the needs of customers and employees have changed so comprehensively in recent months, it’s no surprise to see IT leaders seeking more flexible solutions,” says Chiah. “They are pushed to adapt fast and ensure that more complex, distributed networks can securely support the experiences users’ demand. The need for agility and flexibility in network management is now greater than ever. From the global survey, it shows that 58% of ITDMs in APAC region would explore managed service solutions — higher than the global average of 53%, which is a reflection of how the positive outlook that the APAC businesses have.”

While the pandemic has clearly impacted ongoing projects at varying degrees, this research suggests these impacts will also catalyze medium-term investment into advancing networking technologies, and a shift to more flexible models of consumption that limit up-front capital demands. Trends that were already taking hold will now accelerate, including the move to the Edge and the adoption of cloud-based and AI-driven intelligent networks.

To find more about Aruba’s flexible IT solutions go to: https://www.arubanetworks.com/solutions/technology-solutions/

Additional Resources

  • Link to Infographic

About Aruba, a Hewlett Packard Enterprise company

Aruba, a Hewlett Packard Enterprise company, is a leading provider of next-generation networking solutions for enterprises of all sizes worldwide. The company delivers IT solutions that empower organizations to serve the latest generation of mobile-savvy users who rely on cloud-based business apps for every aspect of their work and personal lives.

 

To learn more, visit Aruba at http://www.arubanetworks.com/sea. For real-time news updates follow Aruba on Twitter and Facebook, and for the latest technical discussions on mobility and Aruba products visit Airheads Social at http://community.arubanetworks.com/  

About Vanson Bourne

Vanson Bourne is an independent specialist in market research for the technology sector. Their reputation for robust and credible research-based analysis is founded upon rigorous research principles and their ability to seek the opinions of senior decision makers across technical and business functions, in all business sectors and all major markets. For more information, visit www.vansonbourne.com

Minister Of Humanitarian Affairs Receives Donation Of 3,999 Tons Of Grain From ECOWAS For Vulnerable Households

Esan Bolaji
-
0
Minister Of Humanitarian Affairs Receives Donation Of 3,999 Tons Of Grain From ECOWAS For Vulnerable Households

More palliatives are on the way for the vulnerable people in Nigeria as Sadiya Umar Farouq Honourable Minister of Humanitarian Affairs Disaster Management and Social Development along with the Hon. Minister of State for Agriculture and Rural Development Alhaji Mustapha Baba Shehuri and Hon. Minister of State Foreign Affairs Ambassador Zubairu Dada received a total of 3.999 tons of food grains donated to the Federal Government by ECOWAS.

The donation is to assist most vulnerable households in Nigeria. The grains are meant to alleviate the impact of the COVID 19 virus on such households.

Minister Of Humanitarian Affairs Receives Donation Of 3,999 Tons Of Grain From ECOWAS For Vulnerable Households
FOOD ITEMS DONATED BY THE ECOWAS COMMISSION TO THE FEDERAL GOVERNMENT OF NIGERIA AT THE ECOWAS/ FMARD GRAIN DEPOT IN HOTORO KANO ON SATURDAY 22ND AUGUST 2020. | www.brandspurng.com

During the handover of the food grains at the ECOWAS/ FMARD Grain Depot in Hotoro Kano on Saturday 22nd August 2020 the Minister thanked the ECOWAS Commission for the kind gesture stating that ”the provision of humanitarian assistance for distribution to the vulnerable population is a timely and generous act”. She noted that the grains would go a long way in cushioning the effect of COVID 19 on vulnerable citizens.

While speaking at the handing over ceremony the Minister said the Ministry had responded to the COVID 19 pandemic by ensuring various forms of palliatives were given to the poor and vulnerable across the 36 States and the FCT as directed by President Muhammadu Buhari. She added that about 70,000 metric tons of grains consisting of maize, sorghum, and millet as well as trailer loads of rice and vegetable oil were among the palliatives distributed.

According to the Minister,

“At the commencement of the COVID 19 Pandemic the National Social Register (NSR) had 2.5 million poor and vulnerable Households with over 11 million individuals in 34 States and the FCT. As at today, 3.7 million households with over 15.5 million individuals in all 36 States and the FCT are in the Register.” Sadiya Umar Farouq added that “the expanded register will ensure that the food items provided by the ECOWAS Commission reaches the most vulnerable it is meant for and work toward mitigating the risk of food security at this critical time.”

The Commissioner of Agriculture, Environment and Water Resources – ECOWAS Mr. Sangare Sekou conveyed the warm greetings of the President of ECOWAS HE, Dr. Jean-Claude Kassi Brou to HE President Muhammadu Buhari, the government and people of Nigeria for the constant support and facilities provided ECOWAS. He paid tribute to the leadership of President Muhammadu Buhari that earned him the “champion of the fight against Coronavirus by his peers.“

He added that “the donation is with the objective of saving the maximum lives in West Africa. Saving lives also means giving food to people affected not only by the Coronavirus but also for our brothers and sisters, our parents affected by terrorism, vandalism, violent conflicts and climate change” he added that it is not an option to remain without taking action. Stressing that the event, “confirms the breathing of the regional solidarity mechanism represented by the Regional Food Security Reserve and strengthens us in commitment to ECOWAS, to the countries and to the populations”.

On his part, the Minister of State Federal Ministry of Agriculture and Rural Development said that in order to address the food crisis in the West African sub-region, Heads of Government of Member States decided to set up a Regional Food Security Reserve Programme that can be used for interventions in case of emergencies and boost food security.

He and the Minister of State for Foreign Affairs appreciated ECOWAS for the gesture while the Minister of Humanitarian Affairs assured that the grains will be judiciously distributed.

Prices of Diesel, Petrol rise in July 2020 – NBS

Esan Bolaji
-
0
Prices of Diesel, Petrol rise in July 2020 – NBS

The National Bureau of Statistics (NBS), yesterday, said the average prices paid by consumers for diesel and Petrol increased in July 2020.

The average price paid by consumers for premium motor spirit (petrol) decreased by -0.97% year-on-year and increased month-on-month by 11.44% to N143.63 in July 2020 from N128.88 in June 2020.

According to the bureau, states with the highest average price of premium motor spirit (petrol) were Adamawa/Imo (N145.00), Abia (N144.93) and Enugu (N144.80) while states with the lowest average price of premium motor spirit (petrol) were Ogun (N140.30), Kwara (N140.50) and Gombe (N142.57).

The average price paid by consumers for diesel increased by 0.03% month-on-month and decreased by -0.23% year-on-year to N224.43 in July 2020 from to N224.37 in June 2020.

“States with the highest average price of diesel were Borno (N263.40), Bauchi (N240.00) and Cross River (N239.12).”

“States with the lowest average price were Rivers (N204.06), Ekiti (N205.20) and Delta (N206.00).”

Nigerians paid more for Kerosene in July 2020 – NBS

Esan Bolaji
-
0
Nigerians paid more for Kerosene in July 2020 – NBS

The National Bureau of Statistics (NBS) said the average price per litre paid by consumers for National Household Kerosene increased by 0.44% month-on-month and by 6.17% year-on-year to N335.54 in July 2020 from N334.08 in June 2020.

The bureau said the average price per gallon paid by consumers for National Household Kerosene increased by 0.45% month-on-month and decreased by -0.31% year-on-year to N1,207.43 in July 2020 from N1,202.04 in June 2020.

Nigerians paid more for Kerosene in July 2020 - NBS
Photo by Jordan Davis 

States with the highest average price per litre

  • Taraba (N389.58)
  • Sokoto (N386.60)
  • Edo (N384.52)

States with the lowest average price per litre

  • Bayelsa (N250.95)
  • Rivers (N270.82)
  • Zamfara (N277.27)

States with the highest average price per gallon

  • Kebbi (N1,392.14)
  • Borno (N1,380.60)
  • Plateau (N1,340.00).

States with the lowest average price per gallon

  • Osun (N1,005.42)
  • Anambra (N1,053.93)
  • Delta (N1,072.50)

Average cost of 12.5kg cooking gas decreased to N4,126.82 in July – NBS

Esan Bolaji
-
0
Average cost of 12.5kg cooking gas decreased to N4,126.82 in July – NBS

The National Bureau of Statistics (NBS) said that the average cost for the refilling of a 12.5kg cylinder cooking gas decreased to N4,126.82 in July from N4,139.18 in June.

The NBS made the disclosure in its “Liquefied Petroleum Gas (Cooking Gas) Price Watch’’ for June released on its website on Tuesday.

According to NBS, the decrease is by 0.13 per cent month-on-month and by -2.64 per cent year-on-year.

The bureau said states with the highest average price for the refilling of a 5kg cylinder of cooking gas were Bauchi with N2,485.80, Borno with N2,390.14 and Adamawa with N2,384.21.

Average cost of 12.5kg cooking gas decreased to N4,126.82 in July - NBS
Photo by Anton Nazaretian 

However, states with the lowest average price were Ebonyi with N1,703.32, Jigawa with N1,616.67 and Imo with N1,611.11.

The decrease is by -0.30 per cent month-on-month and by -2.12 per cent year-on-year.

Furthermore, states with the highest average price for the refilling of a 12.5kg cylinder for cooking gas were Akwa Ibom with N4,634.39, Cross River with N4,592.11 and Bayelsa with N4,568.18.

Also, states with the lowest average price for the refilling of the same were Kano with N3,680, Oyo with N3,687.50 and Kaduna with N3,754.29.

Transport fares continue to rise – NBS

Esan Bolaji
-
0
Transport fares continue to rise – NBS

The Nigerian Bureau of Statistics said average fare which commuters paid for bus rose by 7.62 per cent month-on-month and by 26.41 per cent year-on-year to N247. 46 in July 2020 from N229.94 in June 2020.

A breakdown of the figures in the data released by the Nigerian Bureau of Statistics, NBS,  shows that the average fare paid by commuters for bus journey within the city increased by 7.62% month-on-month and by 26.41% year-on-year to N247.46 in July 2020 from N229.94 in June 2020.

States with highest bus journey fare within city were Zamfara (N500.40), Nassarawa (N358.20) and Cross River (N350.00) while States with lowest bus journey fare within city were Bauchi (N145.10), Rivers (N170.00) and Kebbi (N170.20).”

The Transport fare watch report for July 2020 covers the following categories namely bus journey within the city per drop constant route; bus journey intercity, state route, a charge per person; airfare charge for specified routes single journey; journey by motorcycle (Okada) per drop; and waterway passenger transport.

“Average fare paid by commuters for bus journey within the city increased by 7.62% month-on-month and by 26.41% year-on-year to N247.46 in July 2020 from N229.94 in June 2020. States with highest bus journey fare within city were Zamfara (N500.40), Nasarawa (N358.20) and Cross River (N350.00) while States with lowest bus journey fare within city were Bauchi (N145.10), Rivers (N170.00) and Kebbi (N170.20).”

“Average fare paid by commuters for bus journey intercity increased by 4.09% month-on-month and by 17.24% year-on-year to N1,898.14 in July 2020 from N1,823.62 in June 2020. States with highest bus journey fare intercity were Abuja FCT (N4,190.00), Sokoto (N2,734.00) and Adamawa (N2,700.00) while States with lowest bus journey fare within city were Bauchi (N1,250.20), Enugu/Kano (N1,260.00) and Bayelsa (N1,283.60).”

“Average fare paid by air passengers for specified routes single journey increased by 19.09% month-on-month and increased by 19.79% year-on-year to N36,611.22 in July 2020 from N30,743.65 in June 2020.

States with highest air fare were Lagos (N39,600.00), Abuja FCT/Rivers (N39,000.00), Anambra (N38,750.00) while States with the lowest airfare were Akwa Ibom (N30,500.00), Sokoto (N32,500.00), and Katsina (N35,000.00).”

“Average fare paid by commuters for journey by motorcycle per drop increased by 9.06% month-on-month and by 45.38% year-on-year to N172.46 in July 2020 from N158.14 in June 2020.

States with highest journey fare by motorcycle per drop were Rivers (N294.20), Kogi (N289.60) and Yobe (N264.00) while states with lowest journey fare by motorcycle per drop were Adamawa (N79.00), Katsina (N85.10) and Kebbi (N97.50).”

“Average fare paid by passengers for water way passenger transport increased by 3.42% month-on-month and by 17.67% year-on-year to N648.26 in July 2020 from N626.81 in June 2020.”

States with the highest fare by waterway passenger transport were Delta (N2,000.00), Bayelsa (N1,970.00) and Rivers (N1,941.00) while states with the lowest fare by waterway passenger transport were Borno (N139.00), Gombe (N199.50) and Abuja FCT (N254.00).

Prices of Tomatoes, Rice, Yam, Eggs increase in July – NBS

Esan Bolaji
-
0
Prices of Tomatoes, Rice, Yam, Eggs increase in July – NBS

The average price of major food items in Nigeria like yam, rice, tomatoes and eggs increased in June, the National Bureau of Statistics (NBS) has said.

The NBS said this in the “Selected Food Price Watch (July 2020)” report published on its website.

According to the report, the average price of one kilogramme of tomatoes increased by 49.35 per cent.

The bureau also said the average price of 1 dozen of Agric eggs medium size increased year-on-year by 1.24% and month-on-month by 0.27% to N474.12 in July 2020 from N472.83 in June 2020 while the average price of a piece of Agric eggs medium size (the price of one) increased year-on-year by 10.61% and month-on-month by 0.66% to N42.45 in July 2020 from N42.18 in June 2020.

In the month under review, NBS said the average price of 1kg of tomato increased year-on-year by 49.35% and month-on-month by 3.24% to N304.01 in July 2020 from N294.46 in June 2020.

In a similar manner, the average price of 1kg of rice (imported high quality sold loose) increased year-on-year by 37.72% and increased month-on-month by 2.23% to N490.44 in July 2020 from N479.74 in June 2020.

Rice is a staple food for households in Nigeria. The importation has been banned, but imported rice, mostly through permeable land borders, is still common across Nigeria.

Similarly, the average price of 1kg of yam tuber increased year-on-year by 50.10% and month on month by 2.29% to N256.44 in July 2020 from N250.70 in June 2020.

The NBS said the prices were collected in all the 774 local governments across all states and the FCT from over 10,000 respondents and, “locations which reflect actual prices households in states actually bought those items”.

It said fieldwork was done solely by over 700 NBS staff in all states of the federation “with support from supervisors who are monitored by internal and external observers”.

The report said the average of all the prices is then reported for each state and the average for the country is the average for the states. It said the NBS audit team subsequently conducted randomly selected verification of prices recorded.

Food Price Pressure Stokes Inflation to 28-month High in July

Esan Bolaji
-
0
Food Price Pressure Stokes Inflation to 28-month High in July

On Monday the National Bureau of Statistics (NBS) released inflation figures for July-2020 showing headline inflation rate at a 28-month high of 12.82% y/y for the month, 26bps up from 12.56% y/y in June.

On a month-on-month basis, the headline index rose by 1.25% in July from 1.21% in June.

Meanwhile, the core inflation rate eased by about 3bps to 10.10% y/y, declining for the first time since Oct-2019. On a monthly basis, the core inflation rate slowed to 0.75% from 0.86% in June.

Food inflation index rose by 31bps to 15.48% y/y in July, also a 28-month high. Month-on-month, food prices rose by 1.52% in July from 1.48% in June.

Food Price Pressure Stokes Inflation to 28-month High in July
Source: NBS, PFI Capital

We note that inflation rate for July was driven by the pressure in food prices amid continued border closure and FX pressure in the country. The imported food index rose 16.35% y/y in July.

We note reports of herder-farmer clashes in some parts of the country disrupting farming activities, the addition of maize to the list of items restricted from the Central Bank of Nigeria (CBN)’s forex sales in July, as well as an increase in the retail price of PMS.

The NBS reports that average price paid by consumers for premium motor spirit (petrol) decreased by -0.97% y/y and increased m/m by 11.44% to N143.63 in Jul-2020 from N128.88 in Jun-2020.

We note that the farming calendar has also been upended by COVID-19 and shifting rainfall patterns induced by climate change which has led to a late wet planting season. Although we learnt that farmers not depending on rained agriculture are currently harvesting their crops.

In July also, urban inflation rate printed higher at 13.4% y/y from 13.18% y/y in June while rural inflation rate jumped to 12.28% y/y from 11.99% y/y in June. On a monthly basis, both rural and urban inflation rates also spiked.

According to the NBS, in July, headline inflation rate on a year-on-year basis was highest in Bauchi (16.10%), Kogi (15.90%) and Sokoto and Plateau (15.20%), while Lagos (10.70%), Adamawa (10.60%) and Kwara (10.50%) recorded the slowest rise in headline y/y inflation rate. On month on month basis, however, the headline inflation rate was highest in Kogi (2.85%), Zamfara (2.44%) and Yobe (2.35%), while Ondo (0.67%), Adamawa (0.63%) and Ogun and Imo (0.62%) recorded the slowest rise in m/m headline inflation rate. 

Implication

The steady rise in the inflation rate, now at its highest in over two years, compares woefully to the declining rates in the Nigerian fixed income space. Consequently, investors are contending with deeper negative real-yields.

For consumers, rising prices pare purchasing power and imposes larger budget constraints. Also, we see manufacturers facing difficulties in passing on their costs to their consumers as FX pressures mount. 

Outlook

We see inflation rate continuing its upward trend as food price pressure persists. Moreso, the earlier stated disruptions to the farming calendar that led to a late wet planting season supports our view for a steady rise in price levels.

However, we note CBN’s promise to resume dollar sales to Bureau De Change (BDC) operators when international flights resume on August 29 which could help relieve pressure in the parallel market but we maintain an unfavourable outlook for the naira in H2-2020.

Our expectation is for transportation prices to remain elevated in the near-term as domestic PMS price tracks conditions in the global oil market.

PFI Capital

Will the resumption of Int’l travels trigger convergence in the FX market?

Esan Bolaji
-
0
Will the resumption of Int’l travels trigger convergence in the FX market?

The outbreak of COVID-19 in Nigeria prompted the government to halt non-essential international travels. However, beyond the aviation sector, this has to a large extent affected developments in the currency FX market.

It must be noted that the Central Bank of Nigeria (CBN) had suspended FX sales to Bureau De Changes (BDCs) since Q2-2020 – its biggest intervention window – considering restrictions on international travels, but mainly as an effective measure to managing speculative attacks on the local currency.

Also, the CBN halted sales to the Investors and Exporters window (its second-largest intervention window) since April-2020 in a bid to manage the pressure on FX reserves.

Will the resumption of Int’l travels trigger convergence in the FX market?
Sources: FMDQ, CBN , United Capital Research

Certainly, the combined impact of these control measures is reflected at the parallel/unofficial market (currently N473.5/$) which has since diverged from the I&E rates (currently N386.0/$) as FX liquidity thinned out at the I&E and BDC segment.

However, given that the CBN premise for halting sales to BDCs remains the ban on international travels, we believe that the recent announcement by the Minister of Aviation, Hadi Sirika, that international flights would commence operation in Abuja and Lagos on the 29th of August 2020 is likely to herald the resumption of FX sales to BDCs, going forward.

Accordingly, the CBN FX market reserves, which currently stands at $35.6bn is expected to be tested on all sides in H2-2020, especially as external funding from the World Bank (c.$1.5bn) remains outstanding.

Yet, the convergence of rates in the parallel and official market will remain a function of the size of liquidity the CBN would be willing to commit to the market when international flights resume, the pace of recovery in the global economy and uptick in oil prices.

United Capital Research

Africa’s Travel and Tourism Industry: Is recovery at sight?

Esan Bolaji
-
0
Africa’s Travel and Tourism Industry: Is recovery at sight?

The outbreak of COVID-19 pandemic has left a devastating impact on economies across the world. Notably, the Travel and Tourism industry which contributes over €150.0bn (change to the dollar) to Africa’s economy, according to the World Travel & Tourism Council, has been one of the hardest-hit industries by the pandemic, as governments implemented travel restrictions to curb the spread of the virus.

According to the African Union (AU), African countries lost up to $55.0bn in travel and tourism revenues in three months amid the lockdown measures implemented across the globe. This was as the International Air Transport Association (IATA) estimated that the international tourist arrivals in Africa could decline by 1.0% to 3.0% in 2020.

Africa’s Travel and Tourism Industry: Is recovery at sight?
Photo by Manuel Moreno

However, as the world economies begin to re-open for business the big question of how soon the Travel and Tourism industry can recover becomes valid. Although most foreign economies are starting to ease travel restrictions, the majority of African countries remain blacklisted amid concerns over the rising case of COVID-19 within the region.

Accordingly, we believe that the recovery of the African travel and tourism industry will vary from country to country, depending largely on the international visitor’s confidence in the measures put in place by the various governments within the continent.

United Capital Research

1...3,8033,8043,805...5,509Page 3,804 of 5,509