A look at companies operating during the crisis

CAPE TOWN – One could be forgiven for believing that the Covid-19 virus is not really going to have a big impact on the local economy after reading many of the listed company operational updates that were put out on the JSE’s news service last week.

Sure, nearly all evinced the rider that uncertainty clouds the outlook, and that it is impossible at this stage to predict the final outcome of the virus on the economy.

Many listed property groups have been severely affected through lower footfalls, a failure to collect rent from struggling tenants and now semi-closure of malls, both here in South Africa and in other markets. Most of these companies have preserved reasonably healthy balance sheets and cash, which should see them through the lockdown, and lower footfall in the malls this year.

Nevertheless, the impact on these businesses is going to be severe, considering that globally the fortunes of shopping centres were already under threat from a range of factors, including the growth of online and weak consumer disposable incomes.

In addition, large shopping centre landlords are going to have to step in financially, where possible, to assist their tenants through these tough times. Other key industries in South Africa, including travel and tourism, industrial and automotive as well as mining will be severely impacted by the 21-day lockdown through loss of production and sales.