Monday, July 27, 2020

How COVID-19 devastated African Safari industry

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Charvi Trivedi

Article Title

How COVID-19 devastated African Safari industry

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Global Views 360

Publication Date

July 27, 2020

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African Safari

African Safari | Source: Sneha via Unsplash

With COVID-19 wrecking the economies of superpowers like the US and China, Africa is no exception. The continent of Africa is bestowed with rich biodiversity which attracts millions of tourists every year. But due to the pandemic, the safari industry of Africa is in a freefall.

The countries which are visited more often by the international tourists for their remarkable safari experiences include Botswana, Kenya, Namibia, Rwanda, South Africa, Tanzania, Uganda and Zambia. These contribute more than 12 billion US dollars to the economy, according to the United Nations World Tourism Organization (UNWTO).

The tourism industry is one of the most impacted economic sectors due to lockdowns being imposed all over the world. The magnitude of loss came into light when Safaribookings.com, a website for booking safari tours in Africa, ran its fourth monthly survey. The bookings this year declined by a massive 75%. “We don’t have bookings, and we don’t have money to pay salaries for staff, office rental etc. Things are really bad” says a Kenyan safari vehicle operator. Thousands of the people depending on services related to industry lost the livelihood due to this downturn..

Khimbini Hlongwane, the proprietor of a small tour business in Kruger National Park of South Africa, is devastated as he had invested all his savings to purchase a new minibus for his visitors. “It hasn’t moved since the day we bought it,” he says.  Leon Plutsick, who owns a lodge in Manyeleti private game reserve adjacent to the Kruger National Park says that he is barely surviving on the remaining meagre reserves. What used to be a lodge packed with tourists, is now replaced by Baboons. A tour guide and father of four, Sipho Nkosi, who earns a decent amount of 550 rand per tour, finds himself and his family in troubled waters. “We’d saved some money. But it's running out, so we’ll start starving” he says.

Not only the local communities but also the prolific wildlife of Africa is bearing the brunt of the pandemic. Tourist funds play a key role in conservation projects. Jackson Looseyia, a conservationist and lodge owner at Maasai Mara says, “In conservation terms, it is a crisis. We have no money coming in whatsoever, and the future is so bleak”.

Many of the families dependent on ecotourism see no option but to turn towards poaching as a means of survival. This further poses a threat to the species. Dickson Kaelo, CEO of Kenya Wildlife Conservancies Association says, “Due to the high rates of unemployment, commercial bushmeat has become rampant in some areas. Recently there were even cases of giraffes killed for commercial purposes”. At least six black rhinos, who might face extinction soon, were killed by poachers in Okavango Delta, Botswana, in the month of March. Efforts are being taken to evacuate the remaining rhinos and shift them to safer places.

The Tourism Business Council of South Africa is urging the government to reopen the national parks and sanctuaries for the public, latest by September. However, the South African government states that the tourism industry is not likely to reopen before 2021.

Kenya, Namibia and Rwanda are not open for tourists. Zambia is permitting tourists but with an obligatory two-week quarantine. Tanzania has imposed no such requirements. However, tourists will think twice before going on any international trips as we have not yet won the fight against coronavirus.

All this has left the people associated with the ecotourism sector in Africa in a dark tunnel with seemingly no end at the moment.

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February 4, 2021 4:48 PM

Kenyans turning to mobile loans in times of COVID-19

The economic impact of COVID-19 is felt on the personal finance of people across the world who are looking for ways to tide over the situation. In Kenya, people are lapping the short-term credit in the form of digital loans by mobile money operators. The number of people taking digital loans has doubled during the COVId-19 induced lockdown period.

Boston Consulting Group's Consumer Sentiments Survey conducted in April and May 2020 reported that "In May, 29 percent responded that they had taken out a short-term loan, compared to 16 percent in April. Mobile money operators were the most common sources of this credit”

Kenya is a pioneer in using mobile money transfer services as the key tool for providing financial inclusion to its citizens. A simple money transfer service, M-PESA launched in 2007 has transformed the financial service industry in Kenya. Today mobile money operators are providing multiple services like digital loans, marketplace for small businesses and farmers.

Digital loans are easy to process and disbursed but there are concerns of shaming the defaulters and compromising the data security of clients. The Digital Lenders Association of Kenya (DLAK) which is a body representing the digital lenders of Kenya has distanced from two of their members, Okash and Opesa over unethical practices. These mobile apps have shared the details of defaulting customers with the moneylenders and asking them to recover the money.

DLAK also stated that Opesa and Okash are known for attacking a client's data privacy which is against the Kenyan data protection laws and has additionally spoiled the reputation of digital leaders in Kenya.

In April 2020, Central Bank of Kenya barred unregulated digital mobile lenders from forwarding the names of loan defaulters to credit reference bureaus. A huge number of Kenyans have been recorded on Credit Reference Bureaus by digital money lenders for loans as little as $5.

Central Bank of Kenya governor Patrick Njoroge told during a press conference in May 2020 that the central bank in consultation with the mobile money operators and digital lenders is presently working to develop a model where the borrowers are protected from mistreatment of online moneylenders.

The borrowers are looking up to the regulatory authorities and the industry bodies to come up with a mechanism which will protect their interest in times of such a health and economic emergency.

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