*Effects of Corona Virus on the Economy For Investment Clubs in Zambia*

 

 

Surviving The Corona Virus Lockdown

 

White paper by ContractKapital.com, a local private equity fund

 

Disclaimer. The opinions expressed herein are not professional legal, medical or financial, advice. Please contact your consultants for the above should you need them.

 

Remember, #staysafe, #stayathome, and call a doctor when you think you are sick, not when you know you are sick.

 

1. Hibernate.

 

The individual and family head must hibernate like a bear in winter. We must now learn to live on ugx. 200k a month. Meaning, no bread. No jam. No OD. No tomato sauce. No eating until we can't eat any more. Now, it is eating for the day. Fewer options everyday. Only enough to live. Like children do. We must eat like children. Only eating what we must. Not like the aristocracy of Rome, the gluttons who would eat, and then, force themselves to vomit, only so they could eat more.

 

2. Go cashless

At this time, you want to reduce handling of cash, for two main reasons. Getting change is going to be bothersome, and might make you lose money, little by little, but alot in the long term. And of course, for health reasons. Money has been declared to be a leading transmitter of the virus. People hold it, touch it, fold it, keep it, with their hands, hands that could have had saliva, or droplets, or sneezes.

 

3. Be selfish

 

The greatest love is self love. You cannot claim to love others when you don't love yourself. And the best way to love yourself is to protect yourself. Be interested in your survival, and that of your family. If everyone can be truly, honestly, selfish, we will be very tough on health regulations. We will not allow eyes hers to be 2 feet near us. We will not allow anyone to cough and get away with it. We will have mean faces and expressions when making sure our family has lemon, ginger and honey, in warm water, every morning, not to cure the virus, but to boost our immunity.

 

4. Support the government

 

We have now realised, this virus does not respect she, gender, class, education, or religion. A prince has it. A prime minister has it. A president has it. A first lady has it. A member of parliament has it. A minister in government died from it. It is not a them versus us virus. It will take everyone. An for once, governments are emailing decisions in public interest, not in sectoral interest. Because of this, let us heed government advise.

 

5. Be generous, if you can

 

Not so you can get it back, ten fold, and over flowing. No. Not so you can fulfil the Torah, the zakkah, or Malachi 3:16. No. Not because of God, who no one has ever seen, or because of a pastor or Iman. Do it. Help someone. Because you can. If you can. Because someone our there never prepared. And is going to starve unless you, or me, or someone else, sends them 1kg of posho, at ugx. 2,000. Do it because you can.

 

Share if you find useful.

 

…………..

ZANAICA is promoted and hosted by Twende, an on-demand platform and Zambia’s first superapp, that also offers motorcycles (bodabodas) and tricycles (tuktuks), on lease to own, hire purchase model. Twende promotes investment clubs as an initiative to promote savings and investment culture in Zambia. To get free investment club training, do not hesitate to contact us on facebook at https://wa.me/+254103242604, or https://chat.whatsapp.com/HNosGG0OmdWHvXnFHVSLoh or email us at zanaica@twende.store or visit Twende offices at Manda Hill, Plot 271/C.

 

 

*Living Through The Corona Virus Lockdown*

 

What better way to discuss that through questions, so, here goes:

1.      How will 14 days lockdown affect prices of fuel?

2.      How will 14 days shut down affect the TBills, money markets, unit trusts markets?

3.      How will 14 days lockdown affect the primary health care, especially deliveries and immunization, midwifery roles, and related healthcare?

4.      Will there be a subsidy to transport companies, especially boda boda, like safeboda, to facilitate movement of health care givers, doctors, etc?

5.      It this the time to hedge against local currency with gold and dollar?

6.      Will the dollar continue gaining against the shilling when the shilling is not chasing it for exports or imports due to lock down?

7.      Will the next 14 days change commerce in the world, and move it towards ecommerce, deliveries, and home working?

8.      Given the *leero economy* of most of the 3 million residents of Kampala metropolis, what happens if they are not able to work, for 14 days?

9.      When the virus is contained within 14 days, what good things can we retain from the lockdown? Delivery? Cashless economy? Restriction of access to the capital city? Removal of boda bodas from the city? Removal of taxis from the city? Mandatory cleaning of hands as a national culture?

10.   Is Corona Pandemic going to change the mindset of African elitist leaders, super stars and celebrities, to stop shunning country healthcare system whenever they want to go for basic procedures like child birth, and start investing in Africa’s health care.

11.   At a cultural level, does the corona pandemic make the African start looking at the white man, and the Asian, as infallible and equal members of the global metropolis, and with the ability to cause harm to the world, as opposed to the much touted African as dark continent.

12.   Is the government right to reduce base lending rate for a period of 12 months after the lock down? Suspend Credit reference bureau numbers? Offer businesses a % of their turnover as a long term, low interest loan, to reboot the economy after the event?

13.   Is this pandemic a chance for local avenues of capital mobilization, including investment clubs, local PE funds, and saccos, to be seen as alternative financing partners to offer partnership in an era of import substitution, which can lead to reduction in the trade deficit, and increasing the strength of local currencies, and consequently, foreign currency reserves?

ContractKapital.com is a leading local private equity fund, enabling Ugandans, Ugandans in diaspora, investment clubs, saccos, NGOs, churches and pension funds to invest in one or more of the four portfolios and benefit from market beating returns. The portfolios are: Boda boda fund, for lease to own, hire purchase, financing; Commodity contract financing; Furnished apartment fund, for furnished office spaces and residential apartments; and Avocado forest fund, planting avocado for long term investors.

ContractKapital.com is giving back to the community during this trying times by employing 100 doctors online, and allowing the public to talk to them, to consult them, for FREE, without paying anything, to share their health concerns and get answers. You can download the ContractKapital app here:  https://play.google.com/store/apps/details?id=com.contractkapital . You can also use the app to shop online, or to pay bills, or to send money to friends and family at no fee.

If you need any clarification about this and our other services, do not hesitate to contact us at our whatsapp group, https://chat.whatsapp.com/FDSC7wWHuZsBqYRopr0hcR.

For Wealth, For Financial Freedom!

 

Effects of Corona Virus on the Economy

 

ContractKapital.com White Paper

 

Living Through The Corona Virus Lockdown

 

What better way to discuss that through questions, so, here goes:

1.            How will 14 days lockdown affect prices of fuel?

2.            How will 14 days shut down affect the TBills, money markets, unit trusts markets?

3.            How will 14 days lockdown affect the primary health care, especially deliveries and immunization, midwifery roles, and related healthcare?

4.            Will there be a subsidy to transport companies, especially boda boda, like safeboda, to facilitate movement of health care givers, doctors, etc?

5.            It this the time to hedge against local currency with gold and dollar?

6.            Will the dollar continue gaining against the shilling when the shilling is not chasing it for exports or imports due to lock down?

7.            Will the next 14 days change commerce in the world, and move it towards ecommerce, deliveries, and home working?

8.            Given the leero economy of most of the 3 million residents of Kampala metropolis, what happens if they are not able to work, for 14 days?

9.            When the virus is contained within 14 days, what good things can we retain from the lockdown? Delivery? Cashless economy? Restriction of access to the capital city? Removal of boda bodas from the city? Removal of taxis from the city? Mandatory cleaning of hands as a national culture?

10.         Is Corona Pandemic going to change the mindset of African elitist leaders, super stars and celebrities, to stop shunning country healthcare system whenever they want to go for basic procedures like child birth, and start investing in Africa’s health care.

11.         At a cultural level, does the corona pandemic make the African start looking at the white man, and the Asian, as infallible and equal members of the global metropolis, and with the ability to cause harm to the world, as opposed to the much touted African as dark continent.

12.         Is the government right to reduce base lending rate for a period of 12 months after the lock down? Suspend Credit reference bureau numbers? Offer businesses a % of their turnover as a long term, low interest loan, to reboot the economy after the event?

13.         Is this pandemic a chance for local avenues of capital mobilization, including investment clubs, local PE funds, and saccos, to be seen as alternative financing partners to offer partnership in an era of import substitution, which can lead to reduction in the trade deficit, and increasing the strength of local currencies, and consequently, foreign currency reserves?

ContractKapital.com is a leading local private equity fund, enabling Ugandans, Ugandans in diaspora, investment clubs, saccos, NGOs, churches and pension funds to invest in one or more of the four portfolios and benefit from market beating returns. The portfolios are: Boda boda fund, for lease to own, hire purchase, financing; Commodity contract financing; Furnished apartment fund, for furnished office spaces and residential apartments; and Avocado forest fund, planting avocado for long term investors.

ContractKapital.com is giving back to the community during this trying times by employing 100 doctors online, and allowing the public to talk to them, to consult them, for FREE, without paying anything, to share their health concerns and get answers. You can download the ContractKapital app here:  https://play.google.com/store/apps/details?id=com.contractkapital . You can also use the app to shop online, or to pay bills, or to send money to friends and family at no fee.

If you need any clarification about this and our other services, do not hesitate to contact us at our whatsapp group, https://chat.whatsapp.com/FDSC7wWHuZsBqYRopr0hcR.

For Wealth, For Financial Freedom!

 

 

Effects of Corona Virus on the Economy

 

ContractKapital.com White Paper

 

2. Locking borders, leading to    increase in demand for foreign currency, dollars, to access imports, or send money abroad to relatives, shareholders, or suppliers, hence, dollar flight, and spending more shillings to buy one dollar, so, reduced value of shilling, against the dollar.

Effects of Corona Virus on the Economy

 

ContractKapital.com White Paper

3. However, this loss of value of the shilling is more artificial than structural, for now, hence, can be stabilised by release of USD by central bank into the economy.

Effects of Corona Virus on the Economy

 

ContractKapital.com White Paper

 

3. Reduced movement will I create cost of delivery of goods, hence, leading to cost of goods, raising consumer cost, and making poor poorer, ultimately leading to petty thefts, organised thefts,  and rooting and violence.

Effects of Corona Virus on the Economy

 

ContractKapital.com White Paper

 

4. Government stimulus package is a necessity to cushion economy. It can be done now, in a planned way, or later, in an emergency war time mode. This should include:

 

...uhx. 1bn grants or low interest long term loans to transportation giants like safeboda to transport doctors and nurses to and from work;

 

2. Grants to private and PPP research institutes to do two things. (1) find a cure and (2) find a vaccine.

 

3. Grants to government food fund, to buy food stuff, posho, mens's, casssva, famine foods and make sure there are predestined distribution points.

 

4. Grants to SMEs, companies, etc, or to offer employees loans, in form of food stuff, to be paid over time.

Effects of Corona Virus on the Economy

 

ContractKapital.com White Paper

 

5. Stabilising monetary policy, by stabilising the shilling Fixing exchange rates for one month to correspond to crisis, and abound sharks taking advantage of population.

Effects of Corona Virus on the Economy

 

ContractKapital.com White Paper

 

6. Price contols policy, issuing recommended retail price of all food stuffs, adjusted by no more than 10% to cover for the increase in costs. This will make sure there is no over exploitation.

Effects of Corona Virus on the Economy

 

ContractKapital.com White Paper

 

8. Freezing all loan repayments for 30 days, to ensure that businesses are not sent to panic mode and hike prices to cover their obligations. Financial institutions to ensure this record dies not reflect in CRDB. It should be treated as super moratorium on principal and interest.

[18:23, 31/03/2020] Endless: Effects of Corona Virus on the Economy

 

ContractKapital.com White Paper

 

The Corona virus has certain unintended consequences.

 

5. Import substitution. One of the key challenges for third world countries us the high trade deficit, leading to low foreifn currency reserves. Uganda has a trade deficit of approx. USD. 3bn, witn an almost equal foreign currency reserves. Corona Virus has reduced to a large extent our imports. In so doing, there is opportunity for local manufacturers to step up, with fiscal incentives, such as tax cuts, subsidies, and to fill in the gap.

[18:23, 31/03/2020] Endless: Effects of Corona Virus on the Economy

 

ContractKapital.com White Paper

 

The Corona virus &Health care investment:

 

Africa has been known as the place where leaders, especially political leaders, but recently, even musicians and celebrities, always fly out for treatment, and even for such basic procedures as child birth. Corona virus pandemic is an equalizer in this front. All the destinations they would normally run to are even worse. China. India. Germany. US. This pandemic shall lead to government leaders seriously considering and prioritizing Healthcare infrastructure investment.

 

You can download ContractKapital app to chat with a licensed doctor on Corona virus and health related issues in these trying times. Doctors consultation fees are fully paid by ContractKapital.com.

 

Click here to download app.

https://play.google.com/store/apps/details?id=com.contractkapital