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Carbon Tax Payment Deadline Extended Due To COVID-19

President Cyril Ramaphosa, on Tuesday night,  announced a three-month delay in first carbon tax payments as part of an extensive set of financial measures worth R500 billion to help companies deal with the COVID-19 pandemic. 

Where the payment deadline was originally set to be 31  July 2020, this has now been postponed to 31 October 2020. This is beneficial as it relieves the administrative pressure on companies as well as on administrators including the South African Revenue Service (SARS) and departments governing underlying regulations.

Carbon tax liable entities must go through a series of activities before they can submit their carbon tax environmental levy account, including the submission of their mandatory greenhouse gas emission report to the Department of Environment, Forestry and Fisheries; licencing their emissions generating facilities as customs and excise manufacturing warehouses for environmental levy purposes; and register for carbon tax on eFiling, if not already done so.

During the past few weeks, the greenhouse gas emission reporting deadline has been postponed to 30 April and 31 May for manual and online submissions respectively, so the postponement in carbon tax payment will provide for time to allow timely licencing of facilities and registration as carbon tax liable entities.  

Furthermore, certain carbon tax allowances that are meant to cushion the immediate impact of the carbon tax, are still not operational. The trade exposure allowance and benchmarking regulations have been out for public comment and have yet to be finalised. It is to the advantage of entities liable to the carbon tax, that these regulations are finalised before the submission deadline of the carbon tax account.

Another unique relief measure, the carbon offset allowance, although gazetted, is also not yet operational because the ‘Carbon Offset Administration System’ (COAS) – the electronic infrastructure that allows for the listing, transfer and surrender of offsets against carbon tax liability – is not yet in place. Without this system, companies cannot use the offsets as an allowance in their 2020 carbon tax return. The launch of COAS has also been delayed due to the national lockdown instituted across South Africa from 27 March.

Due to the fact that the carbon tax payment deadline has been pushed back, it allows for more time to finalise COAS next month. This should allow more time for carbon tax payers to comply with the stipulated requirements to obtain a so-called “Extended Letter of Approval” (ELoA), and to retire, list, transfer and obtain a Reg 8(e) certificate to claim the allowance against tax liability before 31 October 2020. 

What does this mean in practice for emitters?

  • 30 April 2020: Submission deadline for 2019 Greenhouse Gas Emission reports for those opting the route of manual submission.
  • 31 May 2020: Submission deadline for 2019 Greenhouse Gas Emission reports  for those utilising the South African Greenhouse Gas Emission Reporting System (SAGERS).
  • 31 October 2020: Payment of first carbon tax environmental levy account for the period 1 June – 31 Dec 2019.

Regarding the use of carbon tax offsets, companies should bear in mind the following timelines should COAS come online before 31 May 2020:

  • 31 May 2020: Conclude carbon offset purchase agreement(s) with carbon offset seller.
  • 30 June 2020: Apply for the ELoA; retire offsets in international registry; list offsets in COAS.
  • 30 September 2020: Transfer offsets to buyer’s COAS account; buyer obtains a certificate in accordance with Regulation 8(e) of the offset regulations.
  • 31 October 2020: Deadline to pay carbon tax and surrender offset
Amended-Regulations

Minister Nkosazana Dlamini Zuma on Coronavirus COVID-19 amended regulations

Government Ministers today presented amendments to the current lockdown restrictions as follows:

  • Restaurants and takeaway establishments are to remain closed, and supermarkets open to sell essential goods.
  • The new rules emphasise that the transport of alcohol is not allowed except where required for industries producing certain essential products such as hand sanitisers, disinfectants, soap etc.
  • Essential goods will now include the hardware, components and supplies needed by trades people for emergency repairs at homes or for any project related to the provision of water, electricity or other essential service.
  • Trades necessary for emergency automobile repairs has been declared essential and similarly the components required for automobile repairs to vehicles is now an essential good. 
  • In the same vein, trades necessary to render emergency repair work including locksmiths, glaziers, roof repairers, plumbers, electricians have been declared essential services.
  • Children may be able to move between parents/guardians provided certain conditions are met (for example, each parent is able to provide evidence of the relationship by producing a birth certificate or certified copy thereof)
  • A broader range of call centres may operate as an essential business by the addition of call centres necessary to provide debt restructuring for consumers of retailers and those providing access to short-term insurance policies 
  • Cargo from ports of entry no longer need to be sanitised or disinfected in order to be transported to their intended destination.
  • Cargo currently at ports may be exported to decongest ports of entry.
  • Mines are to be permitted to resume operations up to a level of 50% of normal production, subject to strict preventative health and transportation rules. 
  • All evictions from places of residence are prohibited, including informal residences and farm dwellings.

For a full list of the amendments, kindly click here.  

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C-19 TERS benefit: what you need to know

One of the measures that is designed to provide relief to employers and employees is the C-19 TERS benefit. On 3 April 2020, the Minister of Employment and Labour issued a revised Directive under the Disaster Management Regulations that will regulate these benefits. In addition, the benefits are subject to the terms of the memorandum of understanding or standard terms, which have also been published.

WHO CAN CLAIM?
• Contributors, i.e. employers and employees who contribute to the UIF.

• The employer must have closed its operations, or part of its operations, as a direct result of the Covid-19 pandemic, for a period of three (3) months or less.

• The size of the employer’s workforce does not matter. Special provisions of the memorandum of agreement apply to employers with fewer than 10 employees.

• The employee must have been in the employer’s employ on 27 March 2020, and must have suffered, or will suffer, a loss of income as a result of the closure.

• The benefit may only cover the cost of salaries during the closure – it may not be used for other purposes.

WHAT IS THE VALUE OF THE BENEFIT?
• The benefit is determined with reference to a sliding scale.

• Employees may get a percentage of their salary (between 38% and 60%).

• For purposes of this calculation, the relevant salary amount is the maximum of R17,712 per month, per employee.

Therefore:
o If an employee’s salary is more than the maximum threshold amount of R17,712 – for example, R20,000 – the employee would not receive a percentage of R20,000, but would receive 38% of the threshold amount of R17,712. The maximum amount of the C-19 TERS monthly payment will therefore be the amount of R6,730.

o If an employee’s salary is less than the threshold amount, e.g. R15,000, the employee would receive a percentage of her/his salary of R15,000. The exact percentage that s/he would receive, will be determined in accordance with the UIF calculator. The calculator is soon to be found on the UIF website, and we will update this note when it is.

• The minimum amount of the benefit is R3,500 regardless of the minimum wage as prescribed by the applicable sectoral determination / collective agreement.

• Employers may supplement these benefits, but employees may not get their full salary PLUS the benefit. The maximum that an employee may accordingly receive (from the UIF and their employer) is 100% of their salary.

WHAT IF THE EMPLOYER PAID THE EMPLOYEE? CAN THE EMPLOYER STILL CLAIM THE BENEFIT?
• Yes. The employer may claim the benefit and may retain the value of the benefit already paid to the
employee.

• In order to avoid disputes, it is recommended that the employee’s payslip reflects “TERS Benefit” (in the event that the employee is paid the value of the benefit) or “Includes TERS Benefit” (if the employee is paid an amount higher than the TERS benefit).

WHO WILL PAY THE BENEFIT?
• If the employer has concluded a Memorandum of Agreement with the UIF, or if the employer has
accepted the UIF’s standard terms and conditions, the value of the benefit in respect of the employer’s
employees will be paid to the employer. The employer must then pay over the benefit to the employees concerned (except where they have already been paid) within two days (see below).

• If the employer is a member of a bargaining council that has concluded a Memorandum of Agreement with the UIF, the UIF will pay the amount to the bargaining council, and the bargaining council will administer the payments to the employees.

• Employees will therefore not be paid by the UIF directly, but by their employer or the applicable
bargaining council. The only exception to this is where an employer employs fewer than 10 employees.

• The UIF will first verify the supporting documents submitted by the employer and, within 10 business days of the employer submitting all of the required documents and information, will deposit the funds into the employer’s business account.

• Employers must pay their employees the benefit within 2 days of receiving payment from the UIF. If the employer has already paid their employees part or all of the benefit amount, the employer can recover those amounts from the funds deposited by the UIF and pay the balance – if applicable – to the employees within 2 days. Employers must submit proof of payment to the UIF within 5 days of the payment by the UIF and return any funds not used (including interest) to the UIF within 10 days of its business operations recommencing.

WHAT MUST THE EMPLOYER DO TO CLAIM?
• The employer must apply by reporting the total or partial closure to covid19ters@labour.gov.za.

• The employer will receive an automatic response outlining the application process and the documents and information that is required.

• These documents would include:
o A letter of authority from the employer;
o The signed memorandum of agreement, or electronic acceptance of the standard terms;
o The UIF’s template which includes details of the employer, the period of closure, the list of
employees and their dates of employment and ID numbers, the remuneration received by the
employees;
o Proof of remuneration to employees for the previous 3 months;
o Confirmation of employer bank account.

WILL THE BENEFIT BE PAID IN ONE LUMPS SUM?
• The UIF will pay benefit funds in relation to three separate time periods: first for the period of temporary closure for 30 days from the date of lockdown; second for any period of temporary closure during the following 30 days; and third, for any period of temporary closure during the balance of the Memorandum of Agreement. The Agreement is in force for three months from the date of confirmation by the UIF that it accepts the employer’s Covid-19 TERS application.

WHAT ABOUT EMPLOYERS WHO EMPLOY FEWER THAN 10 EMPLOYEES?
• Employers with FEWER than 10 employees must submit the individual bank account details of each of the employees to the UIF. The UIF will pay these employees directly.

WHAT ARE THE EMPLOYER’S ACCOUNTING OBLIGATIONS?
• Employers must keep all their accounting records relating to the Memorandum of Agreement and the COVID-19 benefit for 5 years and keep them separate from accounting records relating to its business. This will enable them to be identified on a standalone basis from the business-related accounting records.

• Employers must keep a proper audit trail of the UIF funds received and benefits paid to employees.

• Employers may not withdraw the funds paid by the UIF or draw any cheques from the funds.

• The UIF may appoint an auditor or investigator to audit the employer’s implementation of the
Memorandum of Agreement.

IS THE INFORMATION SUBMITTED TO THE UIF CONFIDENTIAL?
• Yes, the information submitted by the employer and employees must be kept confidential, unless it
needs to be disclosed to a third party in order for the Memorandum of Agreement to be implemented.

WHAT HAPPENS IF THERE IS A DISPUTE?
• The first step is for senior officials of the UIF and the employer to meet to attempt to resolve the dispute amicably.

• If that doesn’t resolve the dispute, either of the parties may refer the dispute to the Arbitration
Foundation of South Africa, which arbitration will include the right of appeal.

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SA lockdown – Assisting small businesses and employees through tax system

The effect of South Africa’s Covid-19 lockdown on businesses and their employees will be harsh, so the government will be taking several steps to support individuals and small businesses.

Firstly, support will be given to people whose livelihoods will be affected by the 21-day lockdown through a special dispensation for companies that are in distress because of the coronavirus (Covid-19). He proposed that employees will receive wage payment through the Temporary Employee Relief Scheme, which will enable companies to pay employees directly during this period and avoid retrenchment. He noted that any employee who falls ill through exposure at their workplace will be paid through the Workmen’s Compensation Fund.

Although Government has called on larger businesses in particular to take care of their workers during this period, President Ramaphosa said that, in the event it becomes necessary, Government will utilise the reserves within the Unemployment Insurance Fund (UIF) system to extend support to those workers in SMEs and other vulnerable firms who are faced with loss of income and whose companies are unable to provide support for them. We expect further details in this regard within the next few days.

Using the tax system, Government will also provide a tax subsidy of up to R500 per month for the next four months for those private sector employees earning below R6,500 under the Employment Tax Incentive. This will help over four million workers, while the South African Revenue Service (Sars) will work towards accelerating the payment of employment tax incentive reimbursements from twice a year to monthly, to get cash into the hands of compliant employers as soon as possible.

President Ramaphosa further announced that tax compliant businesses with a turnover below R50-million would be allowed to delay 20% of their pay-as-you-earn liabilities over the next four months, as well as a portion of their provisional corporate income tax payments, without incurring penalties or interest charges over the next six months. Ramaphosa said this intervention is expected to assist over 75,000 small and medium-term enterprises. Government is also exploring the temporary reduction of employer and employee contributions to the UIF and employer contributions to the Skills Development Fund.

The Department of Small Business Development has made over R500-million available immediately – accessed via a simplified application process – to assist small and medium enterprises that are in distress. Further, the Industrial Development Corporation has put together a package with the Department of Trade, Industry and Competition that provides more than R3-billion in industrial funding to aid vulnerable firms and to fast-track financing for companies that are critical to Government’s efforts to fight the virus and its economic impact. The Department of Tourism has also made an additional R200-million available to assist SMEs in the tourism and hospitality sector who are under particular stress.

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Unpacking the UIF Benefit in response to Covid-19

In the wake of the announcement of the national shutdown, the Minister of Employment and Labour has announced the introduction of measures in response to coronavirus (Covid-19) and its impact on UIF contributors. There has also been the establishment of a Rapid Response Teams to be deployed to each province to assist companies with processing of claims in cases where they have retrenchments of more than 50 employees.

The Unemployment Insurance Fund will compensate affected workers through its existing Illness and Reduced Work Time benefits.

The Department has published a ‘easy aid for Corona benefits’ guide. The corona benefits, as with all UIF benefits are only applicable to employers who are registered with UIF and make monthly contributions as required.

In accordance with the “Easy-Aid for Corona” Guide for employers issued by the Department, in the event an employer decides as a direct result of the current Covid-19 pandemic to close their business for a period and send employees home, then the reduced work time benefit may be applied for. As part of the application for the benefit, a letter from the employer confirming the company shutdown or employee’s “temporary lay-off” due to the coronavirus must be included. The maximum benefit will be paid as per the benefit structure if the employer makes zero payment to the employee during the shutdown period. However, if payment is made during the shutdown period, then the benefit will be reduced accordingly.

Where a company opts to close for a short period, the employer is requested to inform the Department so that it can dispatch its provincial rapid response team to assist with the application and payment of this benefit type.

Where an employee has been quarantined for 14 days or longer, the Illness Benefit will apply. To apply for the Illness Benefit, a confirmation letter from both the employer and employee must be submitted together with the application as proof that both the employer and employee have agreed to 14 days ‘special leave’. In this instance, the letters will stand in place of a medical certificate as it is anticipated that the beneficiary would have self–quarantined without prior consultation with a medical practitioner. Benefits will be paid based on these letters. However, should an employee be quarantined for more than 14 days, a medical certificate from a medical practitioner must be submitted together with the relevant forms.

In the event a UIF contributor passes on from Covid-19, death benefits are paid to the beneficiaries of the deceased. People eligible to apply for the death benefits are the spouse, life partner, children and nominated persons, in that order.

In relation to the Reduced Work Time Benefit, the Illness Benefit and the Death Benefit, the normal rule that for every four days worked the employee accumulated one credit day and maximum credit days payable is 365 for every four completed years will apply.

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From the desk of the President, Monday, 6 April 2020

Dear Fellow South African,
 
One thing we have learnt about the coronavirus over the last three months is that it does not respect borders. It has spread across Asia, Europe, North, Central and South America and Africa.
 
Distinctions of wealth, poverty, nationality, race and class have been rendered meaningless as infections grow in developed and developing countries alike.
 
The coronavirus pandemic has served as a stark reminder that in our interconnected world, no country and no nation exists for and of itself. It has affirmed once again that realising a continent and a world free of hunger, want and disease requires the collective effort of all.
 
South Africa is not the only African country battling to contain the spread of the worst global public health emergency in a century. To date there have been over 7,800 confirmed cases in nearly 50 African countries.
 
A number of African countries have embarked on similar measures to those we have adopted here, such as border closures, nationwide lockdowns and the roll-out of mass screening and testing programmes.
 
Now, African countries are working together. Africa is speaking with one voice and acting in unison.
 
Last Friday, I convened a teleconference of the African Union Bureau, which consists of the leaders of Egypt, Mali, Kenya and the Democratic Republic of Congo, as well as the Chairperson of the AU Commission Moussa Faki Mahamat. Other participants in the call included the leaders of Rwanda, Ethiopia, Senegal and Zimbabwe. We received presentations from WHO Director-General Dr Tedros Adhanom Ghebreyesus and the Africa Centres for Disease Control and Prevention (CDC) Director Dr John Nkengasong, who provided an update on the state of the pandemic in Africa and across the world.
 
What they told us was extremely concerning. It confirmed the need to act swiftly and to undertake extraordinary measures.
 
There is a common appreciation that this virus, if not contained, could present a very real and serious setback to all our countries as we strive to eradicate poverty, inequality and underdevelopment in already constrained circumstances.
 
We agreed to establish regional coronavirus task forces in each of Africa’s five regions: Southern Africa, East Africa, West Africa, Central Africa and Northern Africa. They will oversee screening, detection and diagnosis; infection prevention and control; clinical management of infected persons; and communication and community engagement.
 
While Africa has weak health systems and millions of people live in conditions of poverty, several countries across Africa have wide-ranging and extensive experience in managing infectious disease outbreaks and epidemics. The task forces will put this experience to good effect as we confront the current health emergency.
 
However, Africa is facing a severe shortage of coronavirus test kits, medicines, face masks and other personal protection equipment. We are therefore working with the WHO, Africa CDC and various world leaders to mobilise international support for Africa, to enable the flow of vital supplies into the continent and to significantly increase local production in African countries.
 
We have established an African Union COVID-19 Response Fund, to which AU Bureau members have already committed $12.5 million. Funding to the Africa CDC, which is driving the continental health response, will be increased, with an additional $4.5 million already committed.
 
Africa cannot do this alone. During the virtual summit of G20 leaders late last month, I raised the need for financial and logistical support for Africa’s response. Given the substantial toll this pandemic is already taking on African economies, the assistance that will be needed could run into billions of dollars.
 
A number of measures have been proposed by the AU Bureau, including a comprehensive stimulus package for Africa. This could include debt relief in the form of interest payment waivers and deferred payments. This would free up much-needed financial resources now that national budgets are being reprioritised to support the coronavirus response.
 
This is really a time when not just the G20 countries but other international partners and financial institutions need to practically demonstrate their commitment to supporting developing economies in Africa and around the world.
 
In the last week, I have had useful discussions with a number of world leaders including the UN Secretary-General, EU Commission President and the leaders of France, Russia and Cuba. As South Africa, we continue to receive practical support from countries like the United States, China, Cuba and Russia.
 
Even as these countries struggle to contain the pandemic themselves, they are willing to support South Africa’s and Africa’s response. In uniting behind this global health emergency, as African countries we have shown once again our ability to transcend political and other differences in pursuit of a common objective. We should seize this moment to deepen collaboration across other areas, such as development or trade.
 
This global pandemic has exposed the fragility of inward-looking and insular political, economic and social systems. It is leading some to call for ‘a new moral economy’ that has people and their welfare at its centre.
 
It has opened up space for critical action around social spending and equitable access to health care. It is challenging widely held preconceptions about the abilities of developing countries to respond to national emergencies. 
 
In both their respective national responses and the continental effort, African countries can hold their own.
 
In collaboration with the WHO our pandemic preparedness plans have been solid. In areas where constraints exist, there has been demonstrated commitment to extend support and capacity to those countries in need.
 
Our Africa Centre for Disease Control and Prevention is world-class. As are our health professionals, scientists and epidemiologists. With the necessary international support, we can bolster health infrastructure and health systems on the continent. At the same time, African countries will help each other.
 
If we continue in this positive vein, Africa will truly demonstrate it is more than capable of resolving it challenges. Through deeper collaboration, we will turn the tide against this virus, region by region, country by country.

fin24

ANALYSIS | Coronavirus will have long-term impacts for business leaders. Here are the top 5

As the Covid-19 crisis unfolds, the focus of business leaders and others has been on immediate responses and short-term time horizons. This is for good reason. Yet there are initial signs of how the crisis may be shaping longer-term assumptions about business and its context.

The spread of the pandemic has brought to the fore the need for business leaders to recognise the crucial interdependencies between business and its environmental, social, and governance context.

In addition, given the massive public sector contributions to companies during the crisis, and recognising companies’ reliance on healthy societies, business leaders will need to appreciate amendments to the social contract that underlies societal support for their operations.

They will need to do much better in working with others in safeguarding planetary boundaries, strengthening the social immune system, and building capable and accountable states.

Below I set out five implications of the pandemic for business leaders.

Paying attention to planetary boundaries

The emergence of the virus is linked to humans’ callous treatment of wild and domesticated animals for food and dubious medicinal benefit. COVID-19 thus shows that current approaches to the trading and consumption of wild and domesticated animals are not only ethically and ecologically problematic, but also highly risky to ourselves.

More broadly, the risks of zoonotic diseases (those that spread to humans from animals) have risen as people increasingly squeeze wildlife into ever tighter corners. As noted by the author David Quammen, as

we disrupt ecosystems… we shake viruses loose from their natural hosts.

Many scientists – and also an increasing number of business leaders – thus see COVID-19 as a tragic example of the broader risks to business and societies from our seeming inability to address environmental risks associated with climate change, biodiversity loss, and other “planetary boundaries.”

Strengthening the ‘social immune system’

COVID-19 highlights for businesses their interdependence with the social fabric in which they are embedded. One implication is that businesses are directly affected by the scope and quality of countries’ social welfare systems. Provisions of the welfare state, including sick leave, have turned out to be crucial. They not only cushion the blow to vulnerable workers, but also help reduce the spread of the disease.

A related concern is the vicious cycle between COVID-19 and poverty and social inequality. Poor people are particularly exposed to contracting the disease, and they are less likely to receive good medical attention if they get sick. They are also much more exposed to the negative economic impacts.

The health of the society on which businesses depend thus depends on the existence of a decent social welfare system and the absence of extreme poverty and inequality. This has been referred to as the “social immune system.” Business leaders will need to recognise how vital it is for their companies’ long-term health, as well.

Building capable and accountable states

For the last 50 years, many business leaders inspired by Milton Friedman and his doctrine, or just motivated by selfishness, have chipped away at the idea that we need a strong state. The emphasis has been on reducing the role of the state and leaving more and more responsibilities to market actors.

But now business leaders are crying out for decisive government action in response to COVID-19. The assumption that we don’t need capable governments has been turned on its head.

Business leaders have also stood idly by in recent years as political leaders have self-servingly eroded confidence in science. COVID-19 has highlighted the folly of this.

The US’s President Donald Trump and Brazil’s Jair Messias Bolsonaro openly derided scientific advice on the pandemic. President John Joseph Pombe Magufuli of Tanzania has urged churches to stay open because the coronavirus is “satanic.”

COVID-19 is showing how leaders’ lack of interest in or inability to make good use of science can have disastrous consequences. It is showing up with great urgency a similar problem with other serious but more longer-term challenges, such as climate change.

At the same time, there are concerns that some government leaders are using the crisis as an opportunity to deepen their authoritarian grasp on societies. They are applying surveillance mechanisms to control the pandemic, but also to control people.

This is expressing itself in states known for their authoritarianism, such as China and Hungary. But a much broader range of states are using technologies to monitor people in ways that would have been considered preposterous a few months ago.

So, on the one hand, business leaders will need to recognise the need to build capable states and evidence-based government. At the same time, they will also need to be proactive in ensuring that states remain accountable and respectful of individual freedoms.

Managing crises responsibly

The COVID-19 crisis is many ways unique. But it is also part of a broader pattern of increasingly frequent crises, as we push beyond planetary boundaries.

In South Africa, businesses were just recovering from a record-breaking drought when the crisis hit. In Australia, people were still reeling from disastrous fires.

Business leaders will need to recognise that crises will become less exceptional and thus their responses must become better prepared, more proactive, and more responsible. They must respond to both the synergies and tensions between business and community resilience.

Often, ensuring business continuity is a vital contribution that business leaders can make to the communities in which they operate. For example, in many countries pharmacies and retailers still have products in store. This isn’t an accident but the result of highly sophisticated and energetic responses that commenced already in January.

The news has also been full of impressive efforts by companies to repurpose their production facilities or to make products and services available to medical workers.

Other efforts to continue with business during the crisis have been less benign. Some have sought to keep operating despite public health warnings to the contrary, such as some gyms. Others are more brazenly opportunistic, for instance by peddling questionable “health products” or through price gouging.

Another form of opportunistic behaviour is for companies or associations to make use of the crisis to influence public spending or policy in their favour. For example, coal companies have lobbied hard (and in the US, quite successfully) to benefit from government stimulus packages. This has been despite widespread calls to align such stimulus efforts with the imperative to address climate change.

In coming decades, business leaders will need to distinguish themselves by showing strong crisis management capabilities in maintaining business continuity, and by contributing more clearly to societal resilience.

Collaborating in a new social contract

The crisis is of such scope and depth that many business leaders and managers are engaging in a radical shift towards coordination and collaboration with the government and civil society organisations. In South Africa, for example, business leaders have established working groups interacting with national government to coordinate the crisis response in terms of public health, as well as social and economic impacts.

This shift is as swift, far-reaching, and seemingly natural as would have been unimaginable a few months ago.

The challenge for the next few years will be for a similar commitment to collaboration to address shared social and environmental problems before they manifest in crises like this one.The Conversation

Ralph Hamann, Professor, University of Cape Town

This article is republished from The Conversation under a Creative Commons license. Read the original article.

CDE

COVID-19 Macro-economic consequences for developing countries

Presentation by Ricardo Hausmann

“Just when developing countries need to manage the pandemic, most have seen their fiscal space evaporate,” says Professor Ricardo Hausmann, one of the world’s leading experts on what drives economic growth, especially in developing countries.

Hausmann provides an excellent analysis of the macro-economic implications of COVID-19 as well as recommendations for developing countries and international institutions.  You can watch the meeting recording or read the slides (see the two links below):

Cometh-the-hour,-Cometh-the-Call-for-Collaborative-Action-Against-COVID-19

Cometh the hour, Cometh the Call for Collaborative Action Against COVID-19

Facing unprecedented times globally, this COVID-19 challenge calls for focus, creative thinking, cooperation and collaborative action. COVID-19 is impacting us all, in all walks of life, to the core and dramatically demonstrates our inter-connectivity and interdependence.  It is profoundly challenging human health and the human spirit. From a business point of view, this is a defining moment for leadership and action.

Whilst the safety of employees, customers and business partners is paramount, the strength of these relationships will be exposed. Leadership will be tested and commitment to individual and business’ values will be scrutinised.

Are the businesses well espoused values just platitudes on the board room wall and the front cover of the annual report, or are they genuine and do they guide the business‘ actions?

Whatever the sector, a valuable contribution can be made, and is required. Across the national and international health systems, from the incredible NHS and its staff, to the whole health eco system, everywhere, the skills, commitment, and resilience of the individuals and the teams are evidenced, daily. Under these hugely challenging circumstances, where resources are being stretched to their limit, these individuals and systems, are the heroes. They are crucial; they are at the heart of the battle plans and they are on whom and on what we all depend.

Apart from the medical, health and pharmaceutical sectors, corporate leaders are responding across every sector, around the world. From Banking, across Manufacturing, to the food sector, the Supermarket sector and many others, strategies are developing and becoming increasingly comprehensive, as the context develops daily.

From employee support, business model flexibility, partnering through the supply chain, to ensuring product delivery for the consumer, sectors and individual businesses are navigating their way through. With this shared purpose, products, services and, relief are being delivered, through collaborative action, in support of the national and international collective effort.

Are we beginning to see glimpses of the world transitioning into a new world order? Are we seeing a movement from a pre- occupation with ‘I, me and mine’ towards a focus on ‘we, us and ours.’ Will this current transition introduce a lasting change?

As COVID-19 attempts to take hold, the depth of the impact, and potential impact of the virus, is being felt, and beginning to be understood. In this fast- moving context, which highlights our interconnected and interdependent world like never before, inspiring examples of leadership, creative thinking and collaborative action are being demonstrated daily, by individuals, communities and businesses. Key themes are also emerging.

1.Add Value to your Values

Now is the time, and we are beginning to see businesses demonstrating the commitment to their values and to come together with colleagues and partners, to be the best that we can be. It is time to get creative, to be collaborative and to add value to those values, for the common good.

2. Lead with Purpose and Consolidate Trust

Business’ leadership and purpose are being tested like never before. Nurturing, building and demonstrating values, consolidating trust and reinforcing purpose are essential. Resilience and commitment are critical. Inspiring approaches and examples of collaboration, cooperation, partnership, determination, appreciation and creativity, large and small, are emerging everywhere. Supply chains, systems and processes are being put through their paces, as together we focus on a shared future. 

3. People First

People underpin the success of the fight against COVID-19 whether they be the doctors and nurses, al those within the health service eco system, the production line workers, or the sales assistants on the shop floor etc.  Recognising and supporting employee health, safety and well-being is fundamental. The impact of the virus on the individual’s physical, financial and health and well-being, is huge. To help enable the success of the business strategies to combat and overcome COVID-19 and its impact, people, the employees, must come first.

4. Review, ‘Re-set’ & Re-purpose for a Shared Purpose

COVID-19 is putting untold pressure on existing business models. Collaboration and change are the new certainties. Remote working is the new normal, business continuity plans, the new framework. As companies around the world review the new context, adapt their business models and re-set new ways of working with a shared purpose, to ensure safety, operational resilience and a positive shared future.

5. Leverage the Power of your Brand

Consider the power of the business and the brand and how it can be used to support the collaborative effort against COVID-19. Indeed, according to the special edition COVID-19 Edelman Trust Barometer, 65% of consumers reported that how brands respond to the pandemic will have a “huge impact” on their likelihood to buy their products. Given the circumstances, if the business is currently or plans to embark on an advertising, marketing and communications campaign consider, why. Consider its purpose, whether it is appropriate and if it would be more effective to re- purpose part or all of plan, to support and reinforce the public health messages, in line with the global imperative to overcome the COVID-19 crisis.

6. Deliver and Build on your Community Commitments

The symbiotic connection between business and communities is palpable. When the going gets tough, the tough get going! Community investment today has never been more important. Whilst developing additional corporate responsibility and community investment strategies, in relation to COVID-19, it is critical to deliver on the commitments already made. Commitments, small and large together, inspire, engage, and challenge partners, competitors and others in your networks, to ‘lean-in’. Together these actions support the local, regional, national and international efforts, to beat COVID-19.

7. Re-use & Repeat

So often the push is for new ideas and solutions. Actually, however, there is often value is to be found in reviewing, re-using and repeating previous solutions, adapted for the current context, whether they be technological or practical. The question is whether and how this previous solution can be adapted and targeted toward the COVID-19 challenge.

8. Show appreciation

The whole world, with a shred purposed is in this race against COVID -19. This is likely to be a marathon not a sprint. Given the enduring effort and commitment required, the importance and power of saying ‘thank- you’ can never be underestimated and given the current context has never been more important. Dealing with what has been described as a ‘Tsunami of patients’ and indeed a tsunami of challenges and changes, with many more to come, it is vital to recognise the unprecedented pressure, effort and expectations on everyone. It is essential to say thank you, a message which has been so beautifully communicated by the ‘Clapping Hands for Carers’ campaign, that is taking hold, around the world.

These are unprecedented times. Our interconnection and interdependence are beyond doubt. The impact on lives and livelihoods is, as yet, untold. COVID-19 is the great equaliser. At times like this, we are reminded of the strength and endurance of the human spirit. In the midst of this terrible time, there is a chance to seize the opportunity to transition to a new framework, moving from a world of ‘I, me and mine’ to a world of ‘we, us and ours.’ There is a chance to focus on a collective shared purpose, a shared future, a shared destiny. We have the opportunity to develop a new world order, to build back better and to return the balance between people, planet and profit.

The individual and collaborative efforts taking place in every village, town, country and region around the world, battling against COVID-19, demonstrate that our shared future, is in our hands. These challenging times demand focus, flexibility, creative thinking and collaborative action. Leadership, relationships and the human spirit are being tested to breaking point. There are glimpses of a transition to a new world order, and opportunity to build back better, to embed sustainable development and to create a fairer society and a more sustainable future. The question is, what will our individual and collective legacy be?

Cometh the hour, cometh the call for collaborative action against COVID-19.

Sue Adkins, Founder & CEO, The Collaborative Action Network

#Coronavirus, #COVID-19, #SharedPurpose, #Buildbackbetter, #Sustainabledevelopment, #CSR, #Trust, #Values, #April2020

Please get in touch to discuss to further.

©Sue Adkins 2020 All Rights Reserved

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