WORST OF LOCKDOWN IMPACT MAY BE EASING

THE LATEST BankservAfrica Economic Transaction Index (Beti) tracked a monthly improvement in May, suggesting the worst of the economic impact from the Covid-19 lockdown may be easing. However, the overall impact over the three months to May points to a long road to recovery for the economy. Shergeran Naidoo, the head of stakeholder engagement at BankservAfrica, said the monthly Beti showed less of a decline of -4.3 percent in May compared to April’s -14.2 percent. “While this movement offers some relief, the data over the three months ending May 2020 reflects the biggest fall on our records with the actual total value of transactions in real terms lower than any period since April 2005. The Beti, which comprises of the value and number of transactions, saw both declining substantially in May 2020. Our data shows the economy recorded 20 percent less in transaction value than a year ago and that the number of transactions fell by 9.1 percent year on year,” said Naidoo. He added that the total value of transactions fell, due to the average value per transaction falling faster than the number of transactions. The Covid-19 pandemic is creating major economic and financial distress for consumers across the globe, according to a study by TransUnion. Many jobs are being impacted or are at risk due to drastic shifts demand.