SA Covid-19 help initiative props up companies
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JOHANNESBURG – An initiative founded to help South African businesses cope with the economic fallout from the Covid-19 pandemic said Tuesday it helped 320 stay afloat and saved more than 2,000 jobs.
The Covid Business Rescue Assistance (COBRA) initiative released its statement a week after data from the national statistics agency showed the South African economy contracted seven percent in 2020 – after rising 0.2 percent in 2019 – as the health crisis took their toll.
The initiative’s success shows that South Africa needs innovative solutions to save and empower the companies that have survived the economic devastation of last year, said Adam Craker, CEO of COBRA.
“These solutions require a fundamental rethink in the way South Africans do business,” he added.
According to Craker, COBRA, South Africa’s largest nonprofit for distressed businesses, was founded a year ago by management consultancy IQbusiness, law firm Schindlers Attorneys, turnaround experts Engaged Business Turnaround, and an ecosystem of 90 partner companies.
This was in response to the need to support small and medium-sized businesses as they grappled with the impact of the pandemic in an already troubled economy.
The more than 320 companies that have received direct assistance operate in a variety of industries including retail, automotive and hospitality.
The initiative’s virtual “war room” brings together the expertise of experts from the fields of law, economics, technology and consulting to support companies in financial distress.
“It’s an effective and innovative answer to how we can save both small and large businesses from a recession without government bailouts,” said Craker.
COBRA also offers free consultations and webinars to businesses and entrepreneurs on restructuring and refinancing, access to unemployment insurance for employees, moving to digital platforms, and rescuing businesses and converting business.
“Thousands more businesses and jobs can be saved by sharing knowledge, skills and know-how with distressed companies steering an uncertain future in an increasingly constrained economy,” said Craker.
African news agency
