In an effort to get insights on how companies in Egypt are coping with the pandemic’s repruccissions and their views on fiscal relief set by the government, the American Chamber of Commerce in Egypt surveyed 103 businesses operating in more than 14 sectors. The sample comprised a majority of C-level executives and top management respondents from large, medium, and small enterprises sharing the pandemic impacts they have encountered centered around the following matters:
Almost all businesses have adopted remote working practices, with 90% taking disinfecting control measures to ensure the safety of crucial frontliners who are required to work on premises.
Half of the companies reported moderate impacts, while 30% of companies from each sector have experienced extreme impacts on their business activity by the pandemic.
Key challenges most sectors were concerned about are financial and operating pressures imposed by the pandemic. On the other hand, hospitality & tourism and healthcare & pharmaceutical have reported severe workforce challenges and larger firms facing supply chain challenges.
Views on government countermeasures
Most companies from different sectors, especially medium-sized enterprises, were satisfied with the tax-relief measures set by the government. However, a small portion of large multinational corporations expressed little favor to tax-cuts, as some may not be eligible for local bailout programs or the parent companies may be directing their local arms not to accept local support.
Business plans for 2020
Nearly all companies reported that they have started reassessing their 2020 business strategy with 85% of respondents project a drop in revenue by the end of the year and a small fraction expect an increase due to the dynamics of their industry-specific activities.
More than 60% of businesses reported negative impacts on employee efficiency and ability to reach goals. While 32% of both small and medium-sized companies reported negative personnel performance.
About 76% of companies are opting to maintain status quo, as for the hospitality & tourism, construction & real estate and oil & gas sectors, many are considering laying off personnel.
It is evident that many companies are striving to remain resilient during these challenging times. Many companies operating in different sectors have shown great commitment in ensuring the health and safety of their people. However, the adverse effects of this pandemic have taken a great toll on these businesses imposing economical and financial threats, disrupting day-to-day operations, and compelling executives to rethink their strategy.
To access the full report, click here.