The coronavirus (Covid-19) has impacted various facets of life since the outbreak began in Wuhan, China, in December 2019. The government, the business community, non-governmental organisations, and the medical experts all agree that as crises and pandemics occur, appropriate preparedness and a proactive response can help to navigate challenging times. In the light of this pandemic, household finances will not be spared – but it’s important not to overreact and make panic purchases or hasty financial decisions.
“The urge to stock up on groceries and food items is natural given the uncertainty and anxiety the pandemic has caused.” Says Benard Chiluzi, Financial Education Specialist at Old Mutual.
“But you need to resist that urge, because over-spending could absorb your wallet. Retailers are unlikely to run out of stock because of the excessive demand caused by the panic of the pandemic, and much of what you pile into your trolley, such as perishable products could go to waste especially with electricity load-shedding still lingering and your financial wellbeing could be severely compromised if you haven’t planned or budgeted properly.”
Be mindful too, he says, of the impact of the early and prolonged closure of schools on your pocket. This step by the government, aimed at preventing the spread of the virus, means children will be home for longer periods. This may result in increased spending to help keep them fed, entertained and occupied. It will also have a ripple effect on the rate at which household items get used up. Snacks, cleaning products, water and electricity generally last longer during school terms. In an event the pandemic threat is over, there will also be need for parents to provide boarding school students with travel costs back to school which should be planned.
Chiluzi’s advice to consumers as Malawi prepares to contain the spread of CORONA Virus:
1. Avoid taking out loans to buy in bulk. The nature of this pandemic is terrifying, however you should not be making financially crippling decisions that may lead to unnecessary debt. Load shedding is still among us, what will happen to all the perishables you may have bought if you have limited electricity supply? The best approach is to monitor the situation closely on a daily basis without making abrupt long-term decisions. Alternatively, buy food items that will last you weeks or longer for example dried fish, garlic, orange, apple, non-perishables that are highly nutritious (dried beans among others
2.Cultivate a culture of responsible consumption. Money, food, water and electricity must be used sparingly during these uncertain times as we do not know how long it will take to contain the virus. Other countries in the world were forced to completely shut down to limit local transmissions of the virus, therefore responsible consumption cannot be overemphasised. Avoid any form of wastage.
3.Take a long term view when it comes to investing. Don’t get tempted to disinvest because of panic. Markets are generally volatile during uncertain times but this is temporary. Remain focused on your financial goal.
4. Be Proactive and approach your service providers if your household income is affected due to the vulnerability of your industry. Particularly if you anticipate that you will struggle to service your debts or counted monthly contributions. Do not wait for debt collectors to knock on your doors. Make arrangements in advance and talk to service providers including Insurance companies, Banks, micro-finance companies, village banks and other creditors.
5. Keep up with educational programmes on TVs, Radios and other media. Ensure your children are watching educational programmes at home to keep their minds stimulated during this unpredictable school holiday. You can also download educational games on phones and laptops for the children to watch and learn.
6. Check your insurance and medical aid. Make sure you know and understand what medical and insurance cover you have in place, and whether it applies during a global pandemic. If you do not have, plan to arrange one.
7. Be vigilant. If you display any of the flu-like symptoms and suspect you might have Covid-19, please call any of the following public alert numbers:
COV19-Toll Free 0887 37 12 88
Lilongwe District Office 0999 93 45 23
Blantyre District Environmental Health Office 0999 52 03 19
Society of Medical Doctors in Malawi 088 428 69 91
As many countries are now going into lockdown (which might happen in Malawi or not) due to the life threatening pandemic, almost everyone is justifiably shaken. Nevertheless, it is important to avoid rushing into decisions, especially as it relates to finances. It is hard to predict how long the virus will be among us, for this reason we should guard against making irresponsible financial decisions,’ concludes Chiluzi.
