These American people spent some time in different regions of Madagascar. They tell us about their best moments in the country.

Roy Cox, former Peace Corps Volunteer in Madagascar

“I had the pleasure to live alongside Malagasy people for three years and was impressed by the culture of generosity in Madagascar. In both cities and rural places, people are generous with their time, happy to talk, teach a skill, or invite you along on an errand or to a party.

Malagasy people, even those with little to spare eagerly invite you to share their food and often their home. To “mandray vahiny” or give hospitality to a guest, is among the most important Malagasy values.

What I experienced as a visitor, I saw take shape between Malagasy people as a strong drive to build community, an enthusiastic social engagement, and a love of debate and conversation.  This is exemplified by the formation of fikambanana (a society or organization) ubiquitous in every part of Madagascar for mutual professional, civic, or educational benefit of members. No matter how busy or tired, Malagasy people come together and share.”

Fiona Fitzgerald, Tourist.

"After graduating from university, I spent three months working, traveling, eating and exploring the beautiful country of Madagascar. My time in Madagascar was particularly unique for an American because I was staying with family who lives in the country. This resulted in me immediately being immersed into the culture and life of the Malagasy.

What stands out to me the most about Madagascar is its people. Madagascar is full of the most kind, welcoming and happy individuals in the world. I don't speak Malagasy, nor do I speak French, yet I made lifelong friends despite the language barrier. While in Fort Dauphin, my surf instructor spent all day trying to teach me how to catch a wave (which was a sad sight). And after I finally called a quits, he invited me out to town without a thought. I spent the night drinking THB, munching on brochettes and attempting to learn Malagasy. I still recall; “Iza ny anaranao?” and “Ny anarako dia Fiona.”  The people of Madagascar welcome you into their country with open arms, welcome you into their home as if you are family and are proud to share their beautiful culture. Madagascar will always hold a special place in my heart thanks to the people I met, and I thank everyone along the way for that."

Tim Fallon, Backpacker.

“Madagascar was the adventure of a lifetime. In 10 short weeks, I learned some Malagasy, some French, learned to surf, had my first lychee, saw lemurs and chameleons and crocodiles and gigantic snakes. Most importantly, I learned about Malagasy culture and their beautiful people. In the 2 years after I graduated from university, I managed to backpack around the world and see a fair amount of interesting cultures. I am ever thankful for these two years and all of the places in between, but I am proud to label my time in Madagascar as the best times of my life. An entire country welcomed me with open arms and taught me everything they could about being Malagasy. I was most impressed by the pride of the people and the land that they occupy. Brochettes, langouste, THB, and oysters filled my stomach and my heart while Ambatovy, Tana, Mahajanga, and Fort-Dauphin filled my eyes. One of my favorite memories from my time in Mada was witnessing a victory from the football (soccer in America!) team and celebrating with all of Tana. ALEFA BAREA!”

Payton Hansen & Austin Bergera – Vazaha Miteny Gasy

Payton: “Before arriving in Madagascar, I didn't have any courses learning about the culture, and didn't know a single Malagasy person. So, my initial arrival (I first lived in Ambositra) was quite a shock! Being the first country in Africa I ever visited, I had the impression that all of Madagascar (and even Africa) was just like Ambositra: few paved roads, a lot of farming land, very few stores and amenities etc. After later spending time in Antananarivo and Mahajanga, I, of course, learned that this was not true. The diversity of each Malagasy city, combined with the charm of its people is what I first fell in love with. Malagasy people are very welcoming, and very smiley; this really helps for new visitors to feel at home quickly. They were also VERY encouraging while I was learning to speak Malagasy. Even when I was just learning, they would often comment "Ary mahay miteny gasy be ianao an!" This really boosted my confidence and helped me learn quickly. After getting comfortable with the language, I fell even deeper in love with people's straight-forwardness and desire to connect. I share this desire to connect with people as well, chatting with people in the streets, making jokes with street vendors and talking with everyone I meet. These are some of my favorite things about Madagascar.”

Instagram: @vazahamitenygasy | Facebook: https://www.facebook.com/vazahamitenygasy | Website: https://vazahamitenygasy.com/en/

This article is also available in the 11th release of "The American" magazine. The full PDF version of magazine is available for download here.

Daniela, an entrepreneur.

After my graduation in 2014, I moved to Antananarivo to settle and start a new life, to live on my own and to pursue my goal: becoming a computer engineer. Instead, I was surprised by the high price of fish and seafood in the market whereas fishers’ communities live in poor socioeconomic conditions such as livelihood insecurity and extreme poverty. I quickly understood that there is an obvious and large distance between direct providers and customers; and middlemen had huge influence on price negotiation.  This situation influenced my career path. I created a social enterprise called “VIAVY FISH SHOP” whose mission is to improve the conditions of small-scale fishers in my home village. VIAVY FISH SHOP is an online platform that connects fishermen and buyers and promotes fair trade.

VIAVY FISH SHOP produces fresh fish, frozen fish, dry and salty fish, and seafood (in May).

Daniela on business resilience.

My company struggled a lot last year during the government lockdown. We lost most of our customers which were mainly restaurants and snacks, as they remained closed. There were times when I had demands of less than 100 kg. However, I could not deliver the goods as I had to fill the refrigerated truck with at least 500 kg before they agree to transport the fish from Mahajanga to Antananarivo.

Indeed, me and my teams tried to cope with this pandemic, and search for new strategies. We have now launched new products: frozen fish. We build up enough stock for one month and we partner with other fish shops so that we could fill the refrigerated truck together with our orders, in case there are other government lockdowns in the future.

Daniela on youth entrepreneurship

I teach entrepreneurship. I think young Malagasy people are getting more and more interested in entrepreneurship today. I am convinced that all Malagasy people have the entrepreneurial mindset, but we need to shake them awake.

Daniela on her YALI Mandela Washington Fellowship experience

I was selected for the 2019 Mandela Washington Fellowship for Young African Leaders and was placed at the University of Iowa. The fellowship changed the way I do business. The most important lesson would be: rather than seeing other companies that sell the same or similar products as mine as competitors, I consider them as partners and collaborators.

About Daniela

Daniela Loberline Ratiarisoa, social entrepreneur, climate activist, youth inclusion advocate and feminist. She is passionate about building resilient communities and strengthening inclusive economy. She has been involved in improving livelihoods of fishermen’s families in using entrepreneurial skills and social capabilities focusing on women capacity building to reduce poverty, give access to education for girls and promote blue economy as well as circular economy. She has 5 years experiences in Business Management and Entrepreneurship.

Key economic sectors such as tourism and mining have been hardly hit by the economic impact of the sanitary crisis in Madagascar and worldwide. According to economist Fano Andriamahefazafy, the country’s economic recovery will largely depend on the sanitary parameter. Today, Madagascar is still in a state of flux.

Notable lack of visibility over the economic recovery

The current economic crisis is the outcome of the sharp drop in domestic and international demands. Lockdowns, travel bans and restrictions everywhere in the world carried very severe consequences on our economy, especially on the tourism and hospitality sector, and the economic downturn at the national and international levels had significant impact on Madagascar’s largest contributors to the GDP, including mining and services. However, the impact has been somehow counteracted by resilient sectors such as the agriculture sector. In the same way, households who can rely on supplementary economic activities are more resilient than those who do not. The crisis later touched the social and political spheres. In Fano Andriamahefazafy’s opinion, the biggest issue that economic actors are facing today is a cruel lack of visibility, as only short-term approach has been adopted so far.

Economic recovery based on public contracts.

The budgetary policy adopted by the government was intended to support the private sector through public contracts. However, it is debatable if the initiative does really support local economy, or if it promotes imports instead. For example, building materials used for roads and school constructions are generally imported.

Even though the government implemented an emergency plan and granted loans to salaried employees through CNaPS, Fano Andriamahefazafy explains that the available budget resources are limited.

In terms of monetary policy, the Central Bank of Madagascar was bound to adopt a prudent one. Madagascar has an outward-looking economy, a decrease of the policy rate would in fact boost external demand and generate inflation. Thanks to a prudent monetary policy, the Central Bank managed to contain inflation amid the pandemic.

The recovery will depend on the health situation.

According to economist Fano Andriamahefazafy, Madagascar is now on track to start its economic recovery. However, it will depend mainly on how the sanitary situation evolves. Potential future lockdowns would be disabling for our economy. Madagascar can envisage a positive GDP growth of five percent like in 2019.

An appropriate economic policy to address the crisis.

Fano Andriamahefazafy prescribes an economic policy which targets better the driving forces of economic growth. This means, the government should prioritize sectors like agriculture, agribusiness and food industry, services, mining, and tourism.

However, the beneficiaries of those measures must adhere to a performance contract. The contractual approach proved to have been efficient in Asian countries. The private sector should commit, for example, to not laying off staffs, or to creating new jobs and recruiting new employees. With a contractual approach, supported by a proper design brief, private companies should meet a performance requirement. Otherwise, the effect of the economic policy will be weakened.

Andy Razafindrazaka is a 14-year-old very talented drummer who made his mark on the jazz scene in Madagascar from an early age. Despite his reserved character, which contrasts with his impressive stage energy and playing, the young musician tells us about his career with outstanding maturity and lucidity. With more than 15,000 followers on his Facebook page, his decisive encounters with jazz greats such as Mike Moreno, Darryl Hall, Stephy Haik, Bunny Brunel, Olivier Hutman and Jeanot Rabeson, and his many stage appearances, Andy Razafindrazaka is one of the worthy representatives of young Malagasy jazzmen.

The American: Why jazz?

Andy: I think I was influenced by my father, Désiré Razafindrazaka, who plays bass and hosts jazz events. I feel comfortable with jazz and I love it! But I also play light, rock, and Malagasy music.

The American: Your musical influences?

Andy: In jazz, I listen to a little bit of everything, especially pianists Chick Corea and Herbie Hancock. I love jazz but I am also keen on funk and rap.

The American: How did you start with drums?

Andy: I started at the age of seven. I learned the basics by watching YouTube videos. Then I took drum lessons with Sitraka Ranaivosoa, Josia Rakotondravohitra, Lova Ramanampilaza. I also did music trainings with Ferenc Nemeth, Yves Ouezan, and Frank Raholison.

The American: Your first public performance?  

Andy: It was in 2015 when I was only 8 years old. As soon as I knew how to play different jazz rhythms, my father took me to cabarets in Antananarivo for jam sessions with musicians such as guitarist Datita  Rabeson and pianist Samy Andriamanoro. I was both nervous and happy to play! Then I played during the Jazz Tohatohabato festival and the Madajazzcar Festival afterhours with foreign musicians like Andy Narell, Bunny Brunel, Baptiste Herbin. When I was 9, I was doing my first concert as Andy Razafindrazaka.

The American: Your favorite drummers?

Andy: Tony Williams, Jack DeJohnette, Dave Weckl, Steve Gadd, Damien Schmitt, and Malagasy drummers Bolo Rakoto David, Titan Randriamasindrazana, and Josia Rakotondravohitra.

The American: Your appreciation of the Malagasy jazz scene?

Andy: Jazz is not the first music Malagasy people would listen to, but things are changing. More people attend jazz concerts; more musicians, including youngest ones, play jazz.

The American: Andy Razafindrazaka’s band members?  

Andy: Our band is composed of Mahefa Ramiandrisoa, my pianist from the beginning, Ranto  Ranoarimanana on bass, Tantely  Rasoloarimanana on guitar, Andry Michael  Randriantseva on saxophone, and myself on drums. 

The American: Your latest events and the upcoming ones?

Andy: In December, I participated in the TEDx Youth Antananarivo event and “Jazz à l'Université”. Lately, there was the Tribute to Chick Corea at the Alliance Française de Tana and a concert – with my younger brother on trumpet – in tribute to Luis Ramaroson, a pianist who died earlier this year. Now, my band is planning stage projects and video shoots for my YouTube channel and my Facebook page “Andy Razafindrazaka – Musician”.

The American: Andy’s time management?

Andy: I must balance it out! Honestly, music is above all a passion and my family supports me. But I put studies first because it is important! For leisure, I love video games and I am a football fan.

The American: Your wildest dream?

Andy: Travel all over the world, meet Herbie Hancock and rapper Nekfeu! I also dream of playing one day with Joey Alexander, an Indonesian pianist, and Justin Lee Schultz, a multi-instrumentalist from South Africa, two amazing musicians living in the USA who are around my age.

We are living in an era where information is sometimes considered as the “currency”. To respond to the world challenges, NGOs, CSOs, businesses, and anyone need access to relevant data, especially in uncertain times like today. Unfortunately, Africa is still far from data democratization.

The Fourth Industrial Revolution gave rise to new data-providing technologies. Digital Earth Africa (DE Africa), for example, seeks to “process openly accessible and freely available data to produce decision-ready products”. Data are provided from Earth observation of the continent’s natural resources, and the human and climate impact on them. DE Africa reports that the impact of its actions on the African industry could be evaluated at more than $2 billion annually.

Data access to cope with current challenges.

The United Nations Economic Commission for Africa (UNECA) predicts a slowing economic growth which will push 27 million African people into extreme poverty. The main challenges the continent is facing include difficult access to drinking water, deforestation, and food insecurity. EO satellite data help decision-makers to improve their understanding of Africa’s changing landscape and how to overcome related challenges, and to explore new business opportunities – in the agricultural and mineral sectors for instance.

Satellites have provided images of the African continent and coastlines for decades. Yet the continent still struggles to cope with the growing populations and the deteriorating environment because satellite data are difficult to scale up, to compute and to analyse. DE Africa proposes the Open Data Cube for all Africa which allows information-seekers to have access not only to simple facts but also to growing trends.

To accelerate the growth of the African Earth observation industry, additional $500 million need to be invested in the sector by 2024 according to DE Africa. In the best-case scenario, DE Africa would contribute additional $117 million a year to the African Earth observation revenues.

Earth observation and the African agriculture

40 percent of African make a living out of agriculture, and the sector weighs around 10 percent of the GDP. However, agricultural productivity remains lower than anywhere else because farmers run out of information about water availability and crop development. DE Africa reports that 86 percent of water withdrawals in Africa are used for agricultural purposes. This is a huge waste of water due to evaporation caused by heat and inadequate techniques. With relevant meteorological data and hydrological modelling, it would be easier for farmers to adopt optimal water allocation. 175 trillion litres of water could be saved every year, according to DE Africa.

Poor irrigation plans, combined with the lack of knowledge of up-to-date technologies and practices and low use of chemically improved and hybrid seeds, keep African productivity at a lower level than the international average. At this pace, Africa’s imports of food would reach $150 billion by 2030, but the situation is not irreversible. Let us take the case of wheat production: if Africa manages to optimize sowing dates by using satellite data, DE Africa predicts that wheat production could go up by 136,000 tonnes a year.

Earth observation data, if used appropriately, will contribute to the reduction of insurance costs borne by African farmers and to a significant reduction of pesticide usage as well.

“We must seize this moment to harness the potential of Earth Observation data to make data-driven decisions for more efficient, inclusive and equitable outcomes.” To drive this change, big moves need to be made, and that calls for the integration of geospatial data into business models and their translation into political systems. Matters are now in the hands of industry sectors and government institutions!

Source: “Unlocking the potential of earth observation to address Africa’s critical challenges”, insight report by World Economic Forum, in collaboration with Digital Earth Africa, January 2021.

The United States has officially rejoined the Paris Agreement this year. 190 countries have now agreed to limit global warming to well below two degrees Celsius. As an attempt to contain climate change and to stick with the Paris plan, countries are rushing to curb the use of fossil fuels and turn to cleaner energy. The energy system changes, so will those countries’ economies and energy politics.

History has taught us that there is a strong tie between energy economics and geopolitical power. Oil had the power to create alliances and to trigger war. Now that the shift to clean energy has become the focus of attention, we can assume that the winning players will be those who will master clean technology and be able to export green energy. Things are evolving very fast, much faster than expected. A 2019 report from the International Renewable Energy Agency (IRENA) even mentioned than “a new class of energy exporters may emerge on the global scene.”

In its simplest form, the energy transition can be defined as a shift from oil and gas to electricity, or “from carbon to electrons”. The use of electricity continues to climb, and electricity is expected to provide 50 percent of all energy needs by 2050 according to the IRENA if no country deviates from what they committed to. There is evidence that countries like Norway – which has already managed to cut down electricity prices, Bhutan and France are in an early lead. However, at this stage, it is still too early to predict which country will end up ahead in the long run.

According to the Paris-based International Energy Agency (IEA), while the energy demand in general followed a downward trend amid the pandemic, the demand for clean energy was the only component of the sector that had growth last year.

Renewables set to outperform coal by 2025.

Renewables were “immune to COVID-19,” IEA expert says. The era of coal and fossil-fuel domination will come to an end by 2025. This will be a hard hit to countries such as the Middle East whose economies rely on oil and gas exports, and a significant blow to oil and gas companies.

Unlike oil and gas, renewable power – wind, solar, biomass, hydropower, ocean energy, geothermal – is available in most countries, and those who are resource-rich will make the most of the energy transition. The IRENA report found that to come out winner in this new game, countries will need either to export electricity or green fuels, or to control the raw materials used in clean energy, or to make progress in technology. In this race, Chinese companies did a great job, and the result is a foregone conclusion: “China wins” – which seems awkward when the country is still the world’s leading emitter of greenhouse gases and electricity production largely depends on coal. China is “the” supplier of solar panels, batteries, and critical minerals that rich countries need in order to meet their net-zero goals.

However, it is no secret that trade disputes persist between China and the US and EU. The US does not seek to depend solely on Chinese suppliers to support its energy transition. The US still serves as the “mastermind”, but China intervenes in the large-scale production, at least in the short term. Another awkward situation: countries like the US, Japan and those of the EU highly invest to reach the net-zero goals and all the economic benefit goes to China!

What is going on in Europe? The UK aspires to become “the Saudi Arabia of wind” by exploiting the “windy” North Sea with Norway. The European Union has set up plans for green recovery to support the development of clean energy technologies and is now about to adopt a carbon border adjustment tax. In the meantime, many bilateral trade relationships are being forged across Europe.

Can clean energy be as powerful as oil and gas were in geopolitics? Opinion is divided! Some are convinced that countries will not depend on their peers in terms of oil-producing, and that will significantly reduce the risk of conflicts. The world would be heading towards peace. Others argue that the race to power and control will persist, but the stakes are not as high as before for the winners.

Fossil fuels producers are expected to show signs of resistance. Obviously, oil and gas will not be banished from the energy sector before long. However, the cost of oil and gas will progressively decline. Clean energy is set to follow the same path as coal and oil. The world is in the energy transition, and the cards in this market are being reshuffled!

Source: Financial Times - Natural Resources Defense Council (NRDC)

“To call woman the weaker sex is a libel (…)”, that is one of Gandhi’s most famous quotes about women. The ALFA association is conscious of the value of women within the society and decided to honor and celebrate women within the framework of the celebrations of 2021 International Women’s Day.

ALFA Madagascar will hold a 10-day exhibition at “La Teinturerie”, an association of artists based at Ampasanimalo from March 8 to March 17. Six members of “La Teinturerie” will display their artwork during the ten days: Or, Ampelagie, Andri Marcel, Rado Andriamanisa, Jeremy Randriarimanga, and Fitiavana Ratovo.

A rich and varied exhibition. The exhibition promises to offer a various range of artwork. The gallery walls will be illustrated with paintings, picture shots, and even sculptures. The vernissage will take place this coming Monday, March 8.

About the ALFA Madagascar association

ALFA Madagascar (or Association Leader for Africa) was founded in 2019 and operates in several areas, including fight against deforestation. The association plants more than 1,000 trees annually. To demonstrate its commitment to the youth community, in February 2020, ALFA Madagascar provided personal development trainings to support young people who struggled after completing their studies.

The association is also involved in the education and social sectors. They created a wall fresco for the Besarety Primary Public School and achieved a week-long cleaning to sensitize children about the importance of maintaining a clean-living environment. Lastly, as a contribution to the fight against COVID-19, ALFA Madagascar has designed a 3D face mask called “Mandrava Mask”. A series of events and activities are still to come this year!

The state of play of the apparel industry amid the COVID-19 pandemic does not look that good! Apparel companies have witnessed disruption, bankruptcies, cash flow problems due to constant changes in payment terms, and logistic issues. What a great opportunity to reimagine the whole supply chain!

Supply chain management issues exposed.

Apparel industry experts report that the supply chain problem is not new; COVID-19 just exposed it. For many years, apparel companies have been pressured to improve speed, to lower costs, to be continuously innovative, and to be reactive to customers’ needs.

Today, there is clear evidence that the market requires rapid supplies. In this case, in a competitive context, companies which can manage efficiently the supply chain will stand out. Fashion companies and brands are obliged to adopt new sourcing strategies. Where to source? They can choose to keep working with the same suppliers in the same countries or to focus on fewer suppliers. It is a complicated issue – a dilemma, considering that insufficient diversification in sourcing was the main source of disruptions. It is a debatable decision to over-rely on only one or two suppliers. On the other side of the business, the crisis constrained fashion and brands to work and strengthen their relationships with only key vendors.

Apparel specialists predict that companies will source more in the neighbouring regions. However, the shift to near-sourcing will not abruptly happen because it needs important investments. The US and Asia-based companies are expected to turn to other Asian countries such as Vietnam, Cambodia, and Bangladesh. Asian firms may want to accelerate their vertical integration abroad: in Southeast Asia, in Africa or in the Americas.

Regaining the market

In 2021, fashion companies and brands need to rebuild trust and strengthen their relationships with both buyers and suppliers. They are required to stay aware of trends and to keep in mind that customers are currently looking for fast and quickly available fashion. However, they must manage their stocks efficiently and be as flexible as possible.

Digitization and circularity

Are physical fashion stores disappearing? Specialists explain that even though online sales will continue to grow, they will not totally substitute physical stores. In the meantime, they predict that every aspect of the chain from the design to the quality control will go digital within five years. In the same way, sustainability, circularity, and carbon neutrality are central focuses at every stage of the supply chain, from the design to the selling and even beyond.

What were the lessons learnt from COVID-19? Agility, flexibility, social responsibility, and improved management of the supply chain are the key drivers of success in the apparel and fashion industry. Admittedly, competition in this industry has become supply chain-based. At the sourcing level, even though regional sourcing starts winning ground, rich countries will keep importing clothing mainly from China. Africa is not likely to become the giant of clothes manufacture any time soon.

Source: Just-Style Apparel Sourcing Strategy.

A look back at CEERE’s first ten years.

CEERE (Students Entrepreneurs Club – from the “Rendez-vous des Entrepreneurs”) was created in March 2011 by young entrepreneurship enthusiasts. The association emerged from the famous “Rendez-vous des Entrepreneurs”; a monthly roundtable held at CITE Ambatonakanga at that time. At the very beginning, CEERE was made up of a few students from different universities in Antananarivo, thirsty for entrepreneurial challenges. The association aims to equip its members with the necessary tools to start a business through trainings, events, and networking. Quickly, CEERE made a name for itself within the youth community and has kept growing since its creation. Today, CEERE has branches in Antsirabe and Fianarantsoa, and has recently opened the latest one in Toamasina.

In March, CEERE will celebrate its first decade of being a major player in the promotion of youth entrepreneurship in Madagascar. The identity of the new president who will lead the association for the next two years was revealed last Saturday. CEERE members have elected Lucky Andrianirina and a new board. As the sixth president of CEERE, he succeeds Riveltd Rakotomanana Haja (2011-2013), Mino Andriamijoro (2013-2015), Miora Rasolonjatovo (2015-2017), Gilberto Herimanarivo (2017-2019), and Fanilo Rakotonindrina (2019-2021).

Testimony and message from immediate past president Fanilo Rakotonindrina.

“Before becoming the president of CEERE, I was in charge of the trainings; and being a member of this association was one of the greatest adventures I have ever experienced.

Juggling with many different activities at the same time, working in a multicultural environment and under pressure helped me to shape a leader’s mindset, broaden my horizons and knowledge and develop my soft skills.

During the course of my term as president, I spared no effort to realize three big events to promote entrepreneurial culture among youth. Today, I am also extremely proud that we have been able to open a new CEERE branch in Toamasina, the economic hub and capital of Madagascar.

I firmly believe that entrepreneurship is a good pathway to solve our contemporary problems. Truly, our country needs more youth initiatives like CEERE. As we all know, investing in youth is investing in country’s future. The more initiatives like this there will be, the more youth will be empowered.

I urge all young people to join clubs and associations like CEERE. It is a great way to grow personally. Teamwork and networking with people from different backgrounds were just some examples of good things I have experienced through CEERE.  As members, we are sharing values. As time passes by, we become more than a team, we become family, and CEERE just goes far more beyond a simple club.”

Today, CEERE has around 200 active members, including 2021 registrations.

Could the world re-establish the same pre-COVID-19 normalcy? Chances are the probability of living the same life that prevailed in 2019 is relatively low. Individuals and businesses have learnt to adapt to uncertain situations during the pandemic; and will be called to adjust to a different new normal.

McKinsey and Company gives business leaders some clues as they are getting ready to head towards the new normal.

On consumption

Consumers and shoppers have been used to almost desert malls and closed stores and doors. As we are gradually moving out of the pandemic, can businesses bank on “revenge shopping” anytime soon? The answer will depend on how consumers’ confidence is restored, and how they feel about the future. McKinsey’s survey reported that countries with younger populations such as India and Indonesia are more optimistic than their European peers with older demographics like France and Italy. China recovered earlier than any other country and consumers managed to behave quite like during the pre-pandemic. However, in the United States, a slight and cautious return to buying habits has been reported. Indeed, consumers’ attitudes will vary from country to country according to the restrictions and lockdowns still in effect.

On travels

“Do not travel unless it is for essential purpose.” This has become governments’ daily messages during lockdowns. The recovery of the travel business will depend on how confident travellers are in one country’s health and safety measures. In China, travel companies reported that only domestic travels bounced back, with leisure outperforming business trips. McKinsey notes that historically, business travels always take more time to rebound; and it would be more realistic to predict that regional and domestic business trips will recover first. In the mid-term, travel companies will rely more on leisure travellers, and less on business people, considering that technology showed evidence that some trips are not that essential, and businesses would rather avoid unnecessary travel expenses. In the long-term, this trend can become irreversible.

On innovations

Entrepreneurs who were bold enough to propose innovative and adapted solutions stood out. In the third quarter of 2020 alone, 1.5 million new business applications have been recorded in the United States, almost double the figure for the same period in 2019. The chaos caused by the health crisis on small businesses was somehow counterbalanced by a positive trend in entrepreneurship.

On digitization and productivity

Digitization has seen tremendous growth in a matter of a few months, and no stepping back is possible. Technology helped businesses to be even more productive, and there is a huge chance that companies’ responses to the crisis will be sustained. For example, establishing virtual options can become a norm for healthcare. Everyone should keep their eyes open on new opportunities and trends and should invest in learning new skills that the labour market may demand.

How companies manage their operations has drastically changed during the pandemic, but change can be a driver of greater productivity. What we thought would be temporary becomes permanent, and that is the new normal.

Source: McKinsey & Company