CEMAC zone: recession could reach 6% according to BEAC

All the indicators are certainly not red. But most of the economic indicators in the six countries of the Economic and Monetary Community of Central Africa (CEMAC) are already found the Monetary Policy Committee (CPM) of the Bank of Central African States (BEAC) at the end of the second annual session on June 24, 2020 in Yaoundé.

Analyzing the situation in Central Africa, it emerges that in the short and medium terms, the CEMAC zone is affected by the health crisis and the fall in the prices of the main export products. "

"In the first half of 2020, the revival of productive activities was slowed down in the sub-region by the disruption of supply circuits for imported products as well as by the restrictive measures adopted by the various governments to contain the effects of the pandemic. Although it is premature for the moment to fully grasp the impact of COVID-19 on national economies, it is already anticipated during this first semester a drop in production as well as a det…

Partial unemployment partly funded by employers: "We don't have enough work", worries a business manager

"As long as aeronautics does not start again, when it is the lung of French industry, we will not have an order book that will wake up," explains the manager.
 
Partial unemployment partly funded by employers: "We don't have enough work", worries a business manager

Increasing delinquencies

For the manager of Como, "the objective is to hold out for a long time and have cash that will last until the recovery." However in matters of treasury, what worries Sophie Demesse is the increase in arrears. "I had to cry with a very large client for him to be able to pay me, so you have to use means," she worries. "I am a very small company with almost correct cash flow. I have three months cash, big companies have a year or two ahead of them. "

Sophie Demesse heads COMO, a small company specializing in precision mechanics which employs seven people. All are on partial unemployment, either two days a week, or full time. From June 1, Sophie Demesse will have to pay 15% of the compensation paid to the employee, against zero previously.


The measure was announced by the Ministry of Labor in a statement Monday, May 25. For employees, no change: they will continue to receive the same level of compensation. But their employers will now have to finance part of the short-time working wages. The only exceptions are the sectors subject to legislative restrictions due to the health crisis.

A cost that can endanger businesses

Sophie Demesse calculated what it was going to cost her: "Concretely for Como, this will represent roughly an additional cost of 2,000 euros per month, she specifies. It seems ridiculous for a company but 2,000 euros per month multiplied by six months, a year, it can endanger the business. " Sophie Demesse speaks of this reduction in the canopy of partial unemployment as a disaster because the resumption of activity is very hard for her company, which sells parts to the aeronautical industry, and indirectly to the automotive industry.

We are still at -60% of turnover and backlog to date. We don't have enough work.
Sophie Demesse, CEO of Como

 "As long as aeronautics does not start again, when it is the lung of French industry, we will not have an order book that will wake up," explains the manager.



Increasing delinquencies

For the manager of Como, "the objective is to hold out for a long time and have cash that will last until the recovery." However in matters of treasury, what worries Sophie Demesse is the increase in arrears. "I had to cry with a very large client for him to be able to pay me, so you have to use means," she worries. "I am a very small company with almost correct cash flow. I have three months cash, big companies have a year or two ahead of them. "

There are many companies that have decided not to pay. What do we do ? I stop delivering? It becomes very tense. Sophie Demesse

Avoid layoffs, a priority

Between the rise in arrears and the reduction in state aid for short-time working, the Como leader hopes not to have to lay off workers while waiting for the recovery. Keeping employees is a priority for her. "In the industry we have skills that are increasingly scarce, explains Sophie Demesse. There are people, if I lose them, I don't say that I lose the market, but to replace them it takes several years I really need to keep them if I want to keep the business going. " The leader believes that her business will not resume completely until 2021, at best.