[Column] Bob Koigi: Key lessons for businesses during national elections
This year five African countries go to the polls. To some like Kenya, the run up to the general election is being characterized by high octane politics. But talking to a couple of business people in a forum the other day, the mood is that of fear, anxiety and uncertainty.
“It is the worst time to be in business. Politics controls the very nerve of our businesses. We have elections in August but we are already exploring our options. Anything can happen,” a hardware dealer told me.
This, recalling the harrowing experiences most businesses underwent during Kenya’s disputed 2007 general elections that degenerated into an orgy of violence. Yet such sentiments are replicate across Africa during electioneering period. And with uncertainties about whether incumbents will hold on to power even after being defeated, or claims of rigging arise, the concerns of the business people are valid.
Take the example of the tension that piled up for days in Gambia which climaxed into businesses closing shop. Yet the political process is an integral part of our system, but so are our businesses.
For either way, after elections business operations take a dip as they adjust to the system. Over the years I have closely observed small businesses on the lead-up to an election. There are some very clear business trends that smart small businesses need to know and work within. Elections also provide businesses with a money-can’t-buy education on the latest in marketing trends.
Depending on the election results, any business can face a few months of transition as the political class swap chairs before finally having their businesses see the light of day again. This especially in businesses that have government contracts.
One less obvious impact is on business to business trade. Many businesses tell me that in the lead up to an election their business to business trade also dries up. The effect doesn’t appear to be limited to particular industries only.
There is no apparent logical reason for this to happen. Perhaps it just reflects the uncertainty businesses feel about election results and potential changes of government. Businesses may be choosing not to invest in new machinery, business services or new technology until after election results are clearer and they know the potential impacts on their business.
So how should small businesses cope with these fluctuations? You know that there will be elections within certain spans of time every few years. Savvy business owners factor this into their marketing plan for that particular year and offer special promotions to keep their business to business market buying at that time.
Elections have a mixed effect on business. The rule of the thumb is to plan for the negative impacts and embrace each piece of political marketing you see as a priceless education. It makes surviving the lead up to an election a lot easier.
Multiple award winning Kenyan journalist Bob Koigi is the Chief Editor East Africa at Africa Business Communities
