By Pafungeyi Gore
20 April 2020
The world is reeling from the effects of Covid19 lockckdowns.
Coronavirus disease (covid-19) is an infectious disease caused by a newly discovered coronavirus (WHO).
The disease ravaged well established economies like the American economy. In the first month of the lockdown America lost a billion dollars according to CNBC newals.
Many jobs have been lost in America and by week ended 21 March 3.3 million Americans filed initial jobless claims which shows how vulnerable they are because of Covid19.
The African economies will not be spared by the pandemic because of their already fragility status. Many rely on regional imports without any meaningful industrial base to talk about.
Those that rely on imports will be hit hard as most countries are on lockdown. Many jobs are on the firing line as companies will try to rightsize after the Coronavirus pandemic debacle is over.
Millions will be thrown in the streets and they will join the millions already in the informal sector if they would be an informal sector to talk about after Covid19.
Across the continent 64 % of the GDP is coming from manufacturing and services and the two sectors are expected to hit by the pandemic because of the salaries that employees will receive whilst there is no production taking place. Some companies will definitely fail to open, those that will open will surely rightsize in order to cover up the losses induced by the lockdowns.
The fragility of African economies is shown by the sprouting of SMEs and the informal sector.
Most of these SMEs are well established to sustain prolonged closure and for those in the informal sector they rely for their sustenance on what they produce that day.
The little savings they had have already been depleted by most ill planned lockdowns across the continent.
The stocks they we’re thinking would be sold the next day if it’s foodstuffs will be eaten at home. The lockdowns will definitely expose their vulnerabilities and this will put pressure on caring governments to feed those faced with hunger.
The governments will be pressurised to provide funds to feed people rather than providing stimulus packages for the already distressed industry.
Already in countries like Zimbabwe where speculative tendencies rule the roost prices have already gone up.
The cost of living is rising on daily basis whilst the over 90% populace that rely on hand to mouth scrounge for a living and their lovilihoods are on the firing line as they try to balance staying at home as the government instructed and hunger which is stocking across the high density suburbs.
Most urbanites rely on the informal sector for their survival and even those who go to work their salaries are just a meagre which means they definitely have to supplement them.
In Zimbabwe most people will fail to pay rentals for the month of April as the lockdown continue up to May. Those who own houses will fail to pay council rates. African local authorities are highly fragile as they rely mostly on rates and the rate payers are heavily affected by the lockckdowns.
Pafungeyi Gore is a holder of a Human Resource Management Degree, He writes on his own personal capacity.
Can be contacted on email [email protected]
