COVID-19 wiped 40% of jobs in Africa

THE rate of business closure in Africa was high due to COVID-19, while businesses owned by women suffered the most and those working in the non-formal sector’s effectiveness was reduced as there was not much to do, an official with the United Nations Development Programme (UNDP) has said.

The chief economist and head of the strategy, analysis and research team at the regional Bureau for Africa UNDP in New York, Raymond Gilpin, said job losses in the formal sector across the continent were as high as 40%.

Gilpin notes that female owned businesses suffered the most due to socio-expectations that required women’s attention.

The survival of the nonformal sector, which accounted for as much as 80 percent in some African countries, was also directly affected by COVID-19.

The chief economist noted that adverse social impacts felt by people required social protection and labour programmes where governments addressed challenges from a number of perspectives if there were to be impactful

Gilpin highlighted that social programmes are limited and in some aspects limiting.

According to the UNDP official, 80% of low-income African countries, did not institutionalise social protection and in comparison to the rest of the world, Africa is lagging behind regarding receipt of global loans.

Therefore, in a pandemic, Gilpin advises African governments and developmental partners to facilitate retention of investors.

But the UNDP chief economist lament that in the first four months of COVID-19 last year, US$400 million left the continent because of capital flight.

The continent has to make sure there is contract enforceability that is not left at the mercy of corrupt officials.

That will re-instil confidence, enabling us to move forward.

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