Africans’ financial woes worsen amid pandemic

Lingering impact of COVID-19 places economic strain on region’s households

When Zachary Ochuodho received a redundancy letter in March last year, his life turned upside down.

“It was unexpected. I had plans I was looking forward to achieving before the end of the year. I had to adjust to so many things because life had to go on,” he said.

Ochuodho, who worked in the media and lives in Kenya’s capital Nairobi, is one of the long-term victims of the economic impact of COVID-19 on the continent.

According to a recent survey by the Partnership for Evidence-Based Response to COVID-19, a consortium of global public health organizations and private firms, the true severity of the impact of the coronavirus on Africa is likely being underestimated.

The “Responding to Coronavirus in Africa: Finding the Balance” report, published on May 12, said income loss associated with the coronavirus response is creating problems with access to food and healthcare services.

Eighty-one percent of survey respondents had challenges in accessing food, 77 percent experienced income loss and 42 percent had missed medical visits since the start of the pandemic, the report said.

Lower-income households are the most affected by lack of food security and access to healthcare, and are the least likely to be reached by social protection programs, it added.

Due to his loss of income, Ochuodho had to transfer his children from a boarding school to a public school.

He now plans to start a small business to help pay the bills as his job search has been fruitless.

His former employer promised to pay him outstanding entitlements, but more than a year later, he has not received any money. The employer said the company’s revenues have fallen and they were not in a position to make the payout.

Ochuodho said it is fortunate that his family has remained in good health, as he would be unable to afford healthcare services.

His wife, who is still working even though her wage is meager, has taken care of the household bills.

Ochuodho was studying for a doctorate degree, which he had to suspend.

Mbithe Kyule, a single mother of three who lives in Nairobi’s Kibera slum, has also been hit hard by the pandemic. Earnings from her small business dropped from $10 a day to $1, and sometimes she earns nothing.

Many of her female friends are struggling to put food on the table, she said, and some are asking her for help.

“I have no income, so I’m unable to help them. I just encourage them to try and find any job or persist with their businesses. Basically, I encourage them to hope for the best,” Kyule said.

Michael Olusanya, executive director of the GreenWay International Foundation, an environmental protection group based in Ghana, said the coronavirus had not spared his organization.

He said the first wave of the pandemic was a big blow and he was almost forced to close Greenway. “We couldn’t retain our workers and we had to make a tough decision to reduce the labor force and work online,” he said.

However, after Ghana began easing a lockdown in April last year, his organization has been able to resume reduced operations.

The Partnership for EvidenceBased Response to COVID-19 report called on African Union member states and other stakeholders to continue using an evidence-based approach to identify and offer relief to high-risk populations.

“Action should be taken to limit the impact of COVID-19 on access to food and income as well as provide adequate social protection and support for communities most in need to alleviate challenges pertaining to income generation, food security and access to essential health services,” it said.