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COVID-19, Lockdowns, and Africa’s Informal Sector: Lessons from Ghana

Author

Listed:
  • Avenyo, Elvis K.

    (UNU-MERIT, Maastricht University, Department of International Development, University of Oxford, and SARChI Industrial Development, University of Johannesburg)

  • Francois, John Nana

    (College of Business, West Texas A&M University)

  • Zinyemba, Tatenda P.

    (UNU-MERIT, Maastricht University)

Abstract

Using unique survey data on informal enterprises, we draw inferences about the potential effects of COVID-19 on informal enterprises in Ghana, beyond the anecdotes which currently dominate the discourse. We draw important lessons on how the lockdown may affect the performance of female- and male-owned informal enterprises in two urban areas of Ghana; Accra and Tema. The following results emerge from the multivariate decomposition regression: first, we find an unexplained spatial gap in sales between informal owners who reside in Accra and Tema. Second, we find no gender gap in sales or innovation, however, there are explained and unexplained gender-gaps in how size affects current sales of informal enterprises. Hence, given that the lockdown affects business performance, we conjecture that the COVID-19 pandemic is likely to increase or introduce gender- and spatial-gaps in the performance of informal enterprises.

Suggested Citation

  • Avenyo, Elvis K. & Francois, John Nana & Zinyemba, Tatenda P., 2020. "COVID-19, Lockdowns, and Africa’s Informal Sector: Lessons from Ghana," MERIT Working Papers 2020-028, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2020028
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    References listed on IDEAS

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    As found on the RePEc Biblio, the curated bibliography for Economics:
    1. > Economics of Welfare > Health Economics > Economics of Pandemics > Specific pandemics > Covid-19 > Developing economies

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    1. Faustine Kede Ndouna & Roger Tsafack Nanfosso & Jean Aristide Biloa Essimi & Laurent-Fabrice Ambassa, 2021. "The Informal Sector Facing COVID-19: The Case of Cameroon," Sustainability, MDPI, vol. 13(23), pages 1-17, November.

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    More about this item

    Keywords

    COVID-19; Pandemic; Gender; Informal enterprises; Business performance; Urban areas; sub-Saharan Africa; Ghana;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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