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COVID-19 and African Firms : Impact and Coping Strategies (English)

Drawing on a representative survey of firms in 38 countries, eight of which are in Sub-Saharan Africa, this paper documents the impact of COVID-19 and firms’ coping strategies in Sub-Saharan Africa, benchmarking with other regions. The paper shows that the impact of the pandemic is more pronounced in Sub-Saharan Africa compared with other regions. This disproportionate impact is not explained by differences in sectoral composition and other firm characteristics, but likely by the level of development. This underscores the important economic and structural contexts that predate the pandemic in understanding the differential impact. Contrary to expectations, the findings show that businesses in Sub-Saharan Africa are more likely to adjust their operations or products and services to adapt to the shock than those in other regions. However, firms in the region lag in leveraging digital technologies, remote working, and e-commerce, compared with those in other regions.

Details

  • Author

    Aga,Gemechu A., Maemir,Hibret Belete

  • Document Date

    2021/04/26

  • Document Type

    Policy Research Working Paper

  • Report Number

    WPS9642

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Africa,

  • Region

    Africa,

  • Disclosure Date

    2021/04/26

  • Disclosure Status

    Disclosed

  • Doc Name

    COVID-19 and African Firms : Impact and Coping Strategies

  • Keywords

    hotel and restaurant industry; enterprise survey; change in employment; list of countries; low income economy; public health measures; direct government support; impact on sales; global income inequality; payment to supplier; access to vaccine; merchandise for resale; limited resources; less developed economy; use of technology; change in demand; high income economy; Global Indicator; liquidity shortage; comparator country; business survey; employment growth; coping strategy; sectoral composition; construction sector; regression results; sales growth; digital technology; government response; supply chain; raw material; disproportionate impact; employment impact; export status; future research; recovery process; low-income economy; hospitality sector; average duration; several countries; sale contract; tax authority; communication sector; middle-income economy; tax authorities; small fraction; export orient; policy restrictions; manufacturing sector; survey period; lower-income economy; other sectors; regression analysis; labor regulation; institutional context; workforce reduction; credit constraint; foreign capital; composite measure; average change; blue color; mitigation strategy; supply side; corporate tax; online sale; global demand; Macroeconomic Policy; inequality decrease; international income; lost revenue; silver lining; internet infrastructure; organizational resource; global economy; new platform; community for use; Research Support; Job Creation; anecdotal evidence; representative survey; regression table; differential impact; hypothetical case; economic shock; open access; development policy; industry survey; online business; baseline information; manufacturing companies; hand sanitizer; survey respondent; foreign market; economic recovery; explanatory variable

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Citation

Aga,Gemechu A. Maemir,Hibret Belete

COVID-19 and African Firms : Impact and Coping Strategies (English). Policy Research working paper,no. WPS 9642,COVID-19 (Coronavirus) Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/200951619451183376/COVID-19-and-African-Firms-Impact-and-Coping-Strategies