GeoPoll on the financial impact of COVID-19 on Sub-Saharan Africa

The COVID-19 pandemic has had a significant financial impact on the world, with almost half of the global population at risk of job loss. In Sub-Saharan Africa, the situation is dire, with Kenya alone having already experienced over 1.2 million lost jobs. To delve deeper into the financial implications of the virus in this region, Joy Masimane, Client Service Lead at GeoPoll, shared insights from a recent survey conducted by the organization. The survey, conducted using an SMS methodology and involving 2,500 Africans in Sub-Saharan Africa from June 11th to July 6th, revealed stark realities regarding the pandemic's financial toll. In East Africa and Kenya specifically, 60% of respondents stated that they have been unable to work. Of this group, half expressed uncertainty about having a job to return to post-pandemic. The impact has been particularly severe on informal workers such as farmers, sellers, transportation workers, construction workers, electricians, salon owners, and cleaners, among others. These sectors have borne the brunt of the economic fallout, with 79% reporting a decrease in income. Masimane emphasized the crucial role of the informal sector in the region's economies, noting the substantial contribution made by sectors like agriculture to Kenya's GDP. While farmers appeared to be more resilient in continuing their work, other informal workers faced greater challenges in sustaining their livelihoods. The survey highlighted that informal workers in various categories, including construction workers, electricians, salon owners, and sellers, were more significantly impacted. As countries begin to ease the stringent measures implemented to curb the spread of COVID-19, questions arise about the timeline for recovery for both formal and informal workers. The educational sector emerged as one of the hardest hit, with over 80% of respondents from this sector reporting adverse effects. Government workers, healthcare workers, and employees in large organizations fared relatively better, adapting to remote work arrangements. However, students and educators faced uncertainties due to prolonged school closures, with prospects for recovery contingent on effective pandemic management by the end of the year. While COVID-19 has presented formidable challenges, it has also catalyzed opportunities for innovation and adaptation. Concerns over meeting daily expenses remain high, with 71% of respondents expressing worries about financial obligations. Food emerged as the top priority, while school fees ranked lowest. The survey revealed that approximately half of respondents resorted to loans to meet their daily needs, indicating a looming crisis in financial sustainability. This situation may drive individuals to explore alternative income sources and strategies to navigate the economic fallout. Regarding government interventions, the survey underscored a gap in aid distribution, with only 17% of respondents reporting receipt of any form of assistance. Most aid recipients cited family and friends as primary sources of support, followed by government assistance. Religious organizations, aid agencies, and charities played a limited role in providing relief. Governments are urged to ramp up efforts to support vulnerable communities through initiatives such as cash transfers and charity provisions. In conclusion, the GeoPoll survey sheds light on the profound financial repercussions of COVID-19 in Sub-Saharan Africa, underscoring the resilience of informal workers and the challenges faced by the education sector. As the region navigates the road to recovery, innovative solutions and robust government interventions will be pivotal in mitigating the economic fallout and fostering sustainable livelihoods.