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Economic impact of government intervention in response to covid-19 in selected sub-Saharan African countries

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  • Priviledge Cheteni
  • Adrino Mazenda

Abstract

This article provides insights into the economic impact of government actions in response to the COVID-19 pandemic in selected Sub-Saharan Africa countries, purposively selected. A fixed-effect modelling approach was utilised drawing on Oxford COVID-19 Government Response Tracker (OxCGRT) database from January 21 to September 17, 2020, in South Africa, Zambia, Zimbabwe, Tanzania and Uganda. Key findings entail those announcements of government lockdowns were positively related to COVID-19 cases and negatively related to restrictions on internal movement and interest rate decisions from the central banks. Governments’ announcements regarding income support packages and debt relief were related to the increase in the number of COVID-19 cases. With most global economies grappling with a second wave, and the consequences of the first surge in both social well-being and economic growth, income and debt relief strategies should be continued to benefit households and companies. In addition, countries in the Africa-Sub Saharan region must create a relief fund to support members in distress. Finally, a sustainable regional model on business and tourism must be created to foster development and growth during periods of partial or total lockdown.

Suggested Citation

  • Priviledge Cheteni & Adrino Mazenda, 2023. "Economic impact of government intervention in response to covid-19 in selected sub-Saharan African countries," Development Southern Africa, Taylor & Francis Journals, vol. 40(2), pages 406-420, March.
    • Handle: RePEc:taf:deveza:v:40:y:2023:i:2:p:406-420
    DOI: 10.1080/0376835X.2022.2046550
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