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COVID-19 and African Firms : Impact and Coping Strategies

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  • Aga,Gemechu A.
  • Maemir,Hibret Belete

Abstract

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.

Suggested Citation

  • Aga,Gemechu A. & Maemir,Hibret Belete, 2021. "COVID-19 and African Firms : Impact and Coping Strategies," Policy Research Working Paper Series 9642, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9642
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    References listed on IDEAS

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    4. Loayza,Norman V. & Pennings,Steven Michael, 2020. "Macroeconomic Policy in the Time of COVID-19 : A Primer for Developing Countries," Research and Policy Briefs 147291, The World Bank.
    5. Bachas,Pierre Jean & Brockmeyer,Anne & Semelet,Camille Marine, 2020. "The Impact of COVID-19 on Formal Firms: Micro Tax Data Simulations across Countries," Policy Research Working Paper Series 9437, The World Bank.
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    Cited by:

    1. Silvia Muzi & Filip Jolevski & Kohei Ueda & Domenico Viganola, 2023. "Productivity and firm exit during the COVID-19 crisis: cross-country evidence," Small Business Economics, Springer, vol. 60(4), pages 1719-1760, April.
    2. Lafortune, Jeanne & Pugatch, Todd & Tessada, José & Ubfal, Diego, 2022. "Can interactive online training make high school students more entrepreneurial? Experimental evidence from Rwanda," GLO Discussion Paper Series 1041, Global Labor Organization (GLO).
    3. Shahin, Ahmad E, 2021. "Growing During a Global Crisis," MPRA Paper 117829, University Library of Munich, Germany.

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