Economic distress from lockdowns
To reinforce social-distancing, many governments in Europe and US are enforcing strict temporary lockdown measures. African governments, which still lag behind in terms of the known infection rate, are quickly following suit – some with even harsher measures. Given that urban centres are major economic nodes they will naturally bear a disproportionate economic burden of any lockdowns. This effect will rapidly percolate through the whole economy.
Urban dwellers working in the informal sector will be the first and potentially some of the hardest hit. About 85% of workers do not receive a reported wage. Rather in many African cities, the majority earn their daily keep from the informal service sector, particularly selling or providing manual labour. Here there is no option to work from home: both because of the lack of necessary infrastructure such as power and more importantly because their jobs are predicated on face-to-face interactions.
Even though they are working, their daily earnings are small. In Kampala, for example, a survey of informal sector firms showed that 93% of them are already operating below the poverty line. Therefore lockdowns, for these populations, will mean not earning a wage and affect their survival.
This is exacerbated as urban populations are largely beholden to food prices, given in general they are not able to grow their own food. Early indications already show that some countries like Ghana have seen rise in food prices by nearly 30% already due to panic buying and disruptions in food supply chains.
This is particularly worrisome for some countries already concerned about a food crisis this year, due to the plague of locusts affecting supplies. With the timelines of the overall COVID-19 crisis remaining unclear, feeding one’s family, particularly in urban areas, with no income and rising prices is already becoming an increasing struggle.
Lockdowns may support curbing transmissions, but by potentially pushing millions more people across the continent below the poverty line, it could have other detrimental, and potentially worse, longer-lasting effects beyond the health impact. Therefore, reshaping African cities in the pandemic’s aftermath to ensure they can be engines of economic growth in the future, will be key.
Shaping the urban future
Cities across the globe and throughout history have adapted and reinvented themselves in the face of crisis and disaster. Some analysts are predicting that cities in the US, will emerge and be reshaped by this crisis, for example, as a result of people working from home. This means the need for centrally located offices will diminish.
The nature of jobs is different in African cities. Working from home is not likely to be an option. Rather, it may even be that, in the aftermath of the crisis, rural-urban migration actually increases as people flock to cities in search of more economic opportunities.
Preparing for this by ensuring urbanisation is well managed will be critical to providing the engine to ramping up national economic growth.
A critical element of this and in particular to prepare for the next pandemic, is the need for cities to invest in productive infrastructure, focused on improving health outcomes. This includes water and sewage infrastructure as well as increasing the number of health facilities.
The density of cities that make them susceptible to disease, also make them more efficient to provide infrastructure to a large number of people. In managing and shaping Africa’s urban future there should be a central role for public health officials, working alongside planners, economists and others. This can help reduce the potential of contagion whilst maintaining the power of cities.
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Source:theconversation