The Covid-19 pandemic has had a deteriorating impact on the national and local government economic resources. When most governments directed a shift in the normal way of life where businesses thrived, and goods and services exchanged, many businesses were affected. In economies that largely depend on informal labour market, a lot of people have lost their livelihoods. The governments have been torn between life and livelihoods as the interaction of people propels the spread of the virus.

Against this concern, Connective Cities organized a virtual exchange on the 10th of November, 2020 for cities to share on how their revenue stream has been affected and the measures they are putting in place to cushion against the current and possible future pandemics. 7 participants from Ghana, Kenya and South Africa with a representation of Tshwane, Kumasi, Nelson Mandela Bay, Rustenburg and some local government associations were present to exchange and discuss.

Program

This was a moderated session with two main presentations from the City of Tshwane shedding light on their economic recovery plan and the Kenya Private Sector Association highlighted the different ways in the Government of Kenya is supporting the key economic sectors to cushion against the negative impacts. The discussions were enriching to the participants as many cities/municipalities run out of resources to run their operations including provision of services. The questions that were being answered in this session included?

1. What have been the core challenges for the municipalities?
2. What measures have municipalities put in place?
3. How do the municipalities deal with vulnerable groups which were most affected by the pandemic?
4. Have there been any lessons learned already for long term strategies to improve cities’ resilience (i.e. preparedness for pandemics or similar events in the future)?

Presentations

City of Tshwane’s proposal on economic recovery
Dr. Lardo Stander

SME economic impact of Covid-19, recovery and resilience of cities- Nairobi and Towns in Kenya
Mr. Mairura Omwenga

Results

The City of Tshwane's economic recovery plan confirmed how fragile the local economies of most African cities are. The quick response to cushion the SMEs & the citizens while safeguarding the City's purse is a good call.

Access to funds by SMEs & informal businesses will propel the bouncing back of the economic lifeline. The special focus on vulnerable groups is commendable.

The case from Kenya highlighted the impact of Covid-19 on different economic sectors including housing, manufacturing/ SMEs, road transport, community service and professional services. In all these sectors, massive job losses have been experienced but the national government has put in measures to cushion eg establishing SME credit guarantee scheme with local banks and giving tax rebates. The Telcom company offering mobile money services was required to reduce transaction costs up to certain amounts.

Impressions