COVID-19 and Sub-Saharan Africa Firms: Impact and Coping Strategies

Drawing on a representative survey of firms in 38 countries, eight of which are in Sub-Saharan Africa (SSA), this paper documents the impact of COVID-19 and firms' coping strategies in SSA, 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.

Automated summary

Based on a survey of firms in 38 countries, including eight in Sub-Saharan Africa, this paper examines the impact of COVID-19 on businesses in SSA and compares it with other regions. The findings reveal that the pandemic has had a larger impact on SSA compared to other regions, which cannot be solely explained by sectoral composition and firm characteristics. However, businesses in SSA are more likely to adapt their operations to the shock, but lag behind in leveraging digital technologies, remote working, and e-commerce compared to other regions.