Advisory Center for Affordable Settlements & Housing

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Document Type General
Publish Date 21/10/2020
Author
Published By State Department of Housing and Urban Development
Edited By Tabassum Rahmani
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ECONOMIC REVIVAL STRATEGY IN THE COVID-19 ERA IN AFRICA

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Document Type: General
Publish Date: 2020
Primary Author: Charles M. Hinga
Edited By: Tabassum Rahmani
Published By: State Department of Housing and Urban Development

This brief provides an overview of how activities in the Built Environment can support economic recovery in the COVID19 and post-COVID 19 era. Various analysis on the impact of dealing with the outbreak of COVID-19 indicate that efforts towards flattening the curve lead to a contraction of the economy as tax revenues decline and economic activity slows down and there is greater need for spending on health  and for developing countries with limited fiscal space, containment often leads to a trade off: choosing not to fight the virus can lead to faster spread, more deaths since no capacity to treat them; while containment leads to slow down in economic activity, informal sector suffering and without social safety nets, people could starve.

As the economy contracts, various sectors are impacted including those that have key linkages with the built environment. The construction & Infrastructure, housing construction, Public Works Projects. Travel bans and closure of borders also impacted sanctioning of projects and also disrupted local supply chains in construction. Weaknesses in urban infrastructure and service delivery have been exposed as communities have struggled to adhere to the protocols for curbing the spread of COVID-19.

Local Economic Recovery (LER) approach can be used to revive disrupted and affected economic activities by Outlining area-based strategies that capitalize on common economic activities within an area; focusing on activities that lead to increased employment (labor intensive projects); putting in place deliberate efforts that prompt positive spontaneous economic activity (activities that lead to local spending); Removing the obstacles that inhibit the normal functions of local economies; Purposefully building on and promoting the optimal use of local assets and opportunities (e.g. by facilitating local participation; by intensifying the use of labour; and by encouraging local procurement of goods and services.).

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