Covid-19 Economic Revival Strategy in Africa

The COVID-19 pandemic has profoundly impacted economies worldwide, with the built environment sector no exception. As we navigate through the COVID-19 and post-COVID-19 era, it is crucial to understand how activities in the built environment can support economic recovery. This brief aims to provide an overview of the challenges faced by various sectors linked to the built environment and how a local economic recovery (LER) approach can be employed as a revival strategy to revive disrupted economic activities. By focusing on area-based strategies, employment generation, spontaneous economic activity, removing obstacles, and optimizing local assets, we can pave the way for a sustainable and inclusive economic recovery.

The outbreak of COVID-19 has led to significant economic contractions globally. Efforts to flatten the curve, such as lockdowns and social distancing measures, have resulted in a decline in tax revenues and a slowdown in economic activity. The need for increased spending on health has put additional strain on already limited resources. For developing countries with limited fiscal space, the dilemma is stark: choosing not to fight the virus can lead to a faster spread and more deaths due to inadequate healthcare capacity, while containment measures can slow down economic activity, particularly in the informal sector, and lead to food insecurity for those without social safety nets.

The built environment, encompassing sectors such as construction and infrastructure, housing construction, and public works projects, has been severely impacted by the pandemic. Travel bans and border closures have disrupted project sanctioning and local supply chains in construction. Weaknesses in urban infrastructure and service delivery have been exposed, making it difficult for communities to adhere to COVID-19 protocols. As the economy contracts, these sectors face significant challenges, but they also hold the potential to drive economic recovery through targeted revival strategies.

One of the key components of the revival strategy is the implementation of area-based strategies. These strategies capitalize on the common economic activities within a specific area, leveraging local strengths and resources. By identifying and focusing on the unique economic profiles of different regions, we can create targeted interventions that are more likely to succeed. This approach allows for a more nuanced understanding of local needs and opportunities, enabling the development of tailored solutions that can drive economic growth.

Another crucial aspect of the revival strategy is the focus on activities that lead to increased employment. Labour-intensive projects, such as infrastructure development and housing construction, can provide immediate job opportunities and stimulate economic activity. By prioritizing these projects, we can address the high unemployment rates caused by the pandemic and create a positive feedback loop of increased income and spending, which can further boost the local economy.

The revival strategy also emphasizes the importance of spontaneous economic activity. This involves putting in place deliberate efforts to prompt positive economic activity that leads to local spending. For example, supporting local businesses and encouraging entrepreneurship can create a vibrant local economy. By providing incentives for local spending, such as tax breaks or grants, we can stimulate demand and support small and medium-sized enterprises (SMEs) that are the backbone of many local economies.

To ensure the normal functioning of local economies, it is essential to identify and remove obstacles that inhibit economic activity. This could involve addressing regulatory barriers, improving access to finance, and enhancing infrastructure. By streamlining processes and reducing bureaucratic hurdles, we can create a more conducive environment for businesses to thrive. Additionally, investing in critical infrastructure, such as transportation and utilities, can improve connectivity and support economic growth.

Finally, the revival strategy focuses on building on and promoting the optimal use of local assets and opportunities. This can be achieved through facilitating local participation, intensifying the use of labour, and encouraging local procurement of goods and services. By involving local communities in decision-making processes, we can ensure that interventions are aligned with local needs and priorities. Intensifying the use of labour can help address unemployment issues while also contributing to local economic development. Encouraging local procurement can support local businesses and create a more resilient supply chain.

The COVID-19 pandemic has presented unprecedented challenges to the global economy, particularly in the built environment sector. However, by adopting a local economic recovery approach as a revival strategy, we can address these challenges and drive economic recovery. Through area-based strategies, employment generation, spontaneous economic activity, removing obstacles, and optimizing local assets, we can create a more resilient and inclusive economy. Policymakers, businesses, and communities must work together to implement these strategies and build a sustainable future.

: World Bank – COVID-19 and the Global Economy : UN Habitat – COVID-19 and the Built Environment : OECD – Area-Based Strategies for Local Economic Recovery : ILO – Labour-Intensive Public Works : UNCTAD – Promoting Local Economic Development : World Economic Forum – Removing Obstacles to Economic Recovery : UNDP – Optimizing Local Assets for Economic Recovery