COVID-19 pandemic and the South African township economy

Joseph Oluwole,Solomon Omonona,Olabanji Oni

doi:10.48132/hdbr.356

Abstract

This paper aims to assess the relationship between COVID-19 pandemic and the South African township economy in King William’s town, South Africa. The research methodology utilized a descriptive cross-sectional (survey) design. The population included micro and small business owners and or managers in King Williams Town, South Africa. Random sampling technique was used to sample 210 participants. The data were collected from owners/managers of micro and small businesses using a questionnaire method. The average age of the participant was 29 years (SD = 1.12), 37.6% were males while 62.4% were females. The findings of this study revealed the impact of the pandemic on micro and small businesses in the township area and that COVID-19 pandemic negatively affected micro and small business performance. The study therefore concludes that South Africa's lockdown measures introduced to contain the virus have had a significant economic impact on the township economy, particularly on micro and small businesses, which account for the majority of the township economy.

Highlights

Townships are probably the most potent political, social and economic spaces in the country today
This paper aims to assess the effect of COVID-19 on South African township economy
The study looked at the economic impact of the COVID-19 pandemic on townships economy

Summary

Introduction

Townships are probably the most potent political, social and economic spaces in the country today. They accommodate most of the urban population on a relatively small physical footprint and have traditionally been viewed as dormitory settlements plagued by unemployment, poverty and crime (Strengthening Township Economies, 2019). According to the World Bank in Business tech (2016), about fifty percent of South African inhabitants live in the township and rural settlements, which comprises of sixty percent (60%) unemployed and about thirty-eight percent (38%) employed citizenry. The post- apartheid development policies have led to the construction of townships filled with government housing with an increase in the number of households living in formal dwellings over time from 65.1% in 1996 to 79.2% in 2016 (StatsSA ,2016; Business tech,2016)

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