The COVID-19 Border Closure and Local Economic Development in a South African Border Town

Abstract

Border towns benefit from cross-border movement of goods, services and people. Many suffered setbacks when governments responded to the COVID-19 pandemic by closing borders. We investigated how the lockdown regulations affected the economy of Ladybrand, a small South African town near Lesotho. We found that local planning was not taking advantage of the benefits of a border town economy and was unprepared for border closure. Retail outlets were the hardest hit, followed by the transport, services and health sectors. Dilapidated infrastructure and poor service delivery made it difficult for the town to cope with the effects of the border closure.