The Effect of Covid-19 on the Service, Manufacturing, and Construction Sectors in Ethiopia: A Case Study in the Gurage Zone

doi:10.7176/iel/12-1-03

Abstract

This study investigates the socioeconomic effects of COVID-19 on service, manufacturing and construction sectors and its mitigating strategies in Ethiopia using case study in Gurage zone. It comprises a total of 390 households. Both simple random and purposive sampling techniques were used to select sample households. The data analysis employed descriptive statistics and narrative methods. The results of the study exhibited that the crises brought adverse effects on the people who employed and invested in the service, manufacturing, and construction sectors. The consequences to employed labors include psychological, social and economic, which have harmfully disturbed their lives, whereas business owners have faced significant sum of reductions in revenues, orders, and workforce. In addition, the businesses faced a high shortage of raw materials, limited access to the transportation of goods, decrease in the number of customers, and expiration of goods during the crises . This suggests that the government and policymakers should lay down social protection programs, facilitate credit support and promote solidarity among people to confront the adverse effects of the COVID-19 pandemic. Keywords: COVID-19 Pandemic, Business Owner, Labor, Gurage Zone DOI: 10.7176/IEL/12-1-03 Publication date: January 31 st 2022

Highlights

Since the first infections in China at the end of 2019, the Coronavirus disease 2019 (COVID-19) has continued to spread across the world
Result and Discussion This study was conducted to assess the socio-economic effects of COVID-19 in the service, manufacturing, and construction sectors found in the Gurage Zone
The study aimed to investigate the socio-economic effects of the COVID-19 pandemic on service, manufacturing, and construction sectors in the Gurage zone

Summary

Introduction

Since the first infections in China at the end of 2019, the Coronavirus disease 2019 (COVID-19) has continued to spread across the world. The emergence of Coronavirus, which is a global challenge, has posed a socio-economic threat. Unless it is curbed through coordinated efforts, the consequence might be unpredictable. Public events (sports, cinemas, ceremonies, etc) were banned, the number of people in meetings and hotels was limited to four, and passengers on transports were reduced by half. These measures have their effect on the economy and social interaction (markets, living style, Idir, Equb, etc) of the nation

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