COVID-19 and Ugandan SMEs: Impacts and speed of recovery
This policy brief outlines the impact of the COVID-19 lockdown on small and medium enterprises in Uganda.
Authors
Oriana Bandiera
Professor of Economics, London School of Economics and Political Science (LSE)
Vittorio Bassi
Assistant Professor of Economics, University of Southern California
Robin Burgess
Director, IGC and Professor of Economics, London School of Economics and Political Science (LSE)
Imran Rasul
Professor of Economics, University College LondonOttavia Anna Veroux
Project Research Officer, Institute for Fiscal StudiesAnna Vitali
PhD student, University College London-
Alfonsi et al Policy brief October 2021.pdf
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- This policy brief documents the impact of the COVID-19 lockdown and related economic restrictions on small and medium enterprises (SMEs) in Uganda using information on over 3,900 firms interviewed twice in the year after the onset of the pandemic.
- The survey shows that most firms re-opened soon after the spring 2020 lockdown was lifted, but they mostly did so at reduced capacity.
- One year after the start of the pandemic, revenues and profits are still 19% and 36% lower than in the pre-lockdown period.
- Low demand and lack of liquidity are still reported as main challenges by firm owners one year after the onset of the pandemic.
- Firm owners indicate interest rate subsidies, tax cuts, and unconditional cash transfers as the policy support that they would need the most.
- Policies that can boost the spending power of customers and facilitate liquidity access for firms will be critical to ensure that firms can remain open and keep paying their employees in the path to recover.