The Informal Sector Facing COVID-19: The Case of Cameroon

Abstract

This study aims to analyze the effects of COVID-19 on actors in the informal economy in Cameroon. To analyze the effects of the COVID-19 crisis on actors in the informal economy, we use secondary data from the National Institute of Statistics (NIS). These data come from a survey of 1310 households. We performed data analysis using comparative methods and a labor market participation model that considers changes in people’s behavior towards health risks in order to explore and compare empirical results with earlier studies. From this analysis, it was revealed that job losses are more important in the informal sector (and, in particular, among men). We note that the absence of wearing a mask decreases the chances of having an informal job and of being suspended from one’s job during the crisis. Likewise, time restrictions that are not appreciated by workers will push actors more towards the informal sector. These results lead to recommendations that contribute towards providing support or direct support to informal workers in the sector.

An assessment of the challenges and opportunities in financing rural women entrepreneurship in the micro, small and medium enterprises sector in cameroon

“…These challenges and the outbreak of the Covid-19 pandemic, have been enormous for women entrepreneurs operating in the rural side of any country. [14,15] Despite the challenges, there are some opportunities for exploration as far as the financing of a business organization in the rural area is concerned. Access to finance has been a major area of research by academicians and policymakers.…”

“…The outbreak of the Covid-19 pandemic has affected businesses in and around the world [14,15] , with women-governed enterprises the most affected in Cameroon. [23] In Cameroon, the informal sector is predominantly in rural areas, employing close to 90% of the labour force and this sector was not exempted from the effects of Covid-19.…”

“…[23] In Cameroon, the informal sector is predominantly in rural areas, employing close to 90% of the labour force and this sector was not exempted from the effects of Covid-19. [14,15] This is because among other preventive measures, Covid-19 protocols also required that MSMEs halt their operations for a while. [14.23] It means that MSMEs were unable to acquire raw materials needed for the production of goods and the delivery of services.…”

“…Informal MSMEs: Most MSMEs in rural areas are informal [15] and many do not have the basic business organization documents required to open bank accounts. This challenge is severe.…”

“…The outbreak of the Covid-19 pandemic forced many to relocate to low-life areas while others changed business types. [14,15] This added to the high demand for goods and services in the already available market in the rural district. b) Low default rate: Women are careful financial planners and they are able to honour engagements in due time.…”