The Societal Significance of Informal Economics during the COVID-19 Pandemic in an African City

Abstract

The COVID-19 pandemic compelled many African countries to make decisions that limited livelihood choices. This article examines how informal traders (IT) in Kumasi, Ghana responded to the COVID-19. It explores the livelihood capacities, socioeconomic, sociocultural, and sociopolitical values of informal economics. Using data from multiple sources, the purchase and sale of personal protective equipment (PPE) emerged as the dominant livelihood activity. The results show that IT innovated their way of trading, realigned livelihood activities, and created cross-sectoral networks that enhanced social cohesion. The emerging informal market catalyzed spin-off activities that linked values of the informal sector to the public, distributing agencies, producing companies, and the government. We argue that IT constitute a “natural” and “indispensable” share of Ghana's urban economic, cultural, and governance space. The values of IT expressed within and between these distinct societal spheres should be amplified in the development discourses of countries like Ghana.