What we know about how economies react to (health) crisis, what this means for MSMEs and what comes after?

Instructional material | 26 May 2020
The COVID 19 health crisis and the associated measures of confinement will have devastating consequences for micro and small business operations and will disrupt many existing value chains. This in turn will lead to loss of income and sharp increases in unemployment. The estimated negative growth effect for African economies for example in early April 2020 was estimated to be between -2% and -8% .
Those most affected by the economic downturn will be the first to succumb to the pressure of restarting operations, even if this means taking health risks, in order to get out of a dire economic situation. Here a few resources of how a post crisis recovery might play out in developing countries: