An examination of the Impact of Covid-19 on the Informal Sector in Gaborone, Botswana

Abstract

The study aimed at examining the impact of Covid-19 on the informal sector in Gaborone, Botswana. The problem is that the informal sector has been badly affected by the pandemic. A quantitative research approach was employed, and a quantitative descriptive research design provided a road map that was used to fulfil this research. Convenience sampling was used to gather a sample of 60 participants from the informal sector businesses which employ less than five people and has been operating within Gaborone for five years or less. Business owners and employees were targeted. Both self-administered and online questionnaires were used to gather data. Quantitative data analysis methods were employed to analyse the data that was captured by the questionnaires. Data were analysed using IBM SPSS version 20. This research concluded that the impact of Covid -19 was severe on the informal sector leaving businesses at the verge of collapsing with workers left unemployed. Very few businesses (7%) had crises management strategies in place and a level of crises preparedness was established. The informal sector players in Gaborone lacked business recovery plans as only 7% understood recovery planning. The government of Botswana has put in place programs to support the informal sector in times of crises. However, a few of the informal sector players are aware of the government support programs. This shows that there is lack of cohesion between the government and the informal sector. This was partly because the government had difficulty to assess and qualify the informal sector business people for support as they are not formally registered as companies by any of the regulating authorities. The study recommended that the government should embark on an exercise to sensitise the informal sector about the support available for them and to encourage them to register with relevant regulatory authorities. Further research should be done involving other sectors in the economy