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Perpetual Lomokie: The effects of Covid-19 on the finances of Ghanaian women in SMEs

The World Health Organisation announced the Coronavirus, the virus that causes Covid-19 as a pandemic after it spread and killed thousands in the Wuhan Province of China.

In March 2020, the first two cases of the virus had been recorded in Ghana.

Due to the preparedness of the country’s health sector, the stings of the virus were managed from spreading.

Along the line, a partial lockdown of Greater Accra, Greater Kumasi and part of Kasoa were recommended by health expects in the country.

The lockdown was necessary to manage the spread of the virus because restricting movement restricts the movement of the virus and the resultant safeguarding of the citizens in the areas where the earlier cases were recorded.

As the lockdown was efficient to the health status of citizens, it presented challenging scenes for residents in these locations especially those who were in the informal sector with small and medium scale businesses.

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This was because business movement and other transactions like education supplies and petty trading in the central business districts of the lockdown areas reduced.

Invariably, women form the highest percentage in the informal sector, dominating the Small and Medium Enterprises (SMEs) sector with about 60 per cent representation.

As a result, the business of these women dominating the SME sector became vulnerable as businesses were on partial lockdown.

Also, another area that was affected by the lockdown was the food and hospitality sector.

This area captures cooking in schools and other joints. As schools and other businesses have been on hold due to the virus, many SMEs in the area have had their businesses on hold.

Also, as events and other programmes like wedding and various ceremonies were held by the restrictions on movement, hairdressing and tailoring which are household businesses for many women in SMEs were affected.

As these areas were the main source of livelihood for households for such women, the results presented compromised household nutrition and other stresses which could generate many health problems for such families.

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This presented a difficult situation for households where women were breadwinners or widowed without any alternative sustainable livelihood strategies.

Unfortunately, these wedding events and others, which is dominated by women whose incomes are often below GHC 1,000.00 are the only source of sustenance for their households.

As a result of the vulnerability of SMEs which women dominate in Ghana, the lockdown has affected the income of women.

The nature of the SMEs is that, they often provide income for households on daily basis. As a result, a day off from business means a household feeding, nutrition, shelter and other life sustaining activities are likely to be compromised.

The rippling effects is that, the nutrition, health and sustenance of households who depend on women in SMEs have been gravely affected by Covid-19.

In conclusion, the foregoing discussion call for strategic investment in SMEs especially the businesses of women and other vulnerable groups to ensure that the effects are not widely impacted on their health, nutrition and total wellbeing.

The author, Perpetual Lomokie, is a professionally trained Gender Advocate, Youth Activist and an Analyst. She is currently the Deputy National Youth Organiser of the New Patriotic Party.

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