The Effect of Covid-19 on the Service, Manufacturing, and Construction Sectors in Ethiopia: A Case Study in the Gurage Zone

Abstract

This study investigates the socioeconomic effects of COVID-19 on service, manufacturing and construction sectors and its mitigating strategies in Ethiopia using case study in Gurage zone. It comprises a total of 390 households. Both simple random and purposive sampling techniques were used to select sample households. The data analysis employed descriptive statistics and narrative methods. The results of the study exhibited that the crises brought adverse effects on the people who employed and invested in the service, manufacturing, and construction sectors. The consequences to employed labors include psychological, social and economic, which have harmfully disturbed their lives, whereas business owners have faced significant sum of reductions in revenues, orders, and workforce. In addition, the businesses faced a high shortage of raw materials, limited access to the transportation of goods, decrease in the number of customers, and expiration of goods during the crises. This suggests that the government and policymakers should lay down social protection programs, facilitate credit support and promote solidarity among people to confront the adverse effects of the COVID-19 pandemic.

Keywords: COVID-19 Pandemic, Business Owner, Labor, Gurage Zone

DOI: 10.7176/IEL/12-1-03

Publication date: January 31^st 2022