Examining the Impact of Covid-19 on the Performance of the Informal Sector Businesses in the Town of Eenhana Ohangwena Region Namibia

The aim of this study was to examine the impact of COVID-19 on the performance of the informal sector businesses in the town of Eenhana, Ohangwena Region in Namibia. The study adopted the mixed methods approach for data collection and analysis. Quantitative data was collected using a questionnaire. The qualitative data was collected using an interview guide with non-structured questions. Ninety-six respondents involved in the survey were sampled through the convenience sampling method. Nine respondents to the interview were selected through purposive sampling. Findings of this study show that COVID-19 had, in most instances, a negative impact on the performance of the informal sector businesses in the town of Eenhana. Informal businesses suffered major decreases in revenue and profits. There was also loss of employment and livelihoods. While some informal businesses have found ways of coping, many have not yet recovered to pre- COVID-19 period levels. The major impact was attributed to lockdowns, the physical attributes of the town, social distancing requirements and imposition of curfews. The study recommends that informal sector businesses should be adaptive to the changing business environment, pandemic or no pandemic. Post COVID-19, it is recommended that the informal sector builds resilience to pandemic shocks. The government should be proactive in putting measures in place to reduce the impact of pandemics in informal market places. This includes developing and disseminating sector- and occupation-specific health guidelines; rapidly extending social health protection and adjusting existing social protection schemes to guarantee access to affordable health care; compensation for loss of income via different programs, including unemployment benefits, food support, universal pensions, child benefits, social assistance programs, and one-off payments. It should also implement measures to maintain informal employment through schemes such as grants, subsidised loans, grace periods on outstanding loans and debt rescheduling aimed at overcoming liquidity crunches, and waivers or deferred payments for public services.