Effects of covid-19 on informal sector in south africa
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It is often thought that the informal economy is insulated from global economic volatilities because it functions outside of mainstream economic principles and regulations. This perception led to the informal economy being regarded as an employment shock absorber during economic crises. However, these assumptions have been tested by the recent COVID-19 pandemic that has brought the entire global economy to a halt due to the COVID-19 lockdown that subsequently resulted in economic downturns. The COVID-19 critical disruptions are likely to wipe out the gains made in addressing developmental challenges in developing nations and place strain on meeting the sustainable development goals. Against this backdrop, this paper interrogates the effectiveness of South Africa's R500 billion social and economic relief package on the livelihood of those employed in the informal economy. The article reveals that while the government's R500 billion social and economic relief is an effective measure to stimulate the economy and cushion workers and citizens, it does little to protect those in the informal economy. The government's interventions are not fully inclusive of the realities of the informally employed who remain without social security, and the pandemic is likely to worsen their socioeconomic conditions.