“Migrant groups are active in economy through Informal Sector so it needs to be formalized”: Philani Mthembu

On 30th May 2020, a panel discussion was conducted by Global Research Forum on Diaspora and Transnationalism [GRFDT], on the topic,“The Pandemic in Africa: local responses and global strategies.”

Dr. Philani Mthembu is an executive director at the Institute of global dialogue based in South Africa. He pursued a Joint Doctorate program with a graduate school of global politics at the University of Berlin in Germany as well as the School of International Studies at Random University in China. His topic of dissertation focuses on the ‘Rise of Emerging Powers and Sources of Development Cooperation in Africa’.

Impacts of COVID-19 on various group within the country

Dr. Philani Mthembu referring to the impact of COVID-19 on South Africa said, “Africa has not suffered a health crisis but is facing an economic crisis. Africa before COVID-19 was one of the fastest growing economies of the world but it slowed down”.

“Africa has learnt from its prior experience, whether it was Ebola, HIV AIDs or TB, it had the infrastructure to manage the health crisis. This cushioned health effects but couldn’t cushion the economic effects. So for Africa it’s going to be tested around the socio economic impacts”- Dr. Philani Mthembu

Formal and Informal Sector

Dr. Philani Mthembu pointed out, “During lockdown, the super markets were allowed to function under the COVID-19 health measures but informal markets were closed. This made people from lower spheres pressurize the government to open the informal markets at least to buy essential goods as most of them rely on informal markets for their daily needs. He asserted, “The imposition of strict lockdown adversely impacted the informal sector and this is the space where the migrant groups are economically active”. “However, the pressure from below was enough for the government to reconsider the lockdown and allow opening of the informal sector”, he added.

Efforts made by Government

Dr. Philani Mthembu stated, “Government announced a 500 million relief package for the various sectors. A part of it was also designated for unemployed South Africans. The package also included people who not just lost their jobs but also those who could not apply for unemployment insurance”. Further focusing on the measures, he said, “Due to South Africa’s Constitution, people appealed to the government that the relief package should not only benefit South Africans, but also the refugees, asylum seekers, people with special permits and migrant communities. Secondly, it attracts a number of people from African continent. It compelled the government to ensure a social relief package for whole South Africa including migrant communities and others”.

“The COVID-19 has provided the government with the idea of formalizing the informal sector. This means encouraging the informal sector to register with relevant authorities. This will absolutely include challenges but benefit the migrant’s active in the informal sector and the economy of the country”, said Mthembu.

Greater Intra Africa Cooperation

On the dynamics of need for Greater Intra Africa Cooperation, Dr. Philani Mthembu stated, “COVID-19 made people look inward at national level. However, in case of African Continent we are not only looking national but also focusing on regional”.  He reasoned, “The measures taken by African Union by making bulk purchases of vital equipment rather than fighting over scarce supply as individual country it encouraged regionality and nationality as a whole continent. This has created room for greater cooperation”.

The conclusion of this pandemic is that the region has to build regional ferry chains. So to counter such a crisis ahead, we will be having a developed regional value chain, which will make Africa sufficient and resilient as a regional economy. This is one of the key areas for moving forward both from a research perspective as well as practical implementation perspective, added Dr. Philani Mthembu.

Snehal Mutha, a journalist just doing her little and loves to read books, finds her peace in food. https://twitter.com/SnehalMutha?s=08

Leave a Reply

Your email address will not be published. Required fields are marked *