COVID-19 Pandemic and Service Sector in Ethiopia

Abstract

The outbreak of COVID-19 at the end of 2019, become a global emergency following thedeclaration of World Health Organization (WHO) as pandemic on 11 March 2020. Beyond itsimpact on human health, it has been causing a massive damage on global economy. Given thenature of the sector, COVID-19 pandemic hit hard the service sector. This paper tried to assessthe effect of COVID-19 on service sector and its impact on Ethiopian economy. The assessmentwas made based on summative assessment result of the key service sub-sectors: transportation,tourism and hospitality, education and health sector, based on official reports and somestatistical figures from secondary data sources given after ‘partial lock-down’. The study foundthat as a result of travel restrictions and closing of borders; travel industry, tourism andhospitality and also other services that are directly and indirectly attached to them are affectedsignificantly in Ethiopia. In health sector, beyond its impact on human health, it has significantimpact on country’s economy by disrupting country’s resource through increasing unbudgetedhealth spending, shifting from other planned development activities. The shutdown of schools,colleges and universities result in interruption of teaching-learning process, force to learn athome which affect quality of education, raise dropout rate and widen inequities in the learninggap between the advantages and dis-advantages groups. In sum, currently in Ethiopia servicesector is one of the most affected by the corona virus pandemic. The study recommends thatcooperation of all stockholders is required to save the sector from the bad impact of COVID-19pandemic.