City Case Studies: African Region

Case Study: Hargeisa, Hargeisa, Case Study: African Region African during and after COVID-19 and after during Building Urban Economic Resilience Resilience Economic Urban Building City Case Studies: African Region Source: Zoe Flood. Number of inhabitants Area Status 1,200,000 (2019) 78 km² Primary Somaliland Hargeisa, City Case Studies: African Region As January 2021 January As 1389 (National, mostly in Hargeisa) 1389 (National, mostly in Hargeisa) 51 (National, mostly 1,349 7 March 2020 7 March Labour Market Labour and terms health in both outbreak, COVID-19 the of effects the from suffering been has Somaliland in terms of financial stress dueto thereduced economic activity. Local employment decreased by more than 50%. Disruptions in international supply chains, lockdowns in other countries, and the local lockdown have affected diverse sectors of the national economy. Poor people, who live been particularly mouth, and small businesses have hand to hurt. The lifting of the ban introduced by on livestock import (one of Somaliland’s key import products) provides a crucial respite at this moment; however, it is not clear how most long stable area of the it wider Somali region for will many years, with food security last. and humanitarian Somaliland has been the concerns focused further south. However, these developments raise the prospect of increasing in Somaliland. vulnerability Data from January 21 2021 First reported case First reported Confirmed Deaths Recovered Main economic and financial impacts and financial economic Main Somaliland confirmed the first coronavirus case on 7 March 2020, with all cases registered in Hargeisa. Only a small number of cases was confirmed in the beginningSomaliland becausein only perception 11public teststhe werebut pandemic, carriedthe outof duebeginning to the theat reported shortagedeaths no of were the There kits. diagnostic spreading. indicated and was official figures than the widely present was that the virus was more affected largely lockdown The 2020. July until 2020 April from lockdown full a implemented Hargeisa of government The also government The areas. those in located business and universities, schools, private and public offices, government ordered the closure of mosques and religious schools (madras). However, the government rescinded its decision to close mosques due to the opposition from religious leaders. Likewise, there was a in strong government, the pressure However, people. local for by groups) social in consumed allowing be to stimulant local (a the khat of use continued consultation with the local khat importers, banned the khat coming from although the Ethiopian airline flights continued. Hargeisa to Brief description of COVID-19 in the city the city in COVID-19 of description Brief Hargeisa, Somaliland Hargeisa, Study: Case City Case Studies: African Region their headquarters inDubaidueto flight restrictions. their headquarters to cash that moving in and communities diaspora in agents from cash physical collecting in face operators transfer money difficulties the as well as countries above-mentioned the from money transferto outlets and shops visit physically to senders the of reluctance the include reasons The in the level of has already been noticed, and it is a concern to local people in Hargeisa. in comparison to other Somali regions, although no accurate figure is available. The fall America, and Europe. There are indications that Somaliland can be dependent disproportionally on North UK, the as such countries, many in represented well are communities diaspora Somaliland (bringingSomalilandUS$200–300annually)donotpickup. decrease significantlyifexports Somaliland is also likely to drop due to the financial hardships caused by COVID-19 and, prices may in demand and tradelivestock local The pandemic. the to due hit been have sources Both export. livestockand areremittances income often of sources affected.important most The disproportionately entrepreneurs female with skills, and networks to and finance, to markets, to access lost has led to their collapse during the COVID-19 lockdown. As a result of COVID-19, small businesses which vulnerable, and fragile are Somaliland in (SMEs) enterprises medium and Small Hargeisa. the greatestchallenges 2020, of like cities populous in months particularly lives, socio-economic of disruption the is faced has early Somaliland in the emerged the pandemic of wave first the The lockdown affected small and medium businesses, forcing more than 50% to shut down. Since Business Environment governance arrangements have continuedfunctioningthrough theCOVID-19 crisis. economic same The district. the across law-making and administration leading Council for Local responsible elected an has also It governance. economic including affairs, all government for local responsible is Council District The Forces. Armed District the of Head and departments, The city has a District Council made up of the District Executive Committee, Heads of Government Economic Governance central government transfers. city the 2020, FY received from In the Ministry of Finance minimum. US$ 1,128,674. This a is a 53% decrease to compared to the decreased 2019 has government central the from receiving was city the that transfer fiscal intergovernmental The decreased. have transfers discretionary Local improve taxadministration forthecity. toyears past the over efforts various havebeen there and base, tax the increasing and urbanizing rapidly is that city a is it Somaliland, of whole the for activity economic of centre the is Hargeisa and revenues source own increase to expand tax collection. efforts The city of Hargeisa is the the largest source of frustrated internal revenues for Somaliland. COVID-19 but revenue, local and finance municipal its improveto ways for looking was Government Local Hargeisa the pandemic, 11% as compared to the previous year due to the lockdown and closure of businesses. Prior to the by decreased 2020 in revenues Local drop. this from yetrecovered not has city the and onwards, the national revenues fell by more than 10% in FY 2020. The city revenue dropped from March 2020 as transfer fiscal intergovernmental the and market financial local the affected has lockdown The Financial Environment City Case Studies: African Region - - All partners All contribute equally - - Private Private stakeholders important more - - - - - Central Central government important more - - - Local Local government important more - - - Economic governance governance Economic arrangements Business environment environment Financial Contribution of different sectors in the management (e.g. planning, reallocation, and reallocation, (e.g. planning, in the management sectors different of Contribution crisis during the COVID-19 resources relevant of mobilisation) Institutional Institutional responsiveness* Labour markets Labour Crisis Response and Recovery Measures Measures Recovery and Response Crisis handwashing as such materials, basic with community the providing by crisis the to responded Government Local The national the On lockdown. the by affected families vulnerable to distributed also was Food gloves. and masks, stations, level, the Ministry of Finance allocated 1 million Somali shillings to support local small and medium enterprises. The city also received 1 million Somali shillings from the Ministry of Finance as part supportof the package government’s preparedness epidemiologic the improve to (UNICEF) UN the from funding received also city The governments. local to about COVID-19. and public awareness * Local government business continuity, adequate fiscal space, and uninterrupted delivery of key public services public key adequate fiscal space, and uninterrupted delivery of business continuity, * Local government The city distributed preventive facilities and equipment gathering places, to such as communities. hotels and It cafes, as banned well Affairs Social as the Departmentof City The plan. youth the per as implemented meeting are operation regulations and rules the centres, that ensure to policing such of as playgrounds, community and improved mobilised the staff of the local government to improve hygiene and sanitation in the district, and they organised staff and purchased disinfectants and related equipment to improve the sanitation of markets and public institutions. The city prepared a modernised handwashing station that can be activated by a press of the foot instead of the Likewise, hands. the city organized several centres for prevention of COVID-19, and distributed food to the people affected COVID-19. economically by While the city has initiated many response measures, in terms of longer-term recovery and rebuilding, it to long-term plan. external financial and technical support medium a future to assist it in preparing still needs City Case Studies: African Region during andafter COVID-19 Building UrbanEconomic Resilience