Status of the rural areas in developing countries

Several reports indicated that more than 250 million people in Sub-Saharan Africa faced severe
food insecurity, farmer incomes were lower in real terms than anywhere else in the world
(United Nations), and more than 30% of children were stunted, owing to poverty and poor diets
(FAO et al. 2020). The World Food Programme has since warned that COVID-19 could cause
one of the worst global food crises in history (FSIN 2020; Anthem 2020). As progress in
combating hunger slows, the COVID-19 pandemic exacerbates the vulnerabilities and
inadequacies of Africa's food systems – defined as "all the elements (environment, people,
inputs, processes, infrastructures, institutions, etc.) and activities related to the production,
processing, distribution, preparation, and consumption of food and nutrition’s, including
socioeconomic and environmental outcomes.

Despite Uganda's low infection rate, some response measures, such as the lockdown, night
curfew, and closed borders, have significantly disrupted economic activity. While many
restrictions have now been lifted in part, the rapid growth in the number of new infections has
forced the government to keep some districts under lockdown, with another nationwide total
lockdown on the horizon. With some lockdown measures still in place, the socioeconomic
consequences of Covid-19 are disproportionately affecting the poorest members of society. In
Uganda, the informal sector is primarily made up of micro and small businesses (MSEs). It
accounts for half of the economy and employs 98 percent of the working-age population. This
sector has been one of the hardest hits, with people engaged in trading, services, and hospitality
most affected by Covid-19 restrictions. The direct impact of Covid-19 has caused the loss of jobs
and incomes, with worst cases of MSE owners experiencing incomes falling below zero,
resulting in the discontinuation of their business activities. It is estimated that about 23% of the
urban poor could have lost 100% of their daily income during and after the lockdown. The MSEs
that remain afloat are facing worse credit and liquidity constraints than they did before the
pandemic. As a result, the socioeconomic consequences of Covid-19 currently outweigh the
positive health impact of limiting its spread