COVID-19 and the Performance of Exporting Companies in Benin

Abstract

This paper assesses the effect of the COVID-19 pandemic on the performance of exporting companies in Benin. It also identifies factors that explain the perceived effect of COVID-19 on the companies’ performance. To do this, we used a survey data covering 122 micro, small, and medium enterprises (MSMEs) and micro, small, and medium industry (MSMIs) in four communes in Benin. Firstly, we computed the annual rate change in quarterly turnover to capture the effect of the COVID-19. Secondly, a multiple regression was estimated to identify factors explaining the perceived effect of the COVID-19 on the exporting companies. We found that the exporting companies experience on average a 53.308% drop in quarterly turnover in 2020 probably due to the COVID-19 crisis. Based on the forecasts, the results also revealed a very slow recovery in activities but the rate of change will remain negative until 2021 if nothing is done to support the MSMEs/MSMIs. Finally, we found that the perceived effect of the COVID-19 depends on the level of education of head of the companies, on the experience in exportation, and on the organization of the work because of the pandemic. Our findings suggest the necessity for public policy support toward the MSMEs/MSMIs to contain the effect of the pandemic in Benin.