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- World Bank’s latest forecast, ‘Africa’s Pulse Report’ reports that the COVID19 outbreak is likely to cut economic growth in Sub-Saharan Africa to-2.1 to -5.1 percent in 2020.
- COVID 19 impact may lead to $37 billion to $79 billion in output losses for Sub Saharan Africa.
Human life, as well as economic activity across the world, has been disrupted by COVID -19. Despite its late arrival, African economies particularly may be hit hard by the spread of the virus. Africa is likely to slip into a recession for the first time in two and a half decades.
The World Bank’s latest forecast, ‘Africa’s Pulse Report’ reports that the COVID19 outbreak is likely to cut economic growth in Sub-Saharan Africa to-2.1 to -5.1 percent in 2020 from 2.4 percent in 2019. It added that the several factors triggered by the virus, particularly trade and value chain disruption, will lead to $37 billion to $79 billion in output losses for Sub Saharan Africa.
The region’s three largest economies —Nigeria, South Africa, and Angola— that have seen persistently weak growth and investment will see a sharp fall in real gross domestic product growth. The report also predicts a negative impact of the crisis on household welfare. To curb the spread of the Pandemic, most of the countries, announced various measures including lockdown or curfews, the closing of the borders, suspension of local and international flights, etc impacting social and economic activities. Almost all of the sectors such as aviation, tourism, manufacturing, trade, agriculture are severely affected. With agricultural production forecast to decline by 2.6 per cent and up to 7 per cent in the event of trade blockages, the bank said the spread of the disease had the potential to lead to a food security crisis on the continent.
The Bank urged the African policymakers to develop a two-pronged strategy of “saving lives and protecting livelihoods” and also to strengthen health systems and to minimise disruptions in food supply chains. Other recommendations included social protection programmes, including cash transfers, food distribution and fee waivers, to support citizens, especially those working in the informal sector.
