The World Bank is forecasting a sharp fall in growth from 2.4% in 2019 to around -2.1% to -5.1% in 2020 which will result in a recession in Sub-Saharan Africa. This is going to be one impact of the ongoing coronavirus outbreak. The recession will be the first in the region over the past 25 years.
The data which reflects in the World Bank’s twice-yearly economic update for Sub-Saharan Africa, Africa’s Pulse, suggests utter focus from African policymakers.
By strengthening health systems and taking quick actions to minimize disruptions in food supply chains, policymakers will be saving lives and protecting livelihood.
COVID-19 cost analysis on the region shows an output lose of $37 billion and $79 billion in 2020 resulting from several factors. Trade and value chain disruption and reduced foreign financing flow among others are to be expected.
Nigeria, Angola, and South Africa, the region’s three largest economies will see real gross domestic product growth projecting downwards. This will result in persistently weak growth and investment.
Weak external demand, disruptions in domestic production and supply chains and will particularly affect the West African Economic and Monetary Union and the East African Community. The region’s tourism sector will shrink sharply due to severe disruption to travel. They also predict a potential food security crisis in Africa.
Containment and mitigation measures taken by all countries in Africa have a few challenges as the report states. Some of which include the large and densely populated urban informal settlements. More so, poor access to safe water and sanitation facilities, and fragile health systems.
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The World Bank has put efforts in place to help developing countries accelerate their response to the pandemic. This includes deploying up to $160 billion in financial support which will be on for the next 15 months. This will help countries protect the poor and vulnerable, support businesses, and bolster economic recovery.
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