COVID-19 in Africa UN Report: Protecting Lives & Economies

24-04-2020

COVID-19 in Africa UN Report: Protecting Lives & Economies

Prosperity: The impact on African economies could be the slowing of growth to 1.8 percent in the best-case scenario or a contraction of 2.6 percent in the worst case. This has the potential to push 27 million people into extreme poverty.

Even if the spread of COVID-19 is suppressed in Africa its economic damage will be unavoidable. The price of oil, which accounts for 40 percent of Africa’s exports, has halved, and major African exports such as textiles and fresh-cut flowers have crashed. Tourism – which accounts for up to 38 percent of the gross domestic product (GDP) of some African countries – has effectively halted, as has the airline industry that supports it.

Collapsed businesses may never recover. Without a rapid response, Governments risk losing control and facing unrest. To protect and build towards our shared prosperity at least $100 billion is needed to immediately resource a health and social safety net response. Another $100 billion is critical for economic emergency stimulus, including a debt standstill, the financing of a special purpose vehicle for commercial debt obligations, and provision of extra liquidity for the private sector.

 

For more content, please read the report here.

 

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