Economies in Sub-Saharan Africa could lose between $37 billion and $79 billion in output losses in 2020 due to #COVID19 according to a new World Bank regional economic analysis.
The region could face a severe food security crisis, with agricultural production expected to contract between 2.6% and 7% #COVID19
According to the latest Africa’s Pulse, the World Bank’s bi-annual analysis the #COVID19 outbreak has set off the first recession in the Sub-Saharan Africa region in 25 years, with growth forecast at -5.1% in 2020 from a modest 2.4% in 2019.
Albert Zeufack, Chief Economist for Africa World Bank. “Africa alone will not be able to contain the disease& its impacts on its own; there is urgent need for temporary official bilateral debt relief to help combat the pandemic while preserving macroeconomic stability in region.”
Given the region may need an emergency economic stimulus of $100 billion—including an estimated $44 billion waiver for interest payments in 2020—the report notes a debt moratorium would immediately inject liquidity and enlarge the fiscal space of African governments. #COVID19
The analysis estimates the #COVID19 pandemic could cost the region between $37 billion and $79 billion in terms of output losses for 2020.
World bank report recommends a fiscal-policy approach with two primary objectives – to save lives and protect livelihoods. #COVID19 #WorldBank
The report also encourages African policymakers to think about the exit strategy from #COVID19
Immediate actions said by World Bank:
Focusing on strengthening health systems.
Availability and allocation of financing for the health sector is still a major concern in Sub-Saharan Africa.
The medical personnel in the region should be protected and properly equipped. #COVID19
Focusing on strengthening health systems.
Availability and allocation of financing for the health sector is still a major concern in Sub-Saharan Africa.
The medical personnel in the region should be protected and properly equipped. #COVID19
Implementing social protection programs to support workers, esp informal sector. This calls for cash transfers, in-kind transfers (food distribution), social grants to disabled people and the elderly, wage subsidies to prevent massive layoffs, and fee waivers for basic services
