African Development Bank forecasts economic turmoil for East Africa in 2020 amid COVID-19 pandemic with growth shrinking from 5 percent to 0.2 percent in worst-case scenario

969FollowersFollow

Although we are headquartered in Washington D.C. USA, our reporters and editors are working around the globe to cover what you care about. We invite you to donate to our fundraiser to help us keep our quality news free and available to all.  

The African Development Bank has forecast an economic turmoil for East Africa in 2020 amid COVID-19 pandemic, with projected growth tumbling from above 5 percent before the health emergency to 1.2 percent in the best case scenario and 0.2 percent if the pandemic persists until the end of 2020.

Although that contraction is still above Africa’s predicted average of -1.7 percent and -3.4 percent under the the best and worst scenarios, it is the biggest economic crash in Africa as a result of COVID-19.

“Prior to the COVID-19 pandemic, the region’s economic growth was projected at more than 5 percent, well above continent’s average of 3.3 percent and global average of 2.9 percent. However, COVID-19-induced shocks and a locust invasion have contributed to job losses, increased humanitarian needs and will aggravate poverty and income inequality,” AfDB said in its latest regional economic outlook update for 2020.

[read_more id="2" more="Read full article" less="Read less"]

AfDB said growth in East Africa may rebound to 3.7 percent in 2021, provided the coronavirus is contained in the region and around the world, followed by strong fiscal and monetary policies to trigger growth.

The African Development Bank has been dishing out billions of dollars in loans to African countries to respond to the coronavirus pandemic. The bank often focuses on the benefits associated with the billions of dollars in loans and not on repayment and concerns around insolvency.

“The Regional Economic Outlook indicates that the COVID-19 pandemic will affect East African economies in many ways, such as falling commodity prices and trade, and restrictions on travel with a consequent negative impact on tourism. Waning financial flows have affected the region’s fiscal and current account balances, while disruptions in supply chains have hurt food production and distribution. With schools closed, an estimated 90 million learners have been excluded from the classroom,” the bank wrote.

Nnenna Nwabufo, the Director General of the Bank’s East Africa Regional Office, noted that the Bank had responded swiftly to provide urgently needed support to address the immediate impacts of the COVID-19 pandemic, including support of $212 million to Kenya, $165 million to Ethiopia, $4 million to South Sudan and $10 million to the Seychelles.

“Our ambition is to address the adverse effects of COVID-19 pandemic and ensure that social and economic development across the continent is accelerated, including through the creation of an African workforce of the future,” she said.

Nwabufo called for a collective effort to address the development challenges such as rising public debt and the locust invasion in order to re-direct the nations towards a sustainable development pathway. 

The report’s authors called for urgent policy measures to cushion the effects of the COVID-19 pandemic.“East African countries should accelerate a real structural transformation by transitioning from low value-added production to higher value-added activities that could mitigate vulnerabilities to domestic and external shocks,” said Dr Marcellin Ndong Ntah, a Bank Lead Economist.

[/read_more]

Simon Ateba
Simon Ateba
Based in Washington, District of Columbia, United States of America, Simon leads a brilliant team of reporters, freelance journalists, analysts, researchers and contributors from around the world to run TODAY NEWS AFRICA as editor-in-chief. Simon Ateba's journalistic experience spans over 10 years and covers many beats, including business and investment, information technology, politics, diplomacy, human rights, science reporting and much more. Write him: simonateba@todaynewsafrica.com

1 COMMENT

  1. Economy is nth for the dictator, now Abiy is busy in mass killing mass torcher mass detention the largest ethnic group Oromo denying equality justice and freedom in the constitution

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Now

Amnesty International outraged over Ethiopia’s decision to ban protests against ethnically motivated killings

Ethiopian authorities have banned peaceful protests against ethnically motivated killings which were due to take place on October 28, in direct...

Joe Biden wins last presidential debate against Donald Trump

Joe Biden was surprisingly aggressive, it was perhaps the best debate he has had in 2020.Republicans...

Nearly 60 million Americans have already voted representing 43% of total votes counted in 2016

At least 59.3 million Americans have already voted, according to data compiled by the U.S. Elections Project, putting the 2020 elections on track to...

What the Joseph Robinette Biden presidency would mean for Africa – Perspectives by Simon Ateba

Joseph Robinette Biden Jr., the 47th vice president of the United States in the Obama administration from 2009 to 2017, is...

Finally, Nigerian President confirms killing of peaceful protesters

President Muhammadu Buhari on Sunday confirmed the killing of peaceful protesters in the country last week by security forces.

Nigerians in USA hold protest against bad governance and police brutality in their home country

Nigerians in the United States on Saturday held a protest against bad governance and police brutality in their home country, shed...

Damning report finds detainees in Iran were sexually abused and given electric shocks in gruesome post-protest crackdown

Iran’s police, intelligence and security forces, and prison officials have committed, with the complicity of judges and prosecutors, a catalogue of...

Trump administration blocking selection of Ngozi Okonjo-Iweala to become first African WTO head

The Trump administration on Wednesday blocked the appointment of Ngozi Okonjo-Iweala as the first African head of the World Trade Organization...

Amnesty International accuses Nigerian authorities of attempting to cover up Lekki Toll Gate massacre

Amnesty International on Wednesday accused Nigerian authorities of attempting to cover up Lekki Toll Gate massacre.The organization...

South Africa deputy president rejects corruption allegations against him as investigators arrest 11 people for fraud

The South African Deputy President David Mabuza has rejected corruption allegations against him, following the arrests of 11 people who worked...

More than 90% of all votes counted in Texas in 2016 already cast, 72% in Florida, 76% in Georgia, 72% in North Carolina and 32% in Pennsylvania

At least 75.1 million Americans have already voted, according to data compiled by the U.S. Elections Project, putting the 2020 elections on track to...

Buhari urges Nigerians to unite amid mounting tensions triggered by police brutality

President Muhammadu Buhari Wednesday in Abuja appealed to Nigerians to desist from actions and comments that could jeopardise the unity and...

South African President Cyril Ramaphosa in self quarantine after COVID-19 exposure

South African President Cyril Ramaphosa has begun a period of self-quarantine after COVID-19 exposure, the presidency said in a statement on...

Nearly 70 million Americans have already voted, representing more than 50 percent of all votes counted in 2016

Nearly 70 million Americans have already voted, according to data compiled by the U.S. Elections Project, putting the 2020 elections on track to shatter...

Trump administration blocking selection of Ngozi Okonjo-Iweala to become first African WTO head

The Trump administration on Wednesday blocked the appointment of Ngozi Okonjo-Iweala as the first African head of the World Trade Organization (WTO).A WTO nominations committee recommended the group's 164 members appoint Ngozi Okonjo-Iweala.But the Trump administration said it wants a South Korean woman Yoo Myung-hee.The Trump administration said it will...

[/read_more]

[read_more id="2" more="Read full article" less="Read less"]

error: Alert: Content is protected !!
Share
Tweet
Share