Charles Lufumpa: How African countries can respond to COVID-19, reopen economies and accelerate recovery

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.  

Charles Lufumpa, the African Development Bank’s Acting Chief Economist and Vice President for Economic Governance and Knowledge Management speaks on the recent release of the African Economic Outlook 2020 Supplement. He shares policy recommendations to cushion the shock of COVID-19 on countries.

How has Africa’s economic trajectory changed since the 2020 African Economic Outlook launched in January?

Almost everything has changed since January. The outbreak COVID-19 pandemic has distressed the global economy, particularly African economies. At the time the projections for Africa’s economic growth and prospects were prepared in January 2020, no one anticipated the magnitude of disruptions that COVID-19 would cause. Both the pandemic and the containment measures put in place by governments to limit its spread have had important economic implications. International travel restrictions, school and workplace closures, cancellation of public events, restrictions on public gatherings and closures of national borders and nonessential businesses have had an unprecedented impact on Africa’s economic, health and political landscape. The direct and indirect consequences of the outbreak have upended the strong upward trajectory of many African countries through 2019. Our analyses, projections and forecasts in the AEO 2020 Supplement reflect this sharply changed landscape.

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

Why is the African Economic Outlook 2020 Supplement necessary at this time?

The pandemic has reversed the strong growth projections reported earlier in our 2020 African Economic Outlook due to the significant economic and health-related disruptions it is causing African countries. To account for the impact of the pandemic on Africa’s socio-economic landscape, it was necessary to reassess the situation and revise our growth projections and outlook for 2020 and 2021. The AEO 2020 Supplement presents revised projections for Africa’s economic growth and outlook for 2020 and 2021, assesses the impact of COVID-19, and offers policy prescriptions on safe strategies to reopen economies and accelerate recovery after the pandemic.


What are the main policy recommendations to spur 3.0 percent growth in 2021?

It is important to first underscore that projections of a 3-percent growth recovery in 2021 are subject to major downside risks arising from both external and domestic factors. For instance, there remains a nonnegligible risk of a second wave of COVID-19 infection, which could necessitate that African countries reimpose physical distancing, lockdowns, and quarantines. We should also not forget other natural catastrophes such as the locusts swarms in parts of East Africa that are hurting farmers’ yields and livelihoods. Other exacerbating factors such as subdued commodity prices, high debt burdens, and tightening global financing conditions are likely to increase the uncertainty of Africa’s projected economic recovery.

The AEO 2020 Supplement emphasizes a multi-pronged policy approach to addressing the pandemic that involves: a public health response to contain the spread of the virus and minimize fatalities; a monetary policy response to ease liquidity constraints and solvency risks, a fiscal response to cushion the impacts on livelihoods and to assist businesses; a labour-market response to protect workers and their jobs; and structural policies to enable African economies to rebuild and enhance their resilience to future shocks. Actionable details on how to implement these policy responses are presented in Section 3 of the
Supplement.


How can African countries build economies that are more resilient against future shocks?

The ongoing COVID-19 pandemic is certainly not the last major shock the continent will face. In the AEO Supplement, we emphasized the need to accelerate structural reforms to help African countries build more resilient economies and become better prepared to face future shocks. By increasing productivity and addressing obstacles to the business environment, African countries could revive their productive base and increase levels of industrialization. These resilience-boosting reforms would require investment in human capital to build a workforce with the right skills for high productivity sectors and bridging the infrastructure deficit to advance Africa’s industrial development. Moreover, promoting economic diversification will help countries adapt to an increasingly volatile global economy and better shield their economies from future shocks. This will require targeted policies
that boost agricultural productivity and move labor from low-productivity to high productivity sectors as well as supporting competitive sectors such as agro-processing, digital technologies, or information and communication technology-based services, which have proved critical during the pandemic. Other challenges that will need to be addressed in order to achieve faster-growing and more resilient African economies include: formalizing the informal sector; ensuring

[/read_more]

Today News Africa
Today News Africahttps://todaynewsafrica.com
TODAY NEWS AFRICA is registered and headquartered in Washington, District of Columbia, United States of America. Our publication is widely read, respected and influential. By providing daily answers to questions our readers have about the people, the businesses and the continent of Africa, we are reaching a diverse and wide audience from around the world. Our readers, many of them world leaders, trust us because we are independent and truthful. Our advertisers understand the difference between news, views and ads. Contact us: contactus@todaynewsafrica.com

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...

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...

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...

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