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With the World Bank predicting that the continuing economic impact of the coronavirus could lead Sub-Saharan Africa to its first recession in more than 25 years, the international charity Oxfam is urging rich countries to step in and help poorer nations prevent levels catastrophic poverty.
According to separate reports released by the organizations on Thursday, African countries must act quickly to buffer their economies against the economic and humanitarian crises of the deadly virus.
This occurs when global deaths from the virus have exceeded 88,000 in just under six months.
The World Bank, in its biannual. The pulse of Africa report said that growth in sub-Saharan Africa had been “significantly affected” by the outbreak.
Here are some of the key findings from the reports:
The World Bank claims that growth in sub-Saharan Africa, the region, could drop sharply from 2.4% in 2019 to -2.1 to -5.1% in 2020, which would push the county region into recession. , the first in more than 25 years.
However, the countries of the region would be unevenly affected by the pandemic. The GDP of the three largest regional economies, South Africa, Angola and Nigeria, is projected to “drop sharply” as a result of persistently weak growth and investment.
Although governments on the continent have acted quickly to try to stem the spread of Covid-19, the crisis has the potential to trigger a food security crisis, with agricultural production potentially shrinking between -2.6% to -7% if there are blockades. commercial .
“Immediate measures are important, but there is no doubt that some form of debt relief from bilateral creditors will be necessary to secure the resources that are urgently needed to fight Covid-19 and help manage or maintain macroeconomic stability. in the region, “said Cesar Calderón, chief economist and lead author of the report.
Food imports would decrease substantially, up to 25% or just 13%, due to a combination of higher transaction costs and lower domestic demand.
500 million in poverty
In its “Economic Rescue Plan for All”, Oxfam outlined a series of measures that could be taken to protect the poorest nations from the economic effects of the pandemic.
The charity said at least $ 2.5 trillion must be mobilized to face the pandemic and prevent global economic collapse. Unlike ordinary assistance, the plan suggests prioritizing helping people directly, granting cash subsidies to those in need, and immediate suspension of debt payments from poor countries.
According to the organization, this should be combined with a single economic stimulus from the IMF and an increase in aid and taxes.
Oxfam further predicts that the economic crisis caused by the coronavirus “could push more than 500 million people into poverty” unless urgent measures are taken.
The African Union, chaired by South African President Cyril Ramaphosa, has been urged to “speak out to defend the right of African governments to protect their citizens” from the worst pandemic in 100 years.
China and the Paris Creditor Countries Club could play a leading role on the world stage by immediately announcing the suspension of all debt payments by developing country governments for next year, he said.
Several countries in the region, including Rwanda, Nigeria and Botswana, have implemented national blockades, in an attempt to prevent the spread of the coronavirus, which has killed thousands worldwide.
