COVID-19 – Calls for Greater Resilience in Africa
By Esosa Aihie
Africa may need an emergency economic stimulus of $100 billion—including an estimated $44 billion waiver for interest payments in 2020.
In 2020, the pandemic could cost between $37 billion & $79 billion in output losses, while impact on household welfare is expected to reach 7%.
Likely to create severe food security crisis & a contraction of between 2.6% & 7%. Decline in food imports (as much as 25% or as little as 13%) as a result of higher transaction costs & reduced domestic demand.
Health risks due to limited access to safe water & sanitation facilities, urban crowding, weak health systems, & a large informal economy.
Therefore need for fiscal-policy focused on:
* strengthening health systems through available finance; PPE of medical personnel.
* Implementing social protection programs to support all workers with cash, food, grants, wage subsidies & fee waivers for basic services.
* Good logistics with minimal disruptions in food supply chains.
The report also recommends an exit strategy & building future resilience to enable sustainable growth, economic diversity & inclusion.”