Browsing: Africa COVID-19 recovery

• The long-term effects of Covid-19 and the climate crisis are felt more acutely in Africa than elsewhere.
• Africa’s additional financing needs resulting from the pandemic will amount to $285 billion over the four years ending 2025.
• Sub-Saharan Africa endured a recession in 2020 for the first time in 25 years.

NEW YORK – Africa bears virtually no responsibility for the greenhouse-gas emissions driving the climate crisis. It is not responsible for the conflicts or supply-chain disruptions that have driven global inflation. Nor did it trigger the spread of COVID-19, let alone cause the pandemic’s economic fallout. And yet the long-term effects of this trio of crises linger perhaps more acutely in Africa than elsewhere.

Africa grappling with anemic economic growth

The International Monetary Fund has estimated that Africa’s additional financing needs resulting from the pandemic will amount to $285 billion over the four years ending in 2025. But inflation, exchange-rate …

A favourable balance of payment translates to good exchange rates for the shilling against the dollar. A strong shilling means more value per shilling, allowing the country to make even larger purchases or investments.

Another aspect is the fact that a decrease in the oil price should translate to similar, if not multiple decreases in the cost of doing business and even the cost of living. This is because the cost of transportation is expected to fall, and with it, the cost of the goods being delivered is another gain for Africa (where borders were not closed during that time).

Also, in economic terms, there is a difference between an increase or decrease and rise or fall in price. An increase or decrease in price means a short-term price hike or price drop, which is what we expected to see during the period of oil price increase/decrease.

On the other …

A currency crisis is defined as a quick and abrupt depreciation of a country’s currency. Currency depreciation goes in tandem with turbulent markets and a loss of confidence in the country’s economy. Historically, crises have arisen when market expectations induce significant movements in the value of currencies.

The global economy is now in turmoil. As the world economy enters another era of a currency crisis, the value of the US dollar keeps rising. Over half of all international trade is billed in dollars. A stronger dollar thus hurts consumers globally, particularly in Africa, who rely on dollars to pay for imports.

The US Federal Reserve’s hawkish approach to increasing interest rates more aggressively than central banks in other major countries has contributed to the dollar’s appreciation. The fact that investors generally see the dollar as a “safe haven” asset during times of economic turmoil has added to its resilience.…

Countries must continue to work to mitigate their vulnerabilities over time. This involves minimizing balance-sheet misalignments, establishing money and foreign exchange markets, and lowering exchange rate passthrough by increasing monetary policy credibility.

However, in the short term—while vulnerabilities remain high—the use of extra instruments may assist relieve short-term policy trade-offs when certain shocks occur. In particular, foreign exchange intervention, macroprudential policy measures, and capital flow controls may help increase monetary and fiscal policy autonomy, promote financial and price stability, and minimize output volatility if reserves are enough and these instruments are available.…

Changes in the global food chain provide essential opportunities to enhance the profile of integrated thinking in Africa. Because these measures will benefit the whole planet, a collective responsibility remains necessary. Landscape-based initiatives and the scaling out of agro-ecological systems and restorative agriculture must be prioritized by African member states.

There should be cross-border collaborations in critical landscapes. Non-African partners and enterprises must also invest in regional systems strategies, focusing on yield and advancing all ecological systems. As investment in Africa’s agricultural industry grows, steps must be taken to avoid negative environmental consequences.

Everyone wants to live in a world with a healthy planet and people and planet. In Africa, this means people with access to healthy diets, economic growth, and development possibilities while interacting with the continent’s unique natural environments.…

• Initial predictions about Africa’s vulnerability to Covid-19 indicated that the continent would be overwhelmed by the effects of the pandemic
• Not only has Africa harnessed previously unrecognized power to help combat COVID-19, but it also provides indications that can be used to counter future pandemics.
•  Despite the significant economic disruptions caused by the Covid-19 outbreak, Africa’s economies are leading as a resilient continent with enormous promise.
• African start-ups raised US$1.8 billion in the first quarter of 2022, which is 2.5 times the capital raised in Q1 2021

Initial predictions about Africa’s vulnerability to Covid-19 indicated that the continent would be overwhelmed by the effects of the pandemic. Critics had argued that the continent’s medical and economic sectors would feel the heat both during and after the pandemic.

However, these worrying predictions concerning the continent and its vulnerability to the Covid-19 pandemic have largely gone unrealized. Globally, Africa accounted for a …