Sub-Saharan Africa recession looms World Bank warns
By Niyi Maralysa
The World Bank is projecting that sub-Saharan Africa will go into recession for the first time in a quarter a century as the Covid-19 pandemic disrupts economies.
- The global financial institution says the region’s economy could contract by -2.1% to as much as -5.1% this year.
- The outbreak has spread to 52 countries on the continent that have cumulatively reported 10,250 confirmed cases and 492 deaths.
- AFP say World Bank and the International Monetary Fund are calling for a ‘debt standstill’ from creditors to free up money to go into saving lives.
- The World Bank says reduced access to agricultural inputs, disruption of supply chains and loss of livelihoods could lead to a food shortage.
- Africa’s biggest economies are worst hit – Nigeria and Angola by the collapse of oil prices, and South Africa by a drop in mining income. Agricultural exports from Ethiopia and Kenya have all but shut down.
Africa was among the last to be hit by Covid-19, and the response from most countries was swift and hard – border closures, lockdowns and the quarantine of travellers.