Africa consists of rising countries such as South Africa, Nigeria, Egypt, Ghana etc. Though these countries have gained economically since 2016, it is no hidden fact that these countries among others on the African continent are ridden with poverty, inequality and lack of basic infrastructure in specific regions. The COVID19 coronavirus pandemic has led to the stagnation and fall back of the GDP growth within most of these countries if not all.
Initial GDP growths predicted in 2019 have been slashed by more than 50% of their initial number. In one example – ACCRA, March 31 (Reuters) – Ghana’s finance ministry has slashed its 2020 GDP growth forecast from 6.8% to an estimated 1.5% due to the coronavirus pandemic, a rate that would represent the Ghanaian economy’s worst performance in nearly four decades.
The lock down policies being implemented to control the spread of the virus are having instantaneous and dramatic effects on daily economic activity. Nationwide lock downs look to be reducing daily activity by about 20% from normal levels. The impact on GDP will depend on how long the lock down last.
So just how does Africa pull itself out of this pandemic?
Predictions and suggestions seem to be flying in from many parts of the world however here are some sectors that may benefit after the pandemic.
Africa is the home of mobile money. In 2018 year alone, mobile money transactions in Sub-Saharan Africa topped $26.8billion. Many major banking institutes within Africa are now encouraging residents to utalise digital payments, shop online boosting e-commerce revenues and minimize the spread of COVID-19 through the use of cash.
Some experts online are calling this the age of Africas Industrial Revolution. Ghana for years has relied on imported basic essentials to meet local demand. As every household needed a safeguard in the fight against the global pandemic, the shortage and proliferation in price has seen the emergence of local manufacturing of hand sanitizers. The Food and Drugs Authority announced that it has given approval to 370 local producers, including renowned distilleries, who have converted parts of their factories for the production of the now must-have item, to boost the fight against COVID-19. Similarly neighbouring countries are urging the and investing in local production of essentials.
It is not 100% known when this pandemic will end or who will rise to the top of economic growth though much speculation exists. What can be said is that the world over is experiencing turmoil due to this wild pandemic outbreak and as far as statistics go in recent weeks it has to be noted that countries such as Ghana, South Africa and Egypt have made calculated decisions to ensure the safety of their citizens by swiftly acting on the testing and tracing on the coronavirus in individuals and making the relevant but tough economic decisions during this period.