By Anzetse Were, Senior Economist FSD Kenya
Africa, like much of the world, is still in the throes of the COVID pandemic and related economic fallout. The pandemic has cost the continent about USD 69 billion per month and economic growth is projected to contract by 2.6% in 2020. This downturn is set to cost Africa at least $115 billion in output losses in 2020 with GDP per capita growth expected to contract by nearly 6.0 %. Additionally, the pandemic may push 40 million people into extreme poverty in 2020 across the continent, eroding at least five years of progress in fighting poverty.
Diverse sectoral impact
The sectoral impact of COVID-19 has been and will likely continue to be varied. Some sectors such as tourism, aviation and crude oil exports have been disproportionately hit in Africa, while COVID-19 is spurring certain types of digital technologies (such as mobile payments in Kenya and Rwanda), and food production in some countries has been resilient. This points to four main COVID impact-recovery sectoral performance paths (the chart is illustrative):Continue reading