Africa moves to revive economies
Amid gains against the virus, continent turns its focus to sustainable development goals
With several countries in Africa showing signs of flattening the coronavirus infection curve, efforts have now been channeled toward investment in various sectors on both the national and continental levels to spur economic recovery.
Cyril Ramaphosa, chairman of the African Union and the president of South Africa, said the AU is developing a comprehensive coronavirus response which will address the economic, social and environmental pillars of sustainable development.
“Working together as countries, as the international community and with our development partners, it is within our means to meet the aspirations of Agenda 2030,” Ramaphosa said at a virtual meeting addressing the United Nations Sustainable Development
Goals on Sept 17.
South Africa, the African country most affected by the coronavirus in terms of infection caseload and deaths, has already bent the infection curve. The development saw the country switch to a level one lockdown at midnight on Sept 20, removing many of the remaining restrictions on economic activity.
Social, religious, political and other gatherings are permitted, as long as the number of people does not exceed 50 percent of the normal capacity of a venue, up to a maximum of 250 people for indoor gatherings and 500 people for those held outdoors.
“Cabinet will build on this emerging common ground to finalize the country’s economic reconstruction and recovery plan in the coming weeks,” Ramaphosa said in an address to the nation on Sept 16.
“The reconstruction and recovery plan that will be finalized will build on the $31 billion economic and social relief package we announced in April, which has provided vital support for households, companies and workers at a time of dire need.”
Kenyan President Uhuru Kenyatta launched on Sept 17 a $17.5 million school furniture project in which roadside artisans — known collectively as the Jua Kali sector — will supply 650,000 locally assembled desks. The project is part of the government’s post-coronavirus economic stimulus program aimed at boosting the Jua Kali sector.
Jua Kali, loosely translated to “fierce sun”, is an industry that comprises small traders and artisans who mostly work on the roadside. They are famous for their ability to create almost anything on demand.
The Kenya National Bureau of Statistics said that, in 2019, the formal sector in Kenya created 767,900 out of a total 846,300 jobs.
The government is also upgrading the Liwatoni fishing complex in the port city of Mombasa to a full fishing port, aimed at helping create jobs for the young people as well as boost the coastal economy.
The Kenya National Chamber of Commerce and Industry and the MasterCard Foundation have entered into a partnership that will see 25,000 micro, small and medium-sized enterprises benefit from an interest-free, zero-fee short-term concessional loan.
The coronavirus recovery and resilience program will be implemented by the chamber through its county chapters across the country’s 47 counties. The program targets businesses owned by young people or women, which have been impacted hard by the pandemic.
Mauritania on Sept 16 received a $2.1 million grant from the African Development Bank to boost its resilience against climate-related shocks and food security.
The project will have three components, namely the development of climate risk management solutions, supporting access to disaster risk transfer mechanisms, and program management and coordination.
The Africa Risk-Reward Index 2020 — released on Sept 15 by specialist risk consultancy Control Risks and independent global advisory NKC African Economics, the Africa-focused subsidiary of Oxford Economics — said the scale of the coronavirus crisis will necessitate shifts in economic priorities and policies.
It said oil-dependent economies such as Algeria and Angola, which have suffered worse than most, may finally translate longstanding talk of diversification into genuine action.
Additionally, the severe disruption to supply chains, which has led to everything from fuel shortages in Uganda to seed shortages in Ghana and weaker currencies, could prompt efforts to develop domestic manufacturing and regional linkages.