Covid-19 spawns reforms in’ Africa

Just a month ago in Africas largest economy, a reform that seemed impossible became possible. Nigeria ended subsidies that kept petrol prices low. The government needed the revenue to deal with the Covid-19 emergency. It also began to make moves to reform its currency exchange rates and diversify its economy from a dependency on oil exports.

Across Africa, long-delayed governance reforms are suddenly on the table. The challenge of the pandemic and the prospect of the continent’s first recession in more than 25 years have put leaders on notice. Even before the coronavirus crisis is over, civic activists and international creditors are demanding deep reforms in badly managed regimes. In SA, this desire for structural change was echoed in a speech by President Cyril Ramaphosa: “We are resolved not merely to return our economy to where it was before the coronavirus, but to forge a new economy in a new global reality.”

However, comprehensive reforms face a formidable obstacle in SA. It is well-documented that the governing ANC is bloated with corruption and incompetence. Breaking its inertia will be a challenge even for Ramaphosa, who carries enormous credibility as a chief architect of SA’s democracy and for his success in business, but who seems little inclined to buck his party.

Then there are external constraints. For the first time, SA has asked for help from the IMF to help support a postCovid-19 stimulus package. Nigeria has already received the largest IMF package for an African country — $3.4bn.

The virus crisis is liberating many Africans to demand greater resilience in their societies. There is no shortage of ideas from civil society and financial institutions about how to build a stronger post-pandemic economy. With the virus exposing weak governance in Africa, its people are also tapping their strength to fix it. /Boston, May 21