African markets will need $890Billion in 2yrs to weather pandemic storm
Africa is projected to recover in 2021 from its worst economic recession in half a century. Economic activity in Africa was constrained in 2020 by an unprecedented global pandemic caused by COVID–19. Real GDP in Africa is projected to grow by 3.4 percent in 2021, after contracting by 2.1 percent in 2020 -AfDB
Latest estimates by the World Bank show that African nations will require about $ 890 Billion between now and 2023 to recover from the effects of the pandemic.
Further, it is estimated that 50% of this amount would be funded through private finance as Governments increasingly budget deficits in the face of the pandemic, with 25% from the donor community.
As Governments develop domestic economic recovery strategies, the question on the need to re-evaluate resource envelope available to fund the recoveries remains a critical question.
This is further exasperated in countries that are net exporters like Kenya given the global recovery in oil
prices, the impact of which is expected to translate to inflationary pressures as well as widen the current
With a widened, current account deficit, concerns equally arise on a growing savings and
investment gap. These would prove retrogressive in ensuring instituted recovery policies achieve the
desired impact across economies of these countries.
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