Will COVID-19 Lockdown Crash the African Economies?

There are only a few situations that have affected the world on a global scale in recent memory. The handful that do exist are starting to pale in comparison to the current global crisis. This has been clear in developed countries with overwhelmed health care systems. Now developed economies in the African continent are beginning to show warning signs of complete economic breakdown as their much less developed health care system buckled under the burden of pandemic patients.

Current Support Helping But More Needed

Giving support to the situation is difficult due to the way that many of the African country’s economies are structured. Most African countries share two features. They are export-driven and the lock downs have left them paralyzed regardless of internal policy. There have been two significant international organizations that have come out in support of these countries.

International Monetary Fund Starts Helping

So far the IMF has received communications from at least 20 African nations seeking emergency relief. There are at least 10 more that are looking to apply in the future most likely. So far the IMF has established relief operations with 2 and plans are in the works for how to address the nation’s currently in crisis.

UNECA Provides Aid

The organization commonly referred to as UNECA (U.N. Economic Commission for Africa) is a great help for  African nations. It is composed of a council from UN member states that help to arrange relief missions and ongoing improvement in Africa. The current crisis is expected to cost the region in excess of 10 billion dollars for health care alone. They are currently attempting to arrange relief efforts among UN members.

Expected Long Term Effects

Even though it is easy for people in the developed world to lose sight of how interconnected everything is, there would be a catastrophic wave of secondary and tertiary effects around the world if the area does not get the help that they need as there are many basic materials needed for every day items that would either become unlikely or extremely expensive to obtain.

For more information visit the IMF or UNECA websites.

Leave a Reply