A new report, titled COVID-19: Protecting African Lives and Economies, notes that partnerships are critical in the continent’s effort to fight the consequences of the COVID-19 pandemic.
Among others, it is recommended that African countries "must” keep trade flowing, particularly in essential medical supplies and staple foods, by fighting the urge to impose export bans.
Published by the Economic Commission for Africa (ECA), the report was launched on Friday, April 17.
It notes that African economies are interconnected and that the response must bring the continent together as one.
"The development finance institutions must at this time play an unprecedented counter-cyclical role to protect the private sector and save jobs,” reads part of the report.
African governments should, it is stressed, "urgently suspend tariffs” on essential COVID-19 imports as well as other essential goods beyond medical supplies to prevent shortages and skyrocketing prices.
"We must keep trade flowing, particularly in essential medical supplies and staple foods, by fighting the urge to impose export bans. Intellectual property on medical supplies, novel testing kits and vaccines must be shared to help the continent’s private sector take its part in our response.”
China, where the outbreak started at the end last year, and at least 12 further countries have already reduced import barriers on COVID-19 medical supplies.
Beyond imports, it is noted that Africa must look to boost its own productive capacity for medical supplies.
"Many of these products are in considerable demand globally and domestic production will be essential to fill the supply gap. Pooled production and cross-border assistance can help to improve Africa’s response,” reads the report.
Dr Francis Mangeni, Former Director of Trade Customs and Monetary Affairs of COMESA, told The New Times that partnerships are an absolute imperative now.
The COVID-19 outbreak was not unforeseen, he said, adding that: "We are now in for the long haul, with a heavy disease burden for all humankind to bear.”
Mangeni who is now a private consultant and advisor on transformation and international development, said: "Partnerships are an absolute imperative now.”
The report acknowledges that the level of assistance that is required is unprecedented.
The authors of the 48-page document note that innovative financing facilities are needed, including a complete temporary debt standstill, enhanced access to emergency funding facilities and the provision of liquidity lines to the private sector in Africa.
We must "build back better”, they emphasise, by ensuring that there is an abiding climate consciousness in the rebuilding and by leveraging the digital economy.
"And we must be firm and clear on good governance to safeguard African health systems, ensure proper use of emergency funds, hold African businesses from collapse and reduce worker lay-offs.”
Over 300,000 people in African could lose their lives
It is estimated that anywhere between 300,000 and 3.3 million African people could lose their lives as a direct result of COVID-19, "depending on the intervention measures taken to stop the spread.”
"Africa is particularly susceptible because 56 per cent of the urban population is concentrated in overcrowded and poorly serviced slum dwellings (excluding North Africa) and only 34 per cent of the households have access to basic hand washing facilities,” reads part of the report.
"In all, 71 percent of Africa’s workforce is informally employed, and most of those cannot work from home. Close to 40 per cent of children under 5 years of age in Africa are undernourished. Of all the continents Africa has the highest prevalence of certain underlying conditions, like tuberculosis and HIV/AIDS.”
It is noted that with lower ratios of hospital beds and health professionals to its population than other regions, high dependency on imports for its medicinal and pharmaceutical products, weak legal identity systems for direct benefit transfers, and weak economies that are unable to sustain health and lockdown costs, "the continent is vulnerable.”
Prosperity
The impact on African economies, as noted, could be the slowing of growth to 1.8 per cent in the best case scenario or a contraction of 2.6 per cent in the worst case.
The report says this has the potential to push 27 million people into extreme poverty.
"Even if the spread of COVID-19 is suppressed in Africa its economic damage will be unavoidable. The price of oil, which accounts for 40 per cent of Africa’s exports, has halved, and major African exports such as textiles and fresh-cut flowers have crashed.”
"Tourism – which accounts for up to 38 per cent of the gross domestic product (GDP) of some African countries – has effectively halted, as has the airline industry that supports it. Collapsed businesses may never recover.”
Without a rapid response, it is noted, Governments risk losing control and facing unrest.
$100bn needed to resource health and social safety net response
According to the report, to protect and build towards "our shared prosperity” at least $100 billion is needed to immediately resource a health and social safety net response.
"Another $100 billion is critical for economic emergency stimulus, including a debt standstill, the financing of a special purpose vehicle for commercial debt obligations, and provision of extra liquidity for the private sector.”
"This is not a financial crisis. This is a human crisis. This is not a question of just bringing liquidity to the financial systems, which, of course, is necessary,” said UN Secretary-General, António Guterres.
"We need to support directly those that lose their jobs, those that lose their salaries, the small companies that cannot operate anymore, all those that are the fabrics of our societies, and we need to make sure that we keep thousands afloat, we keep small companies afloat, we keep all societies afloat.”