East maintains Africa dominance against COVID-19

The African Development Bank has confirmed that Africa sub-region, East Africa, continues to hold on to its growth rate dominance over the rest of Africa even as COVID-19 keeps tormenting the world.

Though East Africa has also been disrupted by the still rampaging Coronavirus Disease 19 which has led to its 2020 growth projection going down 1.2 percent, AfDB says it will rebound to 3.7 percent in 2021 subject to COVID-19 being contained in this third quarter of the year.

According to AfDB’s East Africa Regional Economic Outlook 2020, prior to COVID-19, the region’s economic growth was projected at more than 5 percent, well above the continent’s average of 3.3 percent and global average of 2.9 percent.

However, COVID-19-induced shocks and a locust invasion have contributed to job losses and increased humanitarian needs that will aggravate poverty and income inequality.

In the worst case scenario, in which the pandemic persists until the end of 2020, growth is projected at 0.2 percent, still above Africa’s predicted average of -1.7 percent and -3.4 percent under the two scenarios.

The REO indicates that COVID-19 is affecting East African economies in many ways, including falling commodity prices and trade and restrictions on travel with a consequent negative impact on tourism. Waning financial flows have affected the region’s fiscal and current account balances while disruptions in supply chains have hurt food production and distribution. With schools closed, an estimated 90 million learners have been excluded from the classroom.

Speaking at the REO’s launch in Nairobi, Kenya, Nnenna Nwabufo, AfDB’s East Africa regional office, pledged its support to steer the region out of the crisis.

“Our ambition is to address the adverse effects of COVID-19 and ensure that social and economic development across the continent is accelerated, including through the creation of an African workforce of the future,” she said.

She also disclosed that AfDB responded swiftly to the region’s COVID-19 needs with $212m to Kenya, $165m to Ethiopia, $4m to South Sudan and $10m to the Seychelles.