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Finance & Economics

World Bank President,David Malpass(FILE PHOTO)
Economic Downturn in Sub-Saharan

Africa- World Bank

s many countries globally, a faster, stronger and inclusive recovery dependent economies, especially
Aexperience a second wave of the for African countries,” said Albert those of Cabo Verde, Mauritius and
COVID-19 pandemic, lockdowns eased Zeufack, World Bank Chief Economist the Seychelles, experienced a sharp
and populations learning how to live for the Africa regions. contraction as exceptionally weak
with the virus, all indications are that Nigeria’s real GDP contracted by 6.1 international tourism severely impacted
we are looking at a recession in the face. the service sector.
percent year-on-year in the second
According to a recent World Bank quarter of 2020—the worst result in The substantial downturn in economic
report, the economic fallout of the more than a decade. South Africa, activity will cost the region at least
COVID-19 global pandemic, growth operating under severe containment $115 billion in output losses this
in Sub-Saharan Africa is predicted to measures, saw its real GDP contract year. Gross domestic product per capita
fall to -3.3 percent in 2020, pushing by 17.1 percent year-on-year in the growth is expected to contract
the region into its first recession in 25 second quarter of 2020. Angola, Sub- by nearly 6.0 percent, in part caused
years, according to the latest regional Saharan Africa’s second largest oil by lower domestic consumption and
economic analysis Africa’s Pulse: producer after Nigeria, saw its economy investment brought on by containment
Charting the Road to Recovery. The contract by 1.8 percent year-on-year measures to slow the spread of the
pandemic could also drive up to in the first quarter of 2020. coronavirus.
40 million people into extreme poverty The decline in growth has been stronger “Although the pandemic is not over and
in Africa in 2020, erasing at least five among metals exporters where real GDP the persistence and spread of the virus
years of progress in fighting poverty.
is expected to contract by six percent, is uncertain, African governments have
With over a million reported COVID partly reflecting the large drop in output started putting in place policies and
cases across the continent, the pandemic in South Africa. Among oil exporters, programs to support an inclusive
is still not under control in Sub-Saharan after expanding by 1.5 percent in 2019, and sustainable post-pandemic
Africa. Some governments, notably real GDP is projected to fall by more recovery,” said Hafez Ghanem, World
Senegal and Mauritius, have acted than four percent in 2020, owing to Bank Vice President for Eastern and
rapidly to reduce the spread of contractions in Angola and Nigeria. Southern Africa. “Countries are putting
infections; however successful In contrast, for non-resource-intensive in place policies and programs that
containment measures come with a countries, the decline in growth in 2020 help create jobs and accelerate
high economic cost, as has been seen is expected to be moderate, on average. economic transformation to reduce the
across the globe. In several non-resource-intensive economic impact of the pandemic now,
“The road to recovery may be long, and countries, including Côte d’Ivoire, and build the capabilities needed to
it may be steep, but prioritizing policy Ethiopia, and Kenya, growth is expected ensure inclusive economic growth in
actions and investments that address to slow substantially, but remain the future.”
the challenge of creating more, better positive, owing to their more diversified Experts have observed that,
and inclusive jobs will pave the way for economies. Meanwhile, the tourism- Africa’s road to recovery will also

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