Economic growth in Africa is projected to drop drastically to negative 4.1% before making a strong comeback in 2021 at 5% growth, the UN Economic Commission for Africa (ECA) said in a new report on Tuesday.
The report, dubbed, ‘Innovative finance for private sector development in Africa’, highlights the economic vulnerability of African countries to imported pharmaceutical products in the middle of a pandemic and estimates that US$44 billion would be required for the testing, personal protective equipment for frontline medical staff, equipment and treatment of the coronavirus (COVID-19).
Economic recovery in Africa would be supported by effective response to the COVID-19 pandemic and the measures taken globally to aid economic recovery.
In 2020, spending on health will increase as governments set aside funds to sustain their health systems and absorb costs related to the COVID-19 lockdowns. In a best-case scenario, US$44 billion would be required across Africa for testing, personal protective equipment and treatment of COVID-19 patients requiring hospitalisation and intensive care treatment, the report said.
The report further said that due to the resources being redirected to COVID-19, Africa’s existing health challenges will face spillover costs, as happened in the Ebola crisis. It calls on countries to look into investments in non-COVID-19 health issues which should be kept in view.
