How Nigeria, other African countries can recover from the coronavirus crisis –AERC

Nigeria and other African countries can overcome the coronavirus crisis by looking “at the lessons learnt from the crisis and heed the urgency for change that it has highlighted,” the African Economic Research Consortium (AERC) said Monday.

AERC, in a statement, spotlighted the fragility of growth in African economies, noting that economic and social issues that were already pretty challenging had become more serious because of the scale of the COVID-19 health crisis and its disastrous consequence on African economies.

It said the fragility was evident in the political, economic, social and cultural fabrics of life in Africa.

AERC observed that the vulnerable position resulted from political instability, civil and political unrest, weak institutions, poor accountability and leadership, low human development and several other factors.

Professor Njunguna Ndung’u, the Executive Director of AERC, stated that even though the impact of the COVID-19 pandemic was disastrous on already fragile African economies, the outlook is not dire.

“Weak points, some known, others underestimated, have been brought to fore. In addition to infrastructural issues, the reliance of African markets on imported goods (and services) has proven to be a detrimental factor during this crisis – particularly regarding the shortage of masks and other health and safety resources typically sourced from outside Africa,” he said.

AERC prescribed a number of solutions that would move the continent forward, minimise risk and maximise opportunities in the wake of the coronavirus crisis.

Read also: Nigeria, others need $114bn to combat coronavirus —IMF

It recommended policymaking and interventions that consider the existing weaknesses within African economies, the post-crisis challenges facing the continent and future long-term methodologies to forestall the negative effects of crises.

The AERC document equally suggested enlisting the support of multilateral institutions and bi-lateral partners and working together to develop comprehensive and effective solutions to overcoming challenges across different sectors.

“Governments and the private sector need to consider ways to help the population and African markets recover from the debilitating effects of COVID-19 on factors such as GDP growth, critical macro-economic indicators, inflation, exchange rates, employment and livelihoods to vulnerable sectors.

“The implementation of the African Continental Free Trade Area agreement needs to be accelerated – boosting intra-African trade, development and economic diversification, making African economies less vulnerable to economic shocks and more resilient to global crises or market disruptions,” the AERC said.

According to Ndung’u, “we cannot predict the future, but we can be better prepared for the uncertainties that lie ahead.”

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