- March 20, 2023
- Posted by: AITRC 2
- Categories: News, Blog, Report
WEEKLY TRADE POLL FOR AFRICAN COUNTRIES
MARCH 2023
The COVID-19 pandemic has disrupted global supply chains and significantly impacted the demand for goods and services, leading to a contraction in trade and commercial activity. As a result, many African countries have experienced a significant decline in exports and imports. According to a report by the African Development Bank (AfDB), that highlights that the pandemic has also significantly impacted the manufacturing, small and medium-sized enterprises (SMEs), and tourism sectors, which are the backbone of the economy and major drivers of economic growth in Africa.
Many SMEs in Africa have experienced a decline in demand for their products and services, including the export of commodities and tourism, among other effects leading to a tremendous reduction in export revenue and government revenue in many countries. This has led to a decline in employment and has had a significant impact on the livelihoods of many people. It has had catastrophic effects on the world’s health systems, and the economic toll is still unknown as the world battles an imminent global recession.[1]
Early COVID-19 pandemic impact forecasts by some public health experts portrayed a very bleak picture for Africa. These forecasts did not come true as sadly anticipated. However, the pandemic disrupted trade and supply chains, as many countries imposed restrictions on the movement of goods and people, have led to a sharp decline in tourism activities. The African Union estimates that the continent lost approximately $55 billion in tourism revenue in 2020 due to the pandemic. This has resulted in a significant loss of jobs and income for individuals and businesses that rely on the tourism industry.
Furthermore, the pandemic has also affected the education sector, leading to the closure of schools and universities. This has resulted in the disruption of learning and the loss of opportunities for young people, particularly those from disadvantaged backgrounds. The impact on the education sector is expected to have long-term effects on the human capital development of the continent. Also, with 33.3 recorded fatalities per 100,000 persons during the first wave between May and August 2020, South Africa had the highest mortality rate among the 44 nations in the WHO’s African Region[2]. Followed by Cape Verde and Eswatini, with 17.5 and 8.6 deaths per 100,000 people, respectively. Uganda had the lowest mortality rate, with 0.26 recorded fatalities for every 100,000 people.[3]
WEEKLY AFRICA TRADE POLLS (SECOND WEEK MARCH, 2023)
As a result of this frame of reference, Africa International Trade and Commerce Research (AITCR) conducted a weekly trade poll for African countries to evaluate public opinion and generate responses on the impact of Covid-19 on trade and the African economy. Finding from the polls, reveals that 88 percent of the respondents assert that the impact of Covid-19 on trade and the African economy was “highly destructive”, 12 percent opined that it was “little destructive” while no respondent indicated that it was “not destructive”. Thus, there is a unanimous agreement about the devastating effects of the Covid-19 pandemic on the African continent.
According to Africa International Trade and Commerce Research findings, the impact of Covid-19 on trade and the African economy was devastating, owing to the lack of preparation and poor infrastructure on the continent. Here are a few policy recommendations for African governments to adopt in order to accelerate the continent’s recovery from the pandemic’s effects:
- Within a coordinated global response to the crisis, fiscal and monetary measures should be used to channel liquidity to Small and Medium Enterprises (SMEs), households, and informal sector workers, particularly in the most vulnerable countries.
- Improve access to finance: Many small and medium-sized enterprises (SMEs) in Africa have been severely impacted by the pandemic due to a lack of access to finance. Governments and development partners should increase support for SMEs by providing access to finance, grants, and other forms of financial assistance.
- Promote regional trade: The African Continental Free Trade Area (AfCFTA) secretariat effort should be sustained with adequate reforms from state parties. Regional trade within Africa has the potential to reduce the continent’s dependence on external markets and increase economic resilience. Governments should focus on promoting regional trade by removing trade barriers, harmonizing regulations, and investing in transport infrastructure.
- Digitalization policy: The pandemic has highlighted the importance of digitalization in facilitating trade and commercial activity. Governments should prioritize enabling policies and investments in digital infrastructure and promote the adoption of digital technologies among businesses to reduce transaction costs and improve efficiency.
- Invest in health systems: African governments should collaborate with the international community and other stakeholders to improve health systems and provide residents with social protection and health care. The pandemic has exposed the weaknesses of health systems in many African countries. Governments should prioritize investments in health systems, including increasing funding for healthcare, improving access to healthcare services, and investing in healthcare infrastructure.
- Strengthen social safety nets: The pandemic has led to job losses and increased levels of poverty and vulnerability. Governments should strengthen social safety nets by increasing access to social protection programs, including cash transfers and food assistance.
In conclusion, the weekly trade poll reveals that the devastating impact of COVID-19 on trade and commercial activity in the African economy requires a comprehensive response that includes both short-term and long-term measures. By implementing these recommendations, African governments can help mitigate the pandemic’s impact and build more resilient economies for the future.
…………………
For more information and clarification
Tel: +2349058603907
Em: mail@africainternationaltrade.com
[1] Assessing the Impact of COVID-19 on Africa’s Economic Development | UNCTAD
[2] Africa and COVID19: Impact, Response, and Challenges to Recovery | ORF (orfonline.org)
[3] https://www.weforum.org/agenda/2021/10/why-africa-must-gather-its-own-data-to-tackle-the-pandemic/
