This was disclosed by ECA’s Executive Secretary, Vera Songwe.
According to her, COVID-19 was inevitably impacting Africa’s trade having already strongly hit Africa’s major trading partner, China.
She said, although a few COVID-19 cases had been reported in some 15 countries far, the crisis was set to deal African economies a severe blow.
The ECA boss said pharmaceuticals, imported largely from Europe and other COVID-19 affected partners from outside the continent, could see their prices increasing and availability reduced for Africans.
She said with nearly two-thirds of African countries being net importers of basic food, shortages are feared to severely impact food availability and food security.
“Furthermore, negative consequences are expected to worsen if COVID-19 develops into an outbreak in Africa.
“They include the disruption of global supply chains,” said Ms Songwe, adding that the continent’s interconnectedness to affected economies of the European Union, China and United States was causing ripple effects”.
Songwe said COVID-19 could reduce Nigeria’s total exports of crude oil in 2020 by between US$14 billion and US$ 19 billion.
The ECA estimates COVID-19 could lead to Africa’s export revenues from fuels falling at around US$ 101 billion in 2020.
She said this would result in a decline in FDI flows; capital flight; domestic financial market tightening and a slow-down in investments – hence job losses.
“In addition, a decline in commodity prices could lead to fiscal pressures for Africa’s economic power houses such as Nigeria, South Africa, Algeria, Egypt and Angola,” she said.
This is as trading within the African Continental Free Trade Area (AfCFTA) is set to commence in July.
He also urged African countries who export drugs to prioritise selling on the African market.
“The ECA, in a presentation on the economic effects of the COVID-19 on Africa, suggests African governments could review and revise their budgets to reprioritise spending toward mitigating impacts of COVID-19 on their economies.
“As a safety net, the think tank is urging governments to provide incentives for food importers to quickly forward purchases to ensure sufficient food reserves in key basic foods items,” he said.
“As a safety net, the think tank is urging governments to provide incentives for food importers to quickly forward purchases to ensure sufficient food reserves in key basic foods items,” he said.
his would manifest with oil exporting nations losing up to US$ $65 billion in revenues as crude oil prices continue to tumble.