IMF Estimates Africa’s Recovery From COVID-19 To Cost $450bn

Managing director of the International Monetary Fund (IMF), Ms Kristalina Georgieva has said it will cost Africa about $450 billion economic growth rate to be at level it was before the advent of COVID-19 pandemic that resulted in economic downturn.

What that means in that the continent would need not less than the $450 billion in the forms of revenue and investment to return to the level it was in 2020 before the outbreak of the pandemic. Africa’s economic reportedly stood at 3.4 per cent in 2019 and was estimated to rise to 3.7 per cent in 2020 before the pandemic struck.

The IMF Boss now thinks policymakers have to come up with homegrown policies to tackle the effects of the COVID-19 pandemic. She emphasizes that the financial gap in Africa must be bridged in order not to be left behind by the rest of the world.

Georgieva made the remarks when she appeared on Celebrating Black History: An International View. Instead of focusing on the high rate of insecurity that has disrupted supply chain in some countries of the continent like Nigeria, Georgieva is worried that the pandemic has diverted attention from the problem of insecurity across Africa.

Her words: “The pandemic has diverted attention from insecurity.  What should have been concentrated on in Africa is insecurity.”

Also, director-general of the World Trade Organisation (WTO), Dr Ngozi Okonjo-Iweala who also spoke at the programme said On her part, director-general of the World Trade Organisation, Dr Ngozi Okonjo-Iweala said the global supply-chain disruption occasioned by the pandemic required the collaboration of all stakeholders to minimize its effects on world trade.

The WTO DG said there is need for re-globalisation to assist countries that are behind in the recovery process to be assisted in their efforts to return to significant positive growth.

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