There is no gainsaying that the novel coronavirus disease has wreaked havoc on our planet. The ever-soaring death toll and the absence of a vaccine leave the world grasping at flimsy answers. The global economic disruption that COVID-19 has brought about is crippling most economies and businesses. Unemployment is at a record high.
For the so-called First World – the advanced economies of Asia, Europe and North America – the easy choice is to inject colossal financial stimulus packages into their economies. The bailouts, measured in trillions of dollars, are propping up failing industries and businesses hit even harder by local lockdowns.
Africa and its poorer developing economies, many of which are carrying huge debt burdens, face an uphill task to recover from the seemingly permanent pandemic without the benefit of any substantial fiscal stimulus. Indeed, the continent faces its first recession in 25 years. A World Bank report published in April said that Africa will suffer a GDP contraction of between 2% and as much as 5.1%, directly as a result of the pandemic.
But if every storm has a silver lining, are African leaders seeing a silver lining to the clouds brought by the storm of COVID-19? So far, the continent has somehow avoided the worst-case health outcomes predicted by some experts.
There have been fewer COVID-related deaths than anticipated, contributing minimally to global fatalities. But, as with everywhere else in the world, lockdowns have stripped an estimated 75% of Africa’s working population of their livelihoods. Most of the workers affected earn their living in the informal sector.
Bring down the barriers
Africa’s fortune in the misfortune of this COVID-19 pandemic lies in itself. There has never been a better time for leaders of the continent to put all the lip-serving choruses about boosting intra-African trade into action.
Africa has the greatest investment potential of all emerging markets globally and myriad natural resources that are more than enough to meet every one of the continent’s economic needs.
Africa has an abundance of natural resources – diamonds, gold, oil, natural gas, uranium, platinum, copper, cobalt, iron, phosphates, bauxite – and grows a wealth of valuable crops, from cocoa and cotton to tobacco and. It also has sovereign wealth funds, pension funds, foreign reserves, remittances, a youthful population, vast expanses of arable land, tourism, wildlife etc. Indeed, Africa’s wealth is unmatched. The continent’s bane has been its misguided and poor leadership.
The countries of Africa can assume the commanding heights of economic freedom, create jobs and propel the people into wealth and prosperity if and when the current crop of leaders on the continent use the continent’s resources as a leverage for investment, growth and debt servicing. Leaders must start talking to each other and remove all trade barriers to make this work.
See past the disguise
Ghana’s president, Nana Addo Dankwa Akufo-Addo, showed leadership by proclaiming a “Ghana and Africa Beyond Aid” agenda.
He followed through to help create the African Continental Free Trade Area (AfCFTA), and Ghana was chosen as the base for its secretariat. AfCFTA shows all the signs of being a harbinger of an Africa rising beyond aid.
Let us in Africa not waste this pandemic. Let us seize the moment to turn the fortunes of the continent around.
Many opportunities come disguised as challenges. Can we Africans see the silver lining amid the turbulence?
Papa Kow Manu
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