Will the African countries manage to control and minimise the spread of the covid -19? Are they understanding how the virus spread?
The way corona virus is spreading and killing thousands of people in the process may cause the sub- Saharan African countries to fall into their first recession after 25 years.
Most countries economy is dependent on trade that is they relay mostly on importing and exporting goods in order to generate revenue.All have been put to a halt since many boarders are closed and the trade can not go on.Countries like south Africa,Zimbabwe and Angola to mention just a few their economies have been greatly affected.
It has been estimated by the world bank that if things remain as they are now or change for the worse the growth of economies will move into the negative from the current 2.4 % leading to food shortages.
This pandemic has lead to the closure of the tourism industry and it is going to cost the region billions of money all lost to output due to the decrease in price.
This pandemic has caused many countries to resort to debt inorder to sustain it’s citizens.Countries like Nigerian and Kenya have both started applying for emergency funding each hoping to get $7bn and $1.2bn respectively.Kenya’s economy was already in tumbles before the virus but the pandemic could live the countries finance’s on a point of no return.It is also with great worry that the healthcare system will not stand a chance against this pandemic.
The chief executive officer at mHealth Kenya, Dr Cathy Mwangi shared her worries with Al Jazeera on the impact the covid-19 could cause on Africa’s healthcare systems.
The world as it is at the moment it is oversupplied with oil.Can $20 a barrel be satsifiying enough to the Gulf oil producers.It is also not certain if the price will remain constant at $20 or it may end up going down from there.This would shaken the financial sector of many opec members and more than half of United States shale producers will be forced to close.
If the worse happens and the oil prices fall to $10 many nation’s will make a losses however the oil-rich monarchies of the Gulf will still be able to make a profit out of it.
Before the covid-19 pandemic the IMF cautioned that Arab monarchies were most likely going to squander their $2 trillion in wealth within a period of 15 years.
The senior director of asset management at Al Rayan Mr Akber Khan, gave a detailed overview of the effect a price drop on oil could affect Gulf oil producers.
The European Union agreed to a $544bn package to assist countries heavily affected by the virus, but however they stopped as demanded by Italy and France.
Even though this is a good gesture many observers believe that the package won’t be enough to rescue economies after this pandemic .
The power- broker of the European Union Germany is strongly against the sharing of debt.