How COVID-19 Is Affecting African Economies

Lagos at night. By Chukwuka Tolulope Obu from Wikimedia Commons.

Lagos at night. By Chukwuka Tolulope Obu from Wikimedia Commons.

So far, there have been fewer COVID-19 cases and deaths in Africa than expected. But the pandemic has resulted in major resource problems.

African communities and governments mobilized quickly to fight COVID-19. Many countries have successfully imposed lockdowns and quarantines in order to limit community transmission. Nevertheless, cases and deaths continue to increase across the continent.

In addition to the disease itself, the coronavirus has brought deep economic hardship to Africa in three key ways.

  • Prices for African commodity exports have decreased dramatically because of reduced economic activity in industrialized nations. This has reduced government revenue available for public health and pandemic management.

  • Africans living in the industrialized world in diaspora communities normally send remittances to their families in Africa. Because so many workers have lost their jobs in the United States and Europe, these remittances have been greatly reduced. This has made it increasingly difficult for African families to purchase food and other necessities, which are especially important in the pandemic. Most African workers can't afford to miss a single day of work – stockpiling food and everyday essentials is typically not an option in the best of times.

  • The uncertainties of COVID-19 have resulted in capital flight from Africa, further reducing the resources available to manage the pandemic, alleviate suffering, and control the economic fallout.

The complex impact of COVID-19 on Africa requires a multifaceted response. One of the most important contributions that the U.S. government can make is to supply surplus food under the P.L. 480 program, which allows African nations to purchase U.S. food exports in their own local currency. Use of P.L. 480 as part of a broader food aid program would go a long way towards ameliorating the widespread hunger which Africa is facing as a consequence of the pandemic.