Research experts have warned that the COVID-19 pandemic in Africa could further constrain the continent’s sustainable development if the right actions are not taken to deal with the virus. They were speaking at a session called: “The implications of COVID-19 for sustainable development in Africa – the environment and economic transformation’ on Tuesday, the first day of the African Economic Conference (AEC) 2020 virtual event. The African Development Bank (AfDB), the United Nations Economic Commission for Africa (UNECA) and the United Nations Development Programme (UNDP) are hosting the event.
Yohannes Hailu, from the Private Sector Development and Finance Division at UNECA, said “COVID-19 has presented numerous challenges to the sustainability of African economies most especially regarding social, economic and environment. It’s time for Africa to build resilient economies based on the right post-COVID-19 approaches.” He added that to help address the devastating economic and social consequences of the pandemic, a comprehensive global response package is needed.
Abdulrasheed Isah, who presented a research paper titled; “How is COVID-19 Pandemic Affecting Electricity Access in Africa? Evidence from Nigeria,” said that the country has an energy access plan in place as part its economic recovery strategy from the Coronavirus. Isah suggested that African countries should consider reducing the cost of electricity for consumers, to help mitigate the economic challenges of COVID-19, especially on small and medium scale companies.
The session brought together research experts, officials and economists, all sharing ideas about how to build resilient African economies post the COVID-19 pandemic.
Another expert, Adebayo Ogunniyi from Nigeria, said that Small and Medium Enterprises (SMEs) across the continent, but especially in Nigeria, have suffered severe setbacks, with sales and production particularly hard hit. He said, “There have been temporary reductions in employment opportunities, most especially in the construction and manufacturing sectors, due to the outbreak of COVID-19 and the resultant lockdowns. Ogunniyi added that the majority of SMEs in Nigeria had temporarily closed during the first COVID-19 outbreak, which took a heavy toll on employees, and owners and their families. He stressed that if the right actions to address the impact of COVID-19 are not properly implemented in Africa, the pandemic will continue to negatively affect SMEs, and significantly reduce government revenue.
Yesuf Muhamednur Awel from the UNECA Macroeconomics and Governance Division, said that COVID-19 has compelled African businesses to rethink their strategies and plans as they recover from the pandemic shock. He called on countries in Africa to create conditions that will enable entrepreneurship and innovation to thrive in the post-COVID-19 environment.
The 2020 AEC, with the theme, “Africa beyond COVID-19: accelerating towards inclusive sustainable development" is jointly organized by the UNDP, UNECA and the AfDB.
The virtual conference brings together various stakeholders, including policymakers and researchers, to examine the socioeconomic impact of COVID-19 and measures to mitigate and recover from the pandemic.
In particular, the conference is focusing on how African countries can build resilience and be better prepared to deal with future impactful events.
It will offer best practices from Africa and elsewhere, on how African economies can accelerate progress towards achieving the Sustainable Development Goals and the aspirations of Agenda 2063.
By Frank Kanyesigye