Many African countries could default on debt payments due to increasing repayment costs, precipitated by weak currencies, a ripple effect of the pandemic. But it may also spark digitalization across the continent.
A new study projects many African countries are likely to suffer from a shrinking economy as a result of the coronavirus outbreak. In 2020 alone, African governments are estimated to lose US$45 billion (€39.7 billion) in revenue — due in part to the pandemic but also as a result of a fall in oil prices.
However, the study also highlights a potentially bright future for African economies if governments don’t just rely on emergency measures to fight the pandemic and instead focus on building resilience and focusing on prospects for long-term growth by putting more resources towards health and basic infrastructure.
