Rwanda has declared a blockade, no movement allowed
Uganda closed its borders, banned public transport and imposed a curfew.
South Africadeclared lockdown, unnecessary movements are not allowed
Nigeriaimposed lockdown in key urban areas, including Lagos
Kenya imposes curfew, restrictions between populated areas
To varying degrees, several African governments have placed restrictions on their citizens from curfews to social distancing, from travel bans to a prohibition on alcohol sales.
Seen by some as crucial to stop the spread of coronavirus, the measures have been met with different levels of success and in many cases have had to be adapted.
But they come with their caveat.
“Social unrest is very likely if the measures are accompanied by stronger supports and social safety nets for vulnerable populations,” said Brahima Sangafowa Coulibaly, senior fellow and director of the Africa Growth Initiative at the Brookings Institution.
“Confined populations may face an uncomfortable choice between the certainty of starvation or some threat of death from Covid-19, unless the government steps up relief efforts. “
Another result of the virus will be the increase in the debt repayment bill.
Falling commodity prices, weak currencies and emerging deficits mean African governments are spending more on their debts than on physical care.
The undeniable answer is that creditors are offering debt relief. And this week, that’s what has been announced for at least a quarter.
The IMF has announced that it will provide debt relief to 25 countries, bringing the total to 19 in Africa. The six-month suspension of interest bills is going some way to meeting Ethiopia’s recent appeals, but it is a small component of the picture.
There has been no announcement on long-term debt restructurings and cancellations for the poorest African countries.
Reaching this level is more than before.
Nearly a quarter of a century ago, when the IMF and World Bank established the Heavily Indebted Poor Countries (HIPC) Debt Relief Program, African nations generally owed cash to multilateral countries and institutions.
But today, personal lenders play a much more vital role, as illustrated by the rise in Eurobond issuances, purchased through personal investors, through African governments over the past decade.
It is not clear that personal lenders and Eurobond holders are willing to immediately waive interest payments.
“Without a doubt, design makes things harder. But let’s do what we can,” said Masood Ahmed, president of the Center for Global Development in Washington.
The IMF and the World Bank have put about $64bn of global aid on the table to fight coronavirus. Ethiopia says that is not enough and that at least $150bn is needed in Africa alone.
While rich countries can afford low interest rates to finance massive stimulus systems designed to weather the coronavirus economic typhoon, this option is not within the reach of most African countries.
African central banks have cut interest rates, but because fewer people have mortgages and bank loans than in more evolved economies, it doesn’t have the same impact.
South Africa has also said that it will put $66m aside to help small-scale farmers, so that food production can be supported. Other African governments, like Nigeria, have pledged financial support for the most vulnerable people, but there is not much evidence of this so far.
But if governments borrow more, debt payments will rise. Tim Jones of the Jubilee Debt Campaign argued that, for this reason, the answer is simply to deliver more monetary aid.
“Without a moratorium on debt payments, cash will not stay in the country. It will be used to pay creditors,” he said.
So far, Africa appears to have escaped the immediate escalation of infections that has characterized outbreaks in some European countries and the United States.
Many believe Africa is experiencing the lull before the storm in this sense.
But economically, the continent is already feeling the effects of the coronavirus with job losses and a deep slowdown in activity, which could push parts of Africa further into life-threatening poverty.
Some observers are already suggesting that more lives could be lost in the fight against Covid-19, than to the disease itself.
To put an end to this, Abebe Aemro Selassie, head of the IMF’s Africa department, believes policymakers want to think outside the box.
“This is not the time to take partial action,” he said.
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