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Coronavirus may weigh on African economies for three years

Continent may need $100 billion stimulus package.
Nigeria naira notes. Image: Shutterstock
It may take three years for African economies to recover from the slowdown brought by the Covid-19 pandemic, according to the continent’s finance ministers.

Development partners should consider debt relief over a two- to three-year period for all African nations, the ministers said in a statement following a meeting with the United Nations Economic Commission for Africa. They also want a special purpose vehicle created to deal with all sovereign debt obligations, according to the statement.

Last month, the ministers agreed that the continent needs a stimulus package of $100 billion to face the economic crisis wrought by the virus. The package amount includes $44 billion in debt-servicing waivers.

© 2020 Bloomberg L.P.
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Am now waiting for positive comment to this article, especially from our ever-optimist commentator, “Dadape”….

The ANC shills, like Dadape, definitely have a script that they stick to come rain or shine.

To be a fly on the wall at Luthuli House…

…yup, like a ‘happy’ fly on a fresh excrement of dog poop.

“Special purpose vehicle” means what?

Something like we need preferential treatment. Like we need “special” rates? Because we are a “special” case?

How did they get to a number? Problems barely started here?

Wonder if the “Professor” from Zim was present. That would explain a lot.

He is a “special” case.

What ever happened to the “Nene” bank? Why don’t they get a “special” vehicle from there?

Correction. The slowdown isn’t caused by the virus. The contraction and financial catastrophe were caused by the reaction to the virus. There is nothing particularly devastating about the virus per se. This is the 19th coronavirus to be named by scientists. The SARS(severe acute respiratory syndrome) was caused by coronavirus-2. We are currently surrounded by the 18 previous strains of the coronavirus. One of them is sitting on your shoulder right now.

Africa has dealt with other coronaviruses, AIDS, TB, drug-resistant TB, Malaria, Cholera, Hepatitis B, typhoid fever, dengue fever, Ebola, bilharzia and Flue for centuries and none ever led to a financial meltdown. This is the first time governments tried to outdo each other with over the top measures of infringements on individual liberties and property rights. The virus is an excuse to deprive people of their right to property, the right to the fruits of their labour, the right to sell their labour to whom they want when they want.

The virus is an excuse for governments to become authoritarian as part of their false promise to protect people from themselves. This arbitrary act of interference with the liberties of individuals includes the use of unproven, inaccurate and incomplete models of the spread of disease. The action of governments is based on thumb-suck and not facts.

The government makes a decision, on your behalf, about the status of your immune system. Then it restricts your movements and opportunities to protect you from your own “destructive” instincts.

In a free, individualist society, every person is responsible for himself. In a socialist or collectivist society, nobody is responsible for himself but everybody is responsible for the group. In a socialist society, people are regularly forced, against their will and against their financial interests, to act in the interest of the group.

The modern economy was built on individualism, property rights and freedom of choice. The modern economy was not built for lockdown. Lockdown will inevitably take society back to subsistence farming.

….a very well thought out comment

3rd and 2nd paragraph from the end… the poor souls living in shacks, 2m x 2m on average. Has the government not thought of the mental consequences of home arrest for these people. Will this really prevent them from contracting?

Is not advice on hygiene and advice not gathering in more than twos, but allowing of movement not a more viable option for the majority

This is not an exercise in experiment, its a ego eccentric move to prove a farcical point to the world

I made a mistake, sorry. Covid-19 was named with reference to the year 2019, not because it is the 19th covid virus. There are many coronaviruses, however.

Let me understand this..

The WHO, branch office of UN tells the world the virus is containable and countries should keep borders open from Jan- Feb 2020.

Three months later they suggest we need a $100 billion stimulus package and 3 years to recover that?

So if they did their job in the beginning no one would be going bankrupt & no stimulus required?

This is the coverup of our lifetimes.

End of comments.

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