The Post-COVID-19 Economic Challenges for the African Continent

The global pandemic is a health crisis causing enormous human suffering and dramatic economic damage, with lasting negative effects for Africa. Even before COVID-19, the continent was expected to have the largest number of people below subsistence poverty in the coming decade, to exhibit the most rapid rate of urbanization among regions, and to face the most dramatic challenges of development. Pre-COVID-19, there were many pundits pointing to the excessive debt levels of many Sub-Saharan African economies, with concerns rising over debt sustainability. Overall, Emerging Market and Developing Economies (EMDEs) over-borrowed to reach debt levels of $55 trillion or more than 165% of their combined GDP according to the World Bank’s latest analysis.

Author: Danny Leipziger

Publication: Milken Institute | COVID-19 Africa Watch | May 2020