Connect with us

General News

Kenya: As COVID-19 Wreaks Havoc, Lake Victoria Breathes a Sigh of Relief

Published

on

[ad_1]

The coronavirus pandemic continues to hammer us all. In addition to the deaths, and infections, it will leave very many penniless and jobless.

The African Union (AU) has done some modelling, which has a worst-case scenario of 20 million jobs in the formal and informal sectors being lost in Africa.

Up to 15 per cent of foreign direct investment could disappear, it says, and African governments could lose up to 20 to 30 per cent of their fiscal revenue, estimated at $500 billion in 2019.

AU projects that exports and imports could drop at least 35 per cent from 2019 levels, incurring a loss in the value of trade of around $270 billion. This as they increase public spending to deal with the pandemic by at least $130 billion.

Africa’s tourist sector, which has ground to a halt with borders closed and airlines grounded, will be particularly hard hit. Countries where tourism constitutes a large part of GDP will see their economies contract by an average of 3.3 per cent this year, and where it is the only game in town, economies could shrink by at least seven per cent.

Coronavirus has put constraints on presidential power in ways no forces has done for generations.

Some governments are distributing the largest amounts of free food in the history of their countries to populations in lockdowns, and big men who used to personally hand out a sack of food, aren’t showing up to flag off the goodies.

Presidents who used to directly dole out envelopes stuffed with cash from as low as $50, can’t dare step out and distribute $5 million to the halloi polloi.