Africa may lose 20 million jobs due to Corona

According to Reuters, a study by the African Union showed that African economies are already facing the effects of an imminent downward transformation of the global economy, a decline in oil and commodity prices and the collapse of the tourism sector.

So far, Africa has recorded only a small number of the total number of HIV infections that have infected more than a million people worldwide, according to a Reuters count.

Before the start of the epidemic, the African Development Bank expected that gross domestic product on the continent would reach 3.4 percent.

But in two scenarios presented by the African Union study, seen by Reuters and titled Corona’s Virus Impact on Africa’s Economy, GDP will Shrink.

According to what the AU researchers considered the most realistic scenario in their view, Africa's economy is expected to contract by 0.8 percent while the pessimistic scenario predicts a contraction of 1.1 percent.

The study also stated that up to 15 percent of foreign direct investment may disappear.

About 20 million jobs, in both the formal and informal sectors, are threatened by damage to the continent if the situation continues.

The study found that African governments could lose between 20 and 30 percent of their financial revenues, which are estimated to have reached $ 500 billion in 2019.

The study expected exports and imports to decline by at least 35 percent from 2019 levels, leading to a loss in the value of trade of about 270 billion dollars. This will be at a time when fighting the spread of the virus increases public spending by at least 130 billion dollars.

The continent's oil producers, who have seen their value of crude exports decline in recent weeks, will be among the hardest hit.

Nigeria and Angola, the two largest oil-producing countries in the sub-Saharan region, could lose $ 65 billion in revenue alone. It is expected that the oil-exporting countries of the continent will double their budget deficit this year, while their economies shrink on average three percent.

Countries that make up a large part of their gross domestic product will suffer from a contraction of their economies by an average of 3.3 percent this year. However, the economies of Seychelles, Cape Verde, Mauritius and The Gambia, the main tourist centers in Africa, are expected to shrink seven percent.

According to the medium scenario, the tourism and travel sector in Africa may lose at least $ 50 billion due to the Covid-19 epidemic and ...