{"id":12833,"date":"2022-05-15T20:21:22","date_gmt":"2022-05-15T20:21:22","guid":{"rendered":"https:\/\/www.africa-press.net\/ethiopia\/all-news\/economic-report-on-africa-addresses-continents-vulnerability-during-covid-19"},"modified":"2022-05-15T20:27:07","modified_gmt":"2022-05-15T20:27:07","slug":"economic-report-on-africa-addresses-continents-vulnerability-during-covid-19","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/ethiopia\/all-news\/economic-report-on-africa-addresses-continents-vulnerability-during-covid-19","title":{"rendered":"Economic Report on Africa Addresses Continent\u2019s Vulnerability During COVID-19"},"content":{"rendered":"

Africa-Press – Ethiopia. <\/strong><\/span>s Ababa May 15\/2022 \/ENA\/ The disruptions caused by the COVID-19 pandemic pushed an estimated 55 million Africans into extreme poverty in 2020 and reversed more than two decades of progress in poverty reduction on the continent.<\/p>\n

This is according to the Economic Report on Africa 2021(ERA2021) launched today on the margins of the Economic Commission for Africa\u2019s annual Conference of Ministers of Finance, Economic Planning and Development (CoM2022) in Dakar, Senegal.<\/p>\n

Titled: \u201cAddressing Poverty and Vulnerability in Africa during the COVID-19 Pandemic\u201d; the report shows that pandemic has caused job losses, reduced income and further limited the ability of households to manage risks.<\/p>\n

An estimated 12.6 percent more people are likely to be pushed into poverty in one year alone more than the combined total of the additional poor since 1999.<\/p>\n

Furthermore poor households move into and out of poverty because of exogenous shocks like the COVID-19 pandemic and that their inability to manage uninsured risks only increases their vulnerability. So, achieving sustained poverty reduction requires thoroughly understanding the nexus of poverty, risks and vulnerability, the report emphasized.<\/p>\n

\u201cUnder current projections, the pandemic is likely to increase the number of people living in extreme poverty, in Africa and globally,\u201d says the report.<\/p>\n

ECA Deputy Executive Secretary, Hanan Morsy said the report analyses the implication of COVID-19 in terms of poverty, but brings a new dimension stressing the vulnerability in Africa.<\/p>\n

She added that it brings the element of people centric analysis of what has been happening during COVID-19 and what we need to do to ensure that the vulnerable populations are protected in terms of social safety net and putting up the right policies.<\/p>\n

\u201cThis report is particularly relevant given to what we have seen as the implications on the continent. The most critical implication of COVID-19 has been the reversal of the very hard-won gains that the continent had managed to achieve in reducing poverty,\u201d said Morsy.<\/p>\n

Presenting the key findings of the report, Economic Affairs Officer at ECA Adrian Gauci said African countries responded to the poverty effects of the COVID-19 pandemic in part through expansionary fiscal and monetary policies to maintain consumption and aggregate demand and prevent firm closures and job losses.<\/p>\n

Gauci noted \u201ca major contribution of the report is the emphasis on the centrality of risk and vulnerability to shocks in the design of poverty reduction strategies in Africa.\u201d<\/p>\n

Moreover Gauci stressed \u201cthe report calls for an urgent need to explore innovative and affordable market-led insurance schemes which can insure the poor from future shocks. Collaboration of governments with the private sector is paramount.\u201d<\/p>\n

The African Continental Free Trade Area (AfCFTA) is an opportunity to build forward better Most African countries still depend on exports of raw materials and on imports of essential goods such as food items and pharmaceuticals, the report pointed out.<\/p>\n

According to the report, intra-Africa trade is expected to be about 35 percent higher than without the grouping by 2045 if AfCFTA is effectively implemented.<\/p>\n

\u201cThe AfCFTA would help Africa industrialize and diversify, reducing trade dependence on external partners and boosting the share of intra-Africa trade from roughly 15 per cent today to over 26 percent.\u201d<\/p>\n

Africa\u2019s fiscal deficit narrowed from 5.3 percent of GDP in 2017 to 3.0 percent in 2019, mainly because of government fiscal consolidation efforts.<\/p>\n

The share of global exports decreased from 2010 to 2019 in Africa but increased in other global regions. The continent\u2019s share fell from 2.48 percent in 2019 to 2.14 percent in 2020, though Asia and Europe were resilient, owing partly to continued supplies of consumer goods and medical goods during the COVID-19 pandemic.<\/p>\n

The report recommends that African governments should adopt targeted social protection; provide short-term social assistance to the most vulnerable people; ensure health protection for all.<\/p>\n

The report was produced by ECA\u2019s Strategic Planning, Oversight and Results Division; the Gender, Poverty and Social Policy Division; and the Macroeconomic and Governance Division.<\/p>\n

For More News And Analysis About Ethiopia<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Ethiopia. s Ababa May 15\/2022 \/ENA\/ The disruptions caused by the COVID-19 pandemic pushed an estimated 55 million Africans into extreme poverty in 2020 and reversed more than two decades of progress in poverty reduction on the continent. 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