{"id":16955,"date":"2022-07-04T14:56:08","date_gmt":"2022-07-04T14:56:08","guid":{"rendered":"https:\/\/www.africa-press.net\/lesotho\/all-news\/africas-failure-would-be-the-worlds-failure"},"modified":"2022-07-04T15:30:11","modified_gmt":"2022-07-04T15:30:11","slug":"africas-failure-would-be-the-worlds-failure","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/lesotho\/all-news\/africas-failure-would-be-the-worlds-failure","title":{"rendered":"Africa\u2019s failure would be the world\u2019s failure"},"content":{"rendered":"<p><span style=\"color: #ff6600\"><strong>Africa-Press &#8211; Lesotho. <\/strong><\/span><a name=\"start-reading\"><\/a>There is no doubt that the coronavirus pandemic will bring about the most significant global economic changes that will be felt for generations.<br \/>\nWe see this with every new report of rising fatalities and closing businesses. For most countries, the impact will be severe, but for developing countries \u2013 and those in Africa in particular \u2013 it could be catastrophic. I welcome the funding efforts that are now gathering momentum to shore up fragile health systems across Africa.<br \/>\nIf health sectors in developed countries are buckling under the unbearable weight of COVID-19, one can only imagine the impact on the health sector in certain African countries, in some cases still reeling from the Ebola epidemic.<\/p>\n<p>United Nations Secretary-General <a href=\"https:\/\/news.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;un.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;org\/en\/story\/2020\/03\/1060702\">Antonio Guterres has described<\/a> the COVID-19 crisis as the most significant test humanity has faced since World War II.<\/p>\n<p>He called for the creation of a $2bn fund to support the most vulnerable countries during this crisis. But the cost of the coronavirus pandemic on the global economic system will require substantially more.<\/p>\n<p>What developing countries need, in addition to support for their health sectors, is support to keep their economies afloat and protect micro, small and medium-sized enterprises (MSMEs) from going out of business.<\/p>\n<p>For every bankruptcy, closed store, unpicked crop or drop in online orders, people will lose jobs and families will, in many cases, lose their only income.<\/p>\n<p>The International Labour Organization, (ILO), recently predicted that 25 million jobs could be lost worldwide as a result of COVID-19. For Africa \u2013 which should be creating 12-15 million jobs annually to keep up with a growing population \u2013 these figures could be catastrophic. The global downturn risks putting the continent into a negative, downward spiral.<\/p>\n<p>A number of the exporting companies that my organization, the <a href=\"http:\/\/www.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;intracen.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;org\/\">International Trade Centre<\/a>, are working with have <a href=\"https:\/\/www.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;bloomberg.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;com\/news\/articles\/2020-03-19\/kenya-sees-2020-flower-exports-falling-by-half-on-coronavirus\">lost their incomes overnigh<\/a>t following a massive drop in demand from European customers.<\/p>\n<p>Take <a href=\"https:\/\/www.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;florenciablooms.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;com\/\">Florencia Blooms<\/a>, for example, a Kenyan flower grower and exporter ITC works with.<br \/>\nThe company is is now only exporting at 30% capacity and is increasingly unable to ship its produce given the air freight disruptions. Worse, COVID-19 has come during the industry\u2019s peak season, aggravating the impact.<\/p>\n<p>As Kenya\u2019s flowers wither, thousands of workers are at risk of losing their jobs. While developed countries have resources to stitch together social safety nets, people or companies in developing countries often have nothing to fall back on when the economy fails.<\/p>\n<p>Africa\u2019s banks will increasingly feel the heat, too, with the possibility that they will be unable to provide the much-needed life-support to MSMEs in the forms of loans, credits and debt relief in the long run, as they, too, may require funding to stay afloat.<\/p>\n<p>While <a href=\"https:\/\/business.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;financialpost.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;com\/pmn\/business-pmn\/south-africa-pumps-liquidity-to-banks-to-ease-coronavirus-stress\">pumping liquidity into banks<\/a>, as South Africa has done, will temporarily ease some of this pressure, there is only so much that such lifelines can do.<br \/>\nOther measures, such as the<a href=\"https:\/\/www.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;theguardian.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;com\/global-development\/2020\/mar\/25\/africa-leads-calls-for-debt-relief-in-face-of-coronavirus-crisis\"> suspension of debt-interest payments<\/a>, called for by African leaders as well as by the IMF and the World Bank, will lessen some of the stress on Africa\u2019s economies.<br \/>\nI join the call on creditors to temporarily waive principal payments for developing countries and the poorest and most vulnerable economies, including <a href=\"https:\/\/www.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;forbes.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;com\/sites\/daphneewingchow\/2020\/03\/31\/exploring-the-unique-impact-of-coronavirus-on-small-island-developing-states\/#77fbb62d2e17\">highly indebted small island developing states<\/a> dependent on tourism as their primary (or only) income.<br \/>\nCombined, these measures would provide some relief to African MSMEs, many of which are staring into the abyss. While some will inevitably fail, we must make sure that we save as many as possible. One way to do this is to ensure that investors remain engaged with Africa and African enterprises.<br \/>\nNew analysis from the <a href=\"https:\/\/unctad.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;org\/en\/pages\/newsdetails.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;aspx?OriginalVersionID=2313\">United Nations Conference on Trade and Development<\/a> suggests that foreign direct investment could drop by 40% this year as a result of the coronavirus pandemic.<\/p>\n<p>For Africa, that drop is likely to be much, much higher. I urge investors \u2013 both foreign and domestic \u2013 to play their part in ensuring that Africa\u2019s economies stay viable and sustainable.<\/p>\n<p>Now is the time for both the public and private sector to invest in Africa\u2019s MSMEs, help them overcome COVID-19 and help keep the operationalization of the African Continental Free Trade Area (AfCFTA) on track.<\/p>\n<p>And let us not forget that we have to keep <a href=\"https:\/\/www.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;piie.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;com\/blogs\/trade-and-investment-policy-watch\/yes-medical-gear-depends-global-supply-chains-heres-how-keep\">markets open for the trading<\/a> of goods, medicines and hygienic products that will help developing countries arrest the spread of the pandemic. Now is not the time to raise barriers. Trade must continue to function.<br \/>\nI welcome pledges by <a href=\"http:\/\/www.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;g7.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;utoronto.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;ca\/summit\/2020usa\/covid-200316.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;html\">G7 leaders<\/a> and <a href=\"https:\/\/g20.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;org\/en\/media\/Documents\/G20_Trade%20&amp;%20Investment_Ministerial_Statement_EN.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;pdf\">G20 trade ministers<\/a> to keep vital medical supplies and equipment, critical agricultural products, and other essential goods and services flowing across borders.<\/p>\n<p>As Roberto Azev\u00eado,<a href=\"https:\/\/www.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;wto.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;org\/english\/news_e\/news20_e\/dgra_30mar20_e.&lt;br&gt;&lt;\/p&gt;&lt;p&gt;htm\"> the Director-General of the World Trade Organization<\/a>, said: \u2018We want manufacturers to be focused on maximizing output, not figuring out how to source domestically, or whether imported materials or components will ever arrive.<\/p>\n<p>\u2019 It has been said repeatedly that we are all in this together and that global problems require global solutions.<br \/>\nOur immediate efforts will rightly centre on supporting fragile health systems. But we must also preserve businesses, jobs and livelihoods. If we allow Africa to fail, we all fail.<\/p>\n<p><strong>For More News And Analysis About <a href=\"https:\/\/www.africa-press.net\/lesotho\">Lesotho<\/a> Follow <a href=\"https:\/\/www.africa-press.net\/\">Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Africa-Press &#8211; Lesotho. There is no doubt that the coronavirus pandemic will bring about the most significant global economic changes that will be felt for generations. We see this with every new report of rising fatalities and closing businesses. For most countries, the impact will be severe, but for developing countries \u2013 and those in [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":16954,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,8,16],"tags":[242,233,246,245],"class_list":["post-16955","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-homepage-english","category-twitter","tag-africa","tag-africa-press","tag-africa-press-lesotho","tag-lesotho"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Africa\u2019s failure would be the world\u2019s failure - Lesotho<\/title>\n<meta name=\"description\" content=\"There is no doubt that the coronavirus pandemic will bring about the most significant global ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/lesotho\/all-news\/africas-failure-would-be-the-worlds-failure\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Africa\u2019s failure would be the world\u2019s failure\" \/>\n<meta property=\"og:description\" content=\"There is no doubt that the coronavirus pandemic will bring about the most significant global ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/lesotho\/all-news\/africas-failure-would-be-the-worlds-failure\" \/>\n<meta property=\"og:site_name\" content=\"Lesotho\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-07-04T14:56:08+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-07-04T15:30:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/lesotho\/sites\/62\/2022\/07\/postQueueImg_2-62c3075d98948.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"732\" \/>\n\t<meta property=\"og:image:height\" content=\"419\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/lesotho\/all-news\/africas-failure-would-be-the-worlds-failure#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/lesotho\/all-news\/africas-failure-would-be-the-worlds-failure\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/lesotho\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Africa\u2019s failure would be the world\u2019s failure\",\"datePublished\":\"2022-07-04T14:56:08+00:00\",\"dateModified\":\"2022-07-04T15:30:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/lesotho\/all-news\/africas-failure-would-be-the-worlds-failure\"},\"wordCount\":873,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/lesotho\/all-news\/africas-failure-would-be-the-worlds-failure#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/lesotho\/sites\/62\/2022\/07\/postQueueImg_2-62c3075d98948.jpg\",\"keywords\":[\"Africa\",\"Africa Press\",\"Africa Press-Lesotho\",\"Lesotho\"],\"articleSection\":[\"all news\",\"homepage-english\",\"twitter\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/lesotho\/all-news\/africas-failure-would-be-the-worlds-failure#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/lesotho\/all-news\/africas-failure-would-be-the-worlds-failure\",\"url\":\"https:\/\/www.africa-press.net\/lesotho\/all-news\/africas-failure-would-be-the-worlds-failure\",\"name\":\"Africa\u2019s failure would be the world\u2019s failure - 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