Since the pandemic emerged and especially with Russia’s intervention in Ukraine, Africa has garnered significant attention. The dual impacts of these events, including disruptions to travel and trade, surging energy and food costs, and tighter monetary policies, have brought to light the inherent weaknesses within African economies. These shocks either worsened existing vulnerabilities or brought them to the forefront. Among these, the dominant issues are excessive debt and inadequate access to food, both of which carry economic, political, and societal implications.
In the year 2020, amidst the initial phase of the Covid-19 pandemic, the African economy faced a downturn due to sharp declines in commodity prices and remittances, coupled with the collapse of tourism in multiple nations. More broadly, persistent barriers to both international and domestic movement of people and goods, compounded by an inefficient global and local transportation infrastructure, played a substantial role in driving this economic decline.
Learn more here: https://www.coface.com/News-Publications/Publications/Debt-sustainability-in-Africa-under-the-spotlight-again
