COVID-19 in Africa: socioeconomic impact, policy response and opportunities

Peterson Ozili

MPRA Paper from University Library of Munich, Germany

Abstract: The COVID-19 or coronavirus pandemic which has affected the global economy has also affected the African economy through spillovers to African countries. Many African countries have taken bold quarantine and lockdown measures to control the spread of COVID-19 although this has come at a cost such as the collapse of health systems and a painful economic crisis or recession. A coordinated and bold response by African authorities is needed. First, public funds should be provided to improve the capacity of health systems in African countries. Second, financial support should be provided to individuals, entrepreneurs and corporations to help them cope with the adverse effect of the coronavirus crisis. Third, employers should be granted incentives to preserve employment during the crisis to avoid mass layoff of workers. Finally, the Central bank in African countries should provide liquidity and credit support as well as asset purchase programs to prevent credit and liquidity crunch in domestic financial markets.

Keywords: Africa; COVID-19; Coronavirus; SARS-CoV-2; outbreak; pandemic; economic crisis; financial crisis; global recession; public health; spillovers; monetary policy; fiscal policy; liquidity provision; Central banks. (search for similar items in EconPapers)
JEL-codes: G18 G20 G23 I1 I15 I18 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-afr and nep-hea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (49)

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