Answer to Question #217207 in English for Tinyeko

Question

Taking action and communicating step on the socio-economic impact of COVID19 in South Africa.

Answer 1

Although the number of COVID-19 cases and deaths in Africa may appear to be lower than in other parts of the world, the looming health shock of COVID-19 could have severe consequences for the continent's already stretched health systems, fast turning into a social and economic emergency. The COVID-19 shock to African economies comes in three waves, in addition to health risks: 

(i) lower trade and investment from China in the immediate term;

(ii) a demand slump associated with the lockdowns in the European Union and OECD countries;

(iii) a continental supply shock affecting domestic and intra-African trade. It is shaking commodity-driven growth models that had largely failed to create more and better jobs or improve well-being.

On the health front, more testing, protection, treatment, and cure capabilities are required. Policy actions on the socioeconomic front should cushion income and job losses while addressing the special issues of high informality.