Theme: Livelihood Insecurity & Economic Impact

Professor Wiseman Nkuhlu provides an overview of the AU COVID-19 Response Fund

In recent weeks, as some African countries have commenced with the easing of lockdown and emergency measures – mainly to address the devastating effects of the pandemic on economies – various issues and trends have started to emerge that impact the relations between citizens and institutions.

It has been more than 130 days since the first reported case of coronavirus (COVID-19) in Africa. When many were still trying to comprehend the outbreak of COVID-19, at the African Union (AU) we immediately adopted the ‘new normal’. The 13 consultations we convened with over 400 youth from 42 African countries were eye-opening on both the challenges and innovations by African youth in fighting the virus.

It is now clear that the elderly is the age demographic most vulnerable to COVID-19. It is estimated that the disease kills 13.4% of patients aged 80 and older, 8.6% of those in their 70s, 4% in their 60s and 1.25% of those in their 50s. However, this data comes primarily from developed countries with resilient healthcare systems. In less-developed countries, which have shorter life expectancies, high levels of pre-existing conditions known to worsen outcomes and generally weaker healthcare systems, mortality is likely to rise earlier.

The African Union (AU) Commission Chairperson, Moussa Faki Mahamat, has highlighted that the continental body will focus on the economic, humanitarian and health dimensions of the COVID-19 pandemic. In this formula, the problem of Africa’s external debt is recognised as an important component of the economic dimension of the COVID-19 crisis.

There is no simple exit strategy for each African state. However, the UNECA report has prioritized the need to ensure that there are sound governance strategies that are put in place to respond to COVID-19.

The corona virus has demonstrated that we can do many things that seemed impossible before. We are now allowed to think it is possible to contemplate a different set of rules and norms. There is a dramatic return to Keynesian policies by those who once kept at arm’s length what they considered a sin: to recognize public services as public goods that are to be properly funded. Treating them as investments in social capital instead of as liabilities. There is now a recognition that the key role of the state is back.

While COVID-19 is a global challenge, Africa is especially vulnerable to the associated economic disruptions.

COVID-19 may have started as a public health emergency, but at this stage, the measures taken to contain the crisis have developed into an economic crisis, that has more of an impact on people’s livelihoods than the virus itself.

African governments face a challenging dilemma, finding the optimal balance between the need to contain the virus by limiting direct social-contact, protecting the economy and ensuring that people’s basic needs are met. It is becoming clear that the lockdowns most African governments have adopted to contain the virus are having a disproportionate impact on the poor and most vulnerable in our societies.