By Stephen Ubanna
With barely six weeks of the lock down of the African economes, as a result of the Wuhan Town in Hebei Province of the Asian country of China emerged coronaviru pandemic, popular , COVID 19,President Muhammadu Buhari and United Bank For African, UBA, plc, African Conversations Day, appear to have set a roadmap for the African countries speedy economic recovery.
The Katsina state born Nigerian President had said that ‘’ peace, security and harmony are the prerequisites for the African countries hit by the COVID 19 pandemics economic recovery and development. Aware of the activities of the terrorists and bandits in the African Continent which had f slowed down the economic recovery rate of the Continent before the out break of the COVID 19, in the Continent, he had urged the African political leaders, policy makers and the citizenry to innovate ways on ‘’how silencing of the humming guns could be used to achieve peace and grow the African countries economies’’.
The Nigerian President was said to have sent the message to African political leaders to mark the ‘’Africa Day 2020’’ Forum Commemorated by African Union Commission, an agency of the African Union, AU, in Collaboration with the World Health Organisation , WHO, a health agency of the United Nations, UN.
Given his experience over what is happening in the north eastern states of Adamawa, Borno and Yobe as well as the north wesern states of Sokoto, Katsina and Zamfara which had distabilised economies of these states and how he had mobilised the Army, Ai rForce and other security agencies with the support of the civilians to deal decisively with the terrorists and the bandits operating in the two regions in order to silence their guns. He had urged the African leaders to do everything within their power to ensure success of silencing the terrorists and bandits gun on the Continent.
Appealing to the African leaders to sensitise the people about the inseparable connection between peace and development, he disclosed that’’ it is the only way to facilitate the speedy growth of the African economies from the adverse effects of the COVID 19’’.
Notwithstanding, his call on the political leaders to sensitise their citizenry on the dangers of the use of guns to settle perceived political and economic grievance s on the African eContinent ,he was said to have also urged regional economic blocs, within the Continent, particular, Economic Community of West African States, ECOWAS, Economic of Community of Central African States, ECCAS. the East Africa Economic Community, EAEC, and the private sector to strengthen their Collaboration efforts in order to silence the humming guns.
Recall that while the National Bureau of Statistics had released the first quarter 2020 Gross Domestic Product , GDP, report, of the economy , which look cheery as it had revealed that the economy grew by 1.87 percent, the Nigerian Employers Consultative Association, NECA, said there is nothing good about the report.
NECA noted the real impact of the pandemic on the country’s economy would be felt on the second quarter of the 2020 due to the six weeks lock down in Lagos, Abuja, the Federal Capital Territory, FCT Ogun and other parts of the country.
The Association had predicted a contraction in the economy due to the Commencement of the lock down in April, as many manufacturing Companies, particular, the Small and Medium Scale Enterprises, SMEs, were forced to shut down due to unavailability of raw materials and Chemicals t that could boost their production .
The Association disclosed that the slowdown that would be noticed in the GDP rate in the second quarter of the year could also be traced to the disruptions on the non oil exports , coupled with an escalating war of words between the two giant economies in the world: the United States, US and China which was said to have resulted in low global oil demand and the drop in oil prices in the International market.
The managers of the country’s economy may have read the handwriting on the wall that they quickly advised the government on what to do to be able to finance the 2020 fiscal budget. The fallout was that the government had approached the International Monetary Fund, IMF, a multi-lateral Financial Institution for a $3.4 billion facility . The multi-lateral financial Institution did not hesitate in approving the loan last April under the Rapid Financing Instrument to support the government’s efforts in addressing the severe economic impact of the COVID 19 shock and the sharp drop in oil prices.
The multi-lateral Financial Institution had said that the outbreak of the pandemic had magnified the existing vulnerabilities, that had resulted in the Contraction many countries GDP rates and to large external and fiscal financing needs. This may have informed why NECA said that the impact of the COVID 19 on the nation’s GDP , could only be felt on the 2020 second quarter. This is evident going by the rising prices of goods and services as too much money are now chasing few manufactured and agricultural goods.
In a related development, the UBA, Africa Conversations Day, after a one day talk shop where two African Presidents: Macky Sall, Senegal and Gerge Opong Weah,of Liberia and who incidentally was a former football star in the country, and other dignitaries both within and outside Africa had participated.
The participants at the one day Forum were said to have taken far reaching decisions on how to turn the Africa economy around from the adverse effects of the COVID 19. They were said to have canvassed a meaningful Collaborations between governments and the private sector , describing as a ‘’panacea for the quick recovery of the Continental economy in post COVID 19 era.
Tony Elumelu, Group Chairman , UBA PLC, and founder Tony Elumelu Foundation , a Philanthropic Organisation, who had moderated the Forum could not hide his feelings as he spoke on the need to mobilise everyone and the necessity to discover Africa challenge through Collaborative efforts. The pan African bank Group Chairman, noted that there is need for governments and Organisations to join resources to fight the pandemic in order to Collectively deal with the Africa economic challenge.
He pointed out the need for ‘’all hands to be deck if the African Continent is to have a cure for its sick economy and the need for global Cooperation to stem the depression. The UBA Group Chairman noted that what African countries hit most by the COVID 19 requires for now is a large stimulus package and long term solutions to prevent a cycle of both local and foreign debts.
Weah, the Liberian President may have taken advantage of the Forum to give an insight on how the Collaborations canvassed by the TEF , Founder had worked in his government in an attempt to tem the sufferings brought about by the coronavirus pandemics. ‘’In Liberia we have taken measures to ease the Financial burden of the vulnerable businesses in the informal sector by providing small loan assistance to SMEs and traders. The Liberian President disclosed that his government is working with the Commercial banks to manage the repayment of the loans as well as create stimulus packages for the citizens to cushion the effect of the pandemic on the vulnerable Liberians and the poor.
Taking a look on how the North American country of the US, had addressed the health crisis in the last three months, Chris Coons, a US , Senator, opined that to draw a roadmap for Africa economic recovery from the pandemic, ‘’it is important to take a look at how the African political leaders and policy makers had reacted to the pandemic.
Coons, a member of the US, Senate Committee on Foreign Relations, noted that before African countries could talk about meaningful development in Post COVID 19 era, ‘’ the Pharmaceutical Companies, researchers and scientists, with the Financial support of the World Health Organisation, WHO, a health agency of the United Nations, UN, must develop the vaccine for the cure of the disease that is affordable which must be freely distributed so that full economic activities could return to Africa .
According to him, the pandemic if properly managed would provide ample opportunity for Africa countries to be dependent and promote its growth and development as a people without external help. Okey Oramah, President, Africa Export-Import bank, Afrexim, may have painted a gory image of COVID 19 on Africa, when he said that it had taught Africa that’’ there comes a time when every group of people will fend for themselves without looking for external help’’.
It was not surprising why he has called for the speedy implementation of the Africa Continental Free Trade Area, AfCFTA, agreement , stressing that the priority of the Various African countries government should be to make sure that the AfCTA is implemented without further delay.
He may have gladdened the heart of African political leaders when he said that Afrexim bank has made available $200 million to supply fertilizers, grains and other agricultural inputs across Africa. George Chikoti of African, Caribbean and Pacific, ACP, group, believes that the huge task of implementing the economic recovery roadmap of the African countries rests on both the government and the private sector, in playing a big role in lifting the burden of the pandemic, confirming what Buhari , had earlier said .
He disclosed that ACP had been able to release $25 million to member states since the outbreak of the disease to support their economic activities, particular, agriculture. Achim Steiner of United Nations Development Project, UNDP, explained that the interconnectivity of the global economy had provided an opportunity to connect all schools across the African Continent, stating that the emphasis should be on health education. He noted that Digital connectivity is very crucial to connect all the schools to the internet
Peter Maurer, President, Internationals Red cross Society, IRCS, was said to have told the African political leaders and policy makers at the UBA Forum that ‘’there is need to look at the pandemics as part of a broader system which needs stabilisation of vulnerable populations in Africa who had been heavily affected by the disease. ‘’We must do more than life saving’’, he said. He contended that the virus had exposed the weakness in the African countries health sector , water sanitation and social systems, insisting that the government must invest heavily in the stabilisation of these systems.
Amir Yahmed, President , Africa Chief Executive Officers,ACEO, Forum, has assured African political leaders and policy makers that the global health crisis is ‘’going to be a super accelerator of already existing trends in African economy. He stressed the need for African countries to get away from the Commodity model driven economy which has failed in creating prosperity. He disclosed that the way out for African countries wrecked economy as result of the COVID 19, is to become self reliance, adding that ’’ the pandemics in a wake- up call for Africa-creating new streams of revenue sources by diversying the economy’’.
Addressing the participants at the UBA forum, he said the African political leaders need to take advantage of the health crisis to take the Continent to the next level by investing in digital infrastructure, digital education and infrastructure. A participant at the event who spke to The Value News disclosed that he had capped his speech by stating that that African leaders must get AfCTA , working.
Donald Kabe ruka, another discussant at the Forum had said that what the African political leaders needed now in tackling the Coronavirus pandemics ‘’ is something unusual, not marginal action but a radical action’’ . This is where Paul Kagame, President of Rwanda and Chairman , AU, may have to stamp is foot down to facilitate the implementation of AfCTA.
