Omicron variant: How will it impact Africa’s recovery?

The World Health Organisation's recent listing of the Omicron variant as a COVID-19 variant of concern has brought forth a wave of uncertainty regarding its impact on Africa's economic recovery. Tilewa Adibajo, the CEO of CFG Advisory, shared insights on how the continent is navigating through this challenging time on CNBC Africa. Adibajo highlighted the importance of commodities to Africa's economic recovery, noting the significant drop in oil prices following the announcement of travel bans by several countries. The situation has raised concerns about the global economic slowdown, with cautiousness among investors affecting the sentiment towards Africa. Despite the challenges, Adibajo expressed confidence in Africa's ability to weather the storm, citing the continent's resilience in handling previous health crises like Ebola. He emphasized the need for practical solutions to address vaccine equity and mitigate the impact of low vaccination rates on African economies. Adibajo pointed out that despite the low vaccination coverage, Africa has not experienced high death rates compared to other regions, hinting at a unique factor that contributes to the continent's immunity. The conversation centered on the role of startups and fintech companies in driving Africa's economic recovery. Adibajo highlighted the significant investments pouring into African startups, surpassing foreign direct investments in some cases, and driving growth in key sectors like tech, agriculture, banking, and services. He underscored the importance of tech enablement and value-added manufacturing as key areas for growth and development. Addressing the need to improve intra-African trade, Adibajo discussed the potential of pan-continental organizations like the Afrexim Bank and the African Development Bank in enhancing payment systems and reducing transaction costs. He emphasized the role of fintech companies in providing payment platforms that could facilitate trade across the continent, leading to a boost in economic activities. Looking ahead, Adibajo highlighted the existing telecom and digital infrastructure in Africa as a foundation for the growth of fintech and digital economies. He projected a transformation in the digital landscape over the next five years, with the potential for replication of successful models like Kenya's mobile money system across the continent. As Africa navigates through the uncertainties posed by the Omicron variant, Adibajo's optimism and strategic insights provide a glimpse of hope for the continent's economic resilience and its ability to adapt to evolving challenges.