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<p>The World Bank says the COVID-19 pandemic has disrupted trade and triggered up to $79 billion in output losses in Africa alone this year. But the bank stressed that the African Continental Free Trade Agreement has the potential to boost Africa’s income by $450 billion by 2035. Winston Osuchukwu, co-Founder of Trans-Sahara Incorporated joins CNBC Africa for more.</p>


World Bank: AfCFTA to boost Africa’s income by $450bn by 2035

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<p>The World Bank outlined a six year partnership framework that will guide the Bank in supporting Rwanda&#8217;s strategic priorities as laid down in the National Strategy for Transformation. The new framework is developed from World Bank’s comprehensive analysis of opportunities for achieving poverty reduction and shared prosperity in Rwanda as well as the challenges that the country faces. Financial Advisor, Eddie Balaba spoke to CNBC Africa for more.</p>


World Bank outlines 6-year support framework to drive Rwanda’s growth

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<p>According to the World Bank, Kenya faces an infrastructure financing gap of approximately $2.1 billion annually. Public-Private Partnerships are considered crucial in closing in this gap and the government plans to raise $2 billion in the financial year 2020/2021 through PPPs to fund key infrastructure projects. Isaac Otolo, Director Advisory Transactions at PwC spoke to CNBC Africa for more.</p>


COVID-19: How public-private partnerships can help bridge Kenya’s infrastructure gap

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<p>Movement restrictions and other efforts to curb the spread of coronavirus have led to unprecedented disruptions to supply chains. And according to the World Bank, additional border-crossing requirements have led to higher transport costs, affecting agriculture and food commodities. Joshua Rugema, CEO of East Africa Exchange joins CNBC Africa for more.</p>


Here’s how COVID-19 is impacting EA’s commodity markets

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<p>Moody’s Investors Service says the longer-lasting negative effects of the COVID-19 pandemic on credit profiles of Africa countries will leave them with diminished capacity to absorb future shocks. Moody’s Vice-President, Kelvin Dalrymple joins CNBC Africa for more.</p>


Moody’s: How COVID-19 has diminished Africa’s capacity to absorb future shocks

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<p>Domestic operations in Nigeria’s aviation industry will commence from Wednesday the 8th of July. Captain Dele Ore, a Retired Pilot and Chairman of the Board of Trustee of the Aviation Safety Round Table Initiative joins CNBC Africa for more.</p>


COVID-19: What the reopening of domestic flight operations means for Nigeria’s aviation industry

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<p>The World Bank says the outbreak of the COVID-19 pandemic is expected to push five million more Nigerians into poverty this year as the pandemic is threatening the ability of Nigerian households to generate income to meet their basic consumption needs. Bismarck Rewane, CEO of Financial Derivatives joins me from Lagos for this conversation.</p>


World Bank: COVID-19 to push five million more Nigerians into poverty in 2020

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<p>The World Bank says the collapse in oil prices coupled with the COVID-19 pandemic is expected to plunge the Nigerian economy into a severe economic recession, the worst since the 1980s. Tilewa Adebajo, CEO of CFG Advisory joins CNBC Africa for more.</p>


World Bank: Nigeria faces worst recession in four decades

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<p>The World Bank says both the demand and supply of side of the global commodities market has been affected by the COVID-19 pandemic. Independent Commodities Expert, Edward George joins CNBC Africa for a look at what to expect from the soft commodities markets in the second half of the year.</p>


How COVID-19 is severely impacting demand for Africa’s soft commodities

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<p>Agriculture systems are facing many disruptions from the COVID-19 pandemic. The continent imports $80 billion of food and since January, 19 countries have imposed restrictions on food exports. The World Bank estimates that agriculture production in 2020 might contract up to 7 per cent in Africa. Lloyd D. Le Page, Senior Agriculture Advisor joins CNBC Africa for more.</p>


COVID-19: How the pandemic is disrupting agriculture systems & food security in Africa

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<p>The World Bank estimates that the economic crisis brought about by the Covid-19 pandemic and resulting lock-downs across the world could lead to a 19.7 per cent drop in remittances. Michael Kent, Founder and CEO of Azimo joins CNBC Africa for more.</p>


SSA sees decline in remittances as COVID-19 bites


<p>By Jee-A Van Der Linde – Economist</p>



<p>Finance ministers of East Africa are expected to table their respective budgets in coming days for the new financial year that begins on July 1. The reading of East African budgets is normally a joint exercise.</p>



<p>The new budgets come at a pivotal time, as the unexpected Covid-19 pandemic has placed pressure on government finances in 2020.</p>



<p>Authorities have little choice but to provide fiscal support where they can. However, there will be challenges and the governments will need to closely monitor developments to avoid the budget deficits from spiralling out of control.</p>



<p>Government finances will take a hit across the region. We believe that this will for the most part be driven by the collapse in fiscal revenue due to the marked deterioration in the economic outlook.</p>



<p>The region’s largest economy, Kenya, has provided fiscal support through tax relief, which will further weigh on the revenue side.</p>



<p>In general, on the expenditure side we expect to see a lot of reprioritisation away from sectors that have seen activity halted due to the Covid-19 pandemic. This could include a reduction in direct spending in the tourism sector and construction.</p>



<p>These resources will likely be redirected towards containment efforts – particularly health care – and social support.</p>



<p>Regardless, East African fiscal finances will look a lot worse during the next fiscal year than what was expected a few months ago. Fiscal deficits will be wider than previously anticipated and public debt will increase at a faster rate.</p>



<p>We have seen multilaterals stepping up support, which could reduce the longer-term fiscal impact of the Covid-19 crisis, but commitments to date will undoubtedly have to be supplemented to ensure that the Covid-19 pandemic does not have a long-term fiscal legacy.</p>



<p>Furthermore, most East African nations have been able to assess the impact of the virus and incorporate this new reality into their budgets.</p>



<p>This is a lot more efficient than having to adjust a budget midway through a fiscal year.</p>



<p>Rwanda, the region’s fastest-growing economy in 2019, is to delay publishing its budget for the new financial year. The break from tradition comes down to the Rwandan Cabinet not yet having approved the finance minister’s budget proposal.</p>



<p>The government expects to spend RWfr3.245trn during the fiscal year 2020/21 – RWfr228.7bn more than the revised budget estimates.</p>



<p>Although we do not expect government to curb non-essential expenditure during this time, stimulus measures to fight against the fallout of the virus are unavoidable.</p>



<p>Rwanda’s fiscal deficit is expected to widen this year, in step with its regional peers. Moreover, public debt levels have risen over the years and 2020 will be no exception.</p>



<p>Given the extraordinary circumstances, forecast adjustments are likely.</p>



<p>Room to deploy fiscal policy to combat Covid-19 is limited.</p>



<p>It seems investors globally have made peace with the fact that many countries will have to increase borrowing to combat the pandemic, and if containment efforts show positive results, these countries should not struggle to find capital to fund the recovery.</p>



<p>The East African region is fighting an economic battle on two fronts.</p>



<p>Covid-19 is disrupting supply chains, curtailing economic activity at large and devastating regional tourism.</p>



<p>Meanwhile, the unprecedented locust infestation is wreaking havoc in the region’s agricultural sector – an industry generally spared from the Covid-19-induced economic slump.</p>



<p>The World Bank announced the commencement of an emergency programme to help countries in Africa fight the ongoing locust infestation.</p>



<p>The Bank noted that the first East African countries to be financed under the initial phase of the programme are Djibouti, Ethiopia, Kenya, and Uganda, with a total financing package of $160m.</p>



<p>Despite this support, the unprecedent nature of both the Covid-19 pandemic and the locust infestation will derail the region’s economic growth trajectory.</p>



<p>We expect Africa’s fastest-growing region to record a 1.8% GDP contraction this year.</p>



<p>For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a></p>


Op Ed: East African finance ministers to present budgets for new fiscal year

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<p>Ghana’s headline inflation rose to 11.3 per cent in May, straying further away from the country’s inflation target band of 8.0 per cent plus or minus two. This comes as the World Bank says that Ghana’s economic growth is expected to slow down to 1.5 per cent this year as agriculture commodity exporters like Ghana have suffered from collapse in export demand as well as disruptions to supply chains. Courage Kingsley Martey, Senior Economist at Databank Group joins CNBC Africa for more.</p>


Databank’s economic outlook for Ghana

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<p>The World Bank says it expects Nigeria’s oil sector to shrink by 10.6 per cent this year. This comes as the Group Managing Director of the Nigeria National Petroleum Corporation, Mele Kyari says Nigeria has brought down its oil production to 1.412 million barrels per day in compliance with the supply cut agreed on by oil producer club, OPEC and its allies. Abiodun Adesanya, CEO of DegeConek joins CNBC Africa more.</p>


How OPEC’s extended supply cut impacts Nigerian oil producers

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<p>Latest World Bank data shows that economic activity in Sub-Sahara Africa is on course to contract by 2.8 per cent this year, the deepest ever on record.</p>


World Bank: SSA economy to contract 2.8% in 2020

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<p>Kenya is facing the worst desert locust invasion in 70 years that has affected the already vulnerable northern region of the country. In May, the World Bank Board of Directors approved a $43 million International Development Assistance credit for Kenya as part of a larger regional Emergency Locust Response Project to respond to the threat posed by the desert locust outbreak and to strengthen Kenya’s system for preparedness. Nick Kwolek, Founder of KwolCo joins CNBC Africa for more.</p>


Second wave of locusts threatens food security in East Africa


<h3 class="wp-block-heading">KEY POINTS</h3>



<ul class="wp-block-list"><li>Economic activity collapsed in Sub-Saharan Africa in the first half of the year.</li><li>Nigeria&#8217;s economy expected to shrink by 3.2% this year.</li><li>South Africa’s output is forecast to contract 7.1% this year, the deepest contraction in a century.</li><li><a>Angola, DRC &amp; Ghana are having to cope with weaker external demand &amp; lower prices for oil &nbsp;&amp; metals</a>.</li><li>Agricultural commodity exporters, Côte d’Ivoire, Ethiopia &amp; Kenya, have suffered from a collapse in demand.</li><li><a>Economic activity in Sub-Saharan Africa on course to contract by 2.8% in 2020, the deepest on record</a>. Growth could resume to 3.1% in 2021</li><li>COVID-19 pandemic likely to push millions in the region back into extreme poverty.</li></ul>



<p></p>



<h2 class="wp-block-heading"><strong><em>Recent developments:</em></strong><em> </em></h2>



<p>Sub-Saharan Africa has been ravaged by the COVID-19 pandemic, and economic activity collapsed in the first half of this year. The pandemic has taken a heavy human and economic toll, causing the most serious disruption to region-wide economic activity on record. Sub-Saharan Africa has suffered as a result of the impact of the pandemic on its key trading partners, the disruption to global travel and supply chains, and the collapse in global commodity prices, particularly for oil and industrial metals. These shocks have heightened risk aversion among investors and prompted unprecedented capital outflows.</p>



<p>In Nigeria and South Africa, activity has fallen precipitously in the first half of the year. <a>Several industrial commodity exporters, such as Angola, the Democratic Republic of Congo, and Ghana, have had to cope with weaker external demand and lower prices for oil and metals</a>, in addition to domestic disruptions. Agricultural commodity exporters, including Côte d’Ivoire, Ethiopia and Kenya, have suffered from a collapse in demand as well as disruptions to supply chains. The fall in global travel as a result of the pandemic has hit hard on countries with substantial exposure to travel and tourism, such as Cabo Verde, Ethiopia, Mauritius, Seychelles.</p>



<p>Inflation has crept up in the region, reflecting currency depreciations and supply chain upheaval. While many countries have announced fiscal support measures, in many instances these involve reprioritizing existing budgets given fiscal constraints. International institutions have called on bilateral creditors to suspend some debt payments.</p>



<h2 class="wp-block-heading"><strong><em>Outlook:</em></strong> </h2>



<p class="has-text-color has-very-dark-gray-color"><a>Economic activity in the region is on course to contract by 2.8% in 2020, the deepest on record. Per capita GDP is anticipated to fall even more sharply, likely pushing millions in the region back into extreme poverty. </a>Growth could resume to 3.1% in 2021 assuming the pandemic fades in the second half of the year, that domestic outbreaks of the virus follow a similar path, and that growth in major trading partners rebounds. Sub-Saharan Africa faces daunting hurdles to contain COVID-19 given weak health care capacity, lack of access to basic sanitation, and the prevalence of informal economic activity across much of the region.</p>



<p class="has-text-color has-very-dark-gray-color"><a>The economy of Nigeria is expected to shrink by 3.2% this year, given the collapse in oil prices, which represent 80% of the country’s exports, about a third of banking sector credit, and half of government revenues. South Africa’s output is forecast to contract 7.1% this year, the deepest contraction in a century, as stringent but necessary containment measures curtail economic activity.</a></p>



<p class="has-text-color has-very-dark-gray-color"><a>Economic activity among commodity importing economies is anticipated to shrink this year despite lower oil prices, as international travel restrictions weigh on tourist visits. Industrial commodity exporters’ GDP is similarly anticipated to contract in 2020 as domestic disruptions are compounded by low prices for oil and metals. Agricultural commodity exporters are also expected to experience a collapse in economic activity this year despite being somewhat insulated from commodity price declines, as foreign direct investment and tighter financial conditions delay investment.</a></p>



<h2 class="wp-block-heading"><strong><em>Risks: </em></strong></h2>



<p>Risks are tilted firmly to the downside. A longer lasting and more severe pandemic would trigger an even deeper recession in the region and have devastating effects on the health and well-being of the region’s population. The effects of the pandemic are expected to markedly increase the region’s vulnerability to debt distress, and these strains will be compounded by the increased borrowing necessary to fund larger deficits. Severely constrained government resources could lead to a curtailment of critical public services during the pandemic and further weigh on activity.</p>



<p>There are also growing concerns that the pandemic may cause a food security crisis in the region as border closures and trade restrictions disrupt trading in food and agricultural products. The region’s large numbers of displaced people could complicate efforts to prevent the spread of COVID-19. In addition, there is the risk of social unrest as governments prioritize efforts to thwart the virus and peacekeeping efforts lose momentum. Rising unemployment, falling incomes, and potential shortages of essential items could lead to instability and weigh on activity well after the pandemic has faded.</p>



<p><a href="https://openknowledge.worldbank.org/bitstream/handle/10986/33748/9781464815539.pdf">Download <em>Global Economic Prospects</em></a></p>



<h2 class="wp-block-heading"><strong>World Bank Group COVID-19 Response</strong></h2>



<p>“The&nbsp;<a href="https://www.worldbank.org/">World Bank Group</a>, one of the largest sources of funding and knowledge for developing countries, is taking&nbsp;<a href="https://www.worldbank.org/en/who-we-are/news/coronavirus-covid19">broad, fast action</a>&nbsp;to help developing countries strengthen their pandemic response. We are supporting public health interventions, working to ensure the flow of critical supplies and equipment, and helping the private sector continue to operate and sustain jobs. We will be deploying up to $160 billion in financial support over 15 months to help more than 100 countries protect the poor and vulnerable, support businesses, and bolster economic recovery.&nbsp; This includes $50 billion of new IDA resources through grants and highly concessional loans.”</p>



<figure class="wp-block-table"><table><tbody><tr><td></td></tr><tr><td></td><td><img loading="lazy" decoding="async" width="424" height="812" src=""></td></tr></tbody></table></figure>



<p><a href="http://www.worldbank.org/en/publication/global-economic-prospects">Download this data</a></p>


International travel for South Africans is now allowed, this is how it will work

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World Bank: AfCFTA to boost Africa’s income by $450bn by 2035

World Bank outlines 6-year support framework to drive Rwanda’s growth

COVID-19: How public-private partnerships can help bridge Kenya’s infrastructure gap

Here’s how COVID-19 is impacting EA’s commodity markets

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COVID-19: What the reopening of domestic flight operations means for Nigeria’s aviation industry

World Bank: COVID-19 to push five million more Nigerians into poverty in 2020

World Bank: Nigeria faces worst recession in four decades

How COVID-19 is severely impacting demand for Africa’s soft commodities

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SSA sees decline in remittances as COVID-19 bites

Op Ed: East African finance ministers to present budgets for new fiscal year

Databank’s economic outlook for Ghana

How OPEC’s extended supply cut impacts Nigerian oil producers

World Bank: SSA economy to contract 2.8% in 2020

Second wave of locusts threatens food security in East Africa

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World Bank: AfCFTA to boost Africa’s income by $450bn by 2035

World Bank outlines 6-year support framework to drive Rwanda’s growth

COVID-19: How public-private partnerships can help bridge Kenya’s infrastructure gap

Here’s how COVID-19 is impacting EA’s commodity markets

Moody’s: How COVID-19 has diminished Africa’s capacity to absorb future shocks

COVID-19: What the reopening of domestic flight operations means for Nigeria’s aviation industry

World Bank: COVID-19 to push five million more Nigerians into poverty in 2020

World Bank: Nigeria faces worst recession in four decades

How COVID-19 is severely impacting demand for Africa’s soft commodities

COVID-19: How the pandemic is disrupting agriculture systems & food security in Africa

SSA sees decline in remittances as COVID-19 bites

Op Ed: East African finance ministers to present budgets for new fiscal year

Databank’s economic outlook for Ghana

How OPEC’s extended supply cut impacts Nigerian oil producers

World Bank: SSA economy to contract 2.8% in 2020

Second wave of locusts threatens food security in East Africa

This is how badly COVID-19 has ravaged Sub-Saharan Africa

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