West Africa urged to keep focus on economic revival
Leaders of West African countries have been urged to do more to arrest an increase in coronavirus infections to ensure that the prospects for the region’s economic recovery from the pandemic remain on track.
At the 22nd session of the heads of state and government of the West African Economic and Monetary Union last week, Cote d’Ivoire President Alassane Ouattara said the pandemic had slashed the region’s economic growth rate from 5.8 percent in 2019 to 0.9 percent in 2020.
However, Ouattara, who addressed the session via video on Thursday, estimated GDP growth could recover to above 5 percent in 2021 thanks to the responses to COVID-19.
“We must continue and accelerate initiatives to strengthen our capacity to produce pharmaceutical products, vaccinate populations, and go further in collaboration with our partners and regional institutions in the diligent implementation of response plans,” said Ouattara, who chaired the session.
His views were reflected in a United Nations Development Programme report released last week.
The report, Rebuilding Communities Across 7 Impact Areas in West Africa, said the virus threatened to hinder gains in the region and expose vulnerable communities to heightened economic instability. However, the pandemic has shown the willingness of partners in the region to respond to the dangers faced.
The UNDP advises countries to integrate responses to the pandemic into their economic recovery plans.
“Countries in the region need to partner with private sector organizations and the international bodies to adapt trading practices to COVID-19 containment measures,” the report said. “They should also facilitate the establishment of a crossborder trade corridor that has been adapted to COVID-19 prevention measures in order to boost food security, livelihoods and increase the capacity to withstand COVID-19 shocks in vulnerable communities and populations.”
Critical juncture
Separately, the International Monetary Fund said in a report that the pandemic has put Nigeria at a critical juncture, as the country entered the crisis with falling per capita income, high inflation, and governance challenges.
The IMF suggests that policy adjustments and reforms designed to shift the country from its dependence on oil and to diversify the economy toward private sector-led growth will set Nigeria on a more sustainable path to recovery.
“Real GDP growth in 2021 is expected to turn positive at 1.5 percent and is expected to recover to its pre-pandemic level only in 2022,” IMF said in its country report for Nigeria.
“The near-term outlook is subject to downside risks from pandemic-related developments with Nigeria experiencing a second wave. Successful economic diversification requires trade openness and competitive discipline. To accommodate a growing number of young people entering the labor market, Nigeria will need to create at least 5 million new jobs each year over the next decade.”