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World Bank predicts rebound of Sub-Saharan Africa’s economy next year

The World Bank said that the pandemic has put a decade of hard-won economic progress at risk.

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World Bank picks holes in CBN’s policies on lending, MSMEs loans,Covid-19: World discloses when sub-Saharan will fall into recession, World Bank predicts rebound of Sub-Saharan Africa’s economy next year, World Bank warns Nigeria, others in Africa not to relax.

The World Bank has said that the Sub-Saharan Africa (SSA) region is expected to experience a reversal of economic contraction next year as countries in the region start to ease movement restrictions, even as the impact of the coronavirus will endure for years to come.

This was disclosed by the Bretton Wood institution on Thursday, October 7, 2020, in its outlook report for the region that has been devastated by the coronavirus pandemic.

The World Bank said that the pandemic has put a decade of hard-won economic progress at risk, with the probability of as many as 40 million people being pushed into extreme poverty, erasing 5 years of gains in fighting poverty.

Sub-Saharan Africa’s gross domestic product is on track to shrink 3.3% this year, its worst performance on record, due to the combined effects of the coronavirus pandemic and lower oil and commodities prices. However, the bank said that a growth of about 2.1% could follow in 2021 and 3.2% in 2022.

Still, the fallout of the pandemic remains hard to predict.

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(READ MORE:World Bank puts pressure on Nigeria for more forex reforms to aid recovery)

The lender’s prediction is with the assumption that the number of new infections will continue to decline and that fresh outbreaks won’t result in new lockdowns. If the pandemic outbreak is more prolonged or if there’s a second wave, sub-Saharan Africa’s economy may expand by only 1.2% in 2021 and 2.1% in 2022.

The report also suggests that by the end of 2021, the region’s real per-capita GDP may have regressed to 2007 levels.

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The region will lose at least $115 million in output this year and long-term losses are expected, with the level of real per-capita GDP expected to contract by 2.1% and 5.1%, confirming earlier forecasts that sub-Saharan Africa will suffer its first recession in a quarter of a century in 2020.

While East Africa and southern Africa are expected to experience slower growth in 2020 compared with West and Central Africa, their economies may expand faster next year at 2.7%, versus 1.3% in West and Central Africa. Oil-exporting countries have been hit the hardest, with growth expected to drop by more than 4% in Angola and Nigeria.

The World Bank and the International Monetary Fund have been pushing for debt relief for some of the poorest countries, especially in Africa, to help mitigate the impact of the pandemic on their economy. These reliefs include debt cancellation or suspension of debt servicing this year. However, the World Bank said that would address only a fraction of total debt, and debt relief from private creditors is likely needed as well.

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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Federal Government declares Thursday October 29 public holiday, to mark Eidl-Mawlid

Federal Government has declared Thursday, October 29, 2020 as a public holiday to mark the Eidul-Mawlid.

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The Federal Government has declared Thursday, October 29, 2020 as a public holiday to mark the Eidul-Mawlid.

This disclosure was made by the honourable Minister of Interior, Rauf Aregbesola.

Ogbeni Rauf Aregbesola congratulated muslim faithfuls both at home and abroad for the opportunity to observe this year’s celebration. He further enjoined them to show love, patience and perseverance.

In the light of the aforementioned facts, the minister urged Muslims to detest or shun lawlessness, looting and daylight robbery which undermine National security and safety.

Ogbeni Aregbesola, who described the youths as the hope and future of the nation, advised them to deepen democracy and not dampen it.

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For him, it is with more democracy that we can overcome our challenges, noting that the challenges of nationhood that we face are surmountable if we work through the democratic process.

What you should know:

Eid Mawlid is an annual celebration for Muslims meant to marked the birthday of the Prophet Mohammed.

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Business

Just-in: President Buhari reappoints Yakubu as INEC Chairman for second term

President Muhammadu Buhari has reappointed Professor Mahmood Yakubu as Chairman of the Independent National Electoral Commission (INEC).

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INEC to introduce election results viewing portal, INEC headquarters gutted by fire

President Muhammadu Buhari has reappointed Professor Mahmood Yakubu as Chairman of the Independent National Electoral Commission (INEC) for another five-year term.

This disclosure was made by the Special Adviser to the President on Media and Publicity, Femi Adesina, in a statement titled, ‘President Buhari nominates Prof Yakubu as INEC chairman for a second term in office’.

The statement read, “President Muhammadu Buhari has presented the Chairman of the Independent National Electoral Commission, Prof Mahmood Yakubu, for a second term in office.’

Details later…

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#EndSARS protest: Hoodlums loot 110 tractors in Yola

Hoodlums looted the North East Commodity Association (NECAS) Warehouse In Yola state.

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Due to the ongoing demonstrations against police brutality tagged “EndSARS” protest, hoodlums have stolen at least 110 tractors and other farm implements from the North East Commodity Association (NECAS) Warehouse In Yola.

Confirming this development to TheVanguard, was the chairman of NECAS, Alhaji Sadiq Umar-Daware, who also revealed that the hoodlums also broke into the main warehouses of the Rice Farmers Association and Maize Farmers Association of Nigeria, carting away valuables which include farm inputs and fertilisers.

What they are saying

Commenting on the latest development, Mr. Umar-Daware, said: “They did not only took tonnes of produce, but they also made away with the farm inputs for the dry season farming and the offices of Rice Farmers Association, Maize Farmers Association of Nigeria (MFAN) and the NECAS were also looted and vandalised.

Commenting further, he said: “What they took away include tonnes of rice, beans, maize, sorghum and millets, and computers, tables, chairs, office equipment, water dispensers and cash,’’ he said.

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Mr. Umar noted that complaints have been forwarded to security agencies, although the organization is still awaiting a formal response. He, however, urged people in Adamawa and its environs to be on the lookout for anybody in possession of the tractors, and report to NECAS, RIFAN and MFAN officials for recovery and necessary action.

What you should know

NECAS is involved in agriculture-related services and human capacity development across the North-East region States of Adamawa, Bauchi, Borno, Gombe, Taraba, and Yobe.

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Since its establishment in 2018, the association has expanded its scope of activities, especially through the Federal Government, CBN’s Anchor Borrowers’ Programme (ABP), mechanisation drive, and partnerships with development agencies.

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