As the COVID-19 pandemic continues to rage unabated, Africa seems set for a major economic crisis owing to the restrictive measures to combat COVID-19, the fall in commodity prices, the disruption in global supply chains, and restrictions on international travel.
The African Union (AU) has drawn up a range of scenarios on the impact of COVID-19 on African economies. While key sectors (oil and gas, tourism, transport) are already severely affected, the slowdown in the informal sector will compound unemployment rates. With the informal sector the largest source of employment for many on the continent, the socio-economic impact of this is likely to be devastating.
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