On Sunday, the 5th of April 2020, the African Union, a Durban, South Africa-based 55-member organization founded back in the 1999s, said in a statement that one of its studies linked to the financial fallouts of the lockdown attempts across the globe including the African continent had revealed a stark total of at least 20 million jobs were at risk in Africa, while the organization of African states had also cautioned that more than 15 per cent of foreign investment in the continent would likely to be rubbed out as a consequential repercussion of the lockdowns.
As a matter of fact, although the African continent remained mostly insulated from the pandemic thus far and only a fraction of cases was found in the continent which should have added a silver lining to the African economy, yet a raft of African economies had already been facing off a steep downfall in particular in the travel and tourism sector, while a multi-year low commodity prices and demand alongside a pummelled crude oil futures’ prices had added to further worries.
Meanwhile, adding that the African economy would likely to contract by 0.8 per cent this year and a worst-case scenario could stretch the figure up to a shrinkage of 1.1 per cent, the AU (African Union) study published on Sunday (April 5th) said, “Nearly 20 million jobs, both in the formal and informal sectors, are threatened with destruction on the continent if the situation continues.
Under the average scenario, the tourism and travel sector in Africa could lose at least $50 billion due to the covid-19 pandemic and at least 2 million direct and indirect jobs. “With economic activity in the doldrums in many advanced and emerging market countries, remittances to Africa could experience significant declines. ”