Africa Faces Severe Debt Crisis, UN Warns

African countries need strong policies and further support from the international community to avert a debt crisis and protracted low growth, says the United Nations.
In a statement issued by the UN Department of Global Communications, on Wednesday, the global body warned of the devastating socio-economic impact of COVID-19.
The report was jointly signed by Devi Palanivelu, UN Department of Global Communications; and Helen Rosengren, UN Department of Economic and Social Affairs.
It said that the impact of the pandemic would be felt for years to come, unless smart investments in economic, societal and climate resilience were made to ensure a robust and sustainable recovery of the global economy.
The UN said that despite the relatively few number of cases compared to the number of cases in other continents, the COVID-19 pandemic would continue to strongly impact on living conditions and development progress in Africa.
It said the crisis was already increasing unemployment, poverty and inequality, such that most countries were already facing enormous challenges to keep the pandemic under control and mobilize financial resources to support health systems, protect vulnerable groups, and support the recovery.
Nigeria’s GDP is projected to expand by 1.5 per cent in 2021, after a contraction of 3.5 per cent in 2020, according to the report.
Yet, the UN noted that tighter foreign exchange liquidity, mounting inflationary pressures and subdued domestic demand cloud its medium-term outlook.
In South Africa, GDP is projected to expand by 3.3 per cent in 2021, after a contraction of 7.7 per cent in 2020.