COVID-19 continues its indiscriminate sweep across the world. It is clear that it brings a massive economic crisis and indeed a global development crisis in its wake.

The spread of the virus has yet to hit African countries with full force, but its devastating effect is already being felt. Households and small and vulnerable enterprises across all sectors will all be affected. 

We know the fragile healthcare sectors in all countries will buckle under this crisis. Hospitals and healthcare facilities do not have enough personal protective equipment, ventilators or hospital beds. But the impact will be much broader. As growth slows across the global economy, demand for all Africa’s commodity exports will decline. Lockdowns, which are already being implemented by a number of countries, will impact production levels and productivity.

Emergency relief and support measures by international agencies – including the World Bank and International Monetary Fund – are being implemented, but much more is desperately needed. We have also seen very welcome philanthropic responses to assist African countries, from international as well as African sources. It is definitely a time for concerted, collective action across government, private sector and civil society organisations.

Importantly, COVID-19 is a reminder of how important multilateralism is. This crisis, in the same way as the climate and migration crises, transcends national borders. National and regional responses are important and necessary, but they are not sufficient. It is crucial that we use this crisis to rethink multilateral trade governance. We are seeing the very negative effects of protectionism as the crisis deepens. If we all resort to protective measures, the negative global effect will be enormous.

In South Africa, we have now been in lockdown since 26 March. Government has amended some measures that were adopted to limit the transmission of the virus. It soon became evident that they were causing serious economic harm. Measures related to road transport and distribution of  only ‘essential products’ are among those. Transport, freight forwarding and courier enterprises – small and large – as well as supply chains more generally, have been very negatively impacted. Clogging warehouses, border posts and other nodes in South Africa’s supply chains affect not only the local economy but also neighbouring countries, especially in southern Africa. South Africa’s transport and distribution enterprises play an important role in getting agricultural and other products to consumers in these countries. Any restrictive measures adopted, especially by a regional powerhouse such as South Africa, can be expected to bring hardship to the region. A pragmatic balance of measures that stem transmission of the virus and permit economic activity to continue is required.

COVID-19 is offering many policy lessons – across macroeconomic and microeconomic policy areas. This may well require amending and fine-tuning policies, as we learn from the crisis.

It is also a reminder that acts of kindness and care for those in need are important – we’re all in this together.

We’re pleased to bring you a collection of Blogs and other publications on COVID-19 and its impact in Africa in this newsletter. We also include the latest updates from the tralac COVID-19 Resources Page.

We look forward to your feedback; and wish you all the best.