Overview: Priorities to make digitalisation work for all in Africa

Abstract

The economic recession triggered by the COVID‐19 pandemic is hitting African countries hard. Most of them are facing their first recession in 25 years: gross domestic product (GDP) growth will likely decrease in 41 of the 54 countries in 2020, according to an International Monetary Fund forecast (October 2020). By contrast, when the global financial crisis hit the continent in 2009, only 11 countries went into recession. The crisis has affected Africa’s growth through various external and domestic channels (Table 1). For example, the plunge in oil prices in the first quarter of 2020 has severely struck commodity‐based economies. The shutdown of the global tourism industry, which employs 24.3 million people on the continent, has harshly affected tourism‐dependent countries. Domestic demand and regional trade have suffered from confinement measures. At least 42 countries have imposed partial or full lockdowns on economic activities and the movements of people (UNECA, 2020). The crisis has also led to the postponement of the implementation phase of the African Continental Free Trade Area until 2021.