Economic Implications of COVID-19 in African Countries: Looking Beyond the COVID-19 Era

Abstract

Economic development or growth is interlinked with socio-political outcomes in any government. The outbreak of the COVID-19, a health crisis, across the globe coupled with policy responses formulated to address the spread of the disease has had greater implications for the economic trajectory of developing countries in Africa. This research paper is built upon a qualitative research design of data collection to explore the contextual and structural factors that further expose African countries to become more vulnerable to the COVID-19 pandemic. The paper further goes to assess the effects of the COVID-19 pandemic on African economies as well as assessing possible strategies that can be adopted towards economic recovery through documentary analysis. Data collected from journal articles, financial reports, newspaper articles and books was analyzed through thematic means to derive meanings and relationships across the data set. The study established that the pandemic resulted in a decline in Foreign Direct Investments, Development Assistance Funds, and decline in household incomes, lost productivity (low levels of GDP) and high debt deficit among other challenges. The study indicates that African countries have to look beyond the COVID-19 pandemic to identify possible strategies towards spurring economic development. In the same light, developing countries ought to also address context specific challenges like corruption hindering effective economic growth. The study recommends developing countries to diversify their revenue sources, digitize tax systems and introduce fiscal policies towards addressing COVID-19 effects.