COVID-19 Outbreak: How is Africa faring?


Friday, March 20, 2020 / 2:42 PM / United Capital Research / Header Image Credit: Up News Info


COVID-19 is rattling the healthcare, financial and economic systems around the world. Although, the impact on Africa countries initially seemed to be limited to the external account and financial markets, which are considered secondary due to net foreign capital reversals. However, with an increasing number of cases in the continent, monetary and fiscal authorities are forced to double down on their efforts to curb the spread of the virus, as the primary impact of the outbreak is set to add an extra layer of domestic challenge to the growing problem. 


The impact has been divergent across the region. In South Africa, largesize foreign capital outflows across the financial market have resulted in a 9.6% depreciation in the rand in the month of March alone (or -19.2% YTD). For the crude oil-exporting countries in the region such as Nigeria, Angola, Libya, Gabon and Algeria, the collapse of crude oil prices driven by weaker demand has dampened the growth outlook for these countries.  For other raw commodity-dependent countries, the shutdown in economic activities in the developed market is set to impair demand and the possibility of a widespread domestic outbreak is set to affect local supply, negatively. Also, countries dependent on tourism are on track for one of their worst years amid global lockdowns/ shutdowns.


Accordingly, amid the negative impacts the outbreak is likely to have on economic activities across the region, monetary authorities are opting for more accommodative policy actions to bolster economic activities. Notably, monetary responses have ranged from, interest rate cut to targeted liquidity injections, while fiscal responses have been in the form of travel bans, tax break and budget estimate revisions. While we laud the effort by both monetary and fiscal authorities across the region, the big concern is the capacity of the health sector to contain a largescale outbreak if the virus becomes widespread. 


Looking Forward



Feb-2020 Inflation Rate - March 22nd

Feb-2020 Net Reserves - March 22nd



Q4-2019 GDP Report - March 31st



Policy rate meeting - March 23rd Feb-2020 Gross Reserves - March 28th



Benchmark interest rate - March 23rd



Feb-2020 Inflation Rate - March 20th

Feb 2020 - Money supply YoY - March 30th



Policy rate meeting - March 24th


South Africa

Feb-2020 Money Supply YoY - March 30th

Feb-2020 Trade Balance - March 31st


Visit African Markets in Proshare MARKETS

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd. 

 Proshare Nigeria Pvt. Ltd. 


Related News

1.       Fed Actions, US Banks Discount Window Use Prudent Amid Turmoil

2.      There Is No Systemic Risk - Feedback From Goldman Sachs' Conference Call Held Sunday

3.      Coronavirus Containment Actions Pose Material Risk to Global Structured Finance

4.      Federal Reserve Cut Rates to Support the Flow of Credit to Households and Businesses

5.      Africa's Economy and Coronavirus: Business as usual?

6.      South Africa Slips into Recession

7.      Angola to Sell 30% Stake in Sonangol by 2027

8.     Coronanomics: Inside Nigeria's Stock Market Response

9.      A Monday to Remember, Few Places to Hide

10.  Global Markets Tumble As Oil Prices Dip To Five Year Lows

11.   South Africa's Economy: At The Mercy Of Power Sector

12.  Coronavirus to Hit Global Banks' Capital Markets Revenue

13.  China's Official Manufacturing Index Crashed from 50.0 to a Record Low of 35.7 In February 2020

14.  Coronanomics: Understanding The Darker Side of A Virus's Economic Downside

15.  Coronavirus: Establishing The Nexus Between A Bug and Global Equity Markets

16.  Currency Markets in Africa: Ghana Now The Star Of The Region

17.   Coronavirus: Africa Braces for the Economic Impact of China Slump

18.  Aging Populations Strain State Budgets, Pension Funding Varies

19.  COVID-19 Refinancing Risk Elevated for 6% of Rated China Corps

20. Inflation And Interest Rates In Africa: A Big Deal For Investors?


 Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Related News