Measures taken to curtail the spread ofCOVID-19 have led to a sharp contraction of the globaleconomy and an even larger decline in trade, withsignificant implications on the livelihoods of people inAfrica. Despite the relatively low number of cases, theregion's economy would be hard hit due to its highreliance on trade, heavy dependence on commodities, afragile food system, and limited fiscal capacity to respond.This reinforces the region's inherent vulnerabilities,posing risks of wiping out the gains made in povertyreduction. Countries that have been registering robustgrowth face rapid growth declines. The response calls for aregional and global coordination to scale up safety nets,facilitate flow of essential goods and ease theregion's debt burden to free some fiscal space. Thereis a need for active policies to support enterprises so thatdisruptions are not permanent. As they chart theiroperations beyond the pandemic, countries should reexaminetheir industrial policies and firms need to rethink theirstrategies to address emerging uncertainties.
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