Browsing: Small-scale traders

The coronavirus-induced global recession will see nearly a 4 per cent drop in world GDP with the biggest threat facing African economies.

According to the International Monetary Fund (IMF)’s projections, the recession could drag African economies into a fall of about 1.4 per cent, with smaller economies facing a contraction of up to 7.8 per cent.

The beating to African economies by the pandemic is due to export adjustments which affect primary commodity exporters and associated tax revenue losses. This, in turn, reduces governments’ capacity to extend the public services needed to respond effectively to the crisis.

Read: The untapped billions in Africa’s small scale fisheries

Overall, UNCTAD estimates a regional average of about 5 per cent in public revenue losses in Africa. Total merchandise exports are expected to contract by about 17 per cent in 2020. While this is creating an uncertain future, there is hope in small enterprises …