Latest report shows Sub-Saharan Africa could lose some $4bn due to coronavirus

Latest report shows Sub-Saharan Africa could lose some $4bn due to coronavirus

- The continuous spread of the coronavirus is likely to lead to an almost $4 billion loss of exports by African countries

- In the year 2019, China traded with Africa to the tune of $208 billion and exports were estimated to be $113.2 billion

- The Overseas Development Institute (ODI) has advised that it is best for low and middle-income African countries need to lower economic exposure and increase resilience to the coronavirus

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African countries are likely to lose almost $4 billion worth of exports following the spread of the coronavirus.

Even without any confirmed cases in the continent, it could be at a disadvantaged point, the Overseas Development Institute (ODI) argues.

YEN.com.gh understands that in 2019, the value of China’s trade activities with Africa stood at $208 billion while exports were estimated to be $113.2 billion, according to China’s General Administration of Customs.

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Business Insider reports that the outbreak of the coronavirus could cost the global economy about $360 billion.

The report has indicated that the outbreak of the virus could result in a significant impact on poor sub-Saharan countries, even if they do not have confirmed cases.

According to the ODI, low and middle-income African countries need to lower economic exposure and increase resilience to the coronavirus.

It also urged countries to realize the importance of spreading out export partners and funding sources beyond China.

In other news, oil prices have fallen as concerns about the global spread of the coronavirus causes anxiety among investors.

YEN.com.gh understands that oil prices fell over 2% on Monday, February 24, 2020 as the spread of the virus left investors worried about a potential fall in demand.

With new cases recorded in Iran, Italy and South Korea, Brent crude reportedly fell by $1.42, or 2.4%, to $57.08 a barrel by 0552 GMT; U.S. crude also fell by $1.26, or 2.4%, to $52.12.

READ ALSO: Richard Koo: Economist says China would have more challenges dealing with coronavirus than SARS

Per a reuters.com report, Edward Moya, a senior market analyst at OANDA, noted that “demand destruction for crude is likely to intensify as travel restrictions will likely increase as the coronavirus outbreak becomes a global threat and not just contained to China.”

He added that oil prices are likely to remain vulnerable as the coronavirus became a global pandemic. Local Chinese officials revealed on Monday, February 24, 2020, that four provinces, Yunnan, Guangdong, Shanxi and Guizhou had lowered their virus emergency response measures.

China’s president, Xi Jinping earlier indicated that the world’s largest energy consumer will adjust policy to help cushion the blow to the economy from the virus outbreak.

In other news, the Bank of Ghana has introduced a platform with which commercial banks can trade in real-time.

The decision, according to the Central Bank, is in line with measures to help stabilize the cedi against its major trading currencies.

READ ALSO: World Bank expresses worry about Ghana's $215 billion public debt

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Source: Yen

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