AfCFTA could be the Marshall Plan for the African Economic Recovery

Abstract

The East African economies, already struggling to recover from a Covid-19 induced downturn, face another crisis as they manage the effects from the Ukrainian crisis. ECA estimates that the COVID-19 pandemic led to the contraction of Africa’s real GDP by 3 percent in 2020 and Africa’s debt-to-GDP ratio increased by 10 to 15 percentage points by 2021 from about 60% in 2019 as Governments borrowed to mitigate the socioeconomic impact of the pandemic. Deepening structural reforms and diversification of productive base; Oil exporters utilizing the windfall to support economic recovery & replenishing policy buffers; Enhancing social safety nets to mitigate the impact of rising food and energy prices are some of the recommendations to Ministers of Finance and trade to support Africa’s financial recovery from COVID-19 and Ukraine crisis.