COVID-19 to costs Africa $4.8bn in agricultural exports

The COVID-19 pandemic is expected to cost Africa a whopping $4.8bn in lost agricultural exports as well also affecting the livelihoods of 10 million farmers, a report by McKinsey, has revealed.

According to the consultancy firm, the disruptions caused by cancelled flights as well as the closure of many factories in Europe has seen the drop in crop exportation.

Not only is the sector a backbone of many economies in Africa, accounting for as much as 23% in GDP, it also accounts for the jobs of as much as 60% of economically active people in the sub-Saharan part of the continent.

Only the exports from the continent are worth between $35 billion and $40 billion every year.

Other losses forecasted by McKinsey include: Loss of between $500 million and $2 billion in the exportation of fruit, vegetables, and nuts Cocoa exports could be reduced by as much as $2 billion owing to the fall in demand for chocolate as well as a decline in general prices.

There is also the loss of almost $200 million in exports of coffee, which supports 6.6 million jobs primarily in East Africa, as well as between $400 million and $600 million in revenue from flower exports could also be lost.

These very disruptions could affect preparations for the next planting season and particularly make it harder to curtail an invasion of crop-eating locusts in East Africa. They, however, noted that rich harvests in the current season

Still, bumper harvests from the current season in certain countries could mitigate the negative impact.

 

 

 

1 COMMENT

  1. The pandemic could affect the food security of the nation, which could in turn affect the sanity of the population, the government is doing things to encourage agriculture as a means of business and international trade across the nation, but our govts has always been characterized by incompetence, however there are a lot of loans and schemes developed by the government, a list can be found here https://www.liveandwingit.com/download-business-plan-for-nirsal-microfinance-loan-application-agsmeis-cbn/?doing_wp_cron=1588380415.1417589187622070312500, but we individuals can also achieve a lot if we go into agriculture.

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