Africans on the continent are looking at losing up to $37 billion in remittances due to the coronavirus pandemic, according to the latest forecast by the World Bank.
Migrant workers have been affected by lockdowns and layoffs across the developed world.
The decline in remittances is the sharpest on record for the continent and the world at large. Monies sent by people globally are expected to fall by $445 billion.
Although many countries do not count remittances as part of foreign direct investment, a substantial amount of Africans depend on remittances from family, friends and acquaintances in especially Europe and North America.
The economic impact of the coronavirus pandemic extends beyond remittances. Last week, the World Bank said the continent is going into a recession for the first time in 25 years.
The Bank’s report said “Covid-19 will cost the region between $37 billion and $79 billion in output losses for 2020 due to a combination of effects.”
It also added that “real gross domestic product growth is projected to fall sharply particularly in the region’s three largest economies — Nigeria, Angola, and South Africa — as a result of persistently weak growth and investment.”
South Africa’s currency, the Rand, initially recorded gains against the dollar prompting hopes in the country that the economy may be able to withstand hammering. South Africa’s Reserve Bank is expected to cut interest rates in May.
Reuters quoted a currency dealer, Andre Botha, who said, “If we look at the market, I think people are taking a pause for a moment. I think the market is exhausted and is just taking stock of where we are.”
All of Africa’s biggest economies have been impacted by various levels of restrictions to mitigate the spread of the coronavirus.
Chrishalea Farley, a 39-year-old Instacart driver from McDonough, Georgia, has become an internet sensation after…
When Jennifer Flewellen woke up from a five-year coma in August 2022, her son Daeton,…
A Kentucky high school senior, Emeka “Emmanuel” Mwakadi, who was ordered to return to class…
Meet Thomson Mpinganjira; he is a Malawian entrepreneur who has built a multimillion-dollar empire. The…
Metro Boomin has made history as the first producer to perform at the Great Pyramids,…
Marie Fowler is convinced that God called her to spend the last three years learning…
A 26-year-old Florida man could spend the rest of his life in prison after he…
The oldest living survivor of the Tulsa Race Massacre, Viola Ford Fletcher, was surrounded by…
A 41-year-old Mississippi man was sentenced to death for torturing and murdering his 2-year-old stepson…
Ace Liam, a one-year-old Ghanaian, has clinched the Guinness World Record for the Youngest Male…
Latonya Johnson and her 21-year-old daughter Laila Birchett are celebrating their graduation from Rutgers School…
Tributes have been pouring in from boxing greats for Sherif Lawal who passed away after…
Jordan Benston is the founder, owner, and operator of The Oracle Media, a black female-owned…
Cameron Robinson has attained a significant milestone at the age of twelve. He received an…
Legendary singer Stevie Wonder had one of his wishes fulfilled when he celebrated his 74th…