Economic Consequences of the COVID-19 Pandemic on Sub-Saharan Africa: A historical perspective

TL;DR

This paper analyzes the economic impact of COVID-19 on sub-Saharan Africa through a historical lens, highlighting past policy missteps and recommending a gradual, sustainability-focused response.

Contribution

It provides a historical perspective on policy responses to crises in SSA and offers tailored recommendations for COVID-19 economic recovery.

Findings

Wrong past policies worsened SSA's economic situation.

SSA prematurely adopted import substitution and export promotion.

Gradual, sustainability-focused strategies are recommended for recovery.

Abstract

This paper examined the economic consequences of the COVID-19 pandemic on sub-Saharan Africa (SSA) using the historical approach and analysing the policy responses of the region to past crises and their economic consequences. The study employed the manufacturing-value-added share of GDP as a performance indicator. The analysis shows that the wrong policy interventions to past crises led the sub-Saharan African sub-region into its deplorable economic situation. The study observed that the region leapfrogged prematurely to import substitution, export promotion, and global value chains. Based on these experiences, the region should adopt a gradual approach in responding to the COVID-19 economic consequences. The sub-region should first address relevant areas of sustainability, including proactive investment in research and development to develop homegrown technology, upgrade essential infrastructural facilities, develop security infrastructure, and strengthen the financial sector.