Pandemic may push 50 million Africans into extreme poverty – AfDB
ABIDJAN, Ivory Coast – Nearly 50 million Africans could be driven into extreme poverty in the economic fallout of the coronavirus pandemic, the African Development Bank (AfDB) said on Tuesday, July 7.
Roughly a third of the continent – 425 million people – was already expected to live below the international poverty line of $1.90 per day in 2020, the AfDB said in its African Economic Outlook, forecasting that the situation would further deteriorate.
After Oceania, Africa is the least affected continent in the pandemic, recording nearly 500,000 infections and almost 11,700 deaths, according to an Agence France-Presse tally on Tuesday.
"Between 28.2 and 49.2 million more Africans could be pushed into extreme poverty" this year and next, the AfDB report said, with the first figure the baseline prediction and the latter the worst-case scenario.
The Abidjan-based institution, one of the world's 5 largest multilateral development lenders, expects Africa to suffer a major recession, with gross domestic product (GDP) forecast to contract between 1.7% and 3.4% this year.
That would be 5.6 to 7.3 percentage points lower than pre-pandemic forecasts.
Late last month, the International Monetary Fund forecast that sub-Saharan Africa's GDP would shrink by 3.2%, and that incomes would drop to levels last seen in 2010.
The AfDB said that between 24.6 and 30 million jobs would be lost this year due to the virus crisis.
Nigeria, the continent's most populous country, would see the greatest rise in poverty, it said.
Between 8.5 and 11.5 million of its 200-million population were forecast to fall into extreme poverty this year, as a drop in oil prices compounds the economic impact of the pandemic. (READ: Virus crisis puts Nigeria corrupt fuel subsidy system in spotlight)