According to Capital Economics, the indirect effects of the outbreak of coronavirus has dealt a blow to the economy of African countries. The sharp drop in commodity prices “undermined” the economy across the continent.
a Large part global effects from the mass stops and closures in China is concentrated in areas such as tourism and manufacturing. All this is due to the ban on travel for tourist groups and violation of supply chains due to the closure of factories.
Closing ports in China is forcing oil importers to cancel the purchase, the sellers are forced to seek other opportunities, said in his speech, senior economist for the developing economies, Capital Economics John Ashbourne.
According to Ashbourne, Angola’s state oil company Sonangol sold at a discount, at least one batch of cargo that was already on the way.
“Price impact will affect all African commodity exporters, however, these trade disruptions affected West African oil exporters,” said Eschborn.
the price of Brent has fallen sharply since the outbreak of the coronavirus. Since the beginning of the year it decreased by 16.96%, on Monday afternoon was trading at a price of just over $54 per barrel.
In recent weeks, prices plummeted and other base metals, from which depends largely on the African export market, such as iron ore and copper.
From the point of view of the economic impact of manufactured exports from Congo accounting for almost 70% of GDP, and exports to China is more than 50% of the total GDP. More than 20% of GDP of Angola is dependent on Chinese exports of industrial goods. Other countries have experienced significant impacts include Zambia, Congo, Nigeria and Ghana.
Although the coronavirus is not yet diagnosed on the continent, experts warn that the subcontinent is in a vulnerable position, given its strong ties with China.
last week, announcing the outbreak of coronavirus a global hreswitching situation in the field of health, head of who Tedros Adhanom stated that “most of the organization are concerned that coronavirus will reach countries with weaker health systems.”