Africa trade and Covid‑19: The supply chain dimension

Africa trade and Covid‑19: The supply chain dimension

The global Covid-19 pandemic has had an enormous impact on trade across the world. Value chains and trade have slowed down, or even been brought to a halt, via several channels:

  • Reduced mobility of goods and people
  • Reduced supply channel
  • Reduced demand channel
  • Policy actions (e.g. export bans to increase domestic supply of critical products such as pharmaceuticals).

As a result, World Bank projections in June 2020 estimated a 5.2% drop in global average gross domestic product (GDP). In a worst-case scenario, the projections indicate the African economy could contract by up to 2.6% in 2020, equivalent to a loss in GDP growth of $120 billion.