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[Covid-19] Commodity Dependence & Resilience in times of Covid-19 by Africa Practice

Commodity Dependence & Resilience in times of Covid-19| Article by Africa Practice

'Commodity market developments in early February brought the hard news: Even without the Covid-19 spreading to Africa, the continent was going to be one the most affected economies. Within a matter of days commodity prices nosedived, hitting rock bottom in mid-March.

Countries such as Angola, Nigeria and South Sudan who depend on the global oil markets are particularly hit, followed by countries such as DRC and Zambia, who rely on copper exports for global manufacturing, which will take a massive hit in light of production disruptions and plummeting consumer purchase power. Zambia’s extraordinarily high level of external debt further exacerbates the situation, while countries such as Guinea might just weather the water.

And there is a silver lining for gold mining giant South Africa, who is the continent’s largest oil importer (almost 60% of the continent’s total crude imports), benefitting from the slump in the oil price.'

 

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About Africa Practice

Africa Practice is a strategic advisory firm, operating at the nexus of industry and government. We supply insights and advocacy solutions to corporations, investors, governments and foundations in Africa, enabling them to see more clearly, engage with confidence and unlock value to drive sustainable and equitable development.

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