Impact of the COVID-19 Crisis on the African Financial Sector

14 – 15 April 2020. Making Finance Work for Africa (MFW4A) hosted two webinars on the impact of current health crisis on the African financial sector.

The webinars were recorded and will be available online in week 17 (4th week of April)
The webinars discussed in forward-looking terms how ongoing market turmoil and trade disruptions due to concerns about the impact of the coronavirus on the global economy will affect the African financial sector.

  • According to the Organization for Economic Cooperation and Development, in its most optimistic scenario, the global growth rate will fall by 500 basis points, to 2.4%, rather than the 2.9% previously projected. The lost growth would top USD 400 billion. 
  • A pessimistic scenario predicts a 3% drop in international trade which would dramatically affect all economies, with obvious risks of recession including in Africa. Already high public and private debt levels (IMF, 2019)1, combined with a distressed global business climate, could seriously weaken African domestic financial systems.
Given the significance of current events and the possibility of economic contagion, African policymakers and private sector’s stakeholders are invited to discuss ongoing and/or expected fallout of the Covid19 outbreak on the African financial sector. Discussants also debated immediate policy responses to further strengthen the resilience of the African financial systems, with a focus on trade finance, capital markets and the banking sector.

14 avril 2020. Making Finance Work for Africa (MFW4A) a organise un webinaire portant sur les répercussions de la crise sanitaire et des tensions économiques résultantes du premier trimestre de cette année sur le secteur financier africain.

Les prévisions de ralentissement de l’économie globale ont induit une baisse de la demande pour les matières premières. La chute récente des cours du pétrole, dont les revenus soutiennent des pans entiers de l’économie de certains pays d’Afrique centrale, a été la première conséquence de la guerre des prix des pays producteurs qui peinent à trouver une réponse commune à la menace sur la demande d’énergie résultant de la pandémie du Covid-19.

  • Fatoumata Sissoko-Sy, Directrice régionale – Afrique de l’Ouest, Proparco
  • Sarata Koné, CEO, UBA Côte d’Ivoire
  • Jean-Luc Konan, CEO, Cofina
  • Jerome Pirouz, Responsable-adjoint de la structuration, TCXFund

Les conclusions et recommandations éventuelles du webinaire alimenteront la discussion des DFIs (Institutions de financement du développement) à l’occasion du prochain webinaire sur leur réponse en faveur du secteur financier africain.

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