Next Africa: Hello, Oil and Virus Shocks. Goodbye, Economic Growth
Cargo ships are docked at the Apapa Sea Port in Lagos.
Photographer: Pius Utomi Ekpei/AFP/Getty Images
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Any hope sub-Saharan Africa had of strong economic growth in 2020 is gone.
Saudi Arabia and Russia’s oil-price war and the impact from coronavirus has halved the price of crude, and hurt prospects for the region's energy exporters. The pandemic is affecting everything from tourism to the ability of African countries to sell Eurobonds. The International Monetary Fund, who forecast the region’s 2020 growth at 3.5% in January, already has slashed its prediction for Nigeria, which accounts for a quarter of its GDP.