Poverty resulting from coronavirus pandemic is on the arise in Africa and Nigeria is leading other countries in the continent with highest number of people sinking deeper into poverty level.
Half of the new poor will live in just five countries: The Democratic Republic of Congo, Ethiopia, Kenya, Nigeria and South Africa — with Nigeria contributing the most with 6.6 million according to unpublished World Bank material.
According to the Overseas Development Institute, the Covid-19 pandemic is already radically worsening the economic outlook for Africa.
Poverty is expected to increase by two per cent of the regional population, with 26 million people falling under the poverty line, erasing five years of progress in poverty reduction.
To stem an economic crisis, in the short-term international finance institutions need to support SMEs and micro-businesses directly or through financing via banks and micro financial institutions.
In the longer-term, finance to support recovery — also known as ‘patient capital’ — will be key to replace lost bank lending, especially in sectors where employment and informal occupations are concentrated.
-theeastafrican