São Paulo – There will be a slump in tourism across Africa – including the North African countries – before people are confident enough to go abroad again. So said former World Bank vice president and Poverty Reduction and Economic Management director Otaviano Canuto, who sat in a webinar panel hosted by Instituto Brasil África (Ibraf) this Monday (13). “Economic Cooperation amid Covid-19: Impacts and reactions to the pandemic in Africa” also featured Ibraf chair João Bosco Monte and former Guinea-Bissau foreign minister Maria Nobre Cabral.
The panelists discussed how the pandemic is impacting African economies. “The countries need to minimize their problems. Coronavirus will also impact tourism, and Africa needs help in the form of fiscal measures. Tourists aren’t going anywhere, and things are bound to get worse,” said Cabral.
Questioned about the industry outlook in countries like Egypt (pictured above), Mauritania and Morocco, Canuto explained that the solution could be in seeking out benefits from public and private organizations, because it will be a long time before activity picks back up. “Sub-Saharan Africa and North Africa countries whose revenue habitually originates from tourism will no longer be able to rely on that until people are confident that coronavirus is no longer a problem,” he said.
Canuto believes countries must focus on healthcare to tackle what he called a big glow to people’s confidence. “Let’s be realistic. What we need to do is help these countries manage themselves and cushion the blow of the crisis among the poorest,” he said. According to the World Health Organization (WHO), by April 8 there were 10,000 confirmed coronavirus cases in Africa. Egypt – the first in the continent to report a case – has 1,065 cases and 159 deaths at this point.
Cabral said this is a global challenge that’s affecting developing and developed countries alike. “The world will never be the same,” she said.
Questioned about self-isolation policies, Canuto warns that action must be taken right now. “The cities where people self-isolated did better [in containing the pandemic]. On the other hand, people can’t self-isolate at their own expense. You need to provide credit and support to the states within the country. This is a catastrophe, and you need to make people safe so they can go through it. What scares me is the adoption of self-isolation policies without any support to the poor,” he said, noting that in countries like Brazil, where informal labor is widespread, aid is even more crucial.
The economist explained that alternatives to self-isolation, such as social monitoring, aren’t practical in poor countries, since they are technology- and investment-intensive. He said developed countries need to step up and help Africa right away, not only with ventilators and facemasks, but also through other forms of support and credit.
So-called South-South cooperation is one of the ways to approach emergency measures. “I believe that this is a good approach to cooperation. It’s not about money, it’s about sharing the lessons learned regarding anti-poverty economic policies. In these cases, I believe the North doesn’t have as much to offer. Brazil’s social policies have been recognized for their effectiveness. Much of Brazil’s population lives in poverty. Not abject poverty, but poverty nonetheless. But the fact is that similar policies can be put in place through the sharing of knowledge and experience,” said Canuto.
In case no such measures are put in place, the continent risks facing a new crisis. João Bosco Monte said that post-coronavirus, there needs to be a discussion of food security across Africa. The panelists also said they fear countries may struggle getting products in or out amid the shutdown.
Translated by Gabriel Pomerancblum
