Even without a single confirmed case, sub-Saharan
Africa may be the region hardest hit outside of Asia by the spread of the
coronavirus. The outbreak has shut down entire swathes of the Chinese economy, threatening world economic growth and curbing appetite for oil and metals that are the lifeline of many African nations. A slowdown in the No 2 economy and a 5% drop in oil prices over one year could mean $4 billion in lost export revenue for sub-Saharan Africa, or the equivalent to 0.3% of its gross domestic product — more than any other continent outside of Asia, according to a study by the Overseas Development Institute. “Many developing countries are increasingly dependent on
China for
trade, both for imports and exports,” Dirk Willem te Velde, principal research fellow at the institute, said. The International Monetary Fund slashed its economic growth projection for Africa’s top oil exporter, Nigeria, to 2% from 2.5% because of a decline in oil prices. Weaker demand from China puts other resource-dependent economies such as Angola, Democratic Republic of Congo and Zambia at risk. African central bankers are starting to sound alarm bells.