Africa's economy to see 5 percent rebound in 2021

The United Nations Economic Commission for Africa has forecasted Africa's economy will rebound by 5 percent in 2021 after a 1.8 percent fall this year, as the coronavirus pandemic weighs on commercial activities. According to UNECA, Africa's economic rejuvenation would hinge on effective policies to fight the pandemic.

This was revealed in a report titled "Innovative Finance for Private Sector Development in Africa", which was released on Tuesday. The report is UNECA's flagship Economic Report on Africa and released annually.

"Africa is the second-fastest growing region in the world, estimated to have grown 3.4 percent in 2019. The COVID-19 pandemic will impact growth to decelerate to between 1.8 percent and -4.1 percent in 2020. Growth in Africa is projected to rebound to 5 percent in 2021, supported by the effective implementation of COVID-19 response measures and global economic recovery," the report read.

In remarks made at the launch, Vera Songwe, UNECA's executive secretary, expressed her hope the analysis in the ERA would allow stakeholders, particularly during and after the COVID-19 period, to look at how financing and innovative tools for infrastructure, agriculture and technology are designed, as the continent tries to build forward out of the COVID-19 pandemic.

The report's key recommendations include regulating the banking and financial services sector, creating financial stability through effective policies, amending and updating financial sector legislation and regulatory policies and promoting innovative private sector financing.

The report also called on African nations to embrace the continent's Digital Transformation Strategy and the African Continental Free Trade Area to streamline policies and regulation.