McKinsey & Co. on COVID-19 testing and medical strategy in Africa

As the world continues to grapple with the impact of the COVID-19 pandemic, African economies face significant challenges in terms of medical response and economic strategy. CNBC Africa recently spoke with Kannan Lakmeeharan, Partner at McKinsey & Company, to discuss the potential ramifications of the crisis on the African continent. Lakmeeharan highlighted the urgent need for a comprehensive health capacity ramp-up in African countries, estimating a cost of at least 5 billion dollars in the next 100 days to acquire essential resources such as tests, mass clubs, ventilators, and potentially building hospital capacity. In addition to the medical challenges, Lakmeeharan addressed the grim economic outlook for Africa, citing projections that suggest up to one third of the entire workforce, approximately 150 million people, could be at risk of losing their jobs or experiencing income reductions. The economic damage is expected to be significant, not only impacting Africa but also reverberating globally. Lakmeeharan emphasized the need for coordinated global responses and the involvement of key stakeholders, including international financial institutions, to mitigate the economic fallout. When discussing stimulus packages for African economies, Lakmeeharan proposed a release of a substantial amount, ranging from 100 to 150 billion dollars, to support the continent's economies. However, he acknowledged the challenges in sourcing these funds, emphasizing the necessity of a coordinated effort involving organizations such as the World Bank, IMF, African Development Bank, and commercial banks. The need for debt restructuring and repayment mechanisms for emerging markets was also underscored to facilitate economic recovery. Looking ahead, Lakmeeharan pointed out three key areas where business practices are likely to undergo significant changes in the post-pandemic era. Firstly, the increased reliance on technology for connectivity and business operations is expected to persist, as the crisis has accelerated digital transformation initiatives. Secondly, disruptions in global supply chains have prompted discussions on resilience and the need to reevaluate the reliance on international sourcing. Thirdly, the restructuring of various industries and the emergence of new sectors are anticipated outcomes, highlighting the lasting impact of the pandemic on business landscapes. In conclusion, Lakmeeharan stressed the importance of reimagining the role of global institutions in facilitating recovery and building resilience to future crises. The COVID-19 pandemic has underscored the critical need for coordinated global responses and highlighted the indispensable role of international cooperation in addressing unprecedented challenges.