How can Africa achieve sustained poverty reduction?

The COVID-19 pandemic has unearthed Africa's poverty crisis, with experts warning of a significant increase in the number of vulnerable population at risk of falling and remaining in poverty. According to the latest economic report on Africa, an estimated 58 million more Africans, with mean consumption ranging from $1.90 to $2.09 USD per day, are now at a heightened risk due to the pandemic. Adrienne Gauci, an economist with the United Nations Economic Commission for Africa, discussed these concerning findings in an interview with Gilles Bismongo on CNBC Africa. Gauci highlighted the unique challenges posed by the prolonged nature of the COVID-19 shock, which has forced households to exhaust their resources and potentially fall into poverty. She noted that similar to the Ukrainian crisis, the food and fuel shortages plaguing Africa could exacerbate the poverty situation, potentially pushing an additional 50 million individuals into poverty across the continent. Despite some regions seeing a decline in COVID-19 cases, the future remains uncertain, with Gauci expressing concerns about the lasting impact on poverty levels. Drawing parallels to past exogenous shocks like the HIV pandemic of the 90s, Gauci warned that households affected by the current crises may face extended periods in poverty. She cited historical data, indicating that households impacted by such shocks typically took around seven years to recover. With the Ukrainian crisis compounding the challenges posed by COVID-19, Gauci cautioned that the path out of poverty might be prolonged for many individuals. One striking observation from the report was the heightened vulnerability of women to poverty. Gauci attributed this trend to structural gender inequalities prevalent in African societies. Women, who are often overrepresented in the informal sector, face higher income volatility and are more susceptible to job losses during crises. The concentration of women in retail informal sectors further exacerbates their vulnerability, as lockdown measures disproportionately affect these businesses. Additionally, women bear a heavier burden of care responsibilities for sick family members, further limiting their economic opportunities. On a more optimistic note, Gauci pointed out countries like Mauritius, Egypt, and Seychelles as examples of effective poverty reduction strategies. These nations had existing social protection systems in place, providing a safety net for households during economic downturns. Their proactive interventions during the COVID-19 crisis helped mitigate the impact on vulnerable populations, showcasing the importance of robust social welfare measures in combating poverty. In light of the financial constraints faced by many African governments, Gauci emphasized the need for sustainable solutions. She advocated for the scaling up of social protection schemes beyond crisis periods, citing the success of increased spending on social welfare during the pandemic. By institutionalizing these support mechanisms, countries can build resilience against future shocks and create a more inclusive and equitable society. As Africa grapples with the lingering effects of the COVID-19 pandemic on poverty levels, experts like Adrienne Gauci underscore the necessity of comprehensive interventions to address the root causes of vulnerability. With targeted policies, improved social protection, and a gender-sensitive approach, the continent can strive towards sustained poverty reduction and a more resilient future for all its citizens.