Fitch: Mpox emergency may heighten economic challenges in Africa
Fitch Ratings believes a potential acceleration in the spread of mpox in sub-Saharan Africa could raise the risk that the virus and efforts to curb its impact hurt economic activity and weaken fiscal metrics in affected sovereigns. Meanwhile, data from the Nigerian Export Promotion Council shows $2.7 billion was generated from non-oil exports in the first half of this year. Johnson Chukwu, CEO of Cowry Asset Management joins CNBC Africa for more.
Thu, 29 Aug 2024 11:59:06 GMT
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AI Generated Summary
- Fitch Ratings warns of potential economic risks in sub-Saharan Africa due to the mpox outbreak, citing concerns over weakened fiscal metrics and economic activity.
- Countries with high incidence of mpox are also those facing challenging economic conditions, further exposing their vulnerability to the crisis.
- The impact of the mpox outbreak could be particularly severe for sectors like tourism, leading to declines in productivity and economic growth.
Fitch Ratings has issued a warning that a potential acceleration in the spread of mpox in sub-Saharan Africa could pose a significant threat to the region's economy. The agency believes that efforts to curb the impact of the virus may lead to a decline in economic activity and weaken fiscal metrics in affected countries. This concern comes at a time when the continent is still recovering from the aftermath of the COVID-19 pandemic, with many countries facing economic fragilities and high debt levels. Johnson Chukwu, the Chief Executive Officer of Cowry Asset Management Limited, shared insights on the potential impact of the looming crisis. He emphasized the link between countries with high incidence of mpox and those struggling with challenging economic conditions, highlighting the vulnerability of nations like the Democratic Republic of Congo. Chukwu underscored the devastating effect that previous outbreaks, such as SARS, had on African economies, particularly those with already weakened fiscal frameworks. The economic ramifications of the mpox outbreak could further exacerbate the challenges faced by these nations.
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