Tuesday
June 9
2020

Coronavirus May Cost Africa $4.8 Billion in Crop Exports

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The coronavirus pandemic could cost Africa as much as $4.8 billion in lost agricultural exports and affect the livelihoods of 10 million farmers, McKinsey & Co. said.

Disruptions ranging from canceled flights to the closure of chocolate factories in Europe have limited exports of crops ranging from nuts to roses, according to the consultancy firm. Livelihoods will be affected through “job loss or price reductions,” McKinsey said.

Agriculture is key for African economies, accounting for 23% of gross domestic product and jobs for 60% of economically active people in the sub-Saharan region. Agricultural exports from the continent are worth between $35 billion and $40 billion annually.

Photo courtesy of Tai’s Captures.

Source: Bloomberg (link opens in a new window)

Categories
Agriculture, Coronavirus, Finance, Health Care
Tags
agribusiness, behavioral economics, coronavirus, financial acces, poverty, supply chains