
By Chukwuma Charles Soludo, CFR
This year 2020 begins a new decade that promises to be one of dreadful disruptions, with Africa holding the weakest end of the stick. In 2008/09, the global “great recession” was triggered by financial crisis in the US (world’s largest economy). Then, much of Africa was said to be decoupled from the crisis and muddled through without severe devastation of its economies. This year, a global health pandemic that has paused the global economy and certain to rail-road it into synchronized recession (if not depression) was triggered by the second largest economy, China. Unlike before, multilateralism and global coordination framework are at their weakest. National (local) self-defence is the rule. As before, the rich world with its generous welfare system and huge financial war chest, is taking care of itself (the US alone has US$2.2 trillion stimulus package). Africa is left to its fate.
Covid-19 caught the world totally unprepared, and with no proven and available medical response. Ad-hoc cocktails and learning-by-doing constitute the strategic package. In most western countries, the cocktail of response has included a coterie of defensive measures including: border closure; prepare isolation centres and mobilize medical personnel/facilities; implement “stay at home” orders or lockdowns except for food, medicine and essential services; campaign for basic hygiene and social distancing; arrange welfare packages for the vulnerable; and also economic stimulus packages to mitigate the effects on the macro economy.
Many African countries have largely copied the above template, to varying degrees. Piece-meal extensions of “stay at home” or lockdown orders as in many western countries have also been copied in Africa. But the question is: can Africa really afford lockdowns, and can they be effective? Put differently, given the social and economic circumstances of Africa and the impending ‘economic pandemic’, can Africa successfully and sustainably defeat Covid-19 by copying the conventional trial-and-error template of the western nations? In confusion and desperation, the world seemed to be throwing any and everything at the pandemic. Recall President Trump’s assertion that hydroxychloroquine “might help”? The evidence so far (from limited sample) is that it probably actually worsens the disease. The trial and error have left huge human toll and economic ruins, and there is still no solution.
Let us be clear: no one can blame African policymakers for the initial panicky copy and paste response some weeks ago. No public officer wanted to be blamed for doing nothing or not doing what others were doing. After these initial pilot schemes, it is now time to ask the deep question: Is this the right approach for Africa?
Let us be clear: no one can blame African policymakers for the initial panicky copy and paste response some weeks ago. No public officer wanted to be blamed for doing nothing or not doing what others were doing. After these initial pilot schemes, it is now time to ask the deep question: Is this the right approach for Africa?
All lives matter and African governments must do everything to protect or save every life from the pandemic. The challenge is how. Africa faces two unsavoury options: the conventional template, including lockdowns versus heterodox (creative local) approaches without lockdowns. Both have risks and potential benefits. Sadly, people will still get the disease and die under both approaches. People will differ on the choice, depending on what is on their decision matrix: data, resources, subjective preferences, and interests, etc. I focus on which option (on a net basis) is achievable in the short to medium term, consistent with our social and economic realities.
Our thesis is that lockdowns in Africa suffer time-inconsistency problem without a credible exit strategy; is unaffordable and could potentially worsen the twin pandemic—health and economic—in Africa. We call for Africa to press the reset button now, mainstream its collective, simple, smart learning-by-doing solutions that could, in the end, be the African solutions for export to the world. Covid-19 won’t be the end of techno-economic disruptions or health pandemics even in this decade: this is an opportunity to think without the box—to engender greater self-confidence in our capacity to think through our problems, with authentic sustainable solutions.
Let me illustrate why I believe that a strategy that includes lockdowns/border closure is the worse of the two options given our social and economic realities. (Recall that China isolated Wuhan, and kept Shanghai, Beijing, and other major economic engines open, and today, China supplies the world with medical equipment, face masks, etc and raking-in hundreds of billions of dollars). The idea of a lockdown (and border closure) implies that you will continue to do so (with extensions) until such a time that you are satisfied that the spread of Covid-19 has been arrested or on the decline (with the possibility of imposing another round of lockdown if new infections surge). That is the catch: lockdown for as long as required to stem the spread. The length of time required for such lockdowns to ensure “effectiveness” in arresting the spread would make it near impossible in much of Africa. If the strategy is to lockdown until infections stop/significantly decline or so, then we would have a suicidal indefinite waiting game.
First, monitoring the spread requires effective testing, and Africa cannot afford effective testing of its 1.3 billion people. New York State, with a population of 20 million and a budget of $175 billion, is pleading with the US Federal Government to assist with testing kits and facilities. Check out the number of testing centres and facilities in each African country relative to their populations. A joke in the social media narrated that the health minister of Burundi was asked to explain the miracle in his country whereby the number of infections was reported as zero. His response was: “it is simple: we don’t have any testing kits”. Besides, there is stigma associated with the infection, and on the average Africans only go to the hospital as the last resort. There are also asymptomatic cases, and only the critically ill ones will report. So, there will always be massive under-testing, and gross under reporting.
Furthermore, social distancing in most parts of Africa will remain impractical. From the shanties in South Africa’s townships to the crowded Ajengule or Mararaba in Abuja/Nasarawa, or Cairo or Kinshasa to the villages and poor neighbourhoods in much of Africa, social clustering, not distancing, is the affordable, survivalist culture. Communal living is not just about culture, it is a matter of economic survival. Hence, the statistics on infections will be coming in fits and stats: shall we be locking down and unlocking with each episode of surge as there may probably be several such episodes (unless and until a cure is found)? Even with over four weeks of “stay at home” or lockdowns in some African countries, the reported daily infections continue to rise. Some may argue the counterfactual that without the initial lockdowns, the number of infections could have been multiples. It is a reasonable conjecture or anecdote, albeit without any proof. The question is the end game for a poor society such as Africa? New infections have re-emerged in Wuhan, and both Singapore and South Korea are going back to the drawing board. Since we cannot sustain lockdowns indefinitely or even until the spread stops/declines, it means that we would sooner or later remove the restrictions. What happens then? There would still be infections, which can still spread anyway. Why not then adopt sustainable solutions early enough without weeks of avoidable waste and hardship? Let us think this through!
Next, African states cannot pay for lockdowns. Many countries depend on budget support from bilateral and multilateral donors, and with acute balance of payments problems. They do not even have leg rooms to simply print money. Most are now begging for debt relief and applying for urgent loans from the IMF and the World Bank. In Africa, both the governments and the people are begging for “palliatives”. The most that African states and their private charities can do is “photo charity”—with much fanfare, drop a few currency notes or grains here and there for some thousands when millions are in desperate need, just to be seen to have “done something”. At a fundamental level, most African states do not have credible demographic data to identify and target the most vulnerable. In the western societies from where we copied the lockdown/border closure, their citizens are literally paid to stay at home (by silently dropping monies into their accounts plus other incentives). Check out the trillions of dollars, Euros, and pounds in support to the vulnerable and stimulus packages. Despite these, check out the restiveness/protests in several of these countries and the unrelenting pressure to eliminate the restrictions (even in countries where thousands are dying each day due to Covid-19). Given that no government in Africa can seriously pay for lockdowns, over one billion Africans are left to survive if they can or perish if they must.
Without government support, no more than 5% of Africa’s 1.3 billion people can possibly survive any prolonged lockdown on their own finances. Most of the others have no assets or savings to live on for any prolonged period, and there is no social insurance (welfare system). Without the pandemic, the African economic space is already in dire straits, with unacceptable unemployment rate (especially youth unemployment) as well as endemic poverty. In 2007, I evaluated the structure of deposits in Nigerian banks and found that only 8% of the bank accounts had balances of N300,000 (over $2,500 then) and above, and these accounted for 95% of the total deposits. The remaining 92% of bank accounts had 5% of total deposits. I understand that a recent study showed that only 2% of bank accounts had N500,000 (about $1,300) and above. Also imagine the dependency burden on this 2%. The dearth of infrastructure (basic electricity is deficient) makes compulsion to stay at home hellish for most people. We have lockdowns in Africa but without pausing several pressures for private expenditures on the people: monthly house rents; banks’ interest payments for micro, small and medium enterprises (MSMEs), electricity charges, etc.
With some 80% of Africa’s population living from hand to mouth on daily toil and hassle, complete lockdown would never be total, almost impossible in our social settings. In most cases, the orders simply create opportunities for extortion for the security agencies: those who pay, move about! Attempts to force everyone into lockdown for extended period may indeed be enforcing a hunger/stress-induced mass genocide. More people could, consequently, be dying out of hunger and other diseases than the actual Covid-19. In normal times, thousands die every day in Africa due to other illnesses and communicable diseases—cholera, malaria, lassa fever, lower respiratory infections, diarrhoeal diseases, tuberculosis, heart diseases, stroke, HIV/AIDS, yellow fever, zika virus, measles, hepatitis, typhoid, small pox, Ebola, Rift valley fever, monkeypox, chikungunya virus, pregnancy and child-birth related deaths, renal failure; pneumonia, etc.
All lives matter and African governments must do everything to protect or save every life from the pandemic. The challenge is how. Africa faces two unsavoury options: the conventional template, including lockdowns versus heterodox (creative local) approaches without lockdowns. Both have risks and potential benefits. Sadly, people will still get the disease and die under both approaches. People will differ on the choice, depending on what is on their decision matrix: data, resources, subjective preferences, and interests, etc. I focus on which option (on a net basis) is achievable in the short to medium term, consistent with our social and economic realities.
Our thesis is that lockdowns in Africa suffer time-inconsistency problem without a credible exit strategy; is unaffordable and could potentially worsen the twin pandemic—health and economic—in Africa. We call for Africa to press the reset button now, mainstream its collective, simple, smart learning-by-doing solutions that could, in the end, be the African solutions for export to the world. Covid-19 won’t be the end of techno-economic disruptions or health pandemics even in this decade: this is an opportunity to think without the box—to engender greater self-confidence in our capacity to think through our problems, with authentic sustainable solutions.
Let me illustrate why I believe that a strategy that includes lockdowns/border closure is the worse of the two options given our social and economic realities. (Recall that China isolated Wuhan, and kept Shanghai, Beijing, and other major economic engines open, and today, China supplies the world with medical equipment, face masks, etc and raking-in hundreds of billions of dollars). The idea of a lockdown (and border closure) implies that you will continue to do so (with extensions) until such a time that you are satisfied that the spread of Covid-19 has been arrested or on the decline (with the possibility of imposing another round of lockdown if new infections surge). That is the catch: lockdown for as long as required to stem the spread. The length of time required for such lockdowns to ensure “effectiveness” in arresting the spread would make it near impossible in much of Africa. If the strategy is to lockdown until infections stop/significantly decline or so, then we would have a suicidal indefinite waiting game.
First, monitoring the spread requires effective testing, and Africa cannot afford effective testing of its 1.3 billion people. New York State, with a population of 20 million and a budget of $175 billion, is pleading with the US Federal Government to assist with testing kits and facilities. Check out the number of testing centres and facilities in each African country relative to their populations. A joke in the social media narrated that the health minister of Burundi was asked to explain the miracle in his country whereby the number of infections was reported as zero. His response was: “it is simple: we don’t have any testing kits”. Besides, there is stigma associated with the infection, and on the average Africans only go to the hospital as the last resort. There are also asymptomatic cases, and only the critically ill ones will report. So, there will always be massive under-testing, and gross under reporting.
Furthermore, social distancing in most parts of Africa will remain impractical. From the shanties in South Africa’s townships to the crowded Ajengule or Mararaba in Abuja/Nasarawa, or Cairo or Kinshasa to the villages and poor neighbourhoods in much of Africa, social clustering, not distancing, is the affordable, survivalist culture. Communal living is not just about culture, it is a matter of economic survival. Hence, the statistics on infections will be coming in fits and stats: shall we be locking down and unlocking with each episode of surge as there may probably be several such episodes (unless and until a cure is found)? Even with over four weeks of “stay at home” or lockdowns in some African countries, the reported daily infections continue to rise. Some may argue the counterfactual that without the initial lockdowns, the number of infections could have been multiples. It is a reasonable conjecture or anecdote, albeit without any proof. The question is the end game for a poor society such as Africa? New infections have re-emerged in Wuhan, and both Singapore and South Korea are going back to the drawing board. Since we cannot sustain lockdowns indefinitely or even until the spread stops/declines, it means that we would sooner or later remove the restrictions. What happens then? There would still be infections, which can still spread anyway. Why not then adopt sustainable solutions early enough without weeks of avoidable waste and hardship? Let us think this through!
Charles Soludo, former Governor of CBN summarizes his contribution to an African debate. From Johannesburg to Lagos, Cairo to Dakar, Kinshasa to Kigali, Nairobi to Accra, etc the debate on how Africa should respond to the global coronavirus (Covid-19) pandemic is raging. At an African regional policy platform, he had expressed some of these (personal) views some weeks ago but have been encouraged by most members to circulate them in Africa beyond the platform.












































