Africa's ability to respond to the crisis caused by the covid-19 pandemic has been hampered by a lack of fiscal maneuverability and high and complex public debtsaccording to a report by the Mo Ibrahim Foundation published today. 

According to the report "Covid-19 in Africa, One Year Later: Challenges and Prospects," prior to the pandemic at least 30 countries spent more on public debt burdens than on their health systems. 

In the last year, the situation has worsened because the cost of payments has increased relative to the Gross Domestic Product (GDP) while tax revenues have decreased.

"With the liquidity shock of the pandemic, countries found themselves unable to meet their [public] debt obligations. Simultaneously, domestic currencies sank against the dollar, increasing the cost of debt," the authors write.

Angola, which contracted a large part of its public debt with China, was one of the African countries that suffered with the situation, aggravated by the drop in demand for oil and the decrease of its prices, resulting in a strong depreciation of the kwanza. 

Supported by the G20, the Debt Service Suspension Initiative (DSSI) has suspended payments on bilateral loans made by members of the group to some of the world's poorest countries, a measure extended until December 2021.

This initiative did not include private creditors, and neither the World Bank nor the International Monetary Fund (IMF) suspended repayment payments on financial assistance programs.

Even so, the paper points out, several African countries have been faster and more efficient in organizing screening for pandemic covid-19 than European countries with more capable and funded health services. 

Drawing on experience with the Ebola epidemic, "across the continent, 20 countries have introduced comprehensive contact tracing before the first 100 cases of infection, compared to only 14 countries in the European Union."

This is despite the fact that the capacity of African health services is the lowest in the world, averaging 135 hospital beds, three intensive care units, and 35 doctors per 100,000 people, and suffering from unstable access to electricity.

In addition to identifying weaknesses exposed by the pandemic, the report identifies ways for the continent to be more autonomous and self-sufficient by developing a more diversified, environmentally-friendly, and digitalized economy.

"Africa has shown strong leadership in its response to covid-19. However, the data also show where we are falling short. We now have the opportunity to build on the lessons of the pandemic to build an African-led recovery that champions good governance, strengthens continental integration, and is youth-centered," argued businessman Mo Ibrahim, founder and chairman of the Foundation bearing his name. 

The report was released on the eve of the start of Ibrahim Governance Weekend 2021, a forum on the impact of the pandemic on health, economics and politics in Africa and proposals for recovery that will run in a digital format from Thursday to Saturday.

Speakers include, among others, World Health Organization Director-General Tedros Adhanom Ghebreyesus, United Nations Secretary-General António Guterres, European Commission President Ursula von der Leyen, African Union Commission President Moussa Faki Mahamat, African Union Centre for Disease Control and Prevention (Africa CDC) Director John Nkengasong, and European Council President Charles Michel.