Connect with us

Africa Today

Kenya’s GDP Contracts Under Weight of COVID-19, Impacting Lives and Livelihoods

Published

on

The latest World Bank economic analysis for Kenya projects the economy to contract by between 1.0 percent and 1.5 percent in 2020, as ongoing COVID-19 containment measures and behavioral responses restrict activity in Kenya and its trading partners.

The Kenya Economic Update, Navigating the Pandemic, notes the downturn in economic growth reflects the more severe economic impact of the pandemic to date than had been initially anticipated, including a large impact on the national accounts of the closure of education institutions since March. In response, the government has deployed both fiscal and monetary policies to support the healthcare system, protect the most vulnerable households, and support firms to help preserve jobs, incomes and the economy’s productive potential. With a sharp decline in tax revenues due to the weakening in economic activity, and tax relief, and an increase in COVID-related spending needs, the fiscal deficit has widened, and debt vulnerabilities have risen. The fiscal deficit widened to 8.2 percent of gross domestic product (GDP), up from the pre-COVID budgeted target of 6.0 percent of GDP, and Kenya’s debt to GDP ratio has risen to 65.6 percent of GDP as of June 2020, up from 62.4 percent of GDP in June 2019.

“As the COVID-19 pandemic continues to threaten both the lives and livelihoods of Kenyans, we remain committed to supporting the government to allocate sufficient resources to the health sector to combat the pandemic, continue with mass testing, support self-quarantine, social distancing, and protect the most vulnerable groups,” said Keith Hansen, World Bank Country Director for Kenya. “It is equally critical to provide well-targeted support to the most vulnerable affected households.”

Beyond strengthening health systems and protecting incomes, the report recommends several near-term actions that can play a role to combat recession and revive the economy’s productivity, creating the conditions for a resilient and inclusive recovery. Ensuring continued access to safe healthcare, including for non-COVID-19 related health concerns, remains a priority. Given fiscal constraints, this will require redirecting expenditures to the highest priority areas, whilst maintaining a focus on raising the efficiency of spending and ensuring the transparent use of funds.

Following the job and income losses precipitated by the crisis, the report notes support is needed for the “new poor” whose livelihoods have been affected. This could be achieved through a horizontal scale-up of social protection programs, appropriately targeted, timely, and temporary while the crisis persists.It is critical to ensure continued support to vulnerable households, while safeguarding human capital through expanded access to digital technology, combined with better access to information to mitigate usage of negative coping strategies (i.e. asset liquidation) and combat food insecurity while offsetting the increase in poverty.

“Following the extraordinary economic support efforts necessitated by the crisis, Kenya’s economic recovery can be supported by the authorities returning to an appropriately-timed and balanced fiscal consolidation path, to reduce mounting debt vulnerabilities and safeguard macroeconomic stability,” said Alex Sienaert, World BankSenior Economist and lead author of the report. “Kenya will also need to enhance its existing institutional setup for monitoring and responding to future communicable disease outbreaks, and further the still-critical “Big 4” agenda for medium-term inclusive growth, including realizing the government’s vision of sustainably providing universal healthcare.”

Kenya’s economic outlook remains highly uncertain, as the COVID-19 pandemic continues to unfold in the country, and globally. Under baseline assumptions, the economy is projected to rebound quickly in 2021, lifting real GDP by 6.9 percent y/y. A major factor in this strong rebound is the unusual impact on the national account’s treatment of education sector output normalizing, which is projected to add 2.2 percentage points to real GDP growth next year.Delayed availability of vaccines, and prolonged social distancing and other needed COVID-19 countermeasures, could undermine the projected recovery in economic activity.

The report’s policy section focuses on options to strengthen healthcare system and testing capacity, to support firms, and to protect the most vulnerable households to cope with the COVID-19 global pandemic.

Continue Reading
Comments

Africa Today

Humanitarian catastrophe in northern Mozambique ‘beyond epic proportions’

Published

on

A displaced woman in northern Mozambique receives food aid. © WFP/Grant Lee Neuenburg

The UN and partners are “following with deep concern” new reports of violations against civilians in northern Mozambique, the UN Spokesperson said on Thursday. 

Citing reports of atrocities carried out by child soldiers, alleged beheadings during attacks by non-State armed groups, and clashes in the Cabo Delgado region, Stéphane Dujarric told journalists at the regular daily briefing that although verifying information was extremely difficult, “we are concerned about the situation of civilians who fled the violence and those who remain in Palma”. 

The coastal town just south of the border with Tanzania, was reportedly overrun by militant extremists on 24 March, but three days ago, Mozambique’s military reported that it had regained control. 

According to the UN Office for Coordination of Humanitarian Affairs (OCHA), attacks in and around Palma uprooted many who had been sheltering there after having fled conflict in other parts of the province. 

Prior to that, nearly 670,000 – including some 160,000 women and adolescent girls as well as 19,000 pregnant women – were internally displaced in Cabo Delgado, Niassa and Nampula provinces, the vast majority of them reliant on host families, whose scarce resources are being exhausted.  

On the ground 

The UN spokesperson said that nearly 12,800 people, 43 per cent of whom are children, have arrived in the districts of Nangade, Mueda, Montepuez and Pemba since violence erupted.  

“Many more are expected to still be on the move in search of safety and assistance”, he added. 

Humanitarian partners in Mozambique are assisting displaced people at arrival points and scaling up the ongoing humanitarian response in Cabo Delgado. 

“So far in 2021, more than 500,000 people in the province have received humanitarian assistance”, he said. 

Humanitarians stretched 

On top of conflict in Cabo Delgado, in the first months of 2021 and prior to the Palma attacks, the humanitarian community in Mozambique was already stretched, having responded to multiple climate emergencies. 

Yet, the humanitarian appeal for the current crisis is currently just one per cent funded.  

“More resources are immediately required to meet the needs of people fleeing the violence in Palma”, underscored the UN spokesperson.   

“The United Nations calls on all parties to the conflict in Cabo Delgado to protect civilians.” 

Trapped and displaced 

Earlier in the week, the UN Refugee Agency (UNHCR) said the insurgent attack on Palma had forced at least 11,000 people to leave their homes and reportedly rendered thousands of others trapped as it “continues to work around the clock” to assist them. 

UNHCR said that its teams in Pemba were following up on worrying reports that more than 1,000 displaced people were prevented from crossing the border into Tanzania and called on Mozambique’s neighbours to provide access to territory and asylum for people escaping violence. 

This is a humanitarian catastrophe beyond epic proportions — WFP Representative

‘Saving lives’ priority 

At the same time, the World Food Programme (WFP) said that the deteriorating security situation has caused evacuation flights to be suspended and left UN agencies struggling to get into Palma with food assistance.  

“This is a humanitarian catastrophe beyond epic proportions”, said Antonella D’Aprile, WFP Representative and Country Director for Mozambique, on Tuesday.  

The UN food relief agency warned that hunger is rising in Palma, with some arrivals into Pemba saying they had not eaten for weeks. 

“People fleeing Palma are completely traumatized by the violence they’ve witnessed in the past few days, and now, more than ever, they need our help”, said Ms. D’Aprile. “Our priority is saving lives and making sure emergency assistance reaches those who need it most”.

Continue Reading

Africa Today

Ethiopia: Humanitarian situation remains ‘dire’

Published

on

Ethiopian refugees fleeing clashes in the country's northern Tigray region, rest and cook meals near UNHCR's Hamdayet reception centre after crossing into Sudan. © UNHCR/Hazim Elhag

The humanitarian situation in Tigray, Ethiopia, remains “dire”, the Spokesperson for the UN Secretary-General said on Wednesday.  

“While there has been substantial improvement in humanitarian access, active hostilities have been reported in the north-western, central, eastern, south-eastern and southern zones”, Stéphane Dujarric told correspondents at a regular press briefing.  

Following months of escalating tensions between the Ethiopian Government and the dominant regional force, the Tigray People’s Liberation Front (TPLF), Prime Minister Abiy Ahmed ordered a military offensive after rebels attacked a federal army base.  

Within days, militias from the neighbouring Amhara region had joined the fray, reportedly followed by some troops from neighbouring Eritrea – a long-time rival of Tigray. 

According to government forces, the region had been secured by the end of November, however TPLF resistance has continued amid accusations of extrajudicial killings and rights abuses on all sides.  

Mass displacement 

The UN Spokesperson said that some humanitarian partners have accessed the towns of Gijet and Samre, in the southern and southeastern zones.  

“They reported that most of the population in these towns has fled”, he said, adding that the Alamata-Mekelle-Adigrat-Shire road remains “partially accessible”.   

Mr. Dujarric referenced the Office for the Coordination of Humanitarian Affairs (OCHA) in saying that an estimated 2.5 million people in rural Tigray have not had access to essential services over the last five months.  

Moreover, the conflict continues to drive massive displacement across the region, with tens of thousands of people moving towards urban areas, including to Mekelle and Shire.  

“According to a recent assessment report, there could be as many as 450,000 people displaced in Shire”, he stated. 

As UN humanitarian partners scale up the response, they are grappling with capacity and resource challenges, “which remains inadequate for the estimated 4.5 million people who need life-saving assistance”, said Mr. Dujarric.

Continue Reading

Africa Today

New programme to support Kenya’s coast and blue economy

Published

on

Team Europe, together with the Governors of six coastal counties in Kenya, the Ministry of Devolution and the Blue Economy Secretariat, launched the Go Blue initiative in Kenya on March 25, 2021. The four-year programme aims to protect Kenya’s coastal ecosystems while creating environmentally friendly jobs in a host of industries, including recycling, tourism and small-scale fishing. It is designed to foster a “sustainable blue economy” in six coastal counties and generate more than 3,000 jobs for youth and women alone.

Go Blue has received 25 million euros in funding from the European Union. Four EU Member States – France, Germany, Italy, and Portugal – will provide technical expertise on economic growth, while two UN agencies – the United Nations Environment Programme (UNEP) and  UN-Habitat – will ensure that interventions are aligned with environmental conservation and urban planning goals and that the initiative helps coastal cities and communities adapt to adverse effects of climate change.

“Our marine and coastal ecosystems are extremely valuable in terms of providing ecosystem services – with many people earning their livelihoods through them,” said Inger Andersen, Executive Director of the United Nations Environment Programme (UNEP). “Rather than depleting or polluting these resources, we must develop ways in which to harness and protect them.”

The push comes with maritime environments around the world, including those in Kenya, facing increasing pressure from climate change and pollution.  

Kenya has an abundance of untapped maritime resources along its coast. Go Blue will focus on helping coastal communities develop those resources in a way that is sustainable and that provides economic opportunities for women and youth. The initiative will bring inclusive, integrated and sustainable approaches to economic growth, while developing new work streams, like small-scale fisheries, waste recycling, aquaculture or tourism, and technical skills in blue economy sectors, strengthening value chains and tackling regional bottlenecks.

It will also promote coastal counties’ efforts to develop integrated approaches to land-sea planning and management with a focus on restoring key coastal and marine ecosystems. Lastly, the capacity of Kenya’s Coast Guard will be strengthened to safeguard ocean assets.

“Jointly working on integrated spatial planning solutions–both on land and in water–on different levels of government and with consideration to different sectors is key to achieving a sustainable blue economy,” said Maimunah Mohd. Sharif, Executive Director of UN-Habitat.

Go Blue will be implemented in cooperation with the Jumuiya ya Kaunti za Pwani  – Kenya’s coast regional counties Economic Development Organization – together with national ministries, such as the Blue Economy Secretariat, Ministry of Agriculture and Fisheries, the Kenya Coast Guard Service, Ministry of Interior, Ministry of Transport and Bandari Maritime Academy.

UN-Habitat and UNEP will support the six counties in developing three methodologies:

  • an integrated, ecosystem-based land-sea planning and management framework, which will improve spatial planning
  • a regional land-sea vision to prioritize blue economy-related issues
  • mapping, data collection and analysis on spatial planning and ecosystems assessments

This will feed into each county’s GIS data lab, as well as a regional GIS data hub, to strengthen data collection and analysis on land use changes, urbanization and environmental change patterns, marine and coastal natural assets, and human activity (e.g. fisheries, tourism, waste). In addition, the project will support waste management, constructed wetlands, blue carbon, mangrove restoration, spatial planning and community empowerment.

The information and evidence from all activities will support replication in other Kenyan towns through the initiative’s online knowledge-sharing platform and trainings. Furthermore, four counties should have developed their own land-sea planning proposals as a result of the project, and six innovative activities will be funded by investors that directly contribute to the blue economy and land-sea planning.

UN Environment

Continue Reading

Publications

Latest

people art people art
Intelligence20 hours ago

Covid 19 and Human Security in Anthropocene era

Since the end of second World  the focus on international security has grown, not only state threats but also threats...

New Social Compact1 day ago

Athletes knock the legs from under global sports governance

Sports governance worldwide has had the legs knocked out from under it. Yet, national and international sports administrators are slow...

Americas1 day ago

Biden’s Dilemma: Caught Between Israel and Iran

By all indication, the latest sabotage at Iran’s uranium enrichment facility in Natanz aimed at more than just disabling thousands...

South Asia2 days ago

Pakistan and Germany are keen to Sustain Multifaceted and Mutually beneficial Cooperation

Pakistan has varied history of relationship and cooperation with other countries in international arena. Despite of proactive foreign policy Pakistan...

New Social Compact2 days ago

Disability policies must be based on what the disabled need

Diversity policies, especially when it comes to disabled people, are often created and implemented by decision makers with very different...

WAN WAN
Urban Development2 days ago

Preparing (Mega)Cities for the 2020s: An Innovative Image and Investment Diplomacy

Globalized megacities will definitely dominate the future, in the same way as colonial empires dominated the 19th century and nation-states...

modi xi jinping modi xi jinping
East Asia2 days ago

The Galwan Conflict: Beginning of a new Relationship Dynamics

The 15th June, 2020 may very well mark a new chapter in the Indo-Chinese relationship and pave the way for...

Trending