After Covid-19: Reviving ruined economies using limited resources
A general view of Kibera slums, Nairobi. Governments will spend a significant portion of their revenues on debt servicing thereby reducing the funding for development projects amid diminishing revenue collections. PHOTO | AFP
East African governments are full of expectations that come 2021 their battered economies will get their mojo back amid concerns of limited resources facing policymakers out to revive their economies from the devastating effects of the Covid-19 pandemic.
Economists at Allianz SE, Germany-based multinational financial services company, note that while East Africa is poised to be the hotspot of the African economic recovery post the coronavirus crisis, finance ministers from the region have plenty to ponder about, including looking at the right balance between fiscal and monetary policies to boost the economy against the need for debt sustainability, external stability, and longer-term credibility.
