Africa’s debt burden to rise from Covid-19 capital disinvestments

As a result of the economic impact of Covid-19, there have been significant outflows of capital from emerging markets, many in Africa, thus far this year, as risk appetite weakens significantly and capital is redirected into safe haven assets, like gold, reports insurance company Alexander Forbes chief economist Isaah Mhlanga.

He notes that economic activity has declined drastically in regions where lockdowns have been enforced and says a recovery timeframe is difficult to predict.