(Adds details)
By Duncan Miriri
NAIROBI, March 13 (Reuters) - African economies are expected
to grow by an average of 3.4% this year, the African Development
Bank said, as the continent recovers from its worst contraction
in half a century.
The 54 economies shrank by 2.1% last year, the AfDB said in
its 2021 economic outlook report, as the coronavirus crisis
disrupted economic activity across the continent.
"The continent-wide projected recovery... does not remove
the threat of increasing poverty," the Abidjan-based AfDB said
in the report, published on Friday.
An estimated 39 million Africans are likely to slip into
extreme poverty as a result of the COVID-19 pandemic, the bank
said, after 30 million were pushed into that bracket last year.
"Populations with lower levels of education, few assets, and
working in informal jobs are the most affected and must be
protected," it said.
Governments on the continent boosted their spending last
year in an effort to support their economies through the crisis,
putting pressure on budgetary balances and debt burdens.
"The average debt-to-GDP ratio for Africa is expected to
climb by 10 to 15 percentage points in the short to medium
term," the AfDB said.
The worsening outcomes will be driven by the surge in
government spending and the contraction of fiscal revenues
caused by the pandemic.
The AfDB called on the international community to work with
policymakers on the continent to help it deal with debt loads
that are getting heavier and heavier.
"Africa's debt burden must be prioritised and not ignored,"
it said. "The time for one last debt relief drive for Africa is
now."