As part of the ongoing series of webinars aimed at bringing to the fore the discussions and raising awareness among policy makers on emerging issues, MEFMI hosted a webinar on the Impact of COVID-19 on the External Sector. The webinar was held against the backdrop of a deteriorating external environment, driven by trade and supply chain disruptions, severe decline in tourism flows and travel services, anticipated decline in remittance flows, and uncertainties in foreign private capital flows. The resultant current account pressures coupled with expected decline in financing pose risks to the balance of payment needs of MEFMI member countries, which calls for development of policies to support resilience to these shocks.

The key outcome of the webinar was enhanced awareness of the participants on the pandemic-induced swings in trade, remittances, and capital flows to the region. Participants also got insights into various policy options and opportunities that countries can leverage to mitigate the emerging risks. The immediate implementation of the African Continental Free Trade Area (AfCFTA), capitalising on state-backed investment initiatives for Africa, and promotion of digital channels and infrastructure for remittances coupled with digital education programmes, were some of the policy measures emphasised. MEFMI expects that the officials who participated in the webinar will utilise the knowledge gained to explore the policy options and implement strategies to withstand the external shocks to their economies.

The webinar targeted middle to senior level officials dealing with External Sector statistics, analysis and policy related issues from MEFMI client institutions, and was attended by 48 participants. Four panellists facilitated at the webinar namely; Mr. Themba Munalula – the Chief Statistician at the Common Market for Eastern and Southern Africa (COMESA) Secretariat; Mr. Ibrahim Zeidy – the Director of the COMESA Monetary Institute; Ms. Antonia Esser – Engagement Manager at the Centre for Financial Regulation and Inclusion (CENFRI); and Mr. Arslan Chaudhary – Economist at the United Nations Conference on Trade and Development (UNCTAD).

Prepared by Vivian Namugambe