Mpox outbreak in Africa: Looming economic crisis {Business Africa}

The spread of Mpox in Africa, particularly in North Kivu, poses a severe threat to economic stability. With over 17,000 cases and 570 deaths reported this year in the DRC alone, the outbreak is alarming. The crisis has the potential to disrupt supply chains, strain tourism, and deter foreign investment, which are critical for economic growth and stability in the region.

Experts say the economic consequences of a continued spread of Mpox are dire. Supply chain disruptions could lead to a slowdown in economic growth. When raw materials cannot be transported from their source areas to factories, and finished goods cannot reach consumers, the entire production process grinds to a halt. This slowdown would result in high unemployment rates, compounding existing public debt challenges in many African countries.

We had expert insights from Dr. Alex Kamau, an economist and lecturer from Kenya.

Nigeria’s $9 Billion Annual Loss to Illegal Mining

In a related economic challenge, Nigeria is grappling with significant losses due to illegal mining. The country loses an estimated $9 billion annually to illegal mining activities. Despite Nigeria’s vast potential for economic development through its mining sector, the sector contributes less than 1% to the country’s GDP. The economic impact is severe, but the environmental consequences are equally alarming. Illegal mining causes substantial environmental damage, affecting land, water resources, and biodiversity.

Experts are calling for urgent government intervention to address the illegal mining crisis. Strengthening regulations, improving enforcement, and promoting legal mining activities are crucial steps to mitigate the economic and environmental impact. Addressing illegal mining could boost Nigeria’s economy, create jobs, and protect the environment.

Swiss Startup's Entry into Cameroon’s Beer Market Promises Economic Boost

Amid the challenges, a Swiss startup is offering a glimmer of hope for economic revitalization in Cameroon. In June 2024, Swiss African Premium Beverage, a Swiss startup, launched a microbrewery in Cameroon. This venture marks a significant foreign direct investment in the country’s fragile economy. The startup's entry into the beer market is expected to create jobs, stimulate economic activity, and attract further foreign investment.

One of the notable aspects of this investment is the company’s commitment to using solar energy. Amid power shortages in Cameroon, this innovative solution addresses the region’s unstable electricity supply. The use of sustainable energy not only supports the brewery’s operations but also sets a precedent for other businesses in the region to adopt renewable energy solutions.