The true cost of Ebola for West Africa - African Business Review

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Estimates recently published by the World Bank have revealed that the economic fallout from the Ebola crisis could cost West Africa billions and has stunted the economic growth of Guinea, Sierra Leone and Liberia.

New cases of Ebola are finally reaching close to zero and healthcare measures are improving across the region, with the World Bank announcing $650 million to sustain improvements in the region’s fragile health systems.

It was originally estimated that the economic downturn faced by West Africa could have climbed as high as $25 billion, but more recent estimates have indicated a much lower range, with the highest estimate being a loss of roughly $6.2 billion.

GDP estimates recently issued by the World Bank stated that Sierra Leone has already lost $1.4 billion, Guinea lost $535 million, and Liberia lost $240 million.

In the past year, the price of iron ore has plunged by 60 percent which has hit mining sectors in the three countries hard, especially in Sierra Leone where the economy has reacted with a contraction of 23 percent.   

International Monetary Fund (IMF) Managing Director Christine Lagarde said recently: "All three countries face a second shock. The recent sharp decline in commodity prices will significantly impair prospects for recovery. Many investors are considering delaying projects, while some operating mines have already suspended their activities."

President of the World Bank Jim Yong Kim added: “”We cannot afford to be complacent. Until we have zero new Ebola cases, the risk of continued severe economic impact to the three countries and beyond remains unacceptably high.”

The total amount raised by the World Bank has reached $1.6 billion, with the global community raising $100 million of its $150 million debt relief goal.

The World Bank Group expects sub-Saharan Africa to grow at 4.6 percent in 2015, down from a percent forecast in June 2014, with key contributors to this downgrade including Ebola and also the global oil price slump. Perhaps the key message to be learned from the Ebola crisis is that the African continent is still subject to the peaks and troughs of the more developed world, and when an Ebola-level crisis hits, there must be swift and decisive international action.  

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