São Tomé and Príncipe expected to be one of the countries most economically affected by Covid-19

The drop in tourist activity in São Tomé and Príncipe, as a result of border closures and flight cancellations, is expected to lead to one of the biggest reductions in economic activity in Africa, according to estimates from the United Nations Economic Commission for Africa (UNECA).

A UNECA report shows that one possible solution for the government of the archipelago is to secure a boost to the financial programme that is currently in place from the International Monetary Fund (IMF) and debt renegotiation, given the serious imbalances in the São Tomé and Príncipe economy.

The country’s recourse to the IMF is the result of the difficulties that are preventing other traditional partners, in Europe and Africa, from providing assistance.

The crisis, the report said, is also expected to lead to delays in the development of oil exploration projects in the Exclusive Economic Zone (EEZ), especially considering that the main development partner for this will be Equatorial Guinea, a country that is also faced with a deep economic crisis. (macauhub)