Comparative Study of Policy Responses to COVID-19 in LICs in Africa

The document finds that African LICs' economic responses to COVID-19 were modest and suboptimal compared to developed nations, primarily due to pre-pandemic structural weaknesses such as high debt, inflation, and limited fiscal space. While expansionary monetary policy was the most common tool, fiscal stimulus was generally low (1% to 2% of GDP), with exceptions like Senegal, Niger, and Mozambique. The brief highlights a significant financing gap in donor support and argues that recovery requires a shift toward data-driven policy, increased digital and financial inclusion, and the independence of monetary and debt management authorities.

• Economic policy responses among African LICs were modest in scale and quality compared to emerging and middle-income countries, largely because of pre-pandemic challenges including high debt levels, inflation, and limited fiscal space.
• Fiscal stimulus in most African LICs was small, typically ranging from 1% to 2% of GDP, although Senegal, Niger, and Mozambique exceeded 4% of GDP. Common interventions included budget support for health and tax relief in countries like Senegal and Madagascar.
• Expansionary monetary policy was the most frequently used economic response, often because fiscal options were constrained by weak revenue and high debt. However, nine LICs in Africa implemented no monetary policies due to weak financial markets.
• External financing remains inadequate to fill the financial gap for African LICs. While fragile states received a higher proportion of appealed funds, countries like Uganda and Tanzania received only 5% and 7% of their requested funding, respectively.
• Compared to the 2007–2008 global financial crisis (GFC), the COVID-19 response saw a shift from bilateral to multilateral donor support and a decrease in regional monetary policy coordination, despite the creation of the Continental Solidarity Anti-COVID-19 Fund.
• The document recommends that recovery efforts focus on addressing structural bottlenecks, specifically by ensuring the independence of debt management and monetary authorities and broadening the digital economy and social inclusion.

APA

South African Institute of International Affairs (2020). Comparative Study of Policy Responses to COVID-19 in LICs in Africa. https://saiia.org.za/research/comparative-study-of-policy-responses-to-covid-19-in-lics-in-africa/

Chicago

South African Institute of International Affairs. Comparative Study of Policy Responses to COVID-19 in LICs in Africa. 2020. https://saiia.org.za/research/comparative-study-of-policy-responses-to-covid-19-in-lics-in-africa/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Comparative Study of Policy Responses to COVID-19 in LICs in Africa |date=18 December 2020 |url=https://saiia.org.za/research/comparative-study-of-policy-responses-to-covid-19-in-lics-in-africa/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2020comparative, author = {{South African Institute of International Affairs}}, title = {{Comparative Study of Policy Responses to COVID-19 in LICs in Africa}}, institution = {South African Institute of International Affairs}, year = {2020}, month = dec, url = {https://saiia.org.za/research/comparative-study-of-policy-responses-to-covid-19-in-lics-in-africa/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }