Economic Challenges in Sub-Saharan Africa

The video discusses the challenges Africa faces due to the COVID-19 pandemic and the Russia-Ukraine conflict, which have led to increased living costs and slowed poverty reduction. The global economic slowdown affects Africa's trade, reducing income from exports like cocoa and oil. Rising inflation and inequality are pressing issues, with central banks needing to control inflation by adjusting interest rates. However, high debt levels and limited fiscal space constrain policy responses in sub-Saharan Africa.

What major event has recently increased the cost of living in Africa?

• The Russian invasion of Ukraine

• The COVID-19 pandemic

• The Brexit deal

• The US-China trade war

How has the pandemic affected poverty reduction trends in Africa?

• It has slowed them down

• It has had no effect

• It has reversed them completely

• It has accelerated them

Why should Africans be concerned about slow global growth?

• It boosts foreign investments in Africa

• It reduces income from exports, affecting essential services

• It leads to higher prices for African commodities

• It increases the demand for African exports

Which sector is NOT directly mentioned as being affected by lower income from exports?

• Tourism

• Transportation

• Education

• Healthcare

What is the effect of slow global growth on the demand for African commodities?

• It decreases demand

• It increases demand

• It has no effect

• It stabilizes demand

What is one of the main reasons for rising inflation in sub-Saharan Africa?

• Stable economic activity

• Decreasing fuel prices

• Lower borrowing costs

• Increasing food prices

What role do central bankers play in controlling inflation?

• Printing more money

• Increasing interest rates

• Reducing taxes

• Decreasing interest rates

What is a suggested method for policymakers to control inflation?

• Increasing exports

• Reducing public spending

• Increasing interest rates

• Lowering taxes

What has widened within countries in sub-Saharan Africa due to rising inflation?

• Economic growth

• Inequality

• Public savings

• Export levels

What is a consequence of high debt levels in sub-Saharan African countries?

• Increased fiscal space

• Limited ability to respond to economic challenges

• Higher public savings

• Decreased borrowing costs