Economics

THE INTERNATIONAL BUSINESS TIMES   by Amy Nordrum                                                                      Jan. 23, 2015

The recent Ebola outbreak, for which the number of new cases reported each week in the three most severely affected countries is finally beginning to fall, underscores the need to prepare for the next disease outbreak. Global health leaders are asking what it will take to prevent the next disease outbreak from spiraling out of control as the global population approaches 7.5 billion people and grows more connected.

     A research assistant works on a vaccine for Ebola at the Jenner Institute in Oxford, England. Eddie Keogh/Reuters

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How does Ebola affect business and the economy in Africa?

We are one world; we are affected by the wellbeing of our neighbours and our business partners…
The stories of human suffering coming out of West Africa are staggering. The human cost of this strange disease, immense. The fall-out of the epidemic is not just health-related. It is also economic.

KPMG Africa has collaborated across our healthcare practices in West, East and Sub-Saharan Africa to explore the impact of Ebola, both on the affected countries as well as on the businesses of some of our key clients.
Despite the recent economic growth in these countries, the inherent weaknesses that persist in these healthcare systems have been exposed by the outbreak.

The negative impact of the outbreak on the economies of these countries has less to do with direct costs of dealing with the disease, than the costs of aversion behaviour.

For three countries, Liberia, Sierra Leone and Guinea, just recently able to bask in the rays of political and economic stability, the economic damage is depressing.

Ebola treatment centres have often not been completed until the virus has passed its peak.
Photograph: Francisco Leong/AFP/Getty Images

UN’s lead Ebola co-ordinator en route to Davos says last third of the $1.5bn pledged to tackle disease needs to be paid in order to end the outbreak

theguardian.com - by Sarah Boseley - January 20, 2015

Half a billion dollars of aid pledged to end the Ebola outbreak in west Africa still hasn’t been paid, according to the UN’s response co-ordinator.

Dr David Nabarro, in London and on his way to Davos to discuss progress against Ebola and future plans, said about two-thirds of the promised $1.5bn had been paid so far. “This last third is the most precious money but probably the most difficult money,” he told the Guardian. “My focus over the next few days here and in Davos is trying to ensure we have enough money to enable the task to be completed.

Latest surveys point to declines in employment, food insecurity, and long-term welfare concerns

THE WORLD BANK                                                       Jan. 12, 2015

WASHINGTON-- The socio-economic impacts of Ebola in Liberia and Sierra Leone are far-reaching and persistent, according to two new World Bank Group reports. Both countries continue to experience job losses, despite their differing health outlooks. These impacts have not been limited to the areas where infections have been the highest, which points to economy-wide slowdowns. As a result, many households have been forced to take short-term actions to cope, which can have substantial long-term effects on welfare.

“The Ebola virus itself must be eradicated- this is the number one priority,” said Ana Revenga, Senior Director for Poverty at the World Bank Group. “But its socio-economic side effects put the current and future prosperity of households in Liberia and Sierra Leone at high risk. We must pay careful attention to those who are most vulnerable to both health and economic shocks, and ensure that they are supported throughout and after the crisis.”