https://allafrica.com/stories/202011060408.html
Countries in Eastern Africa are facing a rise in debt resulting from the global pandemic Covid-19. Monetary authorities are worried about the the current rise in the fall of their currency value. Between only 4 countries, the debt accumulated to 86 billion dollars in just 1 year. Kenya has managed to lost 7.4 per cent to their dollar, Uganda shed 1.77 cents per dollar. The Bank of Uganda states that they are worried of the future of the economy because it is so “uncertain”. The economy across the board in Eastern Africa is becoming very weak, which makes the government and banks worry for the future of the economic situation in the country, or if there is another wave of Covid-19.
This is important because if a majority of the countries, that have a stronger economic situation in Africa are struggling, this is dangerous for the world economy. Covid-19 has drastically effected the entire world economy, but it hurts countries, like in Africa, because they are already lower on the economic scale to begin with. It is important to remember that all countries play a big part in the world economy, and to acknowledge all of the countries that are hurting from the pandemic, rather than just big world powers.
The connects to international relations through foreign aid/ aid from NGO’s/IGO’s. This could be beneficial to the country in the present, but maybe hurt countries like that in the longer run. Countries are less affected when this money comes for organizations, but when the aid comes directly from big powerhouse countries it can trap them. The economy of every country effects the entire economic situation of the nation, even if the country that is hurting doesn’t seem to play a big role in it. Africa’s economy has been growing and improving and this enabled them to take a pretty hard hit.