WASHINGTON // The economic impact of the Ebola epidemic could reach $32.6 billion (Dh120 billion) by the end of next year if the disease ravaging Guinea, Liberia and Sierra Leone spreads to neighbouring countries in West Africa, the World Bank Group said on Wednesday.
The World Bank’s assessment said the economic impact of Ebola is already serious in the three countries and could be catastrophic if it becomes a more regional health crisis.
“With Ebola’s potential to inflict massive economic costs on Guinea, Liberia and Sierra Leone and the rest of their neighbours in West Africa, the international community must find ways to get past logistical roadblocks and bring in more doctors and trained medical staff, more hospital beds and more health and development support to help stop Ebola in its tracks,” said Jim Yong Kim, president of the World Bank.
He added that the enormous economic cost of the current outbreak to the affected countries and the world “could have been avoided by prudent ongoing investment in strengthening health care systems”.
It is far from certain that the epidemic will be contained by the end of the year, so the report estimated the economic costs of two scenarios as the battle against the disease continues. The report estimated that the economic impact could top $9 billion if the disease is rapidly contained in the three most severely affected countries, but could reach $32.6 billion if it takes a long time to contain Ebola in the three countries and it spreads to neighbouring nations.
The economic impact could be limited if immediate national and international action stops the epidemic and alleviates the fear factor, the report said. Fear about the disease is causing neighbouring countries to close their borders and airlines and businesses to suspend their commercial activities in the three worst-affected countries.
The World Health Organisation estimates that Ebola has killed more than 3,400 people in West Africa and infected at least twice that many.
Meanwhile, on the education front, Sierra Leone on Tuesday launched an ambitious schooling effort for more than a million children denied their education due to the epidemic, saying lessons would be delivered via radio.
Classes in a variety of subjects will be broadcast for four hours, six days a week, on 41 radio stations and the country’s sole TV channel, the government announced.
“The plan is to provide a suitable option for our school-going population as the entire school system has been disrupted since the outbreak of the Ebola disease,” said education minister Minkailu Bah.
Schools have been closed since the government announced a state of emergency in July in response to the epidemic, which has killed 3,500 people in west Africa, more than 600 of them in Sierra Leone.
More than two million of its population of 5.7 million are aged between three and 17, although in reality the secondary school attendance rate is less than 40 per cent for both boys and girls.
Mr Bah also admitted that reaching many of the nation’s schoolchildren would be difficult in a country where radio ownership is around 25 per cent and fewer than two per cent have access to a television.
But with no end in sight to the epidemic, which has also engulfed Guinea and Liberia, Sierra Leone’s economy and the education of its future workforce are in peril.
“As things now are we cannot expect schools to reopen until early 2015,” said Sylvester Meheaux, of the Conference of Principals of Secondary Schools that is helping the government run the classes.
“In the meantime, we are worried some children would end up being dropouts, pregnant and otherwise. These developments are a major concern for us in the educational sector.”
Public reaction to the announcement – which did not include details of how the scheme would be funded – has been mixed.
“This is not the type of tuition we used to know for our children, but we have little option,” said Sam Mbayo, a retired clerk from the eastern district of Kailahun.
“Any means to educate our children rather than leaving them idle is welcome. Otherwise we are going to have a generation of illiterates.”
Fatima Sheriff, a single mother from Freetown, said she was worried in particular about the damage the closures of schools was doing to the prospects of young girls.
“For many of them this is the end of their educational dreams as the choice of the going into prostituion and other vices loom,” she said.
Manuel Fontaine, the regional director of the UN children’s fund (Unicef), which is supporting the initiative, said the radio classes would be focused on teaching children “life skills” and maintaining their contact with the outside world.
But, he added, it was important that schools reopened as soon as possible, “partly because there is a problem of long-term damage in children who have no education, and because there is a risk that children will drop out of school, of education in general”.
Mr Bah said Sierra Leone authorities would “be devising other means [of] accommodating the hard-to-reach areas” without access to radios.
“We are quite aware that not all children will benefit from this method of teaching, but we are doing our best to reach as many children as possible,” he said.
* Associated Press and Associated Press
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Analysis
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Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
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