Economists and experts are already saying that the impact of the current COVID-19 pandemic will be a lot deeper than during the last global economic shock following the financial crisis of 2008 and will require bolder, rapid and bigger action to avert a prolonged downturn.
A number of African and international organisations have already made pledges and offered lines of finance to different countries. Here’s a summary of what’s been done to-date:
UN Economic Commission for Africa, on behalf of African Ministers of Finance – $100bn Emergency Financing Package for Africa
The UN Economic Commission for Africa has been hosting meetings with Ministers of Finance, in which they have asked for a $100bn emergency financing package for Africa.
African Development Bank – $3bn social bond
The Bank issued a $3bn social bond last week, the biggest of its kind. This exceptional $3bn, was launched to alleviate the impact of Covid-19 on Africa’s economies and livelihoods.
The African Export Import Bank – $3bn financing facility
Afreximbank announced a $3bn facility to provide financing to assist member countries to adjust to the financial, economic and health services shocks caused by the COVID-19 pandemic.
The World Bank – $160bn Emergency Coronavirus Support, including $14bn fast-track package and an $8bn private sector assistance package through the IFC
The World Bank has Bank Group expects to deploy up to $160bn over the next 15 months to help countries protect the poor and vulnerable, support businesses, and bolster economic recovery. This is a global response, not just for Africa.
The International Monetary Fund – $50bn Rapid-disbursing Emergency Financing Facility
The IMF is said to be able to mobilise up to $1tn of lending capacity. It says that 85 countries have already reached out to it for disbursements related to Covid-19.
The Trade and Development Bank
In a statement issued on Thursday the bank said it would support eligible Member States to procure essential medical supplies, as well as supporting financial institutions in the region facing liquidity challenges.
The European Union
The EU has granted €450m to Morocco and €250m to Tunisia) to help them with their emergency fiscal packages.
The New Development Bank – $1bn
The Shanghai-based BRICS New Development Bank is ready to lend South Africa $1bn to tackle the immediate Covid-19 public health crisis – with another $1bn later this year to help restimulate the economy after the downturn, which is expected as a result of the pandemic and the lockdown.
Read the full breakdown of stimulus packages here: https://liveblog.africanbusinessmagazine.com/global-interventions-how-to-protect-lives-and-livelihoods-2/