Africa needs about an estimated $114 billion in 2020 in its fight against COVID-19, leaving a financing gap of around $44 billion, the World Bank Group and International Monetary Fund disclosed on Friday.
The Bretton Woods institutions, noted that together, official creditors have mobilized up to $57 billion for Africa in 2020 alone.
This include upwards of $18 billion from the IMF and the World Bank each—to provide front-line health services, support the poor and vulnerable, and keep economies afloat in the face of the worst global economic downturn since the 1930s.
The revelations come amidst a meeting convened by both the World Bank Group and International Monetary Fund on Friday, bringing together African leaders, bilateral partners, and multilateral institutions to spur faster action on the COVID-19 response on the continent.
South African leader, Cyril Ramaphosa of South Africa, United Nations Secretary General Antonio Guterres, Director General of the WHO Dr. Tedros Adhanom Ghebreyesus, Africa Union Commission Chairperson Moussa Faki Mahamat, and officials of individual countries outlined their policy plans for effective use of resources, multilateral organizations including the United Nations pledged their continued support, and bilateral partners reemphasized their commitment to a debt standstill beginning May 1.
The meeting comes in response to calls from the World Bank Group President Malpass, International Monetary Fund Managing Director Georgieva, and other partners for creditors to suspend debt repayments in order to provide much-needed support to the poorest countries.
“This pandemic has already had a devastating impact on Africa and its effects will deepen as the rate of infection rises. It is a setback for the progress we have made to eradicate poverty, inequality and underdevelopment,” African Union Chairperson and President of South Africa, Cyril Ramaphosa said in a statement issued in Nairobi.
The Bretton Woods institutions, suggested a range of financing options and policy tools as part of the pandemic response, many of which African countries are looking to implement as they plan for the medium and long-term impacts of the crisis.
These include further financing from official and private sector creditors.
“The World Bank Group is putting its full capacity to work for people across Africa as they fight this pandemic,” said World Bank Group President David Malpass.
“Our message is clear: We stand with Africa: Through our commitments today we are ‘Mobilizing with Africa’ to help soften the blow of COVID-19 on the continent,” IMF Managing Director Kristalina Georgieva said.
The Bretton Woods institutions said that it will also be critical for African countries to work together especially on the health response and on limiting trade disruptions to ensure freer movement of medical supplies and food.
JK/as/APA