Director of the African Department at the International Monetary Fund (IMF),
Mr Abebe Aemro Selassie, has said African governments are in urgent need of additional external financing to help them mitigate the economic impact of the COVID-19.
He said with global interest rates as low as they are now, it is hard to think of a more opportune time to make such a commitment to Africa – or a more important investment for the future.
More than ever, Sub-Saharan African countries also need large-scale external financing. The International Monetary Fund and the World Bank estimate that the region faces a government financing “gap (assuming a modestly supportive fiscal stance) of at least $114 billion in 2020. African governments cannot mobilize this amount domestically.
“For its part, the IMF can provide close to $19 billion of rapidly disbursable financing to African countries this year; 26 have already received funding from its emergency facilities. In addition, 19 of the region’s poorest countries will receive direct debt relief, with the IMF Catastrophe Containment and Relief Trust providing grants to cover their upcoming debt-service payments to the Fund,” he said in an article.
Source: laudbusiness.com
