Audio By Carbonatix
African finance ministers have called for a $100 billion stimulus package, including a suspension of debt service payments, to help the continent combat coronavirus.
Some $44 billion would come from not servicing debt and they would also tap existing facilities in the World Bank, International Monetary Fund (IMF), African Development Bank (AfDB) and other regional institutions.
The ministers held a virtual conference on Thursday to discuss how to deal with the social and economic impacts of the pandemic on African nations, a statement by the United Nations Economic Commission for Africa said on Monday.
It did not specify which countries participated in the meeting.
Africa is facing the combined shock of coronavirus, which threatens to strain under-funded health systems, as well as a sharp drop in revenues due to plunging oil and commodities prices.
“Africa needs an immediate emergency economic stimulus to the tune of $100 billion,” the statement said.
The proposed interest payment waiver would include not only interest payments on public debt but also on sovereign bonds. It would save governments an estimated $44 billion this year, and would possibly need to be extended to the medium term, it added.
“(A waiver) would provide immediate fiscal space and liquidity to the governments in their efforts to respond to the COVID-19 pandemic,” the statement said.
For fragile states, the ministers agreed that waiving repayment of both principal and interest should be considered.
Though African nations currently count only a fraction of global coronavirus cases, experts worry that their cash-strapped and under-equipped healthcare systems make them ill prepared to tackled large-scale outbreaks.
Meanwhile, sub-Saharan Africa’s debt has ballooned to nearly 60% of GDP over the past decade, meaning many government must devote significant resources to debt service.
Latest Stories
-
RTI Commission fines 254 public institutions GH¢20,000 each over failure to submit 2025 reports
9 minutes -
St. Mary’s Seminary SHS, Lolobi secures final Oti ticket to 2026 NSMQ
16 minutes -
BoG’s gold purchase programme involving GoldBod lost GH¢22bn in 2025, IMF says
24 minutes -
Jude Michelle elected second female KNUST SRC President with over 6,000-vote margin
28 minutes -
Ghana Chamber of Mines donates GH¢2m relief items to NADMO to support flood victims
33 minutes -
Health Ministry reveals strategy to clear backlog of over 107,000 unemployed nurses in Ghana
41 minutes -
AJ Poundz receives prize for winning ‘Best Dressed’ at 2025 Guinness Ghana DJ Awards
50 minutes -
Ghana inaugurates UNESCO Commission General Assembly to strengthen global engagement
53 minutes -
August 6 demo date was not deliberate; NDC should stop politicising helicopter crash anniversary – Nana B
56 minutes -
Academic City named Ghana’s leading innovation-driven university
59 minutes -
Fire destroys Mercedes-Benz vehicle, 13 car doors at mechanic shop in Ho
1 hour -
Fire destroys two container shops, damages three others at Bogoso market
1 hour -
12 suspected illegal miners remanded after Forestry Commission swoop in Bosomtwe Forest Reserve
1 hour -
Guinness Ghana DJ Awards unveils ‘All Out’ as theme for 2026
1 hour -
NPP demo exposes hypocrisy over remembrance of 8 helicopter crash victims – NDC
1 hour