Ramaphosa from South Africa Says Access to Concessional Lending Key to Africa’s Recovery | World news
JOHANNESBURG (Reuters) – Access to concessional loans will be crucial for Africa’s economic recovery from the COVID-19 pandemic, South African President Cyril Ramaphosa said on Saturday.
Ramaphosa, who is the outgoing president of the African Union (AU), said during the bloc’s summit that although the International Monetary Fund (IMF) and the World Bank have deployed significant financial resources for the response to the epidemic coronavirus, there is still a long way to go.
“Assessing concessional finance will remain crucial as countries rebuild their economies,” Ramaphosa said at the virtual summit.
“An injection of fresh resources by the IMF through the reallocation and issuance of new Special Drawing Rights, in favor of the developing world, will correct the blatant inequality of fiscal stimulus between advanced economies and the United States. rest of the world.”
Concessional loans generally offer more favorable terms than those available in the open market.
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The precarious debt burden of a number of African countries has worsened due to the economic fallout from the COVID-19 pandemic.
Out of a population of 1.3 billion, Africa has so far reported more than 3.6 million coronavirus infections and more than 94,000 deaths, according to a Reuters tally. South Africa has recorded the most infections of any African country.
While the richer countries continue their mass vaccination campaigns, only a few African countries have started the vaccinations. The African Union, which has 55 members, hopes to see 60% of the continent’s population vaccinated within the next three years.
Ramaphosa said on Monday that the AU has so far obtained 1 billion vaccines, of which 700 million will come from the global COVAX facility, co-led by the World Health Organization, and 300 million have been facilitated by the African Vaccine Acquisition Task Team (AVATT).
(Reporting by Olivia Kumwenda-Mtambo; Editing by Ros Russell)
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