Public Management

African countries are still waiting for G2O’s promise to support post-Covid recovery

African countries are still waiting for G2O’s promise to support post-Covid recovery
Tuesday, 02 November 2021 15:16

Since 2020, the international community has been calling on rich nations to waive part of their Special Drawing Rights (SDRs) for the poorest. Nearly three months after the International Monetary Fund issued $650 billion in SDRs to facilitate the global post-Covid recovery, the solidarity of rich countries towards the poorest is yet to materialize. The G20 said it has already gathered 45% of the funds promised. And even this figure, which is far below the initial objectives, remains to be confirmed.

Rich countries agreed to waive part of their SDR shares. The objective was to provide more money to developing countries. Indeed, poor countries are granted lower SDR quotas than the rich ones although their needs are greater. To date, few rich countries have met their commitments, meanwhile, the needs of poor countries are increasing and becoming urgent, especially for immunization and the implementation of recovery reforms.

Canada, France, and the United Kingdom say they will grant 20% of their SDR shares to developing countries. This makes a total of $14 billion.  Japan, on the other hand, has pledged $4 billion (or only 10% of its share). The US has not yet made any public announcement, and the same for China, India, and Russia.

Africa as a whole was initially expected to receive $33 billion (out of 650 billion), per its quota within the IMF. Yet it is the continent that should benefit the most from this support initiative. Many African countries are among those that have had the least room to maneuver to support their economies and accelerate their vaccination campaigns. As a result, only a little over 5% of the continent's population has been fully vaccinated to date.  Data from the IMF showed that sub-Saharan Africa will be the slowest growing region for the first time in several years.

Moutiou Adjibi Nourou

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
• Fily Sissoko will oversee a $8.5 billion World Bank portfolio spanning Mozambique, Madagascar, Mauritius, Comoros, and Seychelles.• His mission...
• Bassirou Diomaye Faye denounces credit rating agencies’ methodologies as ill-suited to African contexts.• Senegal urges reforms to enable fairer...
(AfDB)-The Board of Directors of the African Development Bank Group has approved a $474.6 million loan for South Africa's Infrastructure Governance...
New card enables African payments without using US or European networks Aims to lower costs, protect financial data, and boost intra-African...
Most Read
01

Lebara Group is now bringing its affordable and reliable mobile services to Africa, starting with Ni...

Telecoms: Lebara Enters Nigerian Market with Strong Competitive Ambitions
02

• Gates Foundation commits $1.6 billion over five years to Gavi.• Bill Gates warns of rising ch...

Gates Foundation Pledges $1.6 Billion to Gavi to Boost Global Child Vaccination
03

Transport and food prices have been climbing steadily across Africa in recent years. In Côte d’Ivoir...

Côte d’Ivoire’s Fuel Price Cuts Haven’t Slashed Transport Costs–Yet
04

In a West African financial landscape marked by tighter regulation of the fintech sector, digital fi...

In Five Years, Francophone Africa Will be A Major Force in African Tech –Régis Bamba
05

• Maritime sector faces renewed risks amid military tensions in the Middle East• Blockade fears at S...

Israel-Iran conflict raises new threats for global shipping and oil trade
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.