Public Management

African Development Fund approves UA100.4 million multi-country Covid-19 Response Support for Malawi, Madagascar, Mozambique and Sao Tome

Thursday, 23 July 2020 16:31
African Development Fund approves UA100.4 million multi-country Covid-19 Response Support for Malawi, Madagascar, Mozambique and Sao Tome

(AfDB ) - The Board of Directors of the African Development Fund (ADF) on Wednesday approved a UA100.4 million (about $138 million) crisis budget support package to four southern African countries – Malawi, Madagascar, Mozambique and São Tomé & Príncipe, in the wake of the COVID-19 pandemic.

Under the package, known as the Multi-Country COVID-19 Response Support Program (MCRSP), Malawi will receive a concessional loan of UA17.87 million and a grant of UA15.03 million; Madagascar, a concessional loan of UA30 million; Mozambique, a combined grant of UA30 million; and São Tomé & Príncipe, a grant of UA7.5 million. The programme is financed through African Development Fund resources, the concessional window targeting low income countries, and was made possible by the robust backing of Bank shareholders to its 15th replenishment, which came into effect this month.

The package will support the national actions of the four countries in mitigating the impact of COVID- 19, with the overall objective of protecting lives and livelihoods. The package of policy measures agreed with Government include strengthening health systems to cope with the surge in hospitalisations and scaling up testing and tracing systems; expanding social protection systems to cushion its most vulnerable populations; and to provide cash relief to Micro, Small and Medium Enterprises(SMEs).

Special emphasis has been put in protecting food systems and supporting agriculture producers. Specific measures in each country reflect national response plans and the institutional and economic characteristics of each, and are underpinned by clear arrangements to ensure transparency and accountability in the use of resources.

Like most of Africa, low testing capacity in Malawi, Madagascar, Mozambique and São Tomé & Príncipe means that recorded cases might understate the extent of COVID-19, and make it difficult to plan for a safe re-opening of the economies. In addition, government containment measures, while necessary to slow down the infection, are having a direct negative effect on the economy and society, notably with disruption of trade and declaration of state of emergencies, closure of schools, universities and places of business.

Prior to the pandemic, growth outlook in all the four countries had been favorable, driven by exports and tourism. With the onset of COVID-19 the economies of all four countries have been severely hit. The economic recession is hitting the poorest households and informal sector hardest as food prices have soared, and spiraling job cuts. The shutdown of borders has disrupted trade patterns and supply chains, hitting SMEs the worst and putting pressure on food systems.

The response, which aligns with the ADF-15 strategic priority of building resilience to economic shocks, is underpinned by each country’s COVID-19 response strategy that gives a high priority to health, social protection and economic stimulus. It also aligns with the Bank Group’s COVID-19 CRF Ten-Year Strategy 2013-2022; the Bank’s “Improving the Quality of Life of the People of Africa” High 5 strategy; and the countries’ Country Strategy Papers.

Dr Josephine Ngure, Bank Acting Director General for Southern Africa, said, “We are delighted with the approval of this crucial cash injection to support the COVID response plans in Madagascar. Mozambique, Malawi and Sao Tome. During this unprecedented challenge, it is essential that Governments in the region act in a coordinated manner to protect the most vulnerable in society and set the foundation for a speedy post-pandemic recovery. The Bank will continue to work with member countries to monitor epidemiological and economic trends and support the right policies”.

The proposed operation has been coordinated with key development partners in each country, including the United Nations, the European Union, the Department for International Development, the French Development Agency, the International Monetary Fund, and the World Bank.

1 banqueAFRI

Additional Info

  • communiques: Non
  • couleur: N/A
 
Finance


 
Telecom


Ecofin Agency covers the news from 9 business sectors in Africa: Public management, Finance, ICT, Agribusiness, Electricity, Mining, Oil and Gas, Comms and Laws. Ecofin Agency is also creating and management specialized medias, in paper and on the web/social networks, for institutions or African publishers.

AGENCE ECOFIN

Mediamania Sarl
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11

REDACTION
redaction@agenceecofin.com

Public management
Aaron AKINOCHO
Borgia KOBRI
Moutiou ADJIBI

Finance
Idriss LINGE
Walid KEFI
Chamberline MOKO

Agribusiness
Espoir OLODO

Electricity
Gwladys JOHNSON

Oil and Gas
Olivier DE SOUZA

Mining
Louis-Nino KANSOUN

ITC 
Muriel EDJO

Comms
Servan AHOUGNON

Cameroon
Brice R. MBODIAM
Sylvain ANDZONGO
Monique MAY
Julienne Rose SENDE

Togo
Fiacre E. KAKPO
Waliyullah TAJUDEEN
Séna AKODA

Niger
Sandrine GAINGNE

Gabon
Stephane BILLE
Pierre-Celestin ATANGANA

Desk
Stéphane ALIDJINOU
Souha TOURE
Vahid CODJIA
Diane ZODEHOUGAN
Hikmatu BILALI

Translation
Schadrac AKINOCHO
Mouka MEZONLIN
Firmine AÏZAN



Digital
Omar SOKHNA
Mamadou DIOP
Bacary MANE
Abdel Razak MOULIOM

Digital Marketing
Jérémie FLAUX
Geraud ACHI
Jean Christian BERNARD
Franck FOUTE

Web publishing
Bakoly RAHARISOA
Rina RAMANANDRAISOA
Hasina RAJEMISON

Development
Dominique FLAUX

 


 
REGIE COMMERCIALE
AGENCE ECOFIN
Rue du Léman, 6
1201 Genève
Tél: +41 22 301 96 11
Fax: +41 22 301 96 10

Benjamin FLAUX
bf@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72

Voir page 
Nos services
 

 










 



Ecofin Agency is a news agency for economic and sectorial information. It was created in 2010 and it website was launched in June 2011.

Please publish modules in offcanvas position.