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· A global coalition of public development banks emphasized the urgency of immediate resources for Africa’s recovery post-Covid 19
· The African Development Bank’s US$10 billion Covid-19 Response Facility has been instrumental in mitigating macroeconomic shocks for African countries
· The Bank also announced a US $3 billion social bond to support its Covid-19 funding efforts.
A global coalition of public development banks emphasized the urgency of immediate resources for Africa’s recovery post-Covid 19.
Participants at a meeting, hosted by the African Development Bank decided joint actions that could help boost a strong and inclusive recovery in Africa with the support of the private sector. The African Association of Development Finance Institutions co-organized the meeting in collaboration with the International Development Finance Club, which is hosted by the Agence Française de Development.
The virtual meeting came close on the heels of the first Finance in Common Summit held in November 2020. At that summit, public development banks committed to work together to support the transformation of the continent and align it with the global supply chain.
During the three principal sessions of the meeting, heads of public development banks and international partners focused on concrete proposals and innovative financial solutions to unlock the potential of African financial institutions. The African Development Bank’s US$10 billion Covid-19 Response Facility has been instrumental in mitigating macroeconomic shocks for African countries. The Bank also announced a US $3 billion social bond to support its Covid-19 funding efforts. The Covid-19 pandemic has led to an unprecedented global health and economic crisis, affecting African economies, particularly sub-Saharan Africa. A historic recession of 2.1%, the largest contraction for the sub-Saharan region in more than half a century, is threatening gains made over the last decade.
The pandemic has negatively impacted the debt situation for African countries. Without a resolution of Africa’s US$700 billion external debt, the continent’s economic recovery will be delayed and financial market stability will be affected in the short and medium term.
