IMF estimates African nations need $1.2 trillion to recover from COVID-19 pandemic

Africa would need a massive $1.2 trillion sum over the next three years to recover from the economic and health losses caused by the COVID-19 pandemic, said the International Monetary Fund. Speaking at a virtual conference, IMF Chief Kristalina Georgieva, urged support for the poverty-ridden nation from the international community. “The world must do more to support Africa to [recover]... from this crisis”, she said.

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43 million Africans at risk

Although with over 1.5 million COVID-19 cases, the African continent is currently considered safer than the others. However, the IMF warned that nearly 43 million Africans were at risk of extreme poverty as a direct result of the pandemic. As per reports, Georgieva said that major countries have seen a downward trend as jobs and family income has been reduced by 12 percent. She also said that in a bid to make it easier for them, many nations have introduced mitigation policies which costs them 2.5 percent of GDP.

Last month, African leaders appealed to the international community for financial assistance to overcome the struggle of the COVID-19 pandemic. As per reports, Africa's 54 countries have estimated that the continent would need $100 billion every year for the next 3 years in order to survive the pandemic. 

While making the case for the massive aid, Africa nations pointed to the trillion of dollars that had been spent by developed countries in order to revive their own economies. As per reports, almost all African speakers emphasised multilateralism in their UNGA speech. Zimbabwe President Emmerson Mnangagwa criticised global apathy towards Africa and called this “the blind pursuit of narrow interests”.

In addition to seeking financial aid, African heads of state appealed for debt cancellation so that more resources could be freed up to fight the pandemic. Due to the impacts of the COVID-19 pandemic, Africa is reported to have experienced its first recession in a quarter-century that resulted in the stalling of years of success for some nations.

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Image Credits: AP