BUSINESS REPORTER
The African Development Bank Group on Wednesday announced the creation of a US$10bn COVID-19 Response Facility to assist regional member countries in fighting the pandemic.
The facility is the latest measure taken by the pan African bank to respond to the pandemic and will be the institution’s primary channel for its efforts to address the crisis. The facility is for governments and the private sector.
AfDB president Akinwumi Adesina said the package took into account the fiscal challenges that many African countries are facing.
“Africa is facing enormous fiscal challenges to respond to the coronavirus pandemic effectively. The African Development Bank Group is deploying its full weight of emergency response support to assist Africa at this critical time. We must protect lives. This Facility will help African countries to fast-track their efforts to contain the rapid spread of COVID-19,” Adesina said, commending the board of directors for its unwavering support.
The facility entails US$5.5bn for sovereign operations in AfDB countries, and US$3.1bn for sovereign and regional operations for countries under the African Development Fund, the group’s concessional arm that caters to fragile countries. An additional US$1.35bn will be devoted to private sector operations.
Commenting on the Facility, Acting Senior Vice-President Swazi Tshabalala said: “The setting up of the Facility required a collective effort and courage by all our staff, Board of Directors and our shareholders.”
Two weeks ago, the bank launched a record-breaking US$3bn Fight COVID-19 Social Bond, the world’s largest US dollar-denominated social bond ever on the international capital market. Last week, the AfDB board of directors also approved a US$2m grant for the World Health Organisation for its efforts on the continent.
“These are extraordinary times, and we must take bold and decisive actions to save and protect millions of lives in Africa. We are in a race to save lives. No country will be left behind,” Adesina said.
Zimbabwe is a shareholder in AfDB and is battling to contain the coronavirus. To date it has recorded 11 confirmed cases inclusive of two deaths.
A 21-day lockdown is currently underway to help contain the spread of the the virus which has killed over 80 000 globally.
