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African countries “will need $ 1.2 trillion to repair the economic damage of the pandemic” (IMF)

(Ecofin Agency) – To offset the economic damage from the Covid-19 pandemic, African countries would need an additional $ 1.2 trillion ($ 1.2 trillion). The information comes from Kristalina Georgieva, Director of the IMF, in a recent statement, in which she calls in particular for more aid to sub-Saharan states.

“All of us – countries and institutions – must do more to help Africa face the next phase, which is building a recovery from this crisis”, according to Georgieva.

If the International Monetary Fund, and its twin sister the World Bank, have significantly increased their support to the continent (by providing respectively about $ 26 billion to more than 40 countries, and $ 21.9 billion in loans), it would nevertheless be necessary to do more, in a context where private lending is already moderate, underlines the Bulgarian, at the head of the IMF since October 2019.

Already, estimates the Bretton Woods institution, the region will see its GDP contract by 2.5% in 2020, one of the worst slowdowns the continent has ever known, and should face a financing gap of 345 billion $, until 2023.

Ultimately, 43 million people could be pushed into extreme poverty, which would undo the progress made over the past five years, we are alarmed from Washington.

This being the case, if the good intentions of the IMF are laudable, we cannot help noting that the continent has already been able to thwart, this year, a good part of the catastrophic scenarios that had been anticipated, by showing in particular resilience. What has been possible from a health point of view could also be possible from an economic point of view.

Ayi Renaud Dossavi

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