COVID-19: AfDB Okays $10bn For Public, Private Sectors
The African Development Bank The African Development Bank (AfDB) says it will provide $10 billion in 2020 to help African countries and their private sectors to respond to the COVID-19 crisis through its COVID-19 response facility (CRF).
The Board of the Bank also approved $2 million emergency assistance to the World Health Organization (WHO) to contain the COVID-19 pandemic in Africa.
In a zoom meeting attended by our Correspondent on Wednesday noon, the Manager, Public health, AfDB, Dr Babatunde Omilola said out of the $10 billion, $5.5 billion would be spent for sovereign operations in AfDB countries, while $3.1 billion would be committed to sovereign and regional operations for countries under the African development fund (ADF) and $1.4 billion will be devoted to private sector operations.
Omilola further disclosed that the development finance institution was preparing six emergency regional public good operations valued at $98 million ADF grant for West Africa, East Africa, Southern Africa, Central Africa, the Africa CDC and the G5 Sahel countries (Burkina Faso, Chad, Mauritania, Mali and Niger).
According to him, AfDB has raised US$3b, the largest social bond ever launched in capital markets in its first COVID-19 social bond issued in 2020.
The resources from the bond, he explained, will go towards providing facilities and responses aimed at lessening the severe economic and social impact of the virus in the Bank’s regional member countries.
Omilola said the CRF was part of the bank’s response mechanism to the COVID-19 pandemic, adding that from April to June, 2020, the Bank’s immediate response will ensure the supply of emergency materials to the African region.
He also said local production of essential supplies will be boosted as a short term response from June to December 2020 while the Bank will develop Africa health defense system as a medium to long term strategy from 2020 to 2025.
As part of efforts to incentivize the private sector, Dr Omilola revealed the AfDB has proposed to provide grants to 10 eligible and viable local small and medium enterprise (SME) manufacturers in each region of the continent (North, South, East, Central West Africa and Nigeria).
He explained that the grants aim at transforming the beneficiary countries’ manufacturing capabilities so that they can produce more medical supplies that are needed on the continent and also provide other essential medical care that are required to respond quickly to COVID-19.
The items, he said, include medical masks, alcohol-based sanitizers, amongst others.
