Covid-19: IMF sounds the alarm on the economic consequences in Africa

An agent from the town hall takes the temperature of people at the entrance to the Rood Woko market in Ouagadougou.

March 25, 2020. OLYMPIA DE MAISMONT / AFP

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The International Monetary Fund held a virtual meeting on Friday, October 9 on the impact of the coronavirus in Africa, in the presence of its Managing Director Kristalina Georgieva.

According to the latter, the financial assistance released in recent months is considerable, but it remains insufficient to help the continent emerge from the crisis.

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According to the Managing Director of the IMF, the institution has already released nearly $ 26 billion this year.

This is 10 times more than what the IMF releases on average each year for loans.

But the needs are immense because if the continent wants to get out of the crisis, it will need 1,200 billion dollars by 2023. But for the moment, explains Kristalina Georgieva, if we stick to the promises made by international financial institutions and bilateral creditors, less than a quarter of this amount should be released.

According to IMF forecasts, households could experience a drop in income of up to 12% and according to the World Bank, up to

could fall into extreme poverty.

However, the IMF welcomes the efforts made by some states.

Its director general cites Burkina Faso, The Gambia and the Central African Republic in particular.

Three countries which, according to her, have put in place “ 

 ” to ensure that the funds released benefit their populations.

Africa faces a projected financing gap of over $ 345 billion through 2023, and nearly half of the burden is on the low-income countries.

Today's Mobilizing with Africa was about decisive actions we can pursue to close this gap.

https://t.co/YYdXImI8OT #IMFmeetings pic.twitter.com/4rsTjAYA3J

  Kristalina Georgieva (@KGeorgieva) October 9, 2020

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• IMF

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