AfDB sets up $10bn to help nations service their debt

The bank’s vice president briefed the media on Monday on the upcoming annual meetings all of which will focus on getting back on track in a post-COVID world.

The African Development Bank Group headquarters in Le Plateau, the business district of the Ivorian capital Abidjan. Picture: AFP

JOHANNESBURG – The African Development Bank has set up a $10 billion fund to ensure nations on the continent can service their debt and focus on a post-pandemic recovery.

The bank’s vice president briefed the media on Monday on the upcoming annual meetings, all of which will focus on getting back on track in a post-COVID world.

Khaled Sherif said during the height of the COVID-19 pandemic, 43 of Africa’s 54 countries saw a decline in revenues.

Those dependent on oil revenue were especially badly hit.

He said the African Development Bank set up a crisis relief fund to help countries cope: “$10 billion and $5.2 billion was disbursed for budget support, to ensure we prevent credit downgrades.”

Sherif said some countries used the funds for their health responses and there were strict requirements for countries to account: “Countries have to account for the funds they borrowed otherwise they will have to pay back the money.”

The bank will hold the annual meetings later this month.

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