Africa needs $100m emergency economic stimulus due to coronavirus

African finance ministers have said the continent needs an immediate emergency economic stimulus of $100bn in response to the global coronavirus pandemic.

In a statement by Communication and Media Relations Department of the group, the finance ministers agreed that waivers of interest payments totalling around $44bn for 2020.

They further agree that along with the possible extension of the waivers in the medium term will provide fiscal space and liquidity to the governments, which will help with their efforts to combat coronavirus and the social and economic impact.

The finance ministers have also said the interest on payment waivers should also extend to sovereign bonds not just interest payments.

They are encouraging the use of their existing facilities with the World Bank and International Monetary Fund, African Development Bank, along with other regional institutions for the fragile states.

They warned the need for the private sector to support and protect some 30m jobs in the tourism and airline sectors, as they are at risk throughout Africa.

The finance ministers said to provide additional liquidity throughout 2020 critical sectors such as pharmaceuticals, banking, agriculture with imports and exports must have interest and principal payments on corporate debt, leases along with extended credit facilities.

The Ministers are urging refinancing schemes with guarantee facilities to be used to waive, restructure which will provide additional liquidity for Africa during 2020.

The liquidity line must be made available to the private sector to help with essential purchases which will allow SMEs to continue to function as they are reliant on trade.

Senegal and the Ivory coast which are two of Africa’s largest economies have “declared a state of emergency” and have enforced curfews.

According to United Nations data Senegal has an estimated 16.m people whilst the Ivory coast has more than 26m people.

Coronavirus is tearing through Africa which by in large has porous borders across the 54 countries that make up the continent.

According to the Federal Ministry of Mines and Steel Development, the construction of Nigeria’s only large-scale commercial gold mine has started in Osun.

The governor of Osun State, Gboyega Oyetola, who was represented by the Secretary to the state government, Oluwole Oyebamiji said, “Osun State government is an ally in this project and we promise to give it every support to see it to fruition.”

The gold mine will start production in 2021 and will process 650,000 tonnes of ore per year with a target of 80,000 ounces per year, said Managing Director, Thor Explorations, Segun Lawson.