Finance institution the New Development Bank (NDB) on April 2 approved a $1-billion Covid-19 Emergency Program Loan to the South African government to support the country’s economic recovery from the Covid-19 pandemic.
The loan will be used to support the government in its efforts to contain the economic fallout as a result of the pandemic and start economic recovery.
It will be used to finance the creation of employment opportunities in South Africa, in particular the first phase of the Presidential Employment Stimulus programme to create and support about 700 000 job opportunities in the public sector, together with social protection measures for active labour market participants that temporarily lost their jobs, to help them remain in the labour market.
NDB’s financing under the emergency programme is primarily aligned with the United Nation’s Sustainable Development Goal 8 to promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
The loan is part of the second batch of Covid-19 emergency programme loans to NDB’s member countries focusing on economic recovery. It focuses on supporting economic growth through employment generation as well as support for labour force participation.
This follows the first Covid-19 emergency programme loan to South Africa that provided emergency relief funding for supporting healthcare and providing social grants in the country.