Peak infections in Africa still to come, need for debt standstill for another 2 years – Ramaphosa
African Union (AU) chairperson and South African President Cyril Ramaphosa on Wednesday warned that while the number of coronavirus (Covid-19) infections in Africa at this time is lower than elsewhere in the world, the continent should expect that the peak is still to come.
He also said that while the World Bank and the International Monetary Fund have supported a debt standstill of nine months, the African Union believes that, given the extent of the anticipated damage, the continent will need a debt standstill for two years.
Ramaphosa hosted a virtual meeting with the Heads of State and Government of countries neighbouring South Africa on responses to the Covid-19 pandemic.
The aim of the meeting was to share information on respective responses and how best African countries can coordinate efforts to fight the pandemic.
“This virus does not respect borders, nor distinctions of nationality. Considering the social and economic linkages between our countries, when one of us is vulnerable, we are all vulnerable,” said Ramaphosa.
He expressed concern at the lack of access to personal protective equipment (PPE) on the continent.
The AU Bureau has met with various African businesses to ramp up production and source PPE from overseas.
To oversee and assist these efforts, Ramaphosa has appointed Zimbabwean businessperson Strive Masiyiwa.
Ramaphosa has also approached Cuba, China, Russia, France, Canada and the US for support.
“We have hosted two virtual meetings of the Bureau of the Assembly of AU Heads of State and Government. Among other things, the Bureau agreed on the establishment of the AU Covid-19 Response Fund, a drive to raise additional funds for the Africa Centres for Disease Control and Prevention (Africa CDC) and intensive lobbying of the international community, including the international financial institutions, for a comprehensive, robust economic stimulus package for Africa,” Ramaphosa explained.
The AU has raised $25-million for the Response Fund and an additional $36.5-million to the Africa CDC.
The AU has further appointed Special Envoys to follow up on pledges, mobilise further international support and campaign for international participation in the AU’s Covid-19 economic intervention.
These include Dr Ngozi Okonjo-Iweala of Nigeria, Dr Donald Kaberuka of Rwanda, Tidjane Thiam of Côte d'Ivoire, Trevor Manuel of South Africa and Benkhalfa Abderrahmane of Algeria.
The AU has also called for the allocation of more Special Drawing Rights Allocations to Africa to provide liquidity to central banks, the corporate sector and small and medium-sized enterprises.
“We argued for a waiver of all interest payments on multilateral and bilateral debt. This would provide the necessary fiscal space for African governments to devote all available resources to response and recovery. In general, the response from the international community has been positive with various partners making pledges, offering debt relief measures and providing concrete support in the form of medical supplies,” Ramaphosa revealed.
He urged African leaders to work together to better protect the health, the wellbeing and the lives of African citizens.
He assured that the continent would be able, not only to overcome this grave health emergency, but also place its countries on paths of recovery and reconstruction.
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