Africa needs $100 billion stimulus package in order to survive the global COVID-19 pandemic. The United Nations is urging multilateral lenders and investors to help African countries by waiving debt-servicing costs.
Already, the United Nations Economic Commission for Africa (UNECA) reduced the continent’s growth estimate from 3.2% to 1.8%.
“While debt forgiveness is an option, I think we should pursue more immediate options and use that as a last resort,” he said. “It is more than a moral argument. It is a strategic argument,” Bloomberg quoted UNECA’s head of macroeconomics and governance division, Bartholomew Armah.
As of March, the United Nations Economic Commission for Africa (ECA) reported that the virus had cost African economies a total of $29 billion, with the figure continuing to rise as more cases are reported.
Prospects point to the virus trimming 1.4% off the $2.1 trillion GDP of African nations, due to business disruptions.
Outside the continent, the senior Democrats and Republicans in the US senate revealed that they are close to reaching a deal on the $2 trillion coronavirus economic stimulus package. Of the package, they will send direct payments of about $3000 to millions of American households and provide unemployment benefits to workers laid off due to COVID-19.