Ghana is seeking financial assistance from the World Bank and IMF to counter the negative effects Covid-19 will have on its economy. The nation expects to miss its revenue targets due to the disruptions caused by the Coronavirus pandemic.
Ghana partly relies on oil exports as a source of revenue, and international oil prices have plummeted due to low demand for the commodity. Ghana’s other major exports; gold and cocoa have also recorded a decline in global prices.
The West African nation set its budget gap at 4.7 percent of its GDP. But the gap is expected to widen due to the negative effects of the coronavirus pandemic on the nation’s economy and the world at large.
On 17th March, World Bank increased its assistance package for fighting coronavirus from $12 billion to $14 billion. The funds are meant to assist poor countries mostly in Africa deal with the covid 19 pandemic.
The IMF also offered a rapid credit facility worth $50 billion to low income nations in the fight against the virus.
Kenya, like most African countries, is expected to be economically affected by the rapidly spreading virus that has disrupted numerous industries around the world.
The government is taking steps to protect Kenyans from adverse effects of the coronavirus on the economy. Central Bank Governor Dr. Patrick Njoroge yesterday announced that Kenyan banks will extend loan repayments on personal loans for a period of one year. In addition, President Uhuru Kenyatta talked about fiscal measures to support the economy.