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President Cyril Ramaphosa called for exemption from interest payments and possible cancellation of debt for low-income countries in Africa to manage the fight against the spread of the coronavirus.
Ramaphosa said this during a virtual meeting with the heads of state of the neighboring countries of South Africa.
In April, after heading to the G20, the world’s largest economies agreed to a nine-month debt suspension for low-income countries, mainly in Africa.
Ramaphosa, however, said he believed that for the economies of African countries to recover, they would need a two-year debt suspension.
“At other meetings, we have also been saying that debt cancellation should be considered.”
During the meeting, Ramaphosa called for an exemption from all interest payments on multilateral and bilateral debt. This, he said, would provide the necessary fiscal space for African governments to devote all available resources to response and recovery.
African economies are expected to be the hardest hit by the blockade regulations, which in turn will affect business and commerce.
The African Union (AU) has predicted that the pandemic will strangle the continent, with nearly 20 million jobs, in both the formal and informal sectors, threatened if the crisis continues.
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Ramaphosa has also advocated for a coordinated approach in acquiring personal protective equipment (PPE) with South Africa’s neighbors.
PPE has become the world’s most popular product with out-of-stock supplies for front-line workers such as nurses and doctors. To mitigate demand, governments have urged civilians to wear cloth masks to allow health workers to be the first to enter.
In South Africa, health workers have expressed concern about the shortage of PPE.
Nehawu went so far as to take Health Minister Zweli Mkhize to court, challenging the state to make the facility more conducive to front-line workers.
Between the provincial health departments, the national department and the Solidarity Fund, R755 million were already spent on PPE in April.
“As the AU Office, we met with several of Africa’s business leaders to seek their help in increasing local production of these items and obtaining them from other parts of the world.”
“I have appointed Zimbabwean businessman Strive Masiyiwa to help me with efforts to obtain personal protective equipment for the region and the continent,” said Ramaphosa.
The AU also engaged with the leaders of Cuba, China, Russia, France, Canada and the United States to request support for the continent, he added.
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