Africa needs $ 100 billion for the aftermath of Covid-19, says Ramaphosa to the UN

President Cyril Ramaphosa.

• President Cyril Ramaphosa said Africa needs $ 100 billion in funding at a UN meeting.
• The impact of the Covid-19 pandemic has been described as the worst economic impact since World War II by global bodies.
• According to the World Bank, more than 100 million people could fall into extreme poverty this year.

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President Cyril Ramaphosa said Africa needs $ 100 billion financing for “fiscal space and liquidity” for the continent’s governments amid the economic fallout from the Covid-19 pandemic, which has been described as the worst hit to the economy. global since World War II.

Ramaphosa addressed the UN high-level meeting on financing the 2030 Agenda for Sustainable Development in the era of Covid-19 and beyond on Tuesday via video message.

UN Secretary General António Guterres described breaking the millionth death of Covid-19 as a “tragic milestone.”

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“The economic and social consequences are as bad as we feared, and in some cases worse. We are experiencing the largest economic contraction since World War II,” he said.

“Unless we act now, we are facing a global recession that could wipe out decades of development and put the 2030 Agenda for Sustainable Development completely out of reach.”

He said:

The managing director of the International Monetary Fund, Kristalina Georgieva, also described the pandemic as the biggest shock since World War II.

“The situation is particularly dire for low-income countries,” he said.

Difficult

World Bank Group President David Malpass said the pandemic was hitting developing countries especially hard.

“Our data shows that more than 100 million people could fall into extreme poverty this year with a further increase in 2021, which could bring the number of additional people living in extreme poverty to 150 million.”

He added that the negative impact on health and education could last for decades.

It was against this gloomy backdrop that Ramaphosa made his comments.

“As we begin to rebuild after the coronavirus pandemic, financing for development becomes even more critical.”

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He added that the general principle of the Sustainable Development Goals (SDGs) was that no country was left behind.

“The pandemic has delayed the SDG process, and we now need additional financial resources to enable developing economies to respond effectively not only to the pandemic, but also to recover and rebuild.”

Compound

Ramaphosa said that the challenges facing developing economies have been compounded by weak public health systems, limited social safety nets, high levels of inequality, high debt burdens, reduced incomes. fiscal, capital outflows and lack of adequate and sufficient access to financial markets.

“For Africa, funding remains crucial. As agreed by African finance ministers on March 19, 2020, Africa needs immediate emergency funding to the tune of $ 100 billion, which would provide fiscal space and liquidity to governments “.

He added that South Africa supports the extension of the debt service suspension and considers canceling the debt in certain cases.

“We also welcome the attention being paid to illicit financial flows, which pose a serious threat to the development trajectory and economic stability of many African countries.”

Ramaphosa called on developed countries not to renege on their commitments to support developing economies in the effort to adapt and mitigate climate change.

“The pandemic has greatly reduced the fiscal space for countries to meet their commitments to support development.

“Working together, it is within our means to eradicate poverty and inequality, achieve greater economic and social justice, and preserve our natural world for future generations,” he added.