The African Development Bank has revealed that Africa which has been badly hit by the Covid-19 will need to raise U$424 billion to recover from the devastation caused by the pandemic.
According to the continent’s top multilateral lender, Covid-19 plunged 30 million Africans into “extreme poverty” in 2020.
Akinwumi Adesina, president of the African Development Bank said during an interview with media, “We should not minimize the impact of Covid-19 on African economies.”
“We have to expand the fiscal space for African countries. Secondly, we must tackle the whole issue of debt, you cannot run up a hill while carrying a backpack of sand on your back,”noted Akinwumi Adesina.
Although the continent was beging to pick up from the pandemic rubbles, the emergence of Russia’s war on Ukraine has fueled inflation and left millions hungry. Surging prices along with slowing economic growth are also increasing indebtedness in the region.
The Continent has excessive debt.
“A lot of the debt in Africa is infrastructure-related debt but if we are able to get a sustainable way to do this that would be much better. That sustainable way is that the private sector has to have a role, it shouldn’t just fall on the government.”
Africa depends on Russia and Ukraine for about 41% of it’s wheat and maize, Adesina said.
The AfDB’s $1.5 billion plan to boost production will help farmers on the continent produce 30 million tons of food, he said, adding that obstacles in importing fertilizer may hit productivity by as much as 50%.