The grant, which is in response to an international appeal by the WHO, will be used by the world health body to equip Regional Member Countries. (Photos by Alfred Ochwo)
The fund was approved by the AfDB Board of Directors on Tuesday (March 31) to reinforce WHO’s capacity to help African countries.
KAMPALA – Uganda is among African countries that will benefit from a loan of $2m (sh7.6b) that the African Development Bank (AfDB) approved for emergency assistance to curb the spread of the COVID-19 pandemic on the continent.
The fund was approved by the AfDB Board of Directors on Tuesday (March 31) to reinforce WHO’s capacity to help African countries contain the COVID-19 pandemic and mitigate its impacts.
The grant, which is in response to an international appeal by the WHO, will be used by the world health body to equip Regional Member Countries to prevent, rapidly detect, investigate, contain and manage detected cases of COVID-19.
It is one part of several Bank interventions to help member countries address the pandemic which, while slow to arrive in Africa, is spreading quickly and is straining already fragile health systems.
Specifically, the WHO Africa region will use the funds to bolster the capacity of 41 African countries on infection prevention, testing and case management. WHO Africa will also boost surveillance systems, procure and distribute laboratory test kits and reagents, and support coordination mechanisms at national and regional levels.
This grant “will enable Regional Member Countries to put in place robust containment measures within 48 hours of COVID-19 case confirmation and also support the WHO Africa region to disseminate information and increase public awareness in communities,” said a statement from AfDB’s Human Capital Youth and Skills Development department.
The grant will contribute towards a $50 million WHO Preparedness and Response Plan, which other partners including the United Nations system, are also supporting.
It is estimated that Africa will require billions of dollars to cushion the impact of the disease as many countries scramble to gather contingency measures, including commercial lockdowns, in desperate efforts to contain it. Globally, factories have been closed and workers sent home, disrupting supply chains, trade, travel, and driving many economies toward recession.
The Bank Group is expected to unveil a financial assistance package that will enable governments and businesses to undertake flexible responses to lessen the economic and social impact of this pandemic.
On March 27, AfDB raised an exceptional $3 billion in a three-year social bond, the proceeds from which will go to help alleviate the economic and social effects of the pandemic.
The ‘Fight Covid-19 Social bond’ with a three-year maturity, garnered interest from central banks, and official institutions, bank treasuries, and asset managers including Socially Responsible Investors, with bids exceeding $4.6 billion.
This is the largest Social Bond ever launched in international capital markets to date, and the largest US Dollar benchmark ever issued by AfDB. It will pay an interest rate of 0.75%.