News & Analysis: Lesotho
“We don’t know how long the COVID-19 pandemic will last, but the prospect of finding an effective vaccine is likely. In contrast, the risk of climatic shocks remains. Many countries in the Southern Africa region have taken the first steps in increasing their financial preparedness to respond to shocks.”
“This year, the coronavirus pandemic has forced governments to grapple with difficult questions regarding lockdowns, contact tracing and the provision of emergency financial assistance to citizens now without work. In developing countries, these hardships are magnified with the World Bank estimating that remittances – money transfers sent from foreign workers to their home countries – to low and middle-income countries (LMICs) are projected to fall by 19.7 percent (from $554 billion in 2019 to $445 billion in 2020). Considering the significant role that remittances play in alleviating poverty and improving nutrition, many governments have turned to mobile cash transfers for vulnerable citizens to use while minimising COVID-19 exposure.”
“The IMF approved US$49.1 million emergency support under the Rapid Credit Facility and the Rapid Financing Instrument to help Lesotho meet urgent balance of payments needs stemming from the COVID-19 pandemic.”
“The shortage of medical expertise, equipment and facilities stands in stark contrast to the powers of law enforcement and security that have been exercised under the pretext of combatting the pandemic. This has laid the groundwork for a rise in police brutality, overreach, harassment, intimidation, corruption and violence.”
“The southern African country of Lesotho has recorded its first coronavirus case, its health ministry has said, becoming the last nation on the continent to confirm an infection.”
“Rather than a lack of funds or political will, Africa’s shortfall is triggered by richer nations outcompeting the developing world for critical equipment, says John Nkengasong, director of the Africa Centres for Disease Control and Prevention (Africa CDC).”
“But cautious optimism should be the watchword – some experts claim that the disease is secretly coiling its way through African societies and that when it raises itself to its full dreadful height, a nightmare could ensue.”
“Remittance flows around the world are set to plummet more than $100bn this year, depleting a vital source of financing for developing countries as they struggle with the economic chaos triggered by the pandemic, according to the World Bank.”
“We estimated that the additional health financing needs to prepare, respond, and treat COVID-19 are between 1.5 and 3 percent of GDP in Sub-Saharan Africa covering a period of 250 days.”
“Lesotho has yet to record a case of COVID-19 as of April 13… But the government in Maseru led by Prime Minister Tom Thabane has rolled out a series of economic intervention measures to cushion the country from the impact of the pandemic. In an address on Monday, April 13; Thabane disclosed that a budget had been allocated for a Disaster Relief Fund with another Relief Fund for the private sector.”
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