The pandemic could undercut Africa’s precarious progress
“Even if vaccines come soon, African treasuries will still need help to avoid drawn-out debt crises and growth-choking cuts to spending.”
News & Analysis: Fiscal policy
From stimulus to debt: The case of South Africa
Analysis and Opinion South Africa Brookings Institution Op-ed by John Schellhase“The COVID-19 pandemic has seen the widespread use of expansionary fiscal policies which, in terms of scale, is simply unprecedented. Crucially, for many countries in sub-Saharan Africa, these fiscal stimulus packages have deepened their debt challenges.”
Ethiopia asks for debt relief as COVID-19 takes toll
Daily Focus / Latest Developments Ethiopia Financial Times Article/Blog post by John Schellhase“Ethiopia has asked for debt relief under a G20 programme to help poor countries reeling under the economic impact of coronavirus, making it the second African country to do so in the past week.”
Memo to Leaders: Three ‘no regret’ decisions for financing Africa’s post-COVID-19 future
Analysis and Opinion COVID-19 Africa Watch Op-ed by David McNairTo contain the economic damage of the pandemic and capitalize on the region’s underlying strengths, national and international leaders need to pursue urgent action.
COVID-19 and taxes: Policies for the post-pandemic recovery
Analysis and Opinion International Growth Centre Article/Blog post by John Schellhase“Wealth taxes are underutilised as a policy tool. There is an opportunity to leverage them in response to COVID-19 as they can help reduce inequality and pave the way for equitable recovery.”
Paris Club of international creditors accept Kenya debt relief request
Latest Developments Kenya Reuters Article/Blog post by John Schellhase“The Paris Club of international creditors said on Monday it had accepted a request from Kenya for a debt-servicing suspension from January to the end of June.”
An Africa unconstrained by a self-fulfilling debt narrative will rebound after COVID-19
Analysis and Opinion Quartz Africa Op-ed by John Schellhase“Africa’s debt narrative tends to forget the agency of African governments and instead focuses on portraying other players either as saviors or bogeymen.”
World Bank sees more countries in ‘deep debt distress’ this year
Latest Developments Angola / Chad / Zambia Reuters Article/Blog post by John Schellhase“Chad and several other countries are already in deep debt distress and more will join their ranks this year, given the severity of the global recession triggered by the COVID-19 pandemic, World Bank Group President David Malpass said.”
Interview with Ladé Araba: Using Blended Finance to Tackle COVID-19 and Build Back Better
African Voices on COVID-19's Impact / Interview Series COVID-19 Africa Watch Video by Milken Institute staffLadé Araba, Managing Director for Africa at Convergence, talks to COVID-19 Africa Watch about blended finance’s potential role in building back after the pandemic, the core policy priorities, and her views on leadership.
Uhuru hits salaried workers with hidden tax increase
Analysis and Opinion Kenya Daily Nation Article/Blog post by John Schellhase“Treasury Cabinet Secretary Ukur Yatani defended the new rates, arguing that simulations by his office had convinced even Parliament that no Kenyan will pay more taxes than what they were paying before COVID-19.”
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