News & Analysis: Fiscal policy

Gambia Tourism to Suffer $292 Million Loss Due to Coronavirus

“Gambia stands to lose $292 million as global travel restrictions imposed in the wake of the coronavirus pandemic wreak havoc with the country’s tourism, a key source of foreign exchange. Government revenue from the hospitality industry is forecast to decline by $108 million this year, while the sector as a whole is forecast to suffer a loss of $184 million, according to an impact assessment by the national bureau of statistics.”

via Bloomberg

Moving to a post-COVID-19 world

“The effectiveness of fiscal measures to drive mitigation and recovery will depend on how well a country is managed. Governments now have the opportunity, the imperative in fact, to look beyond the immediate crisis to make the structural changes necessary to drive market innovation and adaptation in a post-COVID-19 world.”

via Cenfri

Projected health-care resource needs for an effective response to COVID-19 in 73 low-income and middle-income countries: a modelling study

“The sizeable costs of a COVID-19 response in the health sector will escalate, particularly if transmission increases. Instituting early and comprehensive measures to limit the further spread of the virus will conserve resources and sustain the response.”

via The Lancet

African Fiscal Vulnerabilities: Effects of 2020 Global Support Initiatives

“Fiscal vulnerabilities among African sovereigns had been building up in the years leading to 2020’s pandemic, driven by challenging economic conditions; unfavourable changes in exchange rates and commodity prices; in addition to significant borrowing, including loans from China, which today is Africa’s largest bilateral lender, alongside greater bond issuance.”

via Scope Ratings

Southern Africa: Why risk financing is critically important during COVID-19 recovery

“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.”

via World Bank

Covidpreneurship: From corruption to rebuilding legitimacy and trust in our political leadership

“The recent exposé of massive misappropriation of the COVID-19 funds allocated for relief was a disturbing revelation to the nation… Finance Minister Tito Mboweni vowed to quickly cancel the emergency procurement processes and reintroduce the usual supply chain procedures to improve transparency. There are now reports, however, that this has not yet been done.”

via Mail & Guardian

South Africa’s COVID-19 relief fund dogged by delays and corruption

“The South African government is investigating reports of large-scale ‘looting’ of its $26 billion coronavirus rescue package, launched to cushion the economic impact of the pandemic on struggling households.”

via The New Humanitarian

External debt complicates Africa’s COVID-19 recovery

“For sub-Saharan African economies, interest repayments constitute the highest expenditure portion – and fastest-growing expenditure – of budgets.”

via Sierra Leone Telegraph

IMF Executive Board Approves US$110.4 Million in Emergency Support to The Kingdom of Eswatini to Address The COVID-19 Pandemic

“The Executive Board of the International Monetary Fund approved the Kingdom of Eswatini’s request for emergency financial assistance of SDR78.5 million (about US$110.4 million, 100 percent of quota) under the Rapid Financing Instrument to meet the urgent balance of payment needs stemming from the COVID-19 pandemic.”

via IMF

Why African countries are reluctant to take up COVID-19 debt relief

“Of the 25 countries eligible for the debt relief, only four have requested assistance – Cameroon, Côte d’Ivoire, Ethiopia and Senegal. The majority have either refused to apply, or have not yet requested a debt moratorium.”

via The Conversation