Africa
THE African Development Bank (AfDB) is considering an emergency support package to help African countries mitigate the economic impact of rising global uncertainties, including the ongoing Middle East crisis.
Prof. Kevin Urama, the bank’s Chief Economist/Vice President for the Economic Governance and Knowledge Management, disclosed this in an interview with the News Agency of Nigeria (NAN) on Tuesday in Abuja.
He said the proposed package would provide budget support and trade financing to countries facing fiscal pressures arising from higher food, fuel and fertiliser prices triggered by global tensions.
According to him, the bank is studying measures similar to those deployed during the COVID-19 pandemic to help governments manage short and medium-term economic shocks.
“We are putting together a package of a crisis response programme, which will have to be considered by the board of the AfDB and the president of the bank.
“One is emergency crisis-response budget support, similar to what we did during COVID-19 as well as trade financing to help countries facing challenges associated with importing food, fuel and fertiliser,” he said.
Urama said Africa’s economy remained resilient in spite global disruptions, noting that the continent’s growth was projected at 4.2 per cent in 2026 if current tensions subsided within three months and 4.0 per cent if they persisted for six months.
He added that growth was expected to rebound to 4.4 per cent in 2027, remaining above the global average.
The economist said that the AfDB was also promoting the New African Financial Architecture for Development (NAFAD).
According to him, this will help to strengthen cooperation among African financial institutions and mobilise capital at scale for the continent’s development.
He said the initiative would address challenges such as fragmentation and weak coordination among development finance institutions, enabling them to respond more effectively to Africa’s growing financing needs. (NAN)
F.O
Tags: Global Shocks