- The African Export-Import Bank (Afreximbank) is set to allocate $3 billion as a credit facility for African countries struck by the coronavirus
- The fund is designed to help the affected countries with trade payments and exporters with declines in revenue
- The president of the bank, Benedict Oramah, stated that it is likely health systems in affected countries would be strained
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The African Export-Import Bank (Afreximbank) has announced a $3 billion credit facility to aid African countries as the coronavirus continues to affect people on the continent.
The package, dubbed the Pandemic Trade Impact Mitigation Facility, is designed to assist countries to avoid defaulting trade payments and support their foreign exchange reserves.
It is also intended to help exporters of commodities as they struggle with falling revenue levels.
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Per a report by myjoyonline.com, Benedict Oramah, the president of the Cairo-based bank, indicated that there is a need for a rapid and impactful financial response to avert a major crisis in Africa.
He added that Africa’s health systems are expected to be intensely strained as the coronavirus continues to spread.
YEN.com.gh understands that several African countries are already under intense economic pressure as a result of falling oil and commodity prices.
Falling local currencies are also making it more challenging for such countries to service foreign currency-denominated debt.
Meanwhile, the Economic Commission for Africa (ECA), has estimated that Africa has lost about $65 billion in revenue since the outbreak of the coronavirus.
On Friday, March 13, 2020, the ECA explained that the crisis could negatively affect Africa’s growth plan which is already stagnant.
At a press conference in Addis Ababa, Ethiopia, it added that oil-exporting nations are losing revenue as crude oil prices continue to tumble.
The Executive Secretary of the Commission, Vera Songwe, explained that the effects of the coronavirus on China were negatively affecting trade with Africa.
She added that the blow is severe even though few cases have been reported on the continent since the epidemic started.
READ ALSO: Bank of Ghana's Monetary Policy Committee reduces policy rate to 14.5%
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