X

This is not a paywall.

Register for free to continue reading.

The news sucks. But your reading experience doesn't have to. Help us improve that for you by registering for free.



Please create a password or click to receive a login link.


Please enter your password or get a login link if you’ve forgotten


Open Sesame! Thanks for registering.

First Thing, Daily Maverick's flagship newsletter

Join the 230 000 South Africans who read First Thing newsletter.

We'd like our readers to start paying for Daily Maverick

More specifically, we'd like those who can afford to pay to start paying. What it comes down to is whether or not you value Daily Maverick. Think of us in terms of your daily cappuccino from your favourite coffee shop. It costs around R35. That’s R1,050 per month on frothy milk. Don’t get us wrong, we’re almost exclusively fuelled by coffee. BUT maybe R200 of that R1,050 could go to the journalism that’s fighting for the country?

We don’t dictate how much we’d like our readers to contribute. After all, how much you value our work is subjective (and frankly, every amount helps). At R200, you get it back in Uber Eats and ride vouchers every month, but that’s just a suggestion. A little less than a week’s worth of cappuccinos.

We can't survive on hope and our own determination. Our country is going to be considerably worse off if we don’t have a strong, sustainable news media. If you’re rejigging your budgets, and it comes to choosing between frothy milk and Daily Maverick, we hope you might reconsider that cappuccino.

We need your help. And we’re not ashamed to ask for it.

Our mission is to Defend Truth. Join Maverick Insider.

Support Daily Maverick→
Payment options

African Finance Chiefs Urge G-20 to Speed Up Access to...

Business Maverick

Business Maverick

African Finance Chiefs Urge G-20 to Speed Up Access to IMF Funds

Zainab Ahmed, Nigeria's former finance minister, speaks during a Bloomberg Television interview during the Emerging + Frontier Forum 2019 at Bloomberg's European headquarters in London, U.K., on Tuesday, June 25, 2019. Rocked by trade disputes, the possibility of a U.S. recession and the ever-present threat of political conflagration, the backdrop for emerging and frontier markets has rarely seemed less settled.
By Bloomberg
09 Jul 2021 0

Four African finance ministers urged the Group of 20 nations to pressure the International Monetary Fund to accelerate the disbursement of new loans the continent needs to overcome the economic devastation wrought by the coronavirus pandemic and avert an insolvency crisis.

“Timely, stable and sufficient long-term financing on fair terms for an inclusive and sustainable post-Covid recovery remains out of reach for many developing countries,” Nigerian Finance Minister Zainab Ahmed and her counterparts Ken Ofori-Atta of Ghana, Nicolas Kazadi of the Democratic Republic of Congo and Adama Coulibaly from Ivory Coast wrote in an op-ed published by Italy’s la Stampa newspaper on Friday.Their call comes before a meeting of G-20 finance ministers and central bank governors in Venice this weekend.

The IMF’s board last month unanimously supported a proposal to create a record $650 billion of new reserves, known as special drawing rights, or SDRs, for its members, but only $33 billion of that has been earmarked for Africa.

Read more:

The plan still requires final approval by the Washington-based lender’s board of governors, which is comprised of representatives from its 190 member countries — typically their finance ministers or central bank governors.

“The urgency now is to accelerate the disbursement of these SDRs to forestall the current emerging market liquidity crisis devolving into an insolvency crisis,” the African finance chiefs said, calling on the IMF to outline how the rights will be dispensed and set reallocation and on-lending terms.

They also want the lender to replenish its Poverty Reduction and Growth Trust, which provides support to low-income countries through interest-free loans, and other funding facilities.

France has committed to reallocating part of its SDRs to Africa. Leaders of the Group of 7 biggest economies last month discussed supporting plans for a $100 billion reallocation.

New Facility

South African President Cyril Ramaphosa has previously said about a quarter of the total allocation, equivalent to around $162 billion, should be made available to African countries and called on rich nations to donate — and not just on-lend — their allotments. South Africa is the only African member of the G-20, which comprises the European Union and 19 other major economies.

Ahmed, Ofori-Atta, Kazadi and Coulibaly also urged the G-20 to consider on-lending at least $30 billion in SDRs to a new facility that would catalyze investments to Africa, reduce the liquidity premiums on middle-income countries’ sovereign bonds and offer incentives for environmentally sustainable investments.

The facility would be similar to the European Stability Mechanism and help African nations address debt vulnerability and investment gaps, as well as threats posed by climate change, they said.

Rich nations should also accelerate the delivery of Covid-19 vaccines to the continent, according to the ministers.

Vaccine Deficit

“As the developed world is steadily reaching its vaccination goals, Africa braces for a third Covid-19 wave, as short-term vaccine supplies dry up leaving many countries unable to even follow up with second doses for high-risk groups,” they said.

Africa has taken delivery of just 66 million vaccine doses so far and less than 2% of the its population of more than 1.3 billion people has been fully inoculated, according to the World Health Organization. The 50 million doses administered on the continent to date account for just 1.6% of those administered globally.

Support for manufacturing vaccines in low-income countries and recognition that voluntarily licensing agreements can make a positive impact on global supplies is encouraging, the ministers said.

Gallery

Comments - share your knowledge and experience

Please note you must be a Maverick Insider to comment. Sign up here or sign in if you are already an Insider.

Everybody has an opinion but not everyone has the knowledge and the experience to contribute meaningfully to a discussion. That’s what we want from our members. Help us learn with your expertise and insights on articles that we publish. We encourage different, respectful viewpoints to further our understanding of the world. View our comments policy here.

No Comments, yet

Please peer review 3 community comments before your comment can be posted