The African Development Bank Group (AfDB) has announced the provision of a $10 billion COVID-19 Response Facility for Nigeria and other regional member countries to help fight the coronavirus pandemic.
In a statement released, the President of the African Development Bank Group, Akinwumi Adesina stated that the facility took into account the fiscal challenges that many African countries are facing.
“Africa is facing enormous fiscal challenges to respond to the coronavirus pandemic effectively. The African Development Bank Group is deploying its full weight of emergency response support to assist Africa at this critical time.
“We must protect lives. This Facility will help African countries to fast-track their efforts to contain the rapid spread of COVID-19,” Adesina said as he commended the Board of Directors for its undiluted support.
Breakdown: According to the bank, the facility would be provided for both the governments and the private sector. While $5.5 billion would go to sovereign operations in AfDB countries, $3.1 billion goes to sovereign and regional activities for African Development Fund member countries and the additional $1.35 billion will be devoted to private sector operations.
This development announced by AfDB happens to be the latest measure the bank has put in place to respond to the pandemic and address the crisis.
Recall that Nairametrics had reported when the bank launched a $3 billion Fight COVID-19 Social Bond, the largest social bond on the London Stock Exchange. The bond, which raised an exceptional $3 billion, was launched to reduce the impact of COVID-19 on Africa’s economies and livelihoods.
The transaction, which is also the first bond of the financial institution on the London Stock Exchange, was oversubscribed and attracted $4.6 billion of interest in the book.
Also, last week, the Board of Directors approved a $2 million grant for the World Health Organization for its efforts on the continent amidst the pandemic.