The IMF is sounding the alarm about the economic consequences in Africa

The International Monetary Fund held a virtual meeting on Friday, October 9, on the impact of coronavirus in Africa in the presence of its CEO Kristalina Georgieva. According to the latter, economic support released in recent months is significant, but it remains insufficient to help the continent emerge from the crisis.

According to the IMF chief executive, the institution has already released nearly $ 26 billion this year. This is ten times more than what the IMF releases on average each year for loans.

But the needs are enormous, because if the continent wants to emerge from the crisis, it needs $ 1200 billion by 2023. But for now, Kristalina Georgieva explains, if we stick to the promises made by international financial institutions and bilateral creditors, less than a quarter of this amount should be released.

According to IMF forecasts, households could experience a fall of up to 12% in their income and, according to the World Bank, up to 43 million more people could fall into extreme poverty.

However, the IMF welcomes the efforts of some states. Its Director – General cites in particular Burkina Faso, the Gambia and the Central African Republic. Three countries that, according to her, have put in place “remarkable governance mechanisms” to ensure that the funds released benefit their populations.