African Development Bank approves EUR 88 million loan to Cameroon to finance COVID-19 response

Content provided by APO Group. CNBC Africa provides content from APO Group as a service to its readers, but does not edit the articles it publishes. CNBC Africa is not responsible for the content provided by APO Group.
Download logo

The Board of Directors of the African Development Bank (www.AfDB.org) on Monday approved a EUR 88 million loan to Cameroon as direct budget support to finance the country’s COVID-19 crisis response.

The loan, to the country’s COVID-19 Crisis Response Budget Support Programme (PABRC), falls under the framework of the Bank’s COVID-19 Rapid Response Facility (CRF) of up to $10 billion, the institution’s main channel to cushion African countries from the economic and health impacts of the crisis.

In Cameroon, the pandemic has revealed the structural weaknesses of the country’s health system and economy, particularly the limited human and financial resources allocated to the health sector.

The PABRC’s goal is to check the spread of the coronavirus, to save lives and to mitigate its adverse socio-economic effects on the Central African country, particularly on households and businesses. The programme also involves longer-term actions to build the resilience of the economy as a basis for recovery.

It will support the implementation of a health response plan to improve testing and ensure early detection and rapid management of the virus, thus reducing case fatality and improving the recovery rate. It will also support the most vulnerable in society by paying family allowances to staff of companies unable to pay social security contributions as well as distributing health kits.  

“Women play a key role in the fight against the spread of COVID-19 as wives, mothers, caregivers and community resource persons. The social protection and economic resilience actions under this support will particularly target women and the households and businesses headed by them,” Bank Acting Director General and Country Manager for Cameroon, Solomane Kone said.

Measures to sustain economic activity and safeguard employment will include value-added tax (VAT) credits to restore the cash position of enterprises as well as procuring inputs to support strategic agricultural value chains including poultry, fish, seeds and cereals. It will also support key small and medium-sized enterprises in the agribusiness, health and education sectors.

This operation complements the Bank’s $13 million special emergency project for Economic and Monetary Community of Central Africa(CEMAC) member countries and the Democratic Republic of Congo, to fight the COVID-19 pandemic, which was approved earlier this month.

COVID-19 has broken out at a time when the Cameroonian economy, the largest and most diversified in the Central Africa, is recovering from the 2014 shock caused by a sharp fall in the world prices of the country’s main export products ­– oil, cocoa and timber. Without support, the spread of COVID-19 in Cameroon could compromise the reform drive and jeopardise the progress made in recent years.

The first confirmed case of COVID-19 in Cameroon was identified on 6 March 2020. By 22 June, the Central African country had more than 12,041 confirmed cases, including 308  deaths and 7,740  recoveries. The Centre (Yaoundé) and Littoral (Douala) Regions have the highest number of cases, representing about 55.8% and 32.2% of the total, respectively.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Media Contact: Amba Mpoke-Bigg Communication and External Relations Department African Development Bank Email: [email protected]

About the African Development Bank Group: The African Development Bank Group (www.AfDB.org) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org

Related Content

COVID-19: How to address Africa’s disease burden amidst a pandemic

The COVID-19 pandemic has exposed gaps in the healthcare systems around the world. The Access to Medicine Foundation says after decades of investment for ending HIV, malaria and tuberculosis pandemics, the progress made in protecting children from these diseases is now at risk due to disruptions caused by the Covid-19 pandemic. Jayasree Iyer, Executive Director, Access to Medicine Foundation joins CNBC Africa’s Kenneth Igbomor to explore how best to address Africa’s disease burden....

Tunisia seeks late debt payments as crisis hits economy, state budget

TUNIS (Reuters) - Tunisia has asked four countries to delay debt repayments, it said on Monday as it announced more pessimistic economic...

COVID-19 lock-down: Why alcohol ban won’t address SA’s binge drinking problem

Alcohol is once again the centre of attention in South Africa, with another ban imposed on its sale and distribution. Healthcare professionals have reported that with the increasing number of trauma cases attributed to alcohol consumption, hospitals are running out of beds. The South African government continues to try and mitigate the impacts of the COVID-19 pandemic on the economy and on the health system. Joining CNBC Africa for this discussion are Lucky Ntimane, Convener for the National Liquor Traders Council, Busi Mavuso, CEO of Business Leadership South Africa and Doctor Devorah Leigh Weinberg from Baragwanath Hospital....

South Africa reintroduces alcohol ban as coronavirus cases surge

KEY POINTS The move to prohibit alcohol comes just three weeks after an initial three-month ban, implemented to...

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

More from CNBC Africa

COVID-19: How to address Africa’s disease burden amidst a pandemic

The COVID-19 pandemic has exposed gaps in the healthcare systems around the world. The Access to Medicine Foundation says after decades of investment for ending HIV, malaria and tuberculosis pandemics, the progress made in protecting children from these diseases is now at risk due to disruptions caused by the Covid-19 pandemic. Jayasree Iyer, Executive Director, Access to Medicine Foundation joins CNBC Africa’s Kenneth Igbomor to explore how best to address Africa’s disease burden....

Tunisia seeks late debt payments as crisis hits economy, state budget

TUNIS (Reuters) - Tunisia has asked four countries to delay debt repayments, it said on Monday as it announced more pessimistic economic...

COVID-19 lock-down: Why alcohol ban won’t address SA’s binge drinking problem

Alcohol is once again the centre of attention in South Africa, with another ban imposed on its sale and distribution. Healthcare professionals have reported that with the increasing number of trauma cases attributed to alcohol consumption, hospitals are running out of beds. The South African government continues to try and mitigate the impacts of the COVID-19 pandemic on the economy and on the health system. Joining CNBC Africa for this discussion are Lucky Ntimane, Convener for the National Liquor Traders Council, Busi Mavuso, CEO of Business Leadership South Africa and Doctor Devorah Leigh Weinberg from Baragwanath Hospital....

South Africa reintroduces alcohol ban as coronavirus cases surge

KEY POINTS The move to prohibit alcohol comes just three weeks after an initial three-month ban, implemented to...

Partner Content

Tata International concludes a securitization transaction for its African Subsidiaries

UAE financial centers act as a gateway to benefit African businesses GCC, July 13th, 2020: Tata International Limited (TIL)...

Uber launches its largest region-wide initiative in partnership with Mastercard

Uber, in partnership with Mastercard to provide 120,000 free trips to frontline workers in MEA, including South Africa, Nigeria, Kenya, Ivory Coast...

Trending Now

UK economy risks shrinking 14% this year, budget forecasters warn

LONDON (Reuters) - Britain’s economy could shrink by more than 14% this year and government borrowing risks approaching 400 billion pounds ($500...

South Africa to introduce universal income grant – minister

JOHANNESBURG (Reuters) - South Africa will introduce a universal basic income grant, the Minister of Social Development Lindiwe Zulu said on Monday,...

WHO warns of perpetual worsening of COVID-19 crisis

GENEVA/ZURICH (Reuters) - The new coronavirus pandemic raging around the globe will worsen if countries fail to adhere to strict healthcare precautions,...

South Africa’s economy to shrink 6.9% in 2020 – S&P Global Ratings

JOHANNESBURG (Reuters) - South Africa’s economy will contract by more than initially projected, likely shrinking 6.9% in 2020 compared to an earlier...
- Advertisement -