President Muhammadu Buhari has urged international finance institutions to approve 25-30% of unused Special Drawing Rights, SDR, for African countries amidst growing poor economic outlooks in low and medium-income countries.
The President also made case for a fair distribution of the coronavirus vaccines across all countries, irrespective of region.
President Buhari while contributing to debates at the ongoing African finance summit in Paris, France, on Tuesday, described the 5.12%, or SDRs 33b out of SDR500b, approximately, $650b that will go to African countries, as “ inadequate” to cope with the growing financial stress facing the continent.
He also appealed to the French government to support initiatives for “fair and equitable allocation of the vaccines especially for African counties and a comprehensive financial support for the setting up of vaccine manufacturing firms in Africa, as well as achieve vaccination target in the continent.
The Nigerian government also made case for financial support for the green energy investment, as well as “classify Gas as transition energy”, ahead of the implementation of COP-26.
The President assured global community that lNigeria will extend the “ the financial support requested for, including allocation under the SDR, to green investments adding that “ Nigeria on its own part intends to use gas for a few years before it is phased out”
President Buhari expressed delight with the decision to use part of the unused SDR to recapitalize International Financial Institutions, which he said will also enhance their ability to provide concessional credit facilities to vulnerable countries.
President buhari also assured the international community of Africa’s readiness to carry out comprehensive reforms needed to strengthen debt management, promote transparency and accountability.
The summit is being used to strengthen bilateral cooperation between Nigeria and France which already has investment portfolio worth over €776m and USD592.3m, spread across 15 projects in Nigeria.
It was gathered that there is also an ongoing negotiation to secure a €70m concessional credit facility to finance health projects in Oyo state, Nigeria
President Buhari while making case for expansion of credit facilities to the private sector, noted that “ In situations where public sector balance sheets are over-burdened, there should be additional lending to the local private sector and public private partnerships.
Managing Director of the International Monetary Fund IMF, Kristalina Georgieva, in her contribution said Africa must be assisted by her friends to “return to the remarkable development progress witnessed before the global coronavirus pandemic” as well as “take full advantage of the tectonic shifts in the global economy toward digital-driven, low-carbon and climate resilient growth”
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Georgieva noted that the pandemic-caused recession shrank the GDP of the Continent by 1.9 percent – the worst performance on record.
“This year, we project global growth at 6 percent, but only half that – 3.2 percent, for Africa.
“This is a dangerous divergence. It ought to be the reverse: Africa needs to grow faster than the world – at 7 to 10 percent – to meet the aspirations of its youthful populations, and become more prosperous and more secure.
“Yes, together we have avoided a much worse economic crisis. Now, we must build on this initial momentum to bring the pandemic to a durable end and boost growth in Africa.
She declared that Africa will need additional financing of $285b to adequately respond to the COVID through 2025.
“ Of this,$135 billion is for low-income countries. This is the bare minimum and to get African nations back on their previous path of catching up with wealthy countries – will cost roughly twice as much”
(Editor: Abaje Usekwe).
