Africa is seeking urgent liquidity
Africa is seeking urgent liquidity

In light of the severe financial pressures that accompanied the spread of the Corona virus on the African continent, 3 countries moved quickly in search of absent liquidity, and while some were forced to austerity, others resorted to the pockets of China and the International Monetary Fund.

The three countries are Nigeria, Tanzania and Gabon, each of which has followed a different channel in search of urgent financing, either to continue the necessary spending or to complete vital projects or pay off debts.

And Saturday, the International Monetary Fund approved a $ 14.3 million grant under its Disaster and Relief Containment Fund, covering the payment of Tanzania's debts to the fund from June 12 to October 13, according to Bloomberg.

The Fund said: "An additional relief grant will be provided covering the period from October 14, 2020 to April 13, 2022, and this will depend on the availability of resources in the Disaster and Relief Containment Fund, bringing the total relief for debt service to the equivalent of approximately $ 25.7 million."

He continued: "The (Covid-19) pandemic has weakened macroeconomic opportunities in the near term for Tanzania, and the country faces a significant reduction in tourism revenues and budget pressures and an expected decline in GDP from more than 6% to 4% in the current fiscal year and to 2.8% in the fiscal year." Coming. "

For its part, the Nigerian government is looking to obtain final approval from China to grant it a loan of 5.3 billion dollars by next October to build a railway linking the cities of Ibadan and Kano.

According to Bloomberg, the line will facilitate the movement of goods between southern and northern regions in Nigeria in western Africa.

Africa's largest oil producer is rehabilitating its rail network with Chinese funding.

In Gabon, a statement by the country’s government stated its intention to reduce this year’s budget by 9% by 3 trillion CFA francs, due to the economic shock caused by the Corona pandemic.

The country whose economy depends on oil has adjusted its investment expenditures, and the government said that it reduced these expenses by 26%, after it had calculated the budget for these expenses initially on the basis that the price of a barrel of crude oil was $ 57.

The second largest country by area in the Organization of Petroleum Exporting Countries was the first country in Africa to sell Eurobond bonds this year, but its economy was hit by the oil price crash and the Corona pandemic.