- The African Development Bank (AfDB) has advised African countries to channel borrowed funds to proper management
- This, according to AfDB, would help reduce fiscal challenges that would further sink the countries into more debt
- The Bank noted that the outbreak of the coronavirus could create more debts for countries if care is not taken
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African countries have been cautioned against the misuse of funds borrowed from international bodies and communities.
The African Development Bank (AfDB) noted that several African countries are likely to be plunged into distress if corrective measures are not adopted with regard to the management of the borrowed funds.
It stated that countries that access such funds need to channel them into vital developmental projects that would yield returns.
This, the AfDB noted, is because the outbreak of the coronavirus is likely to force some countries into distressful situations if corrective measures are not taken.
A recent report shows that the need to confront the challenges that came with the outbreak of COVID-19 forced some countries to run to bodies such as the International Monetary Fund (IMF), the World Bank and the AfDB.
The need to halt the spread of the pandemic compelled countries to resource health systems, motivate health staff, provide food for the poor and enforce border closures.
This eventually led to a pause in revenue generation and a widening of fiscal gaps as some expenditures were unbudgeted for.
Earlier, Legit.ng reported that the board of the International Monetary Fund (IMF) approved the sum of $3.4billion to support Nigeria’s COVID-19 fight.
The grant to Nigeria is the highest so far to any member country. The grant called Rapid Financing Instrument (RFI) is granted to member countries that are not under an IMF programme.
The news was announced on Twitter by a former African Development Bank Former AfDB Lead Economist on Nigeria, Barbara Barungi.
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