The Board of Directors of the African Development Bank (ADB) granted on June 26, 100.5 million Euros (66 billion CFA francs) to Gabon. This grant in the form of a loan should enable the country to cope with the effects of the spread of Covid-19, in all sectors.
According to a press release published on the website of the African Development Bank (AfDB) group, the Board of Directors of this continental financial institution approved, on June 26, a loan of 100.5 million euros, nearly CFAF 66 billion) to the Gabonese government as budget support to mitigate the effects of the Covid-19 epidemic.
The institution said the loan will support the country’s budget support program in response to the health crisis linked to Covid-19. It aims to strengthen the health system and mitigate the socio-economic impact of the pandemic on households and businesses.
“The response focuses on controlling the spread of the virus, increasing public resources allocated to the health sector and strengthening the resilience of the most vulnerable communities, as well as maintaining livelihoods and strengthening enterprises and the national industry in order to maintain the production system and pave the way for a rapid recovery, ” the Director of the Bank, in charge of Governance and Public finance management, Abdoulaye Coulibaly reveals.
According to the AfDB, the new coronavirus is putting great pressure on the national health system, which is not equipped to deal with major pandemics. “The country has four recently built hospitals, 9 regional hospitals, 47 departmental hospitals, 34 health centers, 413 dispensaries and 157 health huts, but has only 58 intensive care beds,” the AfDB said. The bank added that the drop in global demand and the sharp drop in oil prices hit oil-rich nations, contributing to a sharp deterioration in Gabon’s exchange terms and a significant drop in budget revenues.
“Given the limited budgetary margins and the insufficient human and financial resources allocated to health, the country is facing a crisis. The national social security system and the family benefit system, mobilized to respond to the crisis, must be improved, “said the institution.
Relying on banking analysts, she said that Gabon, like a large part of the countries of the world and the rest of the continent, could fall into recession in 2020. It is estimated the negative real GDP growth rate of – 1.7% for the country, due to this pandemic.
