Multilateral development finance institutions have pledged to continue to collaborate in their efforts to mitigate the adverse impact of the COVID-19 pandemic and accelerate the recovery of economies and livelihoods.
At an extraordinary virtual meeting to discuss the impact of their responses to the pandemic and the worsening debt situation, the organisations said sustaining their joint efforts would protect livelihoods, especially among vulnerable populations, preserve macroeconomic stability and promote a stronger private sector role after COVID-19.
The meeting, chaired by Hajjar Bandar, President of the Islamic Development Bank Group, was attended by the heads of 12 multilateral development banks. They discussed how to achieve maximum impact in their relief efforts, and the debt sustainability of beneficiary countries.
Bandar said the collaboration by the MDBs had proven meaningful in their efforts to swiftly provide crucial financial relief to member countries in the wake of the pandemic.
“In the face of this unprecedented crisis, we have shown our responsibility and unity…The total package has already started disbursing and is bearing fruits,” Bandar said.
The joint effort of the MDBs has seen a COVID-19 response envelope of about $230bn. In addition, the International Monetary Fund has provided financing to 81 member countries totaling over $100bn since mid-March, with further room for member countries to tap into its $1tn lending capacity through programme arrangements.
He urged members to sustain the collaboration to steer financing towards development, help communities out of poverty and spur digitisation and promote education.
“This forum is where partnerships make a difference. We need to join forces to support our member countries better.”
President of the African Development Bank Group, Akinwumi Adesina, said collaboration among development partners had become more vital than ever to help economies recover from the pandemic and attract private financing to rebuild infrastructure.
“We are really…in very extraordinary times. There’s no doubt about it, in terms of the devastation that this pandemic is causing. The challenge is huge and the collective resolve must be strong as MDBs,” he said.
He said efforts must be deepened to help member states mobilise more domestic resources and attract private creditors to participate in financing capital projects.
“It’s time for us to change the paradigm to get the private sector, with incentives, to do a lot of private-public partnerships,” Adesina said, restating the bank’s commitment to helping Africa rebuild boldly and smartly.
The bank introduced a COVID-19 Response Facility of up to $10bn to support regional member countries and private sector clients in their efforts to address the impacts of the COVID-19 pandemic.
