African Development Bank cautions against misappropriating funds

African Development Bank cautions against misappropriating funds

- The African Development Bank has advised African countries to channel borrowed funds tfor proper use

- This, it noted, 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 the international community.

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 use of funds.

It stated that countries that access such funds need to channel them into developmental projects that would yield returns.

African Development Bank cautions African countries against misappropriating funds

Akinwumi Adesina, President of AfDB Source:
Source: UGC

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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 report by 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 not budgeted for.

Several African countries, including Ghana, have approached the IMF and the World Bank for emergency funding to close their fiscal gap.

Ghana finance minister, Ken Ofori-Atta, earlier indicated that the gap was likely to increase to 7.8% from an earlier 4.7%.

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