African Development Bank green-lights R5 billion loan for South Africa

African Development Bank green-lights R5 billion loan for South Africa

- The African Development Bank has approved a R5 billion loan to South Africa this week

- The fund is set to help SA cope with the Covid-19 pandemic and the economic fallout from it

- This comes as SA is the hardest country in Africa with the highest number of infections and fatalities

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The African Development Bank has green-lighted a R5 billion loan to South Africa to help it win the battle against Covid-19.

In addition to funding this battle, the loan will also help SA mitigate the economic fallout the pandemic has brought with it.

After the SA government requested aid from the bank, it released a statement on the approval of the loan:

“The board of directors of the African Development Bank (AfDB) has approved a loan of approximately R5 billion ($288 million) to the government of South Africa, as the country battles one of the largest COVID-19 caseloads in the world."

Not only does South Africa have the highest number of Covid-19 cases and fatalities in Africa, it currently ranks 5th worldwide in the pandemic.

coronavirus

The South African government reached out to the African Development Bank for help. Image: GCIS
Source: Twitter

READ ALSO: Mabuza tests negative for Covid-19: Recovering in Mpumalanga

The loan forms part of the bank's $10 billion coronavirus response budget according to the statement.

With the bank predicting that SA's economy will contract by up to 7.5% due to the pandemic, it highlighted the importance of helping the nation back onto its feet:

“South Africa’s ability to respond to the pandemic has implications for neighbouring countries as well as the continent as a whole, given its position as Africa’s second-largest economy after Nigeria."

Meanwhile, Briefly.co.za reported that Deputy President David Mabuza's office has released a statement over his sudden illness after it was made public on Wednesday.

Mabuza's spokesperson Matshepo Seedat commented that Mabuza has tested negative for Covid-19:

"The deputy president has, in the past, spoken openly about his ill health. As per previous communication by the department for defence on the coronavirus test result, nothing has changed."

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Source: Briefly.co.za

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