Author: Padili Mikomangwa

Tunisia, one of Africa’s top exotic tourists’ destinations fate is hanging in the balance, due to the novel coronavirus (COVID-19) pandemic threatening the sector, as more than $1.4 billion and 400,000 jobs are at stake.

According to information from Reuters, an official document showed Tunisia seeking a loan guarantee from bilateral partners to issue sovereign bonds this year.

Further, Reuters highlighted that, in a letter sent to the International Monetary Fund (IMF), Tunisia’s central bank governor and finance minister said the country’s economy would shrink by up to 4.3 per cent, the steepest drop since the nation’s independence in 1956.

The IMF, which approved on Friday a $745 million loan to Tunisia to counter the consequences of the coronavirus, said a new funding programme with Tunisia could start in the second half of this year.

Hence, the size of the new programme remains unknown.

Earlier this year, the Tunisian Minister …

On Monday, the Executive Board of the International Monetary Fund (IMF) approved the immediate debt service relief of 25 of IMF’s member countries under the IMF’s revamped Catastrophe Containment and Relief Trust (CCRT) as part of the fund’s response to help deal with the impacts of the contagious Coronavirus (COVID-19) pandemic.

According to a statement provided by the lender, the funds go after the world’s poorest and most vulnerable members to cover their IMF debt obligations for an initial phase over the next six months.

Further—IMF highlighted that the debt relief will help these 25 nations to channel more of their scarce financial resources towards vital emergency medical and other relief efforts.

IMF’s Managing Director Ms Kristalina Georgieva, said “The CCRT can currently provide about US$500 million in grant-based debt service relief, including the recent US$185 million pledge by the U.K. and US$100 million provided by Japan as immediately available …

The novel coronavirus (COVID-19) has taken a new stage in Tanzania, as the country registers two more deaths and the number of infected patients of the contagious virus rises to 32.

According to information from Tanzania’s health minister Ummy Mwalimu, the two deaths are male Tanzanians aged 51 and 57 whose cases were reported on April 8.

Hence, the five patients are four men aged 68, 57, 54, 41, and one woman aged 35 all residents of the nation’s commercial, capital Dar es Salaam.

READ:COVID-19 in East Africa: Tanzania records first death

According to the minister, the number now stands at 32 after the Zanzibar (semi-autonomous region of Tanzania) health minister earlier in the day announced two new cases on the Isles.

“Of the 32 cases recorded so far, five have healed and discharged, 24 others are still receiving treatment whereas three have passed on,” said the Minister in …

The novel coronavirus pandemic (COVID-19) has brought the skies down, even the aviation industry is not safe from the virus wrath. In this case, the African aviation industry is vulnerable, as the international body predicted earlier that, the pandemic would hurt the sector hard, as carriers.

According to information from Bloomberg, Africa’s biggest carriers, Ethiopian Airlines, South African Airways and Kenya Airways are among national airlines staring at mounting losses and the destruction of growth plans put in place before the COVID-19 outbreak.

The International Air Transport Association (IATA) said last week, African carriers may lose $4 billion in 2020 revenue as demand for travel around the continent grinds to a halt.

All three of Africa’s biggest carriers have to find a resolution to ensure amicable solutions reach as carriers “will, in some shape or form, have to enter into conversations with their respective governments about bailouts,” Mike Mabasa, chairman …

Sub-Saharan Africa governments funding needs may rise by almost $75 billion due to the novel coronavirus (COVID-19) downplaying their economies, according to information from Goldman Sachs Group.

This particular insight comes into the play as last month, African finance ministers called for a $100 billion stimulus package, including suspension of debt to help the youngest continent combat the coronavirus pandemic, which has already registered a $29 billion dent to the economy so far and still counting.

According to the global investment bank, economists in London, Dylan Smith and Andrew Matheny, the pandemic could have a serious toll on the continent’s fragile fiscal pillars.

“Possibly the most severe impact of the crisis will be on already stretched fiscal balances. Budget deficits would likely rise from an average of around 3.5 per cent to high single digits, even before any loosening to soften the economic effects of the corona-crisis,” said Smith and …

Sub-Saharan Africa is likely to face its first recession in 25 years as the novel coronavirus (COVID-19) pandemic is cutting life from the continent’s economies, disrupts world trade, according to information from the World Bank.

According to information from Bloomberg, the lender said, the continent’s gross domestic product (GDP) will probably contract 2.1 per cent to 5.1 per cent in 2020, compared with 2.4 per cent growth a year earlier.

World Bank Vice President for Africa, Hafez Ghanem said in a statement following the Africa Pulse report, that “The COVID-19 pandemic is testing the limits of societies and economies across the world, and African countries are likely to be hit particularly hard,”

The global investment bank, Goldman Sachs Group gave their prediction on African governments funding needs, saying that sub-Saharan Africa funding may rise by $75 billion due to COVID-19 hammering their economies.

Further, the growth downgrade is based on …

Nigeria, Africa’s populous and largest economy is planning to raise about $6.9 billion from various multilateral lenders to assist their efforts towards curbing the spread of the novel coronavirus (COVID-19).

According to information from Bloomberg, the nation’s Finance Minister Zainab Ahmed told reporters Monday in the capital, Abuja that, the government will seek $3.4 billion from the International Monetary Fund (IMF), $2.5 billion from the World Bank and a further $1 billion.

The highly contagious pandemic has hit the region’s largest economy hard as plummeting oil prices and capital flight threaten to push the economy into recession. Nigeria has reported over 230 cases of the coronavirus and 5 deaths so far.

Bloomberg reported that Fitch Ratings earlier on Monday followed S&P’s March 26 decision to downgrade Nigeria’s credit rating further into junk territory, citing its dependence on oil, which represent about half of the government revenue.

However, Nonso Obikili, head …

The novel coronavirus (COVID-19) is creating chaos all over the globe, taking lives, unevenly infecting a large number of people over space and time, and also affecting markets performance. Despite, these scenarios, African nations are keeping up the fight in curbing the virus impacts.

The continent’s central banks are trying to cushion their respective nation’s economies against the impact of the COVID-19 pandemic.

According to information from Bloomberg, as many central banks in the region of more than 1.2 billion target inflation and have to prop up volatile currencies, they have also used non-traditional policy tools, to cut interest rates to salvage economic growth and encourage more lending to consumers and businesses.

The pandemic which has infected more than 1 million people and killed over 69,000 people worldwide is hurting fragile African economies so bad.

According to a study conducted by African Union, the previously projected Gross Domestic Product (GDP) …

Rwanda coronavirus (COVID-19) containment landscape just got stronger as the Executive Board of the International Monetary Fund (IMF) on Thursday approved the disbursement of $109.4 million to be drawn under the Rapid Credit Facility (RCF), IMF statement said.

According to information from the IMF, this will serve to meet Rwanda’s urgent balance of payment needs stemming from the outbreak of the COVID-19 pandemic.

Rwanda is one of the East African nations to be hurt by the pandemic, whereby—COVID-19 cases stand at 84.

The lender noted that the economic impact of the COVID-19 pandemic is rapidly unfolding, with the near-term outlook deteriorating quickly.

According to the IMF statement, the pandemic has triggered a rise to significant fiscal and external financing needs.

Hence, in curbing possible devastating impacts of the outbreak, authorities have acted fast by putting in place measures to help contain and mitigate the spread of the disease.

According to …

The South African rand got firmer against the dollar on Thursday, as it has recovered from its record fall the previous session, according to information from Reuters.

Earlier today at 0630GMT, the rand traded at 18.110 per dollar, 0.6 per cent firmer than its previous close. Hence, Reuters reported that investor confidence remained fragile as concerns over the economy linger.

The second-largest economy in Africa, which went into another recession in two years, is hurting from various economic scenarios including the ripple effect of the novel coronavirus (COVID-19), and the current power crisis.

South Africa has imposed some of the toughest restrictions on the continent to try to contain the pandemic that has already taken more than 170 lives and infected over 5,500 people. COVID-19 has killed 5 people in South Africa, infected more than 1,300 others.

The Southern African nation has rolled out various measures including deploying the army …