{"id":5774,"date":"2020-07-24T22:17:09","date_gmt":"2020-07-24T22:17:09","guid":{"rendered":"https:\/\/sooha.org\/en\/?p=5774"},"modified":"2020-07-29T10:14:13","modified_gmt":"2020-07-29T10:14:13","slug":"afdb-grants-25-mln-usd-for-coronavirus-responses-in-somalia","status":"publish","type":"post","link":"https:\/\/sooha.org\/en\/2020\/07\/24\/afdb-grants-25-mln-usd-for-coronavirus-responses-in-somalia\/","title":{"rendered":"AfDB grants 25 mln USD for coronavirus responses in Somalia"},"content":{"rendered":"

ABIDJAN —<\/strong> The African Development Bank today approved grants worth\u00a0 $25.1 million to Somalia to bolster the national budget for government efforts to mitigate national and regional impacts of the COVID-19 pandemic.<\/p>\n

The funding comprised a $10.04 million grant from Pillar 1 of the Bank\u2019s Transition Support Facility and a $15.06 million grant from the Regional Operations Envelope, comes under the umbrella of the Bank\u2019s COVID-19 Response Facility.<\/p>\n

\u201cIt is the first time the Bank is leveraging the Regional Operation Envelope resources for a Budget Support Operation. This approach was pertinent to ensure that Somalia has adequate resources to contain the spread of the disease in its territory and limit cross-border impacts that pose serious risks for health, social and economic development for the Horn of Africa sub-region,\u201d said Acting Bank Director General for East Africa, Nnenna Nwabufo.<\/p>\n

The Somali government will use the financing to carry out three interlinked responses to the COVID-19 pandemic that will enhance the health system; safeguard livelihoods\u00a0<\/strong>and social protection; and support labour force productivity and economic activity.<\/p>\n

Health-sector interventions include increasing the country\u2019s ICU capacity, boosting infection prevention and control measures, and widening the provision of personal protective equipment. Social protection measures include provision of nutrition-linked cash transfers and compensation for those engaged in livestock markets, as well as programs to offer temporary tax and customs duty relief, and 50% relief on staple food, including cooking oil and flour.<\/p>\n

Among initiatives aiming to support the workforce and economy are the establishment of a financing facility to support micro, small and medium enterprises; the introduction of permanent tax and customs increases on tobacco, beauty products, and plastic bags; and advancement of certification procedures for job-creating local production of COVID-19 supplies.<\/p>\n

Somalia recorded its first COVID-19 case on 18 March and reacted by suspending non-essential business and social activities, closing off air and sea connections except for goods, and introducing partial curfews and lockdowns.<\/p>\n

The crisis has placed the country\u2019s recent socio-economic progress in jeopardy and increased its susceptibility to political instability and climate-induced shocks. The Horn of Africa region has also experienced swarms of locusts over the past year that have increased food insecurity.<\/p>\n

Under a worst-case scenario, Somalia\u2019s real GDP is forecast to contract by 5.4% in 2020 and inflation to hit\u00a0<\/strong>6.3% as imports decrease.<\/p>\n

The Bank\u2019s grant funding aligns with Somalia\u2019s development objectives and COVID-19 preparedness and response plans. The intervention also aligns with the Bank\u2019s Ten-Year Strategy, and it’s Eastern Africa Regional Integration Strategy and broader efforts to combat fragility and build resilience in Africa.<\/p>\n

Source: AfDB\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Origin: View original<\/a><\/span><\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

ABIDJAN — The African Development Bank today approved grants worth\u00a0 $25.1 million to Somalia to bolster the national budget for government efforts to mitigate national and regional impacts of the COVID-19 pandemic. The funding comprised a $10.04 million grant from Pillar 1 of the Bank\u2019s Transition Support Facility and a $15.06 million grant from the …<\/p>\n","protected":false},"author":1,"featured_media":5776,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,8,1],"tags":[652,653,656,655,658,654,657],"class_list":["post-5774","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-food-security-cluster","category-health-cluster","category-news","tag-afdb-grants-of-25-million","tag-for-covid-19-responses-in-somalia","tag-for-government-efforts","tag-grants-worth-25-1-million-to-somalia-to-bolster-the-national-budget","tag-somalias-real-gdp-is-forecast-to-contract-by-5-4-in-2020","tag-the-african-development-bank","tag-to-mitigate-national-and-regional-impacts-of-the-covid-19-pandemic"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t