The managing director of the International Monetary Fund (IMF) says Africa is facing its worst economic shock since the 1970s. The article is compiled as follows:


Imf managing Director Kristalina Georgieva says Africa will need more financial assistance to avoid the "dire and lasting consequences" of coVID-19. The IMF forecasts that the region as a whole will contract by 3.2 per cent this year, far worse than it did just 10 weeks ago.


"This is the biggest blow to Africa since at least the 1970s," Georgieva said in an interview. Without tens of billions of dollars in additional support, she warned, "there could be very deep trauma with lasting dire consequences."


Africa, she said, is a "continent in progress," and "the momentum is clearly broken." She was referring to the region's economies, such as Ghana, Ethiopia, Ivory Coast, Rwanda and Senegal, which in recent years have been among the fastest growing in the world.


Given the growing population of sub-Saharan Africa, the region will be more affected on a per capita basis, with income expected to fall 5.4 percent, which could push millions back into extreme poverty, she said. She says oil-dependent and tourism-dependent economies in sub-Saharan Africa will contract by 4.9 percent and 9.7 percent, respectively.


"When we look at the devastation everywhere, we have to recognize that the devastation in Africa is particularly severe," georgieva said.


Novel Coronavirus spread was quickly blocked by governments in many African countries. Novel Coronavirus has so far infected 400,000 people in Africa.


But the economic shock has been severe because of falling commodity prices, suppressed remittance flows and paralysis in tourism and investment. The IMF is also concerned that novel Coronavirus will "go viral".


Georgieva said the IMF is already working on a 15-fold increase in its annual allocation to Africa to $16 billion. "We have no intention of stopping there," she said.


This year alone, she said, the international community must still provide an additional $44 billion to Africa, either through debt relief, grants or concessional financing.


Many African officials complain that, despite the extraordinary measures taken by rich countries to avoid economic collapse, some creditors expect African countries to play by the rules. Ghanaian Finance Minister Ken Ofrie-Atta is one of them. "You really feel like Shouting, 'I can't breathe,'" he said.


Without naming the U.S., Ms. Georgieva called on countries to reconsider their opposition to a new $1 trillion SDR issue. The $1, 000bn SDR would provide a liquidity stimulus for countries facing a sudden drain on their foreign exchange reserves. Us Treasury Secretary Steven Mnuchin said Washington was opposed to the issuance of Special Drawing Rights, similar to "printing" money, on the grounds that some of the money would go to countries such as Iran and not enough to poor countries with low IMF quotas.

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"We have not been able to get enough support for a new SDR issue," Georgieva admitted.


"I wouldn't say it's not on the table, but we need 85 percent of the vote, and we don't have that right now," she said. Countries with stronger economic fundamentals could close the liquidity gap by issuing bonds, she added. "It is still a very pressing issue for weak economies, for poor countries."


At the same time, the IMF is negotiating a redistribution of some of the roughly $260 billion in existing unused SDRS from rich to poor countries, she said. She said the proposal was "moving forward." But the African Union envoy appointed to promote African affairs says that is not enough, because African countries are only eligible for 6.8 percent of those funds.


Ms Georgieva also called on the private sector that lends to African countries, such as Banks and pension funds, to join in allowing the moratorium. 'We urge everyone to look at themselves,' she says. She also said rating agencies should not punish countries that have reached a moratorium with creditors.


"We are not talking about debt reduction, it is voluntary," she said. She was referring to the debt rollover that the private sector might offer. She added: "We're all in this together. If anyone still doesn't understand this, please wake up."