This archive report was first published on 4 May 2021.
As the world grapples with the aftermath of the Covid-19 pandemic, the World Bank is working with countries in eastern and southern Africa to implement reforms and interventions that contribute to long-term and inclusive growth.
Published on May 4, 2021, the World Bank Director of Strategy and Operations, Eastern and Southern Africa, Humberto Lopez, highlighted the challenges posed by the pandemic, which has reversed the downward trend in global poverty for the first time in a generation.
According to Lopez, global poverty is projected to push more than 100 million people into extreme poverty, with one-third of them residing in sub-Saharan Africa, where 40% of the population already lives in extreme poverty.
Even if an economic recovery is witnessed globally this year, a dramatic reversal in poverty levels is unlikely due to the long-term damage caused by the pandemic. The World Bank is working with countries to implement reforms and interventions that contribute to long-term growth that is more inclusive.
One such initiative is the vaccination campaign in the region, which must remain a priority to reach herd immunity (70% of the population vaccinated) and relax social distancing and mobility restrictions. The World Bank is a steadfast partner with these countries to support these efforts.
For instance, in Rwanda, the World Bank recently approved a $30 million operation to acquire and deploy Covid-19 vaccines for 1.3 million people. This is one of the three vaccine operations already approved and part of the 16 under preparation in the region.
Infrastructure and trade are also critical areas of focus. Governments should work to attain robust legal frameworks, transparency, and regulatory certainty for infrastructure sectors to attract additional private investment. In the Democratic Republic of Congo, the World Bank is working with the authorities using resources of a $500 million operation to expand and improve existing infrastructure and create socio-economic opportunities for the population.
Another example is the joint effort of the Horn of Africa to upgrade roads in key trade corridors, starting with the Isiolo-Mandera in Kenya. This is being supported by a $750 million operation and is expected to contribute to an expansion of trade between the countries by increasing coordination, reducing trade costs and time, and developing regional value chains.
While significant efforts are deployed towards vaccination and economic recovery, the World Bank is also helping countries ensure that vulnerable populations are not left behind. In the coming months, support for education will be critical as children of poorer families are likely to have more challenges with distance learning and drop-out permanently from school, especially girls.
Deeper debt relief is also necessary, particularly in Sudan, where the World Bank is providing $820 million in grants to deliver cash transfers and improve safety net systems to support families so the country can rebuild in an inclusive manner.
Other initiatives supporting economic recovery include the Debt Service Suspension Initiative (DSSI), the Common Framework for Debt Treatments beyond DSSI, and the 20th replenishment of the International Development Association, which is expected to increase the availability of financing over the coming years by more than $12 billion.
As Lopez noted, Covid-19 is a once-in-a-lifetime pandemic that has brought vast challenges and impacted us all, especially the poor and most vulnerable people. We have a significant opportunity to focus on building a resilient and inclusive recovery in Eastern and Southern Africa.
