South African President, Cyril Ramaphosa, has urged developed economies to aid Africa’s post-pandemic recovery by allocating more International Monetary Fund reserves to the continent.

According to H.E. Ramaphosa, Africa needs more than the $33 billion that has been earmarked for the continent to support economies ravaged by the coronavirus. He said this when he joined the discussions at the ongoing Qatar Economic Forum on Monday, 21 June 2021.

“We need more because our economies are going to need a lot of support and it is only fair. The continent has been growing by leaps and bounds and should receive that type of support because all of us must get out of this economic slump that has been brought on to us by COVID-19”.

The IMF is preparing to give its member countries the biggest resource injection in its history, $650 billion. This is intended to boost global liquidity and help emerging and low-income nations deal with mounting debt and COVID-19.

Meanwhile, French President Emmanuel Macron also urged other rich countries to follow its example. According to him, the rich countries should commit to reallocating some of their so-called IMF special drawing rights to help boost Africa’s share.

Vote on the proposed new SDRs

IMF Managing Director Kristalina Georgieva expects the fund’s board of governors to vote on the proposed new SDRs by mid-August.

Sub-Saharan Africa’s gross domestic product shrank 2.4% in 2020 and will likely only grow 2.8% this year, according to the World Bank. This is compared to a 7.7% expansion forecast in Asia and 3.9% in Europe. The United Nations Economic Commission estimates that Africa’s recovery from the pandemic will cost $400 billion.

The Qatar Economic Forum 2021 officially opened today, Monday, June 21, 2021. The three-day virtual event focus on global leadership and strategies to support post-pandemic economic growth. The virtual event is being held in cooperation with Bloomberg under the slogan “New Horizons for Tomorrow”.

It will bring together more than 100 world leaders, diplomats, academics and businessmen. President Nana Akufo-Addo is among more than 100 speakers participating in the forum. The forum is taking place entirely via video conference due to the pandemic.

Other dignitaries include British Prime Minister Boris Johnson, and Rwandan President Paul Kagame. Also, Senegalese President Macky Sall, and Armenian President Armen Sarkissian are expected to take part in the forum.

Opening Day of the Qatar Economic Forum 2021

Qatar’s Emir Sheikh Tamim bin Hamad Al Thani said in his opening remarks that the inaugural event “represents a springboard for a series of forums” that will enrich the dialogue on the global economy.

Al Thani described the role of the state in tackling the coronavirus pandemic as “indispensable”. However, he noted that efforts must also include civil society and the business sector and must be coordinated globally.

The forum’s agenda is spread across six main themes, including “A Sustainable World”, which will explore the intersection of capitalism and the climate. Also, “Markets and Investment” will discuss the ability of investors to pursue growth opportunities that will help shape a more resilient global economy.

The conference will also host a global elite of more than 2,000 CEOs, inspirational figures and decision-makers. Experts from the fields of finance, economics, investment, technology, energy, education, sports and climate are expected to take part in the forum.