Ebola: The AfDB Mobilizes $150 Million to Counter the Economic Effects of the Epidemic

After granting the World Health Organization $60 million to fight the spread of the Ebola virus in West Africa, the African Development Bank (AfDB) will mobilize an additional $150 million dollars to support the fiscal budgets of affected states.

Après avoir octroyé 60 millions de dollars à l'Organisation mondiale de la Santé (OMS), pour lutter contre l'épidémie d'Ebola en Afrique de l'Ouest, la Banque africaine de développement (BAD) va mobiliser 150 millions de dollars additionnels en appui budgétaire aux États concernés.

This article was translated from French. Click here to read the original from Jeune Afrique.

"The countries touched by the Ebola epidemic could see their economic growth rates fall between 1 to 1.5 percentage points this year", warned Donald Kaberuka (President of the AfDB) during an organized press conference at the headquarters of the African Development Bank in Abidjan.  According to the AfDB president, it is necessary not only to check the spread of the virus, but to also mitigate the economic consequences of the epidemic.

Recruitment

The AfDB initially granted the World Health Organization $60 million dollars to help fight the spread of the virus, responsible for the deaths of over 1400 people in West Africa.  According to Luis Sambo, WHO Regional Director for Africa, these resources will primarily be allocated towards each of the affected countries' national plans for containing the spread of Ebola.  "This money will go towards strengthening the health infrastructure. Recruiting personnel and professionals will also be an important part of the strategy" he announced.

The African Development Bank will also mobilize $150 million dollars in funds to support the fiscal budgets of states affected by the spread of the virus. "My worries stems from the border closures that will undoubtedly have a detrimental effect on transnational trade," railed Donald Kaberuka, before recalling that these measures have not, for the moment, been recommended by the WHO.

Food Crisis

Kaberuka explained that a food crisis looms in countries that have been affected by the virus, with Liberia, Guinea, and Sierra Leone all under threat. Imposed restrictions, border closures, and a slowing of port activities could indeed limit the entry of food.  As a reminder, Guinea alone imports over 300 million dollars in foodstuffs in each year.

Moreover, quarantine measures and restrictions on the movement of peoples, caused by the virus, come during the rainy season — a time that is generally conducive to the farming and planting of crops.  What's more, according to 2013 African Economic Outlook statistics, agriculture(this includes hunting, forestry, and fishing) makes up 21% of Guinea's, 52.7 of Sierra Leone's, and 73.3% of Liberia respective GDPs.  All the more reason for the AfDB to act quickly, so as to ensure that a health crisis does not turn into a social and economic disaster in West Africa.

Article Translated by Matthew La Lime, Staff Intern with the Africa Program at the Wilson Center.

Photo Credit: "The fight against Ebola in Guinea" by afreecom/Idrissa Soumaré via Flickr Commons.