The International Monetary Fund has approved $411 million in emergency funding to Ethiopia to ease the negative economic effects and fallout from the coronavirus outbreak.
According to an emailed statement, the Washington-based lender explains that “Ethiopia is facing a pronounced economic slowdown and an urgent balance of payments is required owing to the effects of the Covid-19 pandemic”.
Africa’s second most populous country will also get debt relief which the fund is extending to the most vulnerable countries.
Since the pandemic’s outbreak, countries have experienced a fall in exports coupled with movement restrictions to curb the spread of the virus. These have reduced growth and weakened external and fiscal accounts. The priority of this aid is for Ethiopia to immediately increase her spending on healthcare and provide emergency assistance to the needy, particularly with food, according to the fund.
