DJIBOUTI (Halbeeg News) – African Development Bank has boosted Djibouti’s fight against the coronavirus disease (Covid-19) with approving a $41.16 million to the country’s emergency fund.
Bank’s Acting Director General for East Africa, Nnenna Nwabufo said the amount would bolster the national budget in support of government efforts to mitigate national and regional impacts of the COVID-19 pandemic.
The funding will take the form of an African Development Fund grant for $4.12 million and a $37.04 million grant from the Bank’s Regional Operations Envelope.
The Bank said it is providing the funding under its COVID-19 Response Facility.
“It is the first time the Bank is leveraging the Regional Operations resources for a budget support operation,” said Nwabufo. “This approach was pertinent to ensure that Djibouti has adequate resources to contain the spread of the COVID-19 pandemic in its territory and limit cross-border impacts that pose serious risks for health, social and economic development for the country and ensure adequate controls at territorial borders and all points of entry.”
According to the bank, the financing will enable the Government of Djibouti to support three interlinked COVID-19 response programs to enhance health systems; safeguard livelihoods and provide social protection; and defend labour force productivity and economic activity.
Djibouti, with a population of 1 million, has one of the highest COVID-19 case rates in the Horn of Africa.
Under a worst-case scenario, Djibouti’s real GDP in 2020 is forecast to contract by 3.8%, threatening as many as 40,000 jobs.
The Bank’s grant funding aligns with Djibouti’s development objectives and those of its COVID-19 Emergency and Solidarity Fund. The intervention also aligns with the Bank’s Ten-Year Strategy, and its Eastern Africa Regional Integration Strategy and broader efforts to combat fragility and build resilience in Africa
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