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The Group of 20 (G-20) countries, representing the world’s major economies, pledged over $1 trillion in financing to deal with the crisis at a 2 April meeting in London, including $50 bn for low-income countries. Yet how much of what the G-20 offered is new money and how much of it Africa will receive and when remains unclear, said the Africa Progress Panel, an advocacy group, in a June report. Most of the money is slated to go to the International Monetary Fund (IMF) so that it can lend more to countries affected by the crisis. In addition, the G-20 promised to help regional banks like the African Development Bank (ADB) to lend more. The G-20 leaders also supported reforming the IMF, so as to give “a greater voice and representation” to developing countries.
The G-20 promised to treble resources for the IMF to $750 bn, increase loans made by the multilateral development banks by at least $100 bn, and provide $250 bn more for trade finance.
‘Rich countries can do more’
A retooled and replenished IMF with greater political oversight would represent “a great victory for Africa,” then South African Finance Minister Trevor Manual said in mid-April. In May, Kenya and Tanzania tapped a new IMF fund set up to help countries with sudden crises. According to the Fund, lending to Africa totaled $1.5 bn by the end of May, both from the crisis account and from existing programs.
Source: Modern Ghana