“The fear swirling around Ebola has the potential to do long-term harm to businesses globally, and especially in the Ebola-affected countries. That’s why in addition to our emergency aid we will do all we can to help support the private sector in these countries to build back their businesses.” Jim Yong Kim – president of the World Bank Group said that “Ebola is a humanitarian crisis first and foremost, but it’s also an economic disaster for Guinea, Liberia, and Sierra Leone. $200 million investment is also planned by IFC to support post-epidemic economic recovery, in line with the World Bank Group’s broad effort to provide immediate assistance now, and prepare for post Ebola economic recovery in the countries that are most affected by the crisis. IFC says that this private sector financing initiative will include $250 million in rapid response projects, though it did not specify which projects fall under this category and the qualification criteria. This financing facility will support the import of basic goods, including energy, food and agricultural commodities, and other manufactured goods. The finance will initially go to six existing IFC client banks in the Sierra Leone, Liberia and Guinea, but may also be extended to other non-IFC client banks. It says that $75 million will be used in support of the Ebola Emergency Liquidity Facility, which will help fund critical imports for Ebola-affected countries. International Financing Corporation (IFC) – the investments arm of the World Bank Group, has announced a $450 million financing package to support trade, investment, and employment in Guinea, Liberia and Sierra Leone. Its regular shipment and distribution of foods to affected communities is a vital lifeline for millions of households, who otherwise would face starvation, as farmers are driven away by Ebola from the fields.Īlthough basic food prices have stabilised, but with falling value of currencies – especially in Sierra Leone, prices of imported goods are rising at an alarming rate. The World Food Programme (WFP) is at the forefront of stabilising food supply and market prices in the three countries. Since the Ebola outbreak began early this year, both the World Bank and the African Development Bank have provided over $200 million in funding support for the three governments, to help stabilise public sector budgets and spending on essential public services, including payment of public sector salaries. Will the money get to businesses that need help, or will it go into the pockets of a few corrupt government officials who are now making a lot of money out of the Ebola outbreak? There are stormy clouds ahead. There are serious concerns about the impact this economic downturn is likely to have on levels of poverty, employment, health, education, political stability and the overall capability of the respective governments in running the affairs of state.īut with rampant corruption in these countries, questions are also being asked about the effectiveness of such massive spending. Tens of billions of dollars are expected to be wiped off the GDP growth forecasts for these countries by the end of April 2015.Īccording to a recently published report, the World Bank says that if the virus continues to surge in the three worst-affected countries and spreads to neighbouring countries, the two-year regional financial impact could reach $32.6 billion by the end of 2015. Ebola is taking a heavy toll on the economies of the three West African nations that are at the centre of the outbreak – Sierra Leone, Liberia and Guinea.
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