(Ecofin Agency) - Namibia will benefit from $270.8 million from the International Monetary Fund -IMF- to support its response against the coronavirus pandemic.

In a statement issued last March 31, the Fund said the money, granted under the Rapid Financing Instrument (RFI), will be used to meet the country’s urgent balance of payment and fiscal financing needs stemming from the pandemic. Last year, the Namibian economy fell by 7.2%, according to estimates. This situation is due in particular to the disruption of mining exports and tourism, which have slowed down the country's tax revenues, as well as investment inflows.

Part of the new IMF funding will be used to purchase vaccines against the coronavirus, which has affected at least 44,374 people in the country, resulting in 528 deaths and 41,910 recoveries, according to the latest figures from Africa CDC.

“The outright purchase under the RFI will provide needed financing to support the authorities’ implementation of their response to the COVID-19 crisis, including the purchase of vaccines and deployment of the vaccination campaign, and interventions needed to mitigate the pandemic’s severe socio-economic impact. Key elements include stepping-up emergency health and education spending, strengthening social safety nets to protect the most vulnerable from the impact of the crisis, and supporting the private sector, and protecting jobs. The implementation of public finance governance mechanisms will ensure appropriate use and monitoring of resources to address the COVID-19 crisis,” the statement reads.

For 2021, the IMF sees an economic rebound of 2.1% of GDP for Namibia.

Moutiou Adjibi Nourou