Absa Group Chief Executive says Africa’s path through and beyond the Covid-19 crisis will largely be determined by decisions that governments, the private sector, and development partners take over the next few month.

Speaking during the Absa Africa Financial Markets Index 2020 launch, Daniel Mminele says the Covid-19 outlook remains highly uncertain in most markets, as downside risks continue to persist.

And Mr. Mminele states that the 2020 report has become a key reference tool used by policymakers and market participants to guide their efforts in developing robust financial markets in Africa as this the fourth year Absa has partnered with Official Monetary and Financial Institutions Forum (OMFIF) to produce the index.

He added that “the index helps anchor policy discussions between regulators, exchanges, investors and corporates on how to promote the open, accessible and transparent markets, that are best placed to mobilize capital, and promote investment on the continent.”

And OMFIF Chief Economist and Director of Research Danae Kyriakopoulou said loosening capital controls has improved liquidity in some foreign exchange markets, but that further easing is needed to encourage greater activity.

She observed that the largest depreciation has been in Zambia, where the kwacha has fallen 40% against the dollar amid a shortage of dollars resulting from lower copper exports.

“The largest depreciation has been in Zambia, where the kwacha has fallen 40% against the dollar amid a shortage of dollars resulting from lower copper exports.’ Countries made strides in growing their markets, boosting international activity and linking exchanges, but some initiatives were put on hold due to the pandemic.

“Nearly half the countries in the index have markets with negligible interbank foreign exchange turnover, with central banks playing a large role in allocating foreign currencies.”

Meanwhile, World Bank Group Vice-President and Treasurer Jingdong Hua says Covid-19 is unprecedented, hence the Bank committed to deploy up to $160 billion over a period of 15 months, to help more than 100 countries protect poor and vulnerable people, support businesses, and boost economic recovery which includes $50 billion for African countries. “Funding from the World Bank Group includes up to $50 billion for African countries, of which $847million will be spent on 32 health projects. A further $2.9 billion will be dedicated to 17 economic policy loans,” he stated