The Senegalese leader was speaking in the presence of World Bank President David Malpass, during a press conference.
“We discussed this global situation marked by the worrying impact of the crisis in Ukraine on our weakened economies. (The African continent) is bearing the brunt of this war in Ukraine”said President Sall.
“I underlined the urgency of the African demand for the reallocation of SDRs from rich countries in favor of developing countries, particularly African countries to support our resilience and economic recovery efforts”he said, following having asked for it for the first time in Brussels in mid-February.
A first raising of 650 billion dollars for African economies
SDRs are a kind of currency created by the IMF. They can be granted by the IMF directly to member countries. The latter can use them either to repay their obligations to the IMF or to adjust their monetary reserves.
The international community has agreed on the principle of a global issue of SDRs of 650 billion dollars to cushion the impact of the Covid-19 pandemic, of which 33 billion must automatically return to Africa, through the interplay of quotas within the Washington institution — an amount deemed very insufficient by the AU.
Besides, “Given the scale of the current crisis and the negative outlook it portends for stability and employment, I proposed that the WB might consider the possibility of deploying the enhanced crisis response mechanism”believes President Sall.
“This is an appeal addressed to the whole world, to all bilateral partners. We plead for the end of the war in Ukraine. Everything must be done to stop this conflict”he continued.
African countries also hit by rising prices
“There is real inflation hitting countries” whereas “we have another shock in the Sahel, terrorism, which means that States are facing new expenditure that was not planned”he added.
The African Union, in a statement issued on February 24, called on Russia and “any other regional or international actor with imperative respect for international law, territorial integrity and national sovereignty of Ukraine”. She had urged Russia and Ukraine to an immediate ceasefire, and to the opening of negotiations under the aegis of the UN.
