A Financial Economist, Professor Joshua Yindenaba Abor, has called on African Governments to implement early and ambitious financial policy responses and reforms to minimise the impact of the COVID-19 pandemic.
“COVID-19 is here to stay and its impact will be with us and the pressure is on to address the ongoing issues in addition to dealing with the existing challenges,” he said.
“There is the need to implement early and ambitious policy responses and reforms in the financial system to address the situation or minimise the impact,” he added.
He said though African Governments provided some monetary and fiscal policy responses to the COVID-19 pandemic, there was the need for other policy actions to ensure that the continent’s financial systems could spur growth in the post-COVID-19 era.
Prof Abor gave the advice during a lecture organised by the Department of Economics, Faculty of Social Science and Arts of the Simon Diedong Dombo University of Business and Integrated Development Studies.
He spoke on the topic: ‘COVID-19 pandemic and Africa’s financial systems: How do we reform the post-COVID-19 financial systems?’.
Prof Abor said governments played important roles in every financial system and could not stay back completely from participating in the financial market, adding governments must be concerned about ensuring stability in the system.
Prof Abor said Development Banks were used by developed countries to grow their economies, especially during a crisis and encouraged African Governments to establish National Development Banks to provide support to underprivileged sectors, including SMEs.