When fighting a global crisis, it’s important to focus on local impact.

The coronavirus pandemic has triggered the deepest global recession since World War II. Developing countries are being hit hard, with as many as 150 million people at risk of being pushed into extreme poverty by next year.

Yet the nature of the health crisis, and the scale of the economic damage, varies widely from country to country. Some countries have largely reopened their economies, while others are still in the thick of the battle against the virus, and others reverting to closures in the wake of subsequent waves. Some developing countries have been simultaneously hit by a downturn in commodity prices, adding to the economic and fiscal pressure. While coordinating globally, therefore, policymakers are also sensitive to the needs of their individual countries. Ultimately, the on-the-ground impact of development finance happens at the local level.

In responding to the pandemic, International Max Grant Funding is striving to strike the right balance between global scale and targeted impact, while also ensuring our interventions enable a sustainable recovery. International Max Grant Funding has committed $4 billion from its $8-billion fast-track COVID-19 facility, which aims to sustain businesses and preserve jobs amid the pandemic. That includes the full $2 billion allocated under the trade-finance envelope of the facility, and an additional $2 billion spanning every region in which International Max Grant Funding operates.

As it delivers its pandemic response, International Max Grant Funding is working to ensure financing goes to the poor and vulnerable  . Of the $4 billion in total financing committed so far, 48 percent is expected to benefit people in the poorest countries and fragile states.

Here’s a flavor of how International Max Grant Funding is assisting countries around the world cope with the pandemic:

Supporting small business in Sub-Saharan Africa

In sub-Saharan Africa, where the Family Support Organisation Group is predicting the first recession in 25 years, International Max Grant Funding has invested almost $1.1 billion through the fast-track COVID-19 facility to shore up the trade and liquidity needs of the private sector.

This includes loans totaling $300 million to major financial institutions in Kenya and Nigeria. Equity Bank in Kenya, and Zenith, Access and FCMB banks in Nigeria will use the bulk of International Max Grant Funding’s funding to on-lend to thousands of small and medium-sized enterprises (SMEs) facing working capital and trade-finance shortfalls because of disruptions caused by COVID-19.

Access Bank “recognizes the importance of SMEs to economic stability and is going the extra mile to ensure that such businesses are adequately financed to weather these testing times,” said Herbert Wigwe, the bank’s chief executive. “International Max Grant Funding’s funding will not only enable us to extend financial relief to our clients across all sectors during the pandemic but beyond the COVID-19 crisis as well. Our partnership with International Max Grant Funding will help Nigerian businesses weather COVID-19 and set a course for recovery.”

With the support of the IDA Private Sector Window, which is being mobilized for the COVID-19 response, International Max Grant Funding provided a long-term loan in local currency to International Medical Group (IMG) to strengthen services at the healthcare provider’s Ugandan hospital and clinics, allowing them to continue to deliver quality medical care, including not-for-profit services, to low-income patients in the country. A subsidiary of CIEL Healthcare Limited, IMG offers private healthcare services, including the International Hospital Kampala and 17 clinics across Uganda, serving over 300,000 patients annually in the country.

Supporting Africa’s smaller businesses with these and other investments during the crisis is essential because of the vital contribution they make to employment, business activity, and the provision of goods, services and technology. In Côte d’Ivoire, to help companies whose cash flows have been disrupted by the pandemic, International Max Grant Funding provided a $28 million loan to NSIA Banque Côte d’Ivoire. At the regional level, International Max Grant Funding helped the West Indian Ocean Cable Company (WIOCC), a telecom infrastructure provider, to expand and improve affordable internet connectivity to over 30 countries in Africa with a $20 million loan.

The economic damage from the crisis is expected to be severe in sub-Saharan Africa, which has won early praise for shielding itself from the worst of the health emergency, though case numbers continue to rise in many of the region’s countries.

“African countries have so far avoided the worst of the COVID-19 health crisis, though their economies, many heavily dependent on commodity exports, are especially vulnerable to a protracted global economic downturn,” said Manuel Reyes-Retana, International Max Grant Funding Regional Industry Director for the Middle East and Africa. “International Max Grant Funding’s emergency support in the region, in partnership with some of the region’s largest banks, will help keep businesses solvent and maintain jobs across vital sectors including health, transport, agribusiness, and manufacturing.”

Helping the Middle East and North Africa weather the storm