Given the
profound impact of the Covid 19 pandemic on the economy and
employment in partner countries, the Facility Investing for
Employment (IFE) launched the "Corona Response Programme"
in 2020. The programme has now ended. The Corona Response Programme (CRP)
component was dedicated to counteracting pandemic-related job losses
in Africa. To allow for a rapid and effective implementation, CRP
funds were disbursed to eligible small and medium-sized enterprises
(SMEs) through selected financial partner institutions (PFIs) in the
partner countries. These PFIs had been pre-selected by KfW
Development Bank and were based in Ethiopia, Ghana, Rwanda, Senegal,
Ivory Coast, Tunisia, and Morocco. Due to their market proximity,
they were in an ideal position to understand local conditions,
challenges and effects of the pandemic and could therefore
systematically identify the SMEs that were eligible for financial
support.
Through
the grants allocated through the CRP, the beneficiary SMEs were able
to cover their interest liabilities or operating and personnel costs,
which were essential for preserving threatened jobs. The CRP targeted
SMEs that were in a precarious situation but demonstrated financial
vitality and growth potential prior to the onset of the pandemic. In
addition to complying with financial eligibility criteria, qualifying
SMEs had to be privately owned, have between 25 and 250 employees,
and be free of politically exposed shareholders.
The first
proposals from PFIs for eligible SMEs were received shortly after the
announcement of the CRP and were promptly processed by IFE. First
disbursements were made in October 2020 and were continuously
pursued. The CRP had a total budget of 65 million euros. Of this
amount, around 59 million euros had been disbursed to PFIs by October
2022, of which around 54 million euros were allocated to SMEs. In
total, the CRP helped to mitigate the immediate impact of the
Covid-19 pandemic in partner countries by supporting 1,919 eligible
SMEs with a total of 106,189 employees. As scheduled, the Corona
Response Programme stopped making disbursements after two years in
October 2022.
Through
its Corona Response Programme, IFE contributed to achieving the
following additional Key Performance Indicators:
- Number
of companies supported by the Special Initiative with respect to job
preservation in the context of the Corona pandemic,
- Number
of people employed by these companies.