08 Oct 2020

Commonwealth states should work on prudent and realistic steps towards economic recovery as the world economy looks to emerge from the adverse effects of the COVID-19 pandemic,  Minister of Finance and Economic Development, Dr Thapelo Matsheka has said. 

Giving opening remarks of the virtual Commonwealth Finance Ministers’ Meeting on Wednesday, Dr Matsheka said states should be pragmatic in working out recovery measures in light of the COVID-19 pandemic.

Dr Matsheka, who was chairing the session in his capacity as the Chairperson of the Commonwealth Finance Ministers, observed that COVID-19 had brought negative consequences to global trade, saying it would be crucial that countries planned around long term fiscal sustainability. 

“As we look ahead to how we shape recovery of our economies, a major topic that needs to be discussed is fiscal sustainability. Countries cannot spare expense when lives are at risk, but at the same time such stimulus can lead to a sharp increase in budget deficits and debt,” Dr Matsheka said.

Noting that most countries have experienced a disruption in economic activity, rapidly declining government revenues, a collapse of certain businesses leading to job losses and the weakening of sectors such as tourism, Dr Matsheka urged his counterparts in the Commonwealth to work together in offering solutions.

“Policy makers are grappling with appropriate measures to revive and keep economies afloat. The international community is providing support through liquidity relief to many countries and we are thankful for their response. 

Specifically, there is great appreciation for the G20 debt service suspension initiative. However, it is important that we, as Commonwealth countries, discuss how we can help each other,” Dr Matsheka said.

Acknowledging that the 54 member states of the Commonwealth collectively have vast experience and knowledge on issues of economic recovery, Dr Matsheka said they should use that to commit to working on prudent economic outcomes.

“We can commit to fiscal prudence and transparency, and to effective strategies for driving resilience, and for creating jobs and growth. We will also discuss how transitioning to a blue and green tourism industry and to smart agriculture, can play a role in our economic revival,” Dr Matsheka pronounced.

Giving her welcome remarks, the Secretary General of the Commonwealth, Baroness Patricia Scotland encouraged the session to make key decisions on responding to the pandemic, which she said offered a unique opportunity for Commonwealth states to demonstrate their unity.

The meeting, themed; The Commonwealth Recovery Agenda- Securing Sustainability and Reviving Jobs and Growth deliberated upon before adopting The Commonwealth Finance Minister’s Statement, offering a commitment to practical steps to revive economies in the light of the effects of COVID-19. ends