The Ebola epidemic continues to spread in West Africa. Although there are signs of progress, this epidemic is far from over, and it is much too soon to slow down the response—zero cases is the goal.
If the virus continues to surge in the three worst-affected countries and spreads to neighboring countries, the two-year regional financial impact could reach $32.6 billion by the end of 2015, dealing a potentially catastrophic blow to already fragile states. Economic costs can be limited if swift national and international responses succeed in containing the epidemic and mitigating fear resulting from people’s concerns about contagion, which is fueling the economic impact. A recent World Bank Group economic update shows that the Ebola crisis continues to cripple the economies of Guinea, Liberia and Sierra Leone, sharply downgrading growth estimates for 2014 and likely resulting in negative or contracting growth next year. Another recent study found that Ebola has substantially impacted all sectors of employment in the Liberian economy, and that nearly half of those employed in Liberia when the Ebola outbreak began were no longer working as of early November.
The World Bank Group’s emergency response to the unfolding Ebola crisis is to help contain the spread of infections, improve public health systems throughout West Africa, and assist countries in coping with the economic impact—including by enabling trade, investment and employment in the countries. The World Bank Group is supporting country responses in line with the World Health Organization (WHO) Roadmap, and is coordinating assistance closely with the United Nations (UN) and other international and country partners.
To ensure that the world is able to move faster when the next health emergency strikes, the World Bank Group has called for the creation of a new pandemic emergency facility that would rapidly respond to future outbreaks by delivering money to countries in crisis. The World Bank Group also has established an Ebola Recovery and Reconstruction Trust Fund to address the urgent and growing economic and social impact of the crisis in the region.
Where we stand now
The World Bank Group is mobilizing nearly $1 billion in financing for the countries hardest hit by the crisis. This includes $518 million for the emergency response, and at least $450 million from IFC, a member of the World Bank Group, to enable trade, investment and employment in Guinea, Liberia and Sierra Leone.
The $518 million is helping Guinea, Liberia and Sierra Leone provide treatment and care, contain and prevent the spread of infections, help communities cope with the economic impact of the crisis, and improve public health systems. This includes:
Paying for essential supplies and drugs, personal protective equipment and infection prevention control materials, health workers training, hazard pay and death benefits to Ebola health workers and volunteers, contact tracing, vehicles, data management equipment, and door-to-door public health education outreach.
Helping to set up a coordination hub in close cooperation with the three countries, WHO, the UN’s main Ebola coordination body in Ghana, and in coordination with the African Union and other partners to recruit, train and deploy qualified foreign health workers. Thus far, more than 1300 foreign medical personnel have been deployed or are in the process of deploying to existing Ebola care facilities and at the district level.
Providing budget support to help the governments of Guinea, Liberia and Sierra Leone cope with economic impact of the outbreak, and financing the scale-up of social safety net programs for people in the three countries.
Of the $518 million, $133 million is already fully disbursed to countries and implementing UN agencies, including $68 million for Liberia, $34 million for Sierra Leone and $31 million for Guinea. Most of the $117 million ($105 million) was approved by the World Bank Group’s Board of Executive Directors on Sept. 16, and was new money provided in grants from the World Bank Group’s IDA Crisis Response Window (CRW). The other $12 million in the emergency financing was reallocated in August 2014 from existing health projects in Liberia and Sierra Leone ($6 million per country) to make some funds immediately available and take advantage of the existing implementation capacity set up for these projects. Another $6 million was reallocated from a project in Guinea. The World Bank Group’s Board of Executive Directors also approved $285 million on Nov. 18, including $72 million for Guinea, $115 million for Liberia and $58 million for Sierra Leone, which is new money provided in grants from the IDA CRW.
The $518 million also includes $110 million in national IDA and CRW funds for development policy operations for the countries.
Of the $100 million, the World Bank Group’s Board of Executive Directors approved $50 million for Guinea on Nov. 13 and $30 million for Liberia on Nov. 12. The World Bank Group’s Board of Executive Directors will consider the remaining funding for Sierra Leone in the coming weeks.
Of the at least $450 million from IFC in commercial financing that is enabling trade, investment and employment in Guinea, Liberia and Sierra Leone, $250 million is for a rapid response program, which is helping to ensure continued operations of business and supplies of essential goods and services. An additional $200 million is for an Ebola recovery program, which will finance medium- and long-term projects post-crisis. IFC is also providing advisory services to 800 small and medium enterprises on health, security and environment issues related to Ebola.
UN agencies–particularly UNICEF, WHO, UNOPS, UNFPA and the World Food Programme (WFP)–are implementing some of the activities financed by the World Bank Group’s emergency response. WBG funding is helping WFP scale up its ongoing response to the Ebola emergency. With World Bank Group financing:
Liberia: UNICEF procured and delivered a shipment of 100 tons of essential health and hygiene supplies. Among the items in the shipment were hundreds of sets of personal protective equipment, latex gloves, thermometers, syringes and other medical supplies to restock depleted stores at many of the country’s health facilities.
Sierra Leone: UNICEF procured and delivered 48 tons of materials and essential drugs for Ebola treatment centers (antibiotics and other essential medicines, cannula, coveralls to protect health workers, 7,440 pairs of latex gloves, and body bags). UNICEF airlifted a second delivery of 100 tons of drugs and equipment, including personal protective equipment, antibiotics, intravenous fluids and chlorine. UNFPA delivered 38 motorbikes and 13 computers and accessories. WFP airlifted 30 ambulances and mortuary pickup vehicles, which will help improve mobility and shorten the response time to people affected by Ebola. WFP also has brought in at least 4,000 metric tons of food to feed people in holding and treatment centers and quarantined communities, reaching at least 300,000 households.
Guinea: UNICEF procured and delivered 28 new, all-terrain vehicles to the Ministry of Health. These vehicles are providing much-needed ground logistics support to treatment, supervision, contact monitoring, and burial teams working in Guinea. A second lot of vehicles, including 10 ambulances and other vehicles and supplies, is helping with patient transfers and contact monitoring in remote, hard-to-reach villages. UNICEF also procured and delivered 57 tons of goods and equipment, including 4.5 million gloves, 50 tents, medicine and food supplements to fight Ebola.
The World Bank Group has been supporting other countries in the region to put Ebola preparedness response measures in place, most recently in Cote d’Ivoire.
Contact: Melanie Mayhew
mmayhew1@worldbankgroup.org