The World Bank Group has announced the successful 21st replenishment of the International Development Association (IDA), raising $24 billion in donor contributions. This significant funding, combined with IDA's leveraging model, will generate $100 billion in affordable financing for the world's most vulnerable countries.
"This is made possible because of donor generosity but also the work we have done to better optimize our balance sheet, take on more risk, and increase our leverage capacity," stated Ajay Banga, President of The World Bank Group.
The funding aims to support 78 countries by investing in health, education, infrastructure, and climate resilience. It will help stabilize economies, create jobs, and empower nations to unlock their full potential. IDA has simplified its operational framework by reducing required metrics from over 1,100 to 500. This change aims to make IDA more responsive and reduce bureaucratic hurdles.
IDA has been a critical partner for developing countries for 60 years. Over this period, it has mobilized $270 billion globally, with significant investments directed towards Africa and climate adaptation projects.
"Affordable financing through zero- and low-interest loans and grants to nations with limited financing options," highlights IDA's role as a lifeline for poor countries.
Recent achievements include reaching 900 million people with health services and connecting 117 million people to reliable electricity. These efforts are part of why IDA is referred to as "the best deal in development."
Despite these accomplishments, challenges remain as many governments face rising debt levels and limited fiscal space. IDA's concessional financing remains crucial for job creation in these regions.
Ajay Banga emphasizes that job creation should be an explicit aim of projects: "Jobs have been the surest and most lasting solution to poverty."
The success of this replenishment relies heavily on donor support and advocacy from civil society groups. "Thank you for your trust...and your belief in the mission of IDA," Banga expressed gratitude towards contributors.
While celebrating this milestone achievement, The World Bank Group acknowledges that much work remains ahead.