The 21st replenishment of the International Development Association (IDA) has raised $24 billion in contributions, out of a target of $120 billion.
The announcement was made by World Bank President Ajay Banga in a letter made public on Thursday, December 5, 2024.
“Thanks to IDA’s unique leverage model, this $24 billion will generate a total of $100 billion in affordable financing, the largest replenishment in IDA’s history.This result has been achieved thanks to the generosity of donors, but also to the work we have done to better optimize our balance sheet, take on more risk and increase our leverage capacity.”, said Mr. Banga.
The funds will be used to support 78 countries in the areas of health, education, infrastructure, climate resilience and job creation.
“IDA is also committed to streamlining its operations to deliver faster and more effective results, halving the number of metrics required for its projects,” the World Bank President emphasized.
IDA, which plays a key role in financing development projects, targets low-income countries in particular, the majority of which are in Africa.
According to World Bank data, 464 million people still live in extreme poverty in sub-Saharan Africa, where more than half the countries are exposed to a high risk of debt distress.
Over the past 60 years, IDA has mobilized $270 billion, including $179 billion for Africa, according to the Bretton Woods institution.
A World Bank initiative overseen by 175 shareholder countries, IDA aims to reduce poverty by providing loans (known as “credits”) and grants for programs designed to stimulate economic growth, reduce inequality and improve the lives of the poorest.
AGNES KAYEMBE