The World Bank has secured a record-breaking $100 billion to assist the world's poorest countries through its International Development Association (IDA), which provides grants and low-interest loans.
This landmark figure includes $24 billion pledged by donor countries this week, marking the IDA’s largest funding replenishment.
The funding effort, spearheaded by World Bank President Ajay Banga, surpasses the previous record of $93 billion in 2021.
Despite challenges such as economic strains caused by the COVID-19 pandemic, global inflation, and the strong US dollar, donor nations stepped up their contributions.
Seventeen donor countries increased their pledges by 25% in local currency terms compared to the last replenishment round, while ten nations raised their commitments by 40% or more.
These pledges will act as a financial guarantee, allowing the IDA to leverage the funds at 3.5 to 4 times their value through its unique financing model.
In fiscal year 2023, major recipients included Pakistan, Bangladesh, Tanzania, and Kenya, each receiving over $2 billion from the $34 billion in total commitments.
Over the past decade, IDA funding has reached $270 billion, with nearly two-thirds directed to Africa.
This financial support has facilitated critical development initiatives, such as expanding healthcare access for 900 million people, connecting 117 million individuals to reliable electricity, and providing clean water to 94 million people globally.
Since assuming leadership in June 2023, Ajay Banga has committed to making the IDA more efficient and responsive to development needs.
He has also focused on mobilizing private capital to amplify the impact of developmental lending, particularly in addressing climate change and transitioning to clean energy solutions.
Follow the latest news on Google News
