....CONTINUE READING THE ARTICLE FROM THE SOURCE
The World Bank has allocated approximately $24 billion in loans and grants to assist some of the most impoverished nations globally, which could generate an unprecedented $100 billion in overall spending capacity.
Naija News reports that the fund allocation was confirmed in a statement issued on Thursday by Ajay Banga, President of the World Bank Group.
According to Banga, donor nations have pledged $23.7 billion to replenish its concessional lending division, referred to as the International Development Association (IDA).
This year’s contributions, he said, represent a modest increase from the approximately $23.5 billion that was committed during the previous fundraising cycle three years prior.
“Today, we are proud to announce the results of that effort. After months of negotiation, partnership, and unwavering commitment from our donor community, the 21st replenishment of the International Development Association (IDA) has raised $24 billion in donor contributions.
“Thanks to IDA’s unique leveraging model, this $24 billion will generate a total of $100 billion in affordable financing—the largest replenishment in IDA’s history. 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.
“The funding will be deployed to support the 78 countries “that need it most”, providing resources to invest in health, education, infrastructure, and climate resilience; stabilise economies, create jobs, and “build the foundation for a better future; and empower nations to navigate an uncertain world and unlock their full potential,” the statement reads.
Speaking further, Banga said the replenishment is not just about resources but about how they are delivered.
“IDA’s operational framework has grown increasingly complex over the years, with over 1,100 different requirements and metrics. While well-intentioned, this complexity has often slowed us down and overburdened those we serve.
“During this replenishment cycle, we worked closely with our partners to streamline IDA’s operations, cutting the number of required metrics in half to 500. This will make IDA simpler, faster, and more responsive to the needs of our clients. It means fewer bureaucratic hurdles and more time spent delivering results on the ground,” the World Bank chief noted.
Speaking of why IDA matters, the bank said that during its 60 years of existence, 35 countries have graduated from IDA, including many who are now generous donors, giving back so that others may prosper.
Banga said: “Throughout, IDA has stood as a critical partner for the world’s poorest countries. It is a lifeline that delivers what few others can:
“Affordable financing through zero- and low-interest loans and grants to nations with limited financing options.
“Unmatched development knowledge gained from decades of experience in nearly every corner of the globe.
“The power to leverage every donor dollar 3.5 to 4 times, transforming modest contributions into life-changing investments.”
This model, Banga said, has enabled IDA to mobilise and deploy $270 billion over the last decade alone, with $179 billion directed to Africa.
“IDA has become the largest provider of concessional climate financing, investing $85 billion globally in the last 10 years, with over half dedicated to climate adaptation—protecting communities from rising seas, building heat-resistant schools, and ensuring farmers have the right seeds for the right conditions,” he added.
He stated that throughout the reviewed period, the investments have produced significant outcomes, including 900 million individuals receiving health services, 117 million people gaining access to dependable electricity, 94 million individuals obtaining clean water, and more than 18 million farmers benefiting from crucial technology.
This is the reason why IDA is frequently referred to as the most advantageous investment in development. It transcends mere financial allocation; it is fundamentally about transforming lives, he remarked.
“Even as we celebrate these accomplishments and today’s achievements, the challenges ahead will demand even more of our attention. In many of the countries IDA serves, governments are constrained by rising debt and limited fiscal space. For these nations, IDA’s concessional financing is often the only viable source of investment in job-creating sectors.
“This is particularly crucial as a vast generation of 1.2 billion young people prepares to enter the workforce. With current projections indicating only 420 million jobs will be created, nearly 800 million young people face the risk of unemployment—a threat to societal stability and economic growth.
“The World Bank Group recognizes this challenge and is prepared to meet it head-on, which is why we are working to ensure job creation is not a byproduct of our projects but an explicit aim of them.
“Throughout history, jobs have been the surest and most lasting solution to poverty. They bring dignity, empower women, give hope to younger generations, and build stronger communities.
“In this context, IDA is not just a financial instrument; it is a catalyst for job creation. It provides countries with the resources to build infrastructure, improve education and health systems, and foster private sector growth—all of which are critical for creating jobs and economic opportunities.
“This link between the World Bank Group’s public sector experience and our private sector financing and access to deliver across such a continuum with depth and width globally underpins our jobs agenda. This effort is comprehensive and a paradigm shift for the institution,” Banga explained.
