African Leaders unveiled a bold transformation agenda in Nairobi that will rally around an ambitious agenda, aiming to improve lives and create new opportunities, with the World Bank’s International Development Association (IDA) as a cornerstone for success. IDA is the World Bank’s funding for the poorest countries.
The summit in an ambitious effort witnessed the launch of a coalition uniting civil society, foundations, the private sector, and young people, to champion a robust replenishment of IDA’s resources.
Kenyan President William Ruto urged the World Bank to allocate $120 billion in financing to address developmental challenges and combat climate change across the continent during the International Development Assoc(IDA) 21 president’s summit at KICC in Nairobi, Kenya.
“We call on our partners to meet us at this historic moment of solidarity and respond effectively by increasing their IDA contributions to at least $120 billion,” said President Ruto.
There was a unified voice amongst the African leaders as they amplified their call for rich countries to commit record contributions to a low-interest World Bank facility for developing nations to get ease of access.
Donors must make cash pledges to the International Development Association (IDA), a part of the World Bank institution that offers loans with low-interest rates and long tenures, at a conference to be held in Japan in December.
President Ruto remarked that African economies were facing a “deepening development and debt crisis that threatens the economic stability, and urgent climate emergencies that demand immediate and collective action for our planet’s survival. Citing the example of Kenya’s devastating floods and severe drought affecting Southern African nations such as Malawi.
Reiterating that if the donors are to pledge the minimum amount suggested by African leaders, it would turn out to be a new high after the last round of fundraising in 2021, which raked up to about USD93 billion.
Word Bank’s IDA lending operates on a three-year cycle, which is usually preceded by donors making their contributions at a global meeting. The institution revealed that it offers low-interest rates loans to 75 developing nations around the world with more than half of them in Africa.
Governments that have accessed the funds have used the funding to boost access to energy and healthcare, invest in farming, and also build critical infrastructure such as roads.
Ajay Banga, president of the World Bank, speaking during the forum ascertained to cut down on the “burdensome” rules that govern lending to nations under the IDA, to make it more efficient and to deliver funds to borrower nations faster.
“We believe a simpler and reimagined IDA can be deployed with more focus to make a meaningful impact,” said Ajay.
Among those in attendance were the presidents of Uganda, Tanzania, Burundi, Ghana, Malawi, Sierra Leone, Comoros, Mauritania, the Central African Republic, Madagascar and Somalia.
The summit also saw the participation of the prime ministers of Ethiopia, Guinea, and Algeria in championing regional development that is sought within the continent through the embrace of sustainable development.
