By Aliu Akeem
The World Bank has launched a transformative funding plan worth $100 billion to aid 78 of the world’s poorest nations. This initiative is aimed at bolstering critical sectors like health, education, infrastructure, and climate resilience, while fostering economic stability and job creation.
World Bank President Ajay Banga revealed the ambitious package in a statement, crediting donor countries for contributing $24 billion to its concessional lending arm, the International Development Association (IDA). The funds, amplified by IDA’s leveraging model, will provide unprecedented financing to nations most in need.
“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,” Banga stated.
IDA’s Role in Development
Over its 60-year history, the IDA has been a cornerstone of global development, enabling 35 countries to graduate from its support. It serves as a “lifeline” for vulnerable nations by providing affordable loans, grants, and unmatched development expertise. The leveraging model enables the IDA to transform donor contributions into far-reaching investments, delivering results that improve lives globally.
The IDA’s operational improvements were also highlighted. Banga emphasized that simplifying the framework, reducing bureaucratic hurdles, and streamlining metrics from 1,100 to 500 would make it more responsive to the needs of its client countries.
The plan highlights job creation as a core objective, addressing challenges like high youth unemployment. “Jobs bring dignity, empower women, give hope to younger generations, and build stronger communities,” Banga said.
Focusing on Climate and Economic Stability
The IDA is recognized as a leader in concessional climate financing, having invested $85 billion over the past decade, with over half directed toward climate adaptation. Projects include protecting communities from rising sea levels, constructing heat-resistant schools, and improving agricultural resilience.
In addition to climate action, the IDA’s investments have achieved significant milestones, such as providing health services to 900 million people, connecting 117 million individuals to reliable electricity, and granting 94 million access to clean water.
Banga stressed the critical nature of this funding, particularly in countries burdened by rising debt and limited fiscal capacity. “For these nations, IDA’s concessional financing is often the only viable source of investment in job-creating sectors,” he noted.
