World Bank Secures Record $100 Billion in Support for the Poorest Countries
IDA remains the single largest source of concessional climate finance, with two-thirds of its funding over the past decade directed to Africa.
ISLAMABAD: The World Bank has announced a historic achievement, raising nearly $24 billion to support some of the world’s poorest nations, leveraging this amount to generate a total of $100 billion in loans and grants. This milestone comes after donor countries committed $23.7 billion to replenish the bank’s concessional lending arm, the International Development Association (IDA).
The IDA replenishment saw a slight increase from the $23.5 billion raised three years ago, reflecting continued global commitment to tackling poverty and promoting sustainable development in the world’s most vulnerable countries. By borrowing on the financial markets, the World Bank can amplify this amount, unlocking up to $100 billion in new resources, up from $93 billion in 2021.
“This funding will be deployed to support the 78 countries that need it most,” said World Bank President Ajay Banga, emphasizing that the resources would help invest in vital sectors such as health, education, infrastructure, and climate resilience. The funding is also expected to help stabilize economies and create job opportunities, crucial for sustainable development.
IDA remains the single largest source of concessional climate finance, with two-thirds of its funding over the past decade directed to Africa. The replenishment process, which occurs every three years, is integral to the World Bank’s operations, with major contributors including the United States, Japan, and several European nations, such as the United Kingdom, Germany, and France.
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This year, the United States committed a record $4 billion to the IDA, while countries like Norway and Spain also significantly increased their contributions. Additionally, 35 former recipients of IDA funding, such as China, Turkey, and South Korea, have graduated from developing economy status and are now donors to the fund, demonstrating the effectiveness and long-term impact of the IDA’s support.
The announcement follows a recent meeting in Seoul, South Korea, where donor countries reaffirmed their commitment to addressing the challenges faced by the world’s most impoverished regions.
