World Bank head expects answers for African leaders’ request

World Bank head Ajay Banga expressed confidence that donor countries will fulfil African leaders’ request for unprecedented contributions to a low-interest facility for developing nations, Reuters reported.

He emphasised that these contributions are not mere handouts but strategic investments in the future.

African heads of state urged wealthy nations to support the International Development Association (IDA) by raising a minimum of $120 billion at an upcoming conference in Japan in December.

This target amount, if achieved, would set a new record for IDA, which extends long-term loans to developing nations on a three-year cycle. The previous fundraising round in 2021 amassed $93 billion. To reach the $120 billion goal, donors will need to contribute approximately $30 billion, leveraging the World Bank’s ability to borrow $3 for every dollar raised.

In an interview, Banga acknowledged the fiscal challenges faced by donor countries but stressed the significance of contributing to IDA. He underscored that African nations, which represent over half of IDA beneficiaries, face significant obstacles such as heavy debt burdens and climate-related disasters, making access to affordable financing crucial.

Banga urged affluent nations to recognise that their generosity benefits their interests, citing examples of formerly impoverished countries like China and India, which have transitioned from IDA recipients to major economies. He emphasised that supporting Africa’s development is mutually beneficial, emphasising that Africa has much to offer the world if it flourishes.