- African leaders on Monday called on rich countries to commit record contributions of at least US$120 billion to the World Bank’s International Development Association (IDA) facility dedicated to developing nations to combat climate change.
- IDA funds are allocated to the recipient countries in relation to their income levels and record of success in managing their economies and their ongoing IDA projects.
- IDA’s lending terms are highly concessional, meaning that IDA credits carry no or low interest charges.
- The last round of fundraising in 2021 raised $93 billion.
- The pledges are set to made in Japan later this year in December.
“We call on our partners to join us at this historic moment of solidarity and respond effectively by increasing their contributions to IDA to at least $120 billion,” Kenyan President William Ruto said at a meeting of African leaders and the World Bank to discuss IDA
Ruto added that African economies were facing a deepening development and debt crisis that threatens our economic stability, and urgent climate emergencies that demand immediate and collective action for the survival of our planet. He cited devastating floods in Kenya and a severe drought affecting southern African nations such as Malawi.
Ajay Banga, president of the World Bank, promised to reduce the “burdensome” rules governing lending to countries under IDA, make them more efficient and deliver funds to borrowing countries more quickly.
“We believe a simpler, reimagined IDA can be implemented with greater focus to achieve meaningful impact,” he said.
Author: Bryan Groenendaal
