On Monday, the World Bank said that it will collaborate with governments to support the sustainable development of Africa and offer concessional loans to those countries.
The International Development Association (IDA) of the World Bank Group, according to its president Ajay Banga, will finance projects in Africa that aim to reduce poverty, promote green development, and mitigate climate change.
“We need to take advantage of this chance and realize Africa’s full potential. He made these remarks during the IDA21 Replenishment African Heads of State Summit in Nairobi, Kenya’s capital. “Africa can and must charge towards a better future.”
According to Banga, there are several examples of successful nations that have transformed their economy and accepted IDA support. One of the finest instances, according to him, is China, which went from being an IDA borrower toan IDA lender as it lifted millions out of poverty.
“In the success stories, governments played a key role in providing an enabling environment for growth.
“Each recognised challenges and implemented many policies to reduce trade barriers,” Banga said, adding that 36 countries have successfully graduated from the IDA.
He observed that Africa faces many headwinds, including debt, poverty, and climate change, which eclipse its numerous resources and stifle progress.
“We all must partner to progress, with governments leading in the development agenda and the IDA as a partner,” he said.
Kenyan President William Ruto, at the meeting, called for increased funding for the IDA, noting it should rise from 93 billion U.S. dollars in 2022 to 120 billion dollars in 2024.
He called for the issuance by the IDA of loans that have up to 50 years of repayment period.
Ruto said Africa’s escalating debt burden, compounded by global challenges, needs to be addressed through partnerships with institutions like the IDA.
