African leaders seek record World Bank financing to combat climate change

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African leaders seek record World Bank financing to combat climate change

10:39 CAT | 29 Apr 2024

Image: William Samoei Ruto/X

African leaders on Monday called on rich countries to commit record contributions to a low-interest World Bank facility for developing nations on which they depend to help finance their development and combat climate change.

Donors will make their cash pledges to the International Development Association (IDA), a World Bank institution that offers loans with low interest rates and long terms, at a conference in Japan 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. money.

Africa is not just looking for funding but a solid partnership for progress. We propose a robust plan, underpinned by commitment to results, to ensure dignified and sustainable livelihoods for all.

At the opening session of the International Development Association (IDA21)… pic.twitter.com/Jj3PU2tGEZ

— William Samoei Ruto, PhD (@WilliamsRuto) April 29, 2024

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,” Ruto said.

He cited devastating floods in Kenya and a severe drought affecting southern African nations such as Malawi.

If donors pledge the minimum amount suggested by African leaders, it will be a new record after the last round of fundraising in 2021, which raised $93 billion.

IDA loans operate on a three-year cycle, which is generally preceded by donor contributions at a global meeting.

IDA offers low-interest rate loans to 75 developing countries around the world, the World Bank said, and more than half of them are in Africa.

Governments use the funds to boost access to energy and healthcare, invest in agriculture and also build critical infrastructure such as roads.

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.

Source: Reuters