The World Bank announced on Thursday that it had raised nearly $24 billion to fund loans and grants for some of the world’s poorest nations, a move that could leverage a record $100 billion in total spending power.
Donor countries contributed $23.7 billion to replenish the bank’s concessional lending arm, the International Development Association (IDA), a World Bank spokesperson told AFP. This marks a slight increase from the $23.5 billion pledged during the previous fundraising round three years ago.
The World Bank can now use this funding to borrow from financial markets, multiplying the total amount by about four times, unlocking approximately $100 billion in new loans and grants, up from $93 billion in 2021.
“We believe the historic success of this IDA21 replenishment is a vote of confidence and support from donors and clients,” the World Bank said in a statement, referring to the current IDA funding cycle.
“This funding will be deployed to support the 78 countries that need it most,” said World Bank President Ajay Banga, referring to the developing nations eligible for IDA support.
He added that the funds would help provide resources for health, education, infrastructure, climate resilience, as well as stabilize economies and create jobs.
The announcement follows two days of talks in Seoul, South Korea, a city still grappling with President Yoon Suk Yeol’s decision to declare martial law on Tuesday, only to retract it later under pressure from lawmakers.
IDA has become the largest source of concessional climate finance, with two-thirds of all IDA funding over the past decade directed to African countries, according to the World Bank.
IDA replenishment occurs every three years and is a vital part of the Bank’s operations, with major contributions coming from the United States, Japan, and European countries such as the United Kingdom, Germany, and France.
This year, the United States committed a record $4 billion to the IDA, and other nations, including Norway and Spain, also increased their financial contributions.
Over the past few decades, thirty-five former recipients of IDA assistance, including China, Turkey, and South Korea, have graduated to developing economy status and now contribute to the fund.
