The World Bank has unveiled a $100 billion commitment to support the world’s poorest nations, providing a vital lifeline for their struggles against crushing debts, climate disasters, inflation, and conflict.
The funding, aimed at bridging the education gap and promoting economic growth in these countries, will be deployed to 78 developing countries eligible for its support, particularly African nations.
The World Bank made this announcement on Friday in Seoul at a pledging conference for the International Development Association, which provides grants and very low-interest loans to 78 low-income countries.
According to the financial body, this target was met through donor countries, including Japan, the United Kingdom, and others, who committed $23.7 billion to replenish the bank’s concessional lending arm, marking a slight increase from the roughly $23.5 billion pledged during the last fundraising round three years ago.
It added that the bank can use this money to borrow on financial markets, thereby leveraging the amount raised by around four times and unlocking approximately $100 billion in new loans and grants, up from $93 billion in 2021.
Addressing shareholders during the event, the bank President Ajay Banga said that IDA will be able to stretch the new pledges further due to work done to optimize the development lender’s balance sheet over the past two years, increasing its lending capacity by some $150 billion over 10 years.
Banga added that the bank’s ability to leverage contributions will transform “modest contributions into life-changing investments.”
Furthermore, he emphasized that this funding will play a critical role in stabilizing economies, creating jobs, and addressing climate challenges.
“We believe the historic success of this IDA21 replenishment is a vote of confidence and support from donors and clients,” he said.
World Bank announces $100bn commitment to support developing countries
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