African Leaders Advocate for Tripled Financing of World Bank’s IDA to Boost Development

By Samuel Ouma

The African heads of state and government are calling for more concessional funding from the World Bank's International Development Association (IDA).

They urge the IDA's financing capacity to be tripled to $279 billion by 2030, aligning with the suggestions of the G20 Independent Expert Group.

The leaders made the remarks during the International Development Association (IDA21) for Africa Heads of State Summit at the Kenyatta International Convention Centre, Nairobi County, on Monday, April 29, 2024.

According to President William Ruto, tripling IDA financing would not only relieve many African and other developing nations facing severe debt crises but also make available the much-needed resources to unlock Africa's vast resources.

Ruto said that financial strain caused by high-interest rates hampers efforts to combat climate change, transition to a low-carbon economy, and adequately fund essential sectors like education, health, and social protection.

“Our proposal and request entail a vision for Africa-driven socio-economic development, executed with transparency and inclusiveness, and our case is straightforward: Significant capital injection into IDA is crucial,” said Ruto.

In attendance were Presidents Yoweri Kaguta Museveni (Uganda), Samia Suluhu (Tanzania), Evariste Ndayishimiye (Burundi), Nana Addo Dankwa Akufo-Addo (Ghana), Lazarus Chakwera (Malawi), Julius Maada Bio (Sierra Leone), Azali Assoumani (Comoros), Mohamed Ould Ghazouani (Mauritania), Faustin-Archange Touadéra (Central African Republic), Andry Rajoelina (Madagascar) and Hassan Sheikh Mohamud (Somalia).

Prime Ministers Abiy Ahmed Ali (Ethiopia), Amadou Oury Barh (Guinea), Nadir Larbaoui (Algeria), and the President of the World Bank Group, Ajay Banga, were also present.

President Ruto said access to affordable, long-term capital at scale will help unlock Africa’s green energy resources, providing power to all its citizens, including the 600 million currently without access, and significantly advance global decarbonisation efforts.

“Our continent possesses 60% of the world’s prime solar resources, and our untapped renewable energy potential exceeds fifty times the projected global electricity demand by 2040. However, realising this requires a shift in investment strategies,” he said.

The Kenyan leader noted that Africa is keen to drive its industrialisation agenda using its abundant energy, mineral, and human capital resources.

“Africa is poised to transform its agriculture, water security, and energy access, while creating job opportunities for over 4 million youths entering the job market monthly and expand our small and medium enterprises,” he added.

On the other hand, President Akufo-Addo said mobilising finance and investment is central to Africa’s development needs and achieving the 17 sustainable development goals.

The Ghanaian president said that Africa's challenge is not a scarcity of financing but rather overcoming a global economic system that needs to allocate sufficient long-term resources to support Africa's economic transformation.

“That is why boosting the resources of the IDA whose ability to generate concessional financing represents an effective way to respond to the obstacles African countries encounter in the present global system,” he said.

President Suluhu said IDA should concentrate on giving concessional loans to enhance Africa’s development financing.

Prime Minister Abiy said that increasing IDA’s financial capacity will significantly enhance Africa’s ability to address its complex challenges.

“While IDA’s existing support must be commended, the sheer scale of challenges many African countries face necessitates a renewed approach,” he said.

President Museveni said that affordable financing for developing infrastructure such as railways, electricity, and investment in irrigation will go a long way in spurring rapid economic growth in Africa.

President Chakwera said Malawi welcomes the replenishment of the IDA as a vehicle for economic transformation.

President Mohamud said that a larger replenishment of IDA will help the Somali government achieve its national objectives of reducing poverty and creating opportunities in Somalia and Africa.

“IDA is a major lifeline that the country is relying on to enable its ambitious national transformation agenda in this hopeful post-debt relief period,” he said.