The World Bank Group says over the next five years, it aims to spend and mobilize another $150 billion to support Africa’s growth.
President of the World Bank Group, David Malpass confirmed this while speaking at the Summit on Financing African Economies on Tuesday, May 18. He equally posted it on his official Twitter account.
The International Development Association (IDA), which continues to provide strong positive net flows to Africa, will provide a substantial portion of the fund through grants and long-term, zero-interest loans.
The International Development Association (IDA) is an international financial organization that provides low-interest loans and grants to the world’s poorest, developing countries.
Nigeria and Pakistan are IDA-eligible due to their high per capita income levels, and they are also credit-worthy for certain IBRD borrowings. They are known as “blend” nations.
The World Bank Group has spent $200 billion in Africa over the last decade. According to Malpass, Africa has a plethora of investment opportunities that can entice private businesses and investors from all over the world.
He said that the World Bank Group is using all available capital, financing tools, and committed workers across Africa to boost people’s lives and business prospects.
According to Malpass:
I listened carefully to the challenges of vaccine access, inequality, and debt. I underscored the urgency in helping Africa overcome these crises. It’s clear that some countries will soon have vaccine supplies that vastly exceed demand, and I’ve repeatedly urged them to release the excess to countries that have delivery programmes in place.
“We have Board-approved financing operations in many African countries to obtain safe doses and to administer them quickly and fairly as soon as the producer countries, COVAX, or manufacturers are ready.
The President of the World Bank, who noted that Africa needs significant inflows of long-term capital, said “In addition to IDA, another critical aspect of our assistance to Africa will be private sector mobilization, either directly through the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) or indirectly through IDA and IBRD capital market mobilization.”
Closing the infrastructure gap and expanding access to low-carbon electricity are two of them. “Second, the International Finance Corporation (IFC) has doubled our trade finance. To support this effort, we’re pleased to announce that the IFC and MIGA are about to launch a joint trade finance project in a number of African countries. Third, we’re working to broaden small-business financing options. “Fourth, we’re proposing a three-year pilot for a user-friendly blended finance facility to support agribusiness activities,” he said.
Debt sustainability and accountability, according to Malpass, would also be critical in attracting new funding and investment.
“We supported the G20’s DSSI deferrals, although participation by major creditors has been only partial and continue to allow large profits to be withdrawn from Africa even during the crisis, with no prospect of the debt cancellations that many advocated today.
“We are strongly supporting the IMF and G20 in implementing the G20’s Common Framework for debt reduction,” he said.