The World Bank has secured a record $100 billion in pledges to support its International Development Association (IDA), the branch dedicated to providing low-interest loans and grants to the world’s poorest nations.
This milestone follows donor countries’ commitments announced this week, totalling $24 billion, the bank stated. The total reflects a year-long push by World Bank President Ajay Banga to surpass the previous IDA funding round’s record of $93 billion, which included $23.5 billion in donations in 2021, Bloomberg reported.
Despite financial pressures from the pandemic, inflation, and a stronger dollar, donor countries stepped up significantly. Seventeen nations increased their contributions by 25% (in their local currencies) compared to the last round, with ten boosting their pledges by 40% or more.
Notably, the two-day pledging conference fell short of the $120 billion target set by African heads of state, partly due to the strength of the U.S. dollar. The stronger dollar reduced the value of significant foreign currency contributions from several donor countries, undermining the overall total.
IDA’s funding model leverages donations about 3.5 to 4 times, amplifying their impact. In the 2023 fiscal year, Pakistan, Bangladesh, Tanzania, and Kenya were among the largest beneficiaries, each receiving over $2 billion of the $34 billion in total commitments.
Over the past decade, IDA has deployed $270 billion, directing roughly two-thirds to Africa. Its investments have extended health services to 900 million people, connected 117 million to reliable electricity, and provided clean water access to 94 million, according to the World Bank.
The Biden administration recently pledged $4 billion to the IDA, reaffirming the US as the institution’s largest shareholder. However, the contribution awaits Congressional approval, which may not occur before the current session ends in two weeks.
This achievement highlights the World Bank’s commitment to addressing global challenges, with donor countries rallying to support vital initiatives despite economic headwinds.
