By BUUMBA CHIMBULU
A US$93 billion replenishment package of the International Development Association (IDA) to help low-income countries respond to the Covid-19 crisis and build a more resilient future has been announced by the World Bank.
The financing package, agreed over a two-day meeting hosted virtually by Japan, is the largest ever mobilized in IDA’s 61-year history.
It brings together US$23.5 billion of contributions from 48 high- and middle-income countries with financing raised in the capital markets, repayments, and the World Bank’s own contributions.
World Bank Group President David Malpass, said the generous commitment by the group’s partners was a critical step toward supporting poor countries in their efforts to recover from the Covid-19 crisis.
“We are grateful for the confidence our partners have in IDA as a non-fragmented and efficient platform to tackle development challenges and improve the lives of millions of people around the world,” Mr Malpass said.
The funds will be delivered to the world’s 74 poorest countries under the 20th replenishment (IDA20) program, which focuses on helping countries recover from the impacts of the Covid-19 crisis.
In these countries, the ongoing pandemic is worsening poverty, undermining growth, and jeopardising the prospects of a resilient and inclusive development.
According to a statement from the World Bank, countries were struggling with falling government revenues; increasing debt vulnerabilities; rising risks to fragility, conflict, and instability; and dropping literacy rates.
The statement indicated that about a third of IDA countries were facing a looming food crisis.
“To help countries build back greener, a substantial portion of these funds go to tackling climate change, with a focus on helping countries to adapt to rising climate impacts and preserve biodiversity.
“IDA will also deepen support to countries to better prepare for future crises, including pandemics, financial shocks, and natural hazards. While IDA20 will support countries globally, resources are increasingly benefiting Africa, which will receive about 70 percent of the funding,” the statement stated.
With this strong package, IDA will be able to scale up its support in the pandemic and address health challenges, helping 400 million people receive essential health and nutrition resources.
The social safety nets programme is also expected to reach as many as 375 million people.
WB declares US$93bn renewal package for IDA countries
