The World Bank, after its meeting with a number of central bank governors and G20 finance ministers. Announced a $57 million fresh investment package. This money will be spent on Nigeria and two other sub-Saharan countries. A major chunk of the money-coming to $45 billion- comes from International Development Association or IDA. This fund from the World Bank is earmarked for poorest countries in the world.
Development partners of the World Bank, in December 2016, consented to a never before $75 million for the IDA. This is a notable increase. It is based on the innovative move to blend the donor contributions to the IDA with the internal resources of the World Bank Group. Funds are also being sourced via capital markets. About 60 percent of the financing from the IDA is expected to end up at Sub-Saharan Africa. This is because the region has more then 50 percent of countries eligible for the NDA financial help. This funding can be accessed from July 1, 2017 and up to June 30, 2020. This period has been named IDA18 by the bank. The financing will assist African countries to create opportunities and grow them for their citizens.
Authorities of the World Bank said that financing for the Sub-Saharan region is inclusive of $8 billion in investments from the private sector. This comes from International Finance Corporation or IFC. This is the World Bank’s private sector arm. The Sub-Saharan region also gets about $4 billion from International Bank for Reconstruction and Development . The IBRD is a non-concessional and public sector arm.
Jim Yong Kim, the President of the World Bank Group, said that this is a never before opportunity to change development paths of countries in the Sub-Saharan region. Kim continued on to say that the bank group will work with its clients to expand basic health services, sanitation, education, business climate, agriculture and infrastructure. In Africa, IDA financing is important to solve a number of roadblocks which stop the region from fulfilling its potential. In order top support the development priorities of the country, the investments will concentrate on tackling conflict, violence and fragility. Efforts will be made to import resilience to a number of crises. This list includes climate change, pandemics and forced displacement. Reduction of gender inequality is also a major task. The efforts will also be inclusive of institution building and governance. Economic transformation and jobs are also included.