African Leaders Call for Increased Concessional Funding from World Bank’s IDA President William Ruto urges tripling of IDA’s funding capacity to $279 billion by 2030
President William Ruto has led African leaders in urging the World Bank’s International Development Association (IDA) to increase its concessional funding. The call came during the International Development Association (IDA21) for Africa Heads of State Summit at the Kenyatta International Convention Centre, Nairobi County, on Monday.
President Ruto proposed tripling IDA’s financing capacity to $279 billion by 2030, aligning with the recommendations of the G20 Independent Expert Group. He stated that this boost in funding would relieve many African nations struggling with severe debt crises and unlock critical resources for development.
The IDA provides low-income countries with grants and long-term low-interest loans for various development projects. Ruto noted that financial strain due to high interest rates hampers efforts to combat climate change, transition to a low-carbon economy, and adequately fund vital sectors like education, health, and social protection. He emphasized that long-term concessional financing is essential.
The President explained that increased funding would be crucial to Africa’s socio-economic development. “Significant capital injection into IDA is crucial,” he said. This sentiment was echoed by other African leaders, including Presidents Yoweri Kaguta Museveni (Uganda), Samia Suluhu (Tanzania), and Nana Addo Dankwa Akufo-Addo (Ghana).
President Ruto highlighted IDA’s rapid response during crises, distinguishing it from other funding sources. He noted that affordable, long-term capital at scale could help unlock Africa’s green energy resources, which would significantly advance global decarbonization efforts.
“Africa possesses 60% of the world’s prime solar resources, with untapped renewable energy potential exceeding fifty times the projected global electricity demand by 2040. However, realizing this requires a shift in investment strategies,” he said.
President Akufo-Addo underlined that the main challenge is not the lack of financing, but rather an economic system that fails to allocate sufficient resources to support Africa’s economic transformation. President Suluhu advocated for IDA’s focus on providing concessional loans to further Africa’s development financing.
Prime Minister Abiy Ahmed (Ethiopia) pointed out that while IDA’s support is commendable, the scale of challenges facing many African countries requires a renewed approach. President Museveni said that affordable financing for infrastructure development, such as railways and electricity, would drive economic growth in Africa.
Overall, the call for increased concessional funding from IDA represents a unified effort by African leaders to address significant development challenges and accelerate economic transformation.
