Some thirteen African nations including Ghana, have called for a $100 billion worth twentieth replenishment of the World Bank’s International Development Association (IDA20).
The request by the 13 African nations, followed a meeting among the Heads of States which concluded with a strong resolution to accelerate economic recovery from the shocks of the COVID-19 pandemic, scale-up investments in human capital as well as increase job creation efforts on the continent.
In a joint release, the Heads of State emphasized that economic recovery, job creation, and investments in human capital – including expanding access to vaccines – are critical to help Africans recover from the shocks of the pandemic, get out of extreme poverty, and build a more resilient and inclusive future.
“The funding process that begins in Abidjan this week, will conclude at the end of this year with a policy and financial package to support specific projects in the 74 IDA countries over the next three years. The goal to mobilize an IDA20 replenishment envelope of at least $100 billion, for three years, would be the largest amount raised in IDA’s history,” said President Alassane Ouattara of the Republic of Côte d’Ivoire.
“This is a good opportunity to demonstrate that solidarity is effectively essential for the good of all and that we can act together to return to the path of income convergence that we were on prior to the pandemic and build a safer and prosperous world. We know that when the World Bank has the backing of all its stakeholders, it has the capacity and oversight to make a difference,” he added.
On jobs, the leaders committed to job creation efforts by developing the private sector, with emphasis on improving productivity through broad based digitalisation, mechanisation, African manufacturing – including vaccines, and improved access to finance and better business environment.
On human capital, the leaders called for education systems that support the acquisition and use of skills needed for the jobs of tomorrow, and resilient health systems, adaptive safety nets and service delivery systems.
With regards to economic recovery, the Heads of State expressed their determination to support structural and spatial transformation of economies, through better economic diversification and regional development within countries and regions, coupled with macroeconomic stability with special attention to public debt sustainability, security and peacekeeping issues, as well as better preparedness to protect economies and populations from various crises.
Acknowledging the high financing volumes needed to match the level of ambition of their development agenda, the leaders highlighted the importance of maximising both domestic and external financing resources.
They observed that with the continent’s additional financing needs estimated at $285 billion over the next five years, to fight the pandemic, climate change, and accelerate economic recovery, their enhanced domestic resource mobilization efforts would fall short. They therefore called for an earlier IDA20 replenishment of at least $100 billion by the end of 2021 to meet with aspirations for the continent.
Aside Ghana, other African nations that made the call for the $100 billion IDA20 replenishment include: Angola, Benin, Burkina Faso, Côte d’Ivoire, Cameroon, Democratic Republic of Congo, Ethiopia, Ghana, Guinea, Guinea Bissau, Kenya, Liberia, Mauritania, Madagascar, Mozambique, Niger, Nigeria, Rwanda, Senegal, Sudan, Tanzania, Togo and Uganda,
