IDA 21 Pledging final meeting: African Leaders Call for Historic Commitments

Seoul, South Korea – The 21st Replenishment Pledging Conference of the International  Development Association (IDA) opened today with an urgent call for global cooperation  to address the intertwined crises of poverty, climate change, and economic inequity.  This replenishment cycle includes an unprecedented financial package designed to  bolster the ability of the world’s poorest countries to recover from crises and build long term resilience. 

At the heart of this replenishment is a strong policy package addressing key issues such  as people, the planet, infrastructure, digitalization, jobs, gender empowerment, and  fragility. In a significant step towards streamlining processes, IDA has reduced its policy  commitments from 1,017 in IDA20 to a much more manageable number in IDA21,  cutting through red tape and ensuring greater ePiciency in delivering assistance. This  simplification aims to address capacity challenges in recipient nations, ensuring that  IDA’s resources are directed where they are needed most without burdening countries  with unnecessary obligations. 

In addition to the policy overhaul, IDA’s financial terms have been significantly improved  to maximize impact. While the final amount of the replenishment depends on donor  pledges, the quality and strength of the proposed framework are undeniable. The target  for this replenishment cycle is $120 billion, marking a bold step in addressing urgent  global needs. 

Dirk Reinermann, Director of IDA Mobilisation at the World Bank, highlighted the  importance of the process and the expected outcomes: 

“We’ve streamlined IDA’s commitments, cutting policies by half to ensure agility and  reduce unnecessary burdens on recipient nations. The financial framework we’ve  proposed reflects the urgency and scale of the challenges we face, and we look forward  to ambitious pledges from our donor partners.” 

“We’re optimistic about a robust package. Some donors have already indicated  significant increases, while others, constrained by fiscal policies, may remain nominally  flat in their contributions. However, local currency contributions in euros, yen, and  renminbi are substantial. The strength of the dollar might mask these ePorts when  converted,” Reinermann added. 

This new financial framework comes at a time when African leaders, who convened  earlier this year in Nairobi, issued a collective call for donors to match the growing scale  of need with bold financial commitments. Their call is a reminder of the urgent role that 

development financing plays in ensuring the world’s most vulnerable can withstand  crises and build a more sustainable future. 

Since its establishment in 1960, IDA has committed $533 billion to foster economic  growth and improve lives, with more than 70% of its global commitments directed  toward Africa. These investments have supported critical sectors such as  infrastructure, education, healthcare, digitalization, and climate resilience. 

Daouda Sembene, Founder and CEO of Africatalyst, emphasized IDA’s pivotal role as a  development partner: 

“IDA should be seen not just as a concessional resource provider but as a partner  working alongside borrower countries to address global challenges. These challenges  are not just for Africa—they are challenges for the whole world. At the same time, it’s  crucial to ensure that Africa has the fiscal space to meet its domestic priorities.” 

In addition to increasing its financial contributions, IDA is broadening its funding base  by engaging non-traditional funders, including private sector actors, philanthropists,  and emerging economies. This expansion aims to create a more resilient and  sustainable financing model that is better equipped to meet the scale and urgency of  global development challenges. There is a strong emphasis on private sector resource  mobilization and domestic resource mobilization in recipient countries. 

Trevor Lwere, Economic and Policy Analyst at Development Reimagined, explained the  profound impact of focusing on poverty alleviation: 

“When you invest in the productive capacities of developing nations, you’re addressing  multiple challenges simultaneously. Even modest investments can leverage funds up to  four times their value. The model provides long-term, aGordable financing, unlike other  funding sources which often involve high costs or protracted negotiations. This  approach not only addresses the immediate challenges but also builds long-term  resilience. Countries experiencing a decline must take proactive steps to reverse it.  Moreover, nations that maintain previous replenishment levels should follow the  example set by Spain, which committed to doubling its contributions, setting a strong  precedent for others to increase their pledges early and meaningfully.” 

The IDA 21 replenishment also places a strong focus on civil society engagement. This  year alone, eight regional forums, including one in Nairobi, have gathered invaluable  input that shaped the policy package. Furthermore, a new World Bank Group scorecard will track and ensure the quality and consistency of these engagements, guaranteeing  that civil society plays a central role in shaping the development agenda moving  forward. 

As this historic replenishment process continues, IDA stands poised to play an even  more critical role in addressing global poverty, promoting sustainable development, and  fostering resilience in the world’s poorest regions.