African heads of state convened in Nairobi for the International Development Association (IDA) summit, with a focus on favorable lending terms and strategies to bolster sustainable development across the continent.
Established in 1960 as part of the World Bank, the IDA’s mission is to combat poverty by providing grants and low-interest loans to support programs that foster economic growth, reduce inequalities, and enhance living standards for people in developing nations.
During the summit, Kenya’s President William Ruto highlighted the significance of IDA’s rapid and decisive action during crises, emphasizing its distinctive approach compared to other funding sources. Ruto praised IDA’s demand-driven programs and concessional loans, which offer borrowing nations the opportunity to pursue long-term development strategies tailored to their specific needs.
With IDA disbursing a substantial $18 billion to African countries in the previous year alone, there’s a clear recognition among African leaders of the pivotal role the organization plays in driving development across the continent.
Dirk Reinermann, IDA’s Director of Resource Mobilization, underscored the organization’s commitment to expanding its resource disbursement efforts. Looking ahead to IDA21, Reinermann expressed a desire for even greater ambition, recognizing the significant challenges but also the immense opportunities present in Africa and beyond.
Currently, IDA operates projects in 75 countries, with a substantial 39 of those located in African states. This widespread presence underscores the organization’s dedication to addressing the diverse range of development needs across the continent.
The summit serves as a platform for African leaders to discuss strategies for maximizing the impact of IDA funding, ensuring that it is effectively utilized to drive sustainable economic growth, reduce poverty, and improve the lives of millions of people across Africa.
Source: africanews.com
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