The replenishment negotiations for the World Bank’s International Development Association (IDA) and the African Development Bank’s African Development Fund (ADF) have now been completed. Norway will provide over NOK 3 billion to IDA for the period 2020-2022, and will provide around NOK 2 billion to the ADF for the same period. The total IDA replenishment is expected to be around USD 82 billion, and the ADF replenishment will amount to USD 7.6 billion.
‘I am very pleased that the donor countries are now contributing so substantially to the world’s biggest team effort to fight poverty and promote sustainable development. Some 33 of the world’s 47 least-developed countries are in sub-Saharan Africa. Nevertheless, the share of global aid that is going to these countries has decreased in recent years. We want to reverse this trend and to increase assistance to these countries, so that they can reach the SDGs and eradicate poverty in all its forms by 2030,’ said Minister of International Development Dag-Inge Ulstein.
Around two-thirds of the funding provided by IDA goes to African countries. For the next three-year period, IDA will give priority to efforts in the following areas: climate change, women’s rights and gender equality, private sector development and job creation, support for countries and regions affected by conflict and fragility and for sound financial governance, including efforts to improve domestic resource mobilisation. In the replenishment negotiations, Norway has had responsibility for raising IDA’s level of ambition as regards domestic resource mobilisation.
‘In response to pressure from Norway and other countries, IDA will also increase its support for vulnerable groups, including those who it is hardest to reach and people with disabilities. IDA will also step up its efforts to strengthen the ability of poor countries to manage their external debt,’ Mr Ulstein said.
Norway’s priorities are also clearly reflected in the focus areas identified in the negotiations on the ADF replenishment. Projects relating to women’s rights and gender equality, climate change, clean energy and digitalisation will be given priority.
‘I am pleased that the African Development Fund is to focus on sustainable food systems and climate-resilient agriculture. The Fund will also intensify its efforts to promote entrepreneurship and job creation for young people. It is particularly significant that the Fund’s efforts in countries and regions affected by conflict and fragility, such as the Sahel region, the Lake Chad region, and the Horn of Africa are to be stepped up,’ said Mr Ulstein.
About the International Development Association (IDA):
The World Bank’s fund for the world’s 74 poorest countries was established in 1962. IDA is the largest single channel for multilateral aid to these countries. IDA provides heavily subsidised loans to low-income countries, and grants to the most indebted of these countries. For every dollar the donors give to IDA, IDA provides three dollars to the poorest countries. This is made possible by a financing model under which donor contributions are combined with internal resources from the World Bank itself and resources borrowed in the financial markets on favourable terms, where the Bank benefits from its AAA credit rating.
About the African Development Fund (ADF):
The ADF offers technical assistance and funding in the form of heavily subsidised loans and grants to low-income countries in Africa. Funding from the ADF enables the implementation of high-priority infrastructure projects, particularly in the areas of energy, agriculture, water and sanitation, climate change and gender equality. In addition, the ADF supports capacity-building in the areas of governance and financial management, and helps to create jobs, promote entrepreneurship and enhance access to vocational education.