By Peter Ochieng
President William Ruto on Monday led African heads of state and government in pushing for increased concessional funding from the World Bank’s International Development Association (IDA).
Concessional financing means countries or companies being provided with access to capital at favorable terms. IDA supports low-income countries with grants and long-term low-interest loans for development.
Speaking during the International Development Association (IDA21) for Africa Heads of State Summit at the Kenyatta International Convention Centre (KICC), Nairobi County, President Ruto called for tripling of IDA’s financing capacity to $279 billion by 2030, while maintaining the essential concessional nature of its financing in accordance with the recommendations of the G20 Independent Expert Group.
He noted that financial strain, as a result ot high interest rates, hampers efforts to combat climate change, transition to a low-carbon economy, and adequately fund essential sectors like education, health, and social protection.
“Now more than ever, long-term concessional financing is vital. Our proposal and request entail a vision for Africa-driven socio-economic development, executed with transparency and inclusiveness, and our case is straightforward: Significant capital injection into IDA is crucial,” he said.
Presidents Yoweri Kaguta Museveni (Uganda), Samia Suluhu (Tanzania), Evariste Ndayishimiye (Burundi), Nana Addo Dankwa Akufo-Addo (Ghana), Lazarus Chakwera (Malawi), Julius Maada Bio (Sierra Leone), Azali Assoumani (Comoros), Mohamed Ould Ghazouani (Mauritania), Faustin-Archange Touadéra (Central African Republic), Andry Rajoelina (Madagascar) and Hassan Sheikh Mohamud (Somalia) were among a host of dignitaries present.
“IDA stands out for its rapid and decisive action during crises, distinguishing itself from other funding sources,” Ruto added.
He invited African heads of states and governments to play their part by taking deliberate and robust actions, to improve fiscal discipline, increase domestic revenue mobilisation, develop investor-friendly policies and enhance anti-corruption measures.
President Akufo-Addo added that mobilising finance and investment is central to Africa’s development needs, and achieving the 17 sustainable development goals.
“That is why boosting the resources of the IDA whose ability to generate concessional financing represents an effective way to respond to the obstacles African countries encounter in the present global system,” he noted.
On her part, President Samia Suluhu said IDA should concentrate on giving concessional loans to enhance Africa’s development financing, while President Museveni said that affordable financing for the development of infrastructure such as railways, electricity, and investment in irrigation will go a long way in spurring rapid economic growth in Africa.