The World Bank has announced it raised nearly $24 billion to support some of the world’s poorest countries with loans and grants. This money will allow the bank to generate up to $100 billion in total funding, the highest ever.
Donor countries pledged $23.7 billion to the World Bank’s International Development Association (IDA), which provides low-cost loans and grants. This amount is slightly more than the $23.5 billion raised three years ago.
The bank will use this funding to borrow more money from financial markets, multiplying the amount to around four times the original sum, unlocking $100 billion in total for projects.
“This shows strong support from donors and countries in need,” the World Bank said.
The funds will benefit 78 of the poorest nations, according to World Bank President Ajay Banga. These resources will help improve health care, education, infrastructure, and climate resilience while also boosting economies and creating jobs.
The announcement came after discussions in South Korea, where political tensions had been high due to recent events.
IDA is one of the largest providers of affordable climate finance, with most of its funding in the last decade going to African countries. The IDA funding replenishment, done every three years, is vital for the World Bank’s work.
This year, major contributions came from the U.S., Japan, and European countries like the UK, Germany, and France. The U.S. alone pledged a record $4 billion, with countries like Norway and Spain also increasing their donations.
Interestingly, 35 former aid recipients, such as China, Turkey, and South Korea, have grown economically and are now contributors to the fund, helping other nations in need.