World Bank mulls $150bn development fund for Africa

The World Bank says it will invest $150 billion over a period of five years to boost development in Africa.

David Malpass, group president of the World Bank, announced this at the summit on Financing African Economies which held in France, on Tuesday.

Malpass said the investment will come in form of grants and long-term, zero interest-rate loans from international development associations (IDA).

He said the bank is “using all possible resources, financing tools, and dedicated staff across the continent to improve African lives and business prospects”.

“Over the past decade, the World Bank Group has invested $200 billion in Africa, and over just the next five years, we intend to invest and mobilize another $150 billion to support the continent’s development,” he said.

“A large portion of this will be through grants and long-term, zero interest-rate loans from IDA, which continues to provide strong positive net flows to Africa. I want to thank you all for your strong support for the IDA20 replenishment.”

Malpass said debt sustainability and transparency will be vital in attracting new financing and investment in Africa.

He said the World Bank supported the G-20’s debt service suspension initiative (DSSI) which benefited several African countries.

G-20 countries had approved an extension of debt relief for the world’s poorest nations till December 2021.

Nigeria had benefited from the initiative which delivered about $5 billion in relief to more than 40 eligible countries.

Malpass added that the World Bank board already approved financing operations in many African countries to obtain safe doses of COVID vaccines and to administer them quickly and fairly as soon as the producer countries, COVAX, or manufacturers are ready.