WB to give sub-Saharan Africa $57b at zero interest rate
World Bank Group President Jim Yong Kim.
What you need to know:
- Dr Kim made the announcement of increased financial aid package for sub-Saharan African countries over the next three fiscal years following a meeting with G20 finance ministers and central bank governors in Germany last week, before leaving for Rwanda and Tanzania to emphasise the Group’s support for the entire region.
Kampala. As it continues with its goals of eradicating poverty, supporting development and economic transformation in Ssub Saharan Africa, the World Bank (WB), has announced that it will give $57 billion (Shs204 trillion) to the region for the next three years. The bank’s officials say the bulk of the financing – $45 billion – will come from the International Development Association (IDA), the World Bank Group’s soft window which provides concessional fund for the poorest countries including Uganda at zero interest rate.
The financing for sub-Saharan Africa also will include an estimated $8 billion in private sector investments from the International Finance Corporation (IFC), a private sector arm of the Bank Group, and $4 billion in financing from International Bank for Reconstruction and Development (IBRD), its non-concessional public sector arm.
Officials say the financing will support transformational projects during the FY18-20 period. IBRD priorities will include health, education, and infrastructure projects such as expanding water distribution and access to power.
Priorities for the private sector investment will include infrastructure, financial markets, and agribusiness.
In a similar move, officials say IFC also will deepen its engagement in fragile and conflict-affected states and increase climate-related investments.
“This represents an unprecedented opportunity to change the development trajectory of the countries in the region,” World Bank Group President Jim Yong Kim said. He added: “With this commitment, we will work with our clients to substantially expand programs in education, basic health services, clean water and sanitation, agriculture, business climate, infrastructure, and institutional reform.”
Dr Kim made the announcement of increased financial aid package for sub-Saharan African countries over the next three fiscal years following a meeting with G20 finance ministers and central bank governors in Germany last week, before leaving for Rwanda and Tanzania to emphasise the Group’s support for the entire region.
