African leaders demanded on Monday that wealthy nations make historic contributions to a World Bank facility for developing countries that offer low-interest rates. This facility is essential for funding their development and fighting climate change.
At a conference in Japan in December, donors will pledge cash to the International Development Association (IDA), a World Bank organization that provides loans with long tenure and low-interest rates.
"We call on our partners to meet us at this historic moment of solidarity and respond effectively by increasing their IDA contributions... to at least $120 billion," Kenya's President William Ruto told a meeting of African leaders and the World Bank to discuss IDA funding.
African economies faced a "deepening development and debt crisis that threatens our economic stability, and urgent climate emergencies that demand immediate and collective action for our planet's survival," Ruto said.
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He cited Kenya's terrible floods and the severe drought affecting countries in Southern Africa, including Malawi.
After the last fundraising round in 2021, which raised $93 billion, it will reach a new high if donors contribute the minimum amount advised by African leaders.
The three-year cycle of IDA lending is typically preceded by contributions from donors made at an international conference.
According to the World Bank, IDA provides low-interest loans to 75 developing countries worldwide, most of which are in Africa.
Governments use the funding to boost access to energy and healthcare, invest in farming, and build critical infrastructure such as roads.
Ajay Banga, the president of the World Bank, promised to cut down "burdensome" rules that govern lending to nations under the IDA to make it more efficient and to deliver funds to borrower nations faster.
He said, "We believe a simpler and reimagined IDA can be deployed with more focus to make a meaningful impact."
