World Bank secures $100b for poorest nations through record IDA replenishment

The World Bank has announced a historic financial commitment to aid the world’s most vulnerable countries, unveiling nearly $24 billion in donor contributions that will be leveraged to generate $100 billion in concessional financing. This marks the largest replenishment in the history of the International Development Association (IDA), the World Bank’s arm dedicated to supporting low-income nations.

Ajay Banga, President of the World Bank Group, shared the news in a statement on Thursday, emphasizing the collective effort and determination that drove the replenishment process.

“Over the past year, we have navigated an incredibly challenging global landscape—one marked by economic uncertainty, rising debt levels, climate shocks, and an ever-pressing need for human development,” Banga said. “Yet, amid these challenges, something remarkable has unfolded: a collective effort, driven by the shared belief that we can do better, that we must do better, for the world’s most vulnerable.”

The replenishment saw donor nations commit $23.7 billion, slightly exceeding the $23.5 billion pledged in the last round three years ago. This funding, when combined with IDA’s unique leveraging model, will provide $100 billion in affordable financing to 78 of the world’s poorest nations. These resources will be allocated to initiatives aimed at improving health, education, infrastructure, and climate resilience, while also stabilizing economies and creating jobs.

“This is made possible because of donor generosity but also the work we have done to better optimize our balance sheet, take on more risk, and increase our leverage capacity,” Banga added.

In addition to securing funding, Banga highlighted efforts to simplify IDA’s operations. Over 1,100 requirements and metrics previously guided its processes, a structure that often delayed results. During this replenishment cycle, the World Bank worked with partners to streamline these metrics to just 500.

“This will make IDA simpler, faster, and more responsive to the needs of our clients,” Banga explained. “It means fewer bureaucratic hurdles and more time spent delivering results on the ground.”

For over six decades, IDA has been a lifeline for low-income nations, providing zero- and low-interest loans, grants, and unparalleled development expertise. It has also mobilized $270 billion in financing over the last decade, with $179 billion directed to Africa. Notably, IDA has become the largest provider of concessional climate financing, investing $85 billion globally in the past 10 years, with over half allocated to climate adaptation efforts.

During this period, IDA’s investments have delivered tangible results, including health services for 900 million people, access to reliable electricity for 117 million individuals, clean water for 94 million people, and essential technology support for over 18 million farmers.

“This is why IDA is often called the ‘best deal in development.’ It is not just about funds deployed—it is about lives changed,” Banga remarked.

Banga warned of looming challenges, including rising debt burdens, limited fiscal space, and an impending unemployment crisis among 1.2 billion young people entering the workforce. Projections indicate that only 420 million jobs will be created, leaving 800 million youth at risk of unemployment.

“For these nations, IDA’s concessional financing is often the only viable source of investment in job-creating sectors,” he said. “Jobs have been the surest and most lasting solution to poverty. They bring dignity, empower women, give hope to younger generations, and build stronger communities.”

Banga underscored the World Bank Group’s commitment to making job creation an explicit goal of its projects. “In this context, IDA is not just a financial instrument; it is a catalyst for job creation. It provides countries with the resources to build infrastructure, improve education and health systems, and foster private sector growth—all of which are critical for creating jobs and economic opportunities.”

He concluded by emphasizing the World Bank’s unique ability to bridge public and private sector financing, calling it a “paradigm shift” in the institution’s approach to global development challenges.