African leaders are requesting $100 billion from a World Bank fund to help them recover economically

Last updated on September 11th, 2021 at 07:56 am

On Thursday, African leaders convened in Abidjan, Ivory Coast, to lobby the World Bank for fresh aid plans to help them finance their economic recovery and improve access to Covid-19 vaccines.

As the COVID-19 pandemic continues to put financial strains on economies, leaders are demanding $100 billion for a crucial World Bank fund that assists low-income countries. According to the World Bank, 23 African presidents set the target in a joint declaration following the meeting.

After providing enormous support to countries dealing with the COVID-19 pandemic, the bank advanced its process for a twentieth replenishment of the International Development Association, often known as the IDA, in April. The International Development Association (IDA) is one of the main sources of money for fighting extreme poverty in the world’s poorest countries, with 39 countries on the list.

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“Much remains to be done to overcome this crisis which, as we are seeing these days, is global with several cycles. Indeed, less than 3% of the total population of Africa has received a first dose of vaccines compared to about 54% in the US and the EU. Allassane Ouattara, the president of Ivory Coast, stated. This $100 billion, according to Ouattara, “would be the greatest amount raised in IDA’s history.”

The previous high was $82 billion dollars. Moussa Faki, the Chairman of the African Union Commission, emphasized the necessity of debt restructuring. “We will never tire of calling for urgent debt restructuring accompanied by a bold policy that goes beyond special entitlements to alleviate the pressing need for immediate cash for vaccine purchases and to lay the foundations for economic recovery,” Faki remarked.

As African countries cope with the catastrophic effects of the COVID-19 pandemic, the World Bank argues that continuing support, particularly from IDA, is important in helping them fulfill their finance needs. The World Bank hopes to finish this round of recapitalization by December.