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The World Bank Group President, Mr Jim Kim said the bankwould be investing $57bn to accelerate growth and development In Sub-SaharanAfrican countries over the next three years.
In a statement released to Nigerian journalist by theSenior Communications Officer, World Bank Nigeria, Mrs Olufunke Olufon, onMonday in Abuja, Kim said the money would be raised by three subsidiaries ofthe group.
According to Kim, the funding will run from July 1, 2017,to June 30, 2020.
He said, “The bulk of the financing, $45bn will come fromthe International Development Association, the World Bank Group’s fund for thepoorest countries.
“The financing for Sub-Saharan Africa also will include anestimated $8bn in private sector investments from the International FinanceCorporation, a private sector arm of the Bank Group.
“$4bn in financing will come from the International Bankfor Reconstruction and Development, its non-concessional public sector arm.”
Kim said the move presented an opportunity to change thedevelopment trajectory of the countries in the region, including Nigeria.
He said, “With this commitment, we will work with ourclients to substantially expand programs in education, basic health services,clean water and sanitation, agriculture, business climate, infrastructure, andinstitutional reform.
“The IDA financing for operations in Africa will becritical to addressing roadblocks that prevent the region from reaching itspotential.
“To support countries’ development priorities, scaled-upinvestments will focus on tackling conflict, fragility, and violence; buildingresilience to crises including forced displacement, climate change, andpandemics; and reducing gender inequality.
“Efforts will also promote governance and institutionbuilding, as well as jobs and economic transformation.
“This financing will help African countries continue togrow, create opportunities for their citizens, and build resilience to shocksand crises.”
Kim said that much of the estimated $45bn from IDA, wouldbe dedicated to country-specific programs.
He explained that significant amount would be available tofinance regional initiatives, support refugees and their host communities, andhelp countries in the aftermath of crises.
He said this would be complemented by a newly establishedPrivate Sector Window for Africa because many sound investments go untapped dueto lack of capital and perceived risks.
He said the PSW will supplement existing instruments ofIFC and the Group’s arm that offers political risk insurance and creditenhancement to spur sound investments through de-risking, blended finance, andlocal currency lending.
He said, “This World Bank Group financing will supporttransformational projects during 2018 to 2020 financial period.
“The IBRD priorities will include health, education, andinfrastructure projects such as expanding water distribution and access topower.
“The priorities for the private sector investment willinclude infrastructure, financial markets, and agribusiness.
“IFC also will deepen its engagement in fragile andconflict-affected states and increase climate-related investments.
“Expected IDA outcomes include essential health andnutrition services for up to 400 million people, access to improved watersources for up to 45 million, and 5GW of additional generation capacity forrenewable energy.”
Kim said the IDA financing would build on a portfolio of448 ongoing projects in Africa totalling about $50bn.
On this, he said a $1.6bn financing package was beingdeveloped to tackle the impending threat of famine in parts of Sub-SaharanAfrica and other regions.
