World Bank commits record US$14.7 billion to Africa
World Bank Group committed a record US$14.7 billion to support economic growth in Africa in the 2013 fiscal year (July 2012 to June 2013).
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The move is also intended to help improve the development prospects of the continent despite uncertain economic conditions in the rest of the global economy.
Although it is not clear what proportion of the amount would come to Ghana, it is expected to be received as good news particularly at a time when the country is facing liquidity challenges.
In a report from the bank, copied to the GRAPHIC BUSINESS, Mr Makhtar Diop, World Bank Vice President for the Africa Region, said: “The region has shown remarkable resilience in the face of a global recession and continues to grow strongly.”
“Africa is at the centre of the World Bank Group 2030 goals of ending extreme poverty and promoting shared prosperity, in an environmentally, socially, and fiscally sustainable manner”, he added.
The World Bank Group continued its strong commitment to Africa by approving US$8.25 billion in new lending for nearly 100 projects in the fiscal year under review.
These commitments include a record $8.2 billion in zero-interest credits and grants from the International Development Association (IDA), the World Banks fund for the poorest countries. This is the highest level of new IDA commitments by any region in the banks history, the report said.
Private sector leverages development investment
According to the report, IFCs total commitment volume in Sub-Saharan Africa, including mobilisation, grew to a record US$5.3 billion, 34 per cent more than the year before.
Similarly, it said IFC’s spending on Advisory Services programmes in the region increased to more than US$65 million, about 30 per cent of IFCs total.
This led to increased results in fragile and conflict states and greater impact in IFC’s primary areas of focus: sustainable farming opportunities, access to finance for microfinance clients and individuals, improved infrastructure services, and greenhouse gas emissions reductions.
Supporting developmentally beneficial foreign direct investment into Sub-Saharan Africa is a priority for Multilateral Investment Guarantee Agency (MIGA).
In 2013, the Agency issued US$1.5 billion in guarantees supporting investments into projects in the agribusiness, oil and gas, power, services, and water sectors.
A significant volume of this coverage is for investments in power generation projects in Angola, Côte d’ Ivoire, and Kenya.
Sub-Saharan African accounted for 54 per cent of MIGAs new volume this year more than doubling last year’s level of 24 per cent.
The Bank Group’s support focused on major transformational projects in agriculture and power and also on social safety nets, conditional cash transfers for poor families, job creation programmes for young people and higher education.
Stepping up the game in fragile countries
In the 20 FY13, financial year, the World Bank Group increased its focus in Africa on regional drivers of fragility and conflict, especially regarding the Sahel and the Great Lakes regions.
In May 2013, during a historic joint United Nations/World Bank Group mission to the Great Lakes, the bank announced a $1 billion development pledge to help countries in the region provide better health and education services, generate more cross-border trade, and fund hydroelectricity projects in support of the Great Lakes peace agreement.
Sending the strong message that peace and development are inseparable and must be addressed together and also emphasising the bank’s commitment to increase its work in states emerging from conflict and its determination to help lift fragile states out of fragility and back on a positive development track.
By Charles Benoni Okine/Graphic Business/Ghana