Britain commits $2.5b to World Bank fund for poorest nations

Investment will fund projects promoting economic growth, tackling poverty and addressing the impacts of climate change


Reuters November 28, 2024
Britain commits $2.5b to World Bank fund for poorest nations

Britain on Thursday pledged to invest 1.98 billion pounds ($2.5 billion) over three years into the World Bank’s International Development Association (IDA) fund for the lowest-income countries.

The investment will fund projects promoting economic growth, tackling poverty and addressing the impacts of climate change, the government said in a statement.

The IDA fund, which mainly provides grants and very low interest loans to the poorest countries, is replenished every three years, and a pledging conference is scheduled for December 5-6 in Seoul.

World Bank President Ajay Banga is aiming for a record amount exceeding the $93 billion refunding in December 2021, amid rising demands from poor nations that are struggling with crushing debts, climate disasters, conflict and other pressures.

US President Joe Biden pledged a $4 billion US contribution to the IDA fund last week.

Britain used to devote 0.7% of its gross national income to overseas development aid, but the previous Conservative government cut that level to 0.5% in 2021 due to the impact of the COVID-19 pandemic.

Prime Minister Keir Starmer’s Labour government, in office since July, has pledged to restore the aid budget to the previous level but has not set a timeline for it.

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