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
The World Bank will also provide financial support to floods and rains affected farmers of Pakistan by providing them subsidised urea. PHOTO: FILE

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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