African heads of state call for ambitious IDA20 replenishment to support their recovery agenda

Thirteen African heads of state and government concluded their one-day meeting in Abidjan today with a firm resolve to accelerate the economic recovery from the shocks of the COVID-19 pandemic, to step up investments in the human capital and increase their efforts to create jobs. They called for a strong twentieth replenishment of the World Bank Group International Development Association (IDA20) to support these efforts.

In a joint statement endorsed at the meeting, the heads of state stressed that economic recovery, job creation and investments in human capital – including expanding access to vaccines – are essential for help people recover from the shocks of the pandemic, lift themselves out of extreme poverty and build a more resilient and inclusive future.

“The funding process, which begins in Abidjan this week, will end at the end of this year with a policy and financial package to support specific projects in the 74 IDA countries over the next three years. The goal of mobilizing an IDA20 replenishment envelope of at least $ 100 billion over three years would be the largest amount raised in IDA history. This is a good opportunity to demonstrate that solidarity is indeed essential for the good of all and that we can act together to resume the path of income convergence on which we were before the pandemic and to build a safer and more prosperous world. ,“ mentionned President Alassane Ouattara of the Republic of Côte d’Ivoire. “We know that when the World Bank has the support of all of its stakeholders, it has the capacity and the oversight to make a difference.

On employment, leaders engaged in efforts to create jobs by developing the private sector, with an emphasis on improving productivity through large-scale digitization, mechanization, African manufacturing, including vaccines, and better access to finance and a better business environment.

On human capital, leaders called for education systems that support the acquisition and use of skills needed for the jobs of tomorrow, and resilient health systems, adaptive safety nets and service delivery systems. . Regarding the economic recovery, the Heads of State expressed their determination to support the structural and spatial transformation of economies, through better economic diversification and regional development within countries and regions, coupled with macroeconomic stability with particular attention to particular to public debt sustainability, security and peacekeeping issues, as well as better preparedness to protect economies and populations from various crises.

Recognizing the high volumes of funding needed to match the level of ambition of their development agenda, leaders stressed the importance of maximizing domestic and external funding resources. They observed that with the continent’s additional financing needs estimated at $ 285 billion over the next five years, to combat the pandemic, climate change and accelerate economic recovery, their increased efforts to mobilize domestic resources would be insufficient. They therefore called for an early replenishment of IDA20 of at least $ 100 billion by the end of 2021 to meet the continent’s aspirations.

“Today we heard from Heads of State how this pandemic has affected their countries and their need for stable future funding to meet their development ambitions. IDA plays an important role in financing and recovery solutions for all of these countries ”, mentionned Axel van Trotsenburg, Managing Director of World Bank Operations. “An ambitious IDA20 will be a powerful force in helping countries with a green and inclusive recovery return to the 2030 goals.”

The meeting brought together leaders from Angola, Benin, Burkina Faso, Côte d’Ivoire, Cameroon, Democratic Republic of Congo, Ethiopia, Ghana, Guinea, Guinea Bissau, Kenya, Liberia, Mauritania, Madagascar, Mozambique, Niger, Nigeria, Rwanda, Senegal, Sudan, Tanzania, Togo and Uganda, as well as the heads of regional commissions , notably the West African Economic and Monetary Union, the Economic Commission for West Africa, the Central African Economic and Monetary Community and the African Union. The meeting was also attended by the management of the World Bank Group and representatives of IDA donor governments.