African Center for Economic Transformation (ACET)’s Post

The World Bank’s announcement of $100 billion in new funding for the International Development Association (IDA) is a major milestone. IDA plays a crucial role in providing low-cost financing to the world’s poorest countries, enabling critical, country-led investments in health, education, and development systems across 75 vulnerable nations.   This achievement reflects the hard work of the World Bank and advocacy partners, like the African Center for Economic Transformation (ACET), who used compelling data and stories to highlight IDA’s transformative impact. Despite tight aid budgets, they demonstrated how tools like IDA contribute to a more equitable and prosperous world.   It’s particularly encouraging to see upper-middle-income countries stepping up to support global development. Brazil stands out—not only for its pledge to IDA but also for launching the Global Alliance Against Hunger and Poverty during its G20 presidency. This initiative will leverage IDA resources and the World Bank’s expertise to combat food insecurity and malnutrition.   With IDA funding secured, the work now starts to translate the financing into investments for a healthier, safer, and more prosperous world, which will require collaboration across sectors and borders. The Bill & Melinda Gates Foundation is committed to doing its part.   The ONE Campaign, Global Citizen, Oxfam https://lnkd.in/e7ZBEcYb

🌍 A Record $100 Billion for Global Development 🌍 This week we reached a historic milestone for the World Bank Group and our collective commitment to transforming lives in low-income countries. With the announcement of the $100 billion replenishment of the International Development Association (IDA), we are charting a bold course toward a brighter, more resilient future for the world’s most vulnerable populations. These funds will be instrumental in providing low-interest loans and grants to support critical areas such as health, education, infrastructure, climate resilience, economic stabilization, and job creation, with a significant focus on Africa. Key highlights of IDA21: • A simpler, faster, and more agile IDA with policy requirements and metrics reduced by half, empowering clients to prioritize their development needs. • Exceptional donor leadership, with 17 donors increasing contributions by more than 25% and 10 by over 40%. • A truly global effort, with 59 countries committing financial resources to this replenishment. This achievement is more than a financial milestone; it is a testament to the power of partnership and our shared resolve to fight poverty and foster resilience. The impact of these funds will be transformative, touching the lives of 1.9 billion people across 78 countries, enabling opportunities, and strengthening the foundation for long-term prosperity. As Managing Director and CFO of the World Bank Group, I am deeply inspired by the unwavering support from our donors, clients, and partners. Together, we are making history—and a tangible difference—for those who need it most. See also Ajay’s Open Letter on IDA21 to Our Shareholders, Clients, Partners, and the Global Development Community. https://lnkd.in/eg6aYPd5 #IDA21 #Development #WorldBank #IDAWorks

How can Haiti Benefit from the International Development Association ( IDA) financial assistance to graduate it from the LDC List of the UNCTAD ? President Ajay Banga’s open letter to donors, stakeholders, and partners outlines a vision for leveraging these enhanced resources of IDA to drive transformative economic development outcomes for those countries like Haiti. This #IDA21 record of $100 billion financing package for the International Development Association (IDA) from top donors represents a pivotal step in addressing the world’s most pressing economic development challenges. Donors step up their commitments in an important demonstration of solidarity, underscoring the critical need to invest in transformative progress across health, education, and sustainable development for all. Haiti 🇭🇹 needs the IDA Funding to support its economic development and growth so that it can achieve its #SDG Goals The World Bank's International Debt Report reveals that in 2023, the debt stock of low- and middle-income countries like Haiti 🇭🇹 keep growing at $205.9 billion. Haiti needs to capitalize on the financial aid from IDA to strengthen its economy by creating better economic and financial markets reforms and urban planning to become a producing nation. Being the only poorest country in the western hemisphere is simply discouraging when the urban world is growing rapidly . Haiti’s debt distress and lack of friendly market policies urgently require development assistance and financial assistance to graduate it from the LDC’s List by 2050. Haiti Vision 2050 team is very optimistic and very diligent on working with stakeholders to help urbanize a Haiti is more effectively and economically sustainable and prosperous in the next 25 years . This is our opportunity to live on a healthy, productive, and cleaner environment. #HaitiVision2050 l #HaitiEconomy l #Haiti l Click to read the letter : https://lnkd.in/en_vPcyw

Incredible news as the UK announces a £1.98 billion pledge to the International Development Association (IDA) 21st replenishment, a 40% increase on its last commitment. This contribution from the UK is significant in both its generosity and the impact it will have. It’s not just a financial gesture, but a signal of the UK's commitment to global development – especially in difficult times – and to the betterment of lives across the world. Along with several other donors announcing early, significant increases in their pledges, we head into the replenishment meeting in Seoul next week with great momentum to deliver the ambitious IDA21 so many have been calling for. Getting to this point has been driven by the great partnership that is IDA - a partnership with low-income countries, donors, civil society and beyond. Each one recognising that investing in IDA is one of the best defenses we have against conflict, climate shocks and fragility and committed to build a future that benefits us all. https://lnkd.in/eGYzjQDZ

Great to see Norway's PM announcing 50% increased funding commitment to the World Bank's fund for the world's 78 low-income countries--the International Development Association or IDA, up from NOK3.35 billion to over 5 billion. IDA is a lifeline for these countries and every dollar invested by donors is multiplied 3.5 times through relending of repayments, annual transfers from the World Bank’s surplus funds and financing raised by issuing bonds in the financial markets. IDA invests in education, health, rural development, sustainable energy, climate adaptation and more. Denmark has also announced a sharp increase, and hopefully other donor countries will follow suit. I've made the case for increased investment to IDA for many years, including when in government and more recently in public debates here in Norway about aid and the critical role of IDA. https://lnkd.in/gtAg-tYC

Olav, thanks for this - and fully agree. Unquestionably, #IDA is a very important and much needed #povertyreduction vehicle. Many see it as one of the most effective financing mechanisms as it can leverage capital markets to more than triple its annual windfall and provide those funds to poor countries at concessional or marginal rates. Also, great to see South Korea announcing a 45% increase and the US making a record #IDA21 pledge of $ 4 billion, 14.3% higher than their contribution in 2021. Combined with Norway and Denmark’s big increases, some much needed light - in what have been darkening multilateral skies. #multilateralismmatters

I'm proud to announce the launch of our new report, "Humanitarian Impact Finance: Instruments & Approaches"! This labor of love represents countless hours of collaboration between IMD Patrick Reichert Juan Luis Coderque Galligo HIFHUB - hosted by the Danish Red Cross and Maximilian Martin, Ph.D. Lombard Odier Group Foundation. Thanks for the support to Fundación ”la Caixa” Thanks Fito Espinosa for allowing to share your art and commitment with humanitarian causes. This report synthesizes financial tools with real-world humanitarian needs. From #blendedfinance and #outcomebased models to #carbonfinance, we're exploring innovative ways to address the ever-growing challenges in fragile settings deemed many times too risky or unbankable. But this report is more than just a collection of ideas - it's a call to #action. In today's complex world, no single organization can solve these immense challenges alone. That's why we've designed this as a #practical guide, hoping to inspire new #partnerships and spark scalable solutions across sectors. I'm particularly excited about how this report complements our Driving Innovative Finance for Impact (#DIFI) program that will start its third cohort in November. https://lnkd.in/epKm6KBU Together, they represent our commitment to push the boundaries of what's possible, including what can be done from a Business School. I invite you all to dive into the report, share your thoughts. Here you can find the report https://lnkd.in/emDxW-6z #HumanitarianImpact #InnovativeFinance #DIFI #CollaborationForImpact #imdimpact

New Post: Mo Ibrahim Foundation launches 2024 Ibrahim Forum Report - https://lnkd.in/eWxpJjZY Ibrahim Foundation launches 2024 Ibrahim Forum Reporthttps://lnkd.in/eg4D59cv Mo Ibrahim Foundation’s latest report, “Financing Africa: Where is the Money?” provides a comprehensive analysis of both the financial needs deemed necessary for Africa to meet its development and climate goals and the resources that are currently available. Mo Ibrahim, Chair of Mo Ibrahim Foundation The Mo Ibrahim Foundation’s latest report, "Financing Africa: Where is the Money?" provides a comprehensive analysis of both the financial needs deemed necessary for Africa to meet its development and climate goals and the resources that are currently available. The report makes the point that the resources mostly exist, but either lack the relevant processes to be effectively allocated where needed or, significantly when it comes to domestic resources, are either dormant or misused.    Commenting on the release of the report, Mo Ibrahim, Founder and Chair of the Mo Ibrahim Foundation, said:  “We need a complete change of paradigm. This is not about Africa coming to the developed world with a begging bowl and developed countries considering how much more they can pledge.  This is about smarter money, not just more money. As this report outlines, the money is already there. However current processes prevent resources from being used to properly address the challenges. Steps must be taken to reform the international financing system and update African debt structuring, risk assessment and mitigation and aid conditionalities. Even more, our continent must stop squandering its assets and take proper ownership and responsibility. In short, we must apply good governance to ensure these assets are adequately leveraged for the best interests of our people.”   The report first identifies the substantial but often incoherent numbers associated with Africa's development and climate goals. While the task of assessing financial needs is complicated by inconsistent data from multiple sources, the figures all point to staggering numbers. Whatever the numbers, the report underscores the critical need to ensure climate finance does not crowd out development finance, forcing African nations to choose between development for their population and environmental sustainability.   The report then analyses financial contributions from non-African sources. Official Development Assistance (ODA) accounts for nearly 10% of the continent’s financial resources. But ODA from Western donors remains primarily directed towards health and education and often comes with specific conditionalities. Meanwhile, non-DAC countries' commitment to Africa is growing steadily and addresses the demand. Debt cannot be the way out, as stock and servicing costs h

🌍 $42 Billion: The Humanitarian Funding Gap 🌍 In 2023, the United Nations put the humanitarian funding gap at $42 billion: an untenable situation that is only set to worsen as the crises in Ukraine, Gaza, Syria, Yemen and elsewhere continue to evolve and ripple outwards. But as governments grapple with barely growing or declining resources for #humanitarianaid, and we reach the limited financial reserves of traditional philanthropy, it’s clear that new financial models are needed to address the problems of displaced populations, poverty and fragility, and the environmental degradation that accompany humanitarian crises. Forced displacement in these contexts is no longer a temporary phenomenon – it has become increasingly protracted. DG ECHO estimates that displacement lasts 20 years on average for #refugees and more than 10 years for most IDPs. Servicing the needs of these people extends way beyond the day-to-day provision of food and water. These are long-term problems that require long-term solutions—and long-term financing. 🚨 How Financial Innovation Can Help. Our latest report, Humanitarian Impact Finance: Instruments & Approaches, explores how innovative financial tools—like #blended finance, debt swaps, and #outcomes-based models—are reshaping humanitarian efforts in fragile settings. In partnership with HIFHUB - hosted by the Danish Red Cross, Fondation Lombard Odier (Lombard Odier Group), and Fundación ”la Caixa”, this report showcases real-world examples of how new financial models work in practice. 🔑 Key Highlights: 1. From #grants to #scalable, sustainable impact 2. Adapting instruments like #carbonfinance, equity, and #creditguarantees 3. Engaging private sector investment and development finance The HIF report builds upon our collective learnings from IMD’s Driving Innovative Finance for Impact program that we jointly run with the World Economic Forum, Fondation Lombard Odier (Lombard Odier Group) and the International Committee of the Red Cross - ICRC. 📥 Download the report now: https://lnkd.in/eFbk_vqX Curious to learn more or join IMD’s Driving Innovative Finance for Impact (DIFI) program? Find out how to apply innovative finance in the field and attract the capital needed for long-term change. 💡 Find out more about DIFI: https://lnkd.in/dRbXwrhc #HumanitarianFinance #ImpactInvesting #SustainableSolutions #InnovativeFinance #imdimpact Vanina Farber, Maximilian Martin, Ph.D., Juan Luis Coderque Galligo, IMD

Just released: Humanitarian Impact Finance (HIF) report 📖 IMD, published in conjunction with Foundation Lombard Odier, the Humanitarian Innovative Finance Hub (HIFHUB - hosted by the Danish Red Cross), and the ”la Caixa” Foundation, has launched a report mapping the Humanitarian Impact Finance (HIF) landscape. This research explores how innovative finance models, including debt, equity, and insurance, are reshaping funding for crisis-affected regions. Vanina Farber, elea Professor of Social Innovation and Dean of the EMBA Program at IMD, emphasizes, “By building strong partnerships across the private, public, and philanthropic sectors, we can develop financial models that address urgent needs and build long-term resilience in fragile settings." Explore the full report to discover how HIF is driving sustainable solutions for global humanitarian crises: https://bit.ly/3BsG58r #IMDImpact Lombard Odier Group Danish Red Cross Patrick Reichert