Is the World Bank broke? – Seeking help from Africa

The World Bank is seeking the support of African countries to raise funds to replenish the International Development Association (IDA). Could that mean the Bretton Woods Institution is broke?

The World Bank Vice-President for Development Finance, Joachim Von Amsberg asked for the support in Luanda, Angola in the last week during a meeting of the Group of African Ministers of Finance and Governors of African Central Banks, affiliated with the IMF and the World Bank.

He said in order to finance development in an intelligent fashion, the Bank needs to mobilise some $135 billion in Official Development Assistance (ODA). This amount will attract and leverage new public and private investments, he added.

“We have a large portfolio, a series of projects in preparation that will drive private investment. These are projects for which there is great demand and we are seeking to mobilise possible resources. There is the Ebola problem, floods in Malawi and the earthquake in Nepal as well, which is why the response budget for three years was already exhausted in the first year,” he explained in his presentation.

Speaking on the topic ‘Funding Options for ODA’, he said, the record ODA replenishment of $52.1 billion aims to maximize impact on development by leveraging public and private resources, in addition to knowledge, with solid results and efficiency at a low cost.

“The strong replenishment of ODA and financial innovations are crucial to fulfilling the agenda for transformation in Africa,” he said.

According to him, the demand for regional projects in Africa remains large, and most resources are committed to regional infrastructure projects.

By Emmanuel K. Dogbevi