IDA21 secured a historic $100 billion for poor countries, enabling investments that will transform hundreds of millions of lives.
In a world grappling with economic uncertainty, debt crises, and climate shocks, global solidarity remains a powerful force for positive change. And there is no better demonstration of solidarity in action than the recent announcement by the International Development Association (IDA) that it has secured the largest replenishment in its history: a total of $100 billion in affordable financing for the world's poorest countries.
After months of negotiations and collaboration, 59 countries committed to almost $24 billion to IDA's 21st replenishment round. Although nearly all donor countries are facing some form of pressure on their own fiscal resources, this replenishment showcased a determination to provide the world's poorest countries with a critical lifeline. Seventeen donors increased their contributions by more than 25 percent in national currency -- and 10 of these raised their commitments by 40 percent or more.
IDA's hybrid financing model, which multiplies donor contributions and other income through capital markets, will enable it to multiply these donor contributions fourfold, mobilizing $100 billion in grants and low-interest loans for the countries that need it most.
A lifeline for the world's poorest countries
For over 60 years, IDA has been a steadfast partner to the world's poorest countries, providing zero- and low-interest loans, grants, and unmatched development expertise. IDA is a lifeline for countries that are highly exposed to the accelerating impact of climate change and those in situations of fragility, conflict, and violence -- many of which lack access to any other resources. This means a strong focus on Africa, as well as Asia, and Latin America and the Caribbean.
IDA's ultimate goal is to create the conditions for countries to accelerate and sustain economic and social development. Its country-driven model puts decision-making in the hands of recipient governments, empowering them to chart their own destiny.
The success of this approach is evident in the results. To date, 35 countries have graduated from IDA -- including Bosnia and Herzegovina and others. Many have returned as donors to pledge resources for countries still in need. The Republic of Korea, which hosted last week's replenishment meeting, is one such IDA graduate that now contributes generously to the world's poorest countries.
Over the past decade, IDA has invested $270 billion in low-income countries. The results include providing 900 million people with health services, connecting 117 million to reliable electricity, ensuring access to clean water for 94 million, and supporting over 18 million farmers with essential technology.
IDA21, covering the period from July 2025 to June 2028, will help to transform the lives of hundreds of millions of people. Over this period, IDA will play a central role in achieving the World Bank's goals for 2030, including providing access to electricity for 300 million people in Africa together with the African Development Bank, improving health services for 1.5 billion people, and strengthening safety nets for 500 million people facing recurring shocks. IDA will do this while promoting gender equality and delivering 45 percent of overall resources as climate finance over the next three years.
In its next cycle, IDA not only has more resources at its disposal; it is also becoming simpler, better, and more responsive to the needs of client countries. To increase efficiency and cut red tape, IDA has begun to streamline its complex framework for accessing resources, halving the 1,100 policy requirements and metrics to 500. This will reduce the burden on recipient countries and support a greater focus on results.
A historic milestone -- with many miles still to go
In an open letter published just after the replenishment meeting, World Bank President Ajay Banga thanked donors, civil society, and client countries for their work in making the replenishment a success. But the journey ahead remains daunting.
The UN estimates that $4 trillion is needed annually to meet development goals. Rising debt and tight budgets threaten the ability of many countries to invest in their futures. At the same time, 1.2 billion young people are set to enter the workforce, with current projections indicating only 420 million jobs will be created. The prospect of mass joblessness among an entire generation is a threat to our common future.
Recognizing this, the World Bank Group is putting job creation at the center of its work. IDA's investments in infrastructure, education, health systems, and private sector growth pave the way to spur economic growth and create the jobs needed to lift people out of poverty.
The success of the 21st replenishment would not have been possible without the unwavering support of donor countries, the advocacy of civil society partners, and the ingenuity of client nations. This historic replenishment is a reminder of our collective capacity to rise to the challenge of ending poverty on a livable planet.