Ruto: Africa raises record 12 trillion in development funding

Kenya has secured Sh12.9 trillion ($100 billion) in concessional funding from the World Bank to support development efforts across Africa.

Speaking during the New Year diplomatic address at State House in Nairobi on Monday, February 10, President William Ruto noted the amount was raised through efforts led by African Heads of State.

“Kenya’s efforts to secure concessional funding through the International Development Association (IDA) window of the World Bank championed during the IDA 21 replenishment summit in Nairobi resulted in raising $100 billion, the highest amount ever,” said Ruto.

The funding stems from the IDA 21 summit, where 19 African heads of state advocated for a robust replenishment of $120 billion. 

The IDA provides development financing and cross-sector support to help countries improve economic outcomes and manage debt relief for poorer nations.

During the summit, Ruto  called for increased contributions to IDA, urging leaders to raise at least $120 billion, up from $93 billion in 2021. 

He also pushed for reforms in the global financial system to ensure fair debt restructuring, climate financing, and development support.

“Our proposal and request entail a vision for Africa-driven socio-economic development, executed with transparency and inclusiveness, and our case is straightforward: Significant capital injection into IDA is crucial. The G20 Independent Expert Group recommends tripling IDA's financing capacity to $279 billion by 2030 while maintaining the essential concessional nature of its financing. At the very least, let us not ignore or wish away this expert advice,” he said.

The president also called for a structured funding mechanism for peace initiatives in the Democratic Republic of Congo.

“A structured approach to funding and international engagement is essential to sustaining the EAC-SADC peace initiative in the DRC,” he added.

A summit in Tanzania proposed that ministers from the East African Community (EAC) and the Southern African Development Community (SADC) convene a joint meeting to establish a technical team under the two regional secretariats.

The increased funding comes as Africa faces multiple challenges, including a debt crisis, climate change impacts, and geopolitical tensions.