World Bank to invest $57bn in Nigeria, Sub-Saharan Africa

World Bank

The World Bank Group President,  Jim Kim said the bank would be investing $57bn to accelerate growth and development in Sub-Saharan African countries over the next three years.

In a statement released to Nigerian journalists by the Senior Communications Officer, World Bank Nigeria,  Olufunke Olufon, on Monday in Abuja, Kim said the money would be raised by three subsidiaries of the group.

According to Kim, the funding will run from July 1, 2017, to June 30, 2020.

He said, “The bulk of the financing, $45bn will come from the International Development Association, the World Bank Group’s fund for the poorest countries.

“The financing for Sub-Saharan Africa also will include an estimated $8bn in private sector investments from the International Finance Corporation, a private sector arm of the Bank Group.

“$4bn in financing will come from the International Bank for Reconstruction and Development, its non-concessional public sector arm.”

Kim said the move presented an opportunity to change the development trajectory of the countries in the region, including Nigeria.

He said, “With this commitment, we will work with our clients to substantially expand programs in education, basic health services, clean water and sanitation, agriculture, business climate, infrastructure, and institutional reform.

“The IDA financing for operations in Africa will be critical to addressing roadblocks that prevent the region from reaching its potential.

“To support countries’ development priorities, scaled-up investments will focus on tackling conflict, fragility, and violence; building resilience to crises including forced displacement, climate change, and pandemics; and reducing gender inequality.

“Efforts will also promote governance and institution building, as well as jobs and economic transformation.

“This financing will help African countries continue to grow, create opportunities for their citizens, and build resilience to shocks and crises.”

Kim said that much of the estimated $45bn from IDA, would be dedicated to country-specific programs.

He explained that significant amount would be available to finance regional initiatives, support refugees and their host communities, and help countries in the aftermath of crises.

He said this would be complemented by a newly established Private Sector Window for Africa because many sound investments go untapped due to lack of capital and perceived risks.

He said the PSW will supplement existing instruments of IFC and the Group’s arm that offers political risk insurance and credit enhancement to spur sound investments through de-risking, blended finance, and local currency lending.

He said, “This World Bank Group financing will support transformational projects during 2018 to 2020 financial period.

“The IBRD priorities will include health, education, and infrastructure projects such as expanding water distribution and access to power.

“The priorities for the private sector investment will include infrastructure, financial markets, and agribusiness.

“IFC also will deepen its engagement in fragile and conflict-affected states and increase climate-related investments.

“Expected IDA outcomes include essential health and nutrition services for up to 400 million people, access to improved water sources for up to 45 million, and 5GW of additional generation capacity for renewable energy.”

Kim said the IDA financing would build on a portfolio of 448 ongoing projects in Africa totalling about $50bn.

On this, he said a $1.6bn financing package was being developed to tackle the impending threat of famine in parts of Sub-Saharan Africa and other regions.