Empowering Africa: Navigating the World Bank’s IDA Partnership
Welcome to our detailed database examining Africa’s relationship with the World Bank’s International Development Association (IDA), providing thorough analyses and data to support informed discussions on enhancing this partnership to better meet Africa’s development goals. Founded in 1960, IDA serves as the World Bank’s concessional lending arm, offering grants and low-interest loans to low-income nations. With 39 African countries as IDA members, half of its resources are dedicated to funding projects in these nations.
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Top Donor Contributions to IDA
The graph below presents the ranking of top donors to the IDA over the past 8 replenishments (when data is available), showing that the USA, UK, Japan, Germany, and France have been the top 5 lenders over this period.
DR’s Key Takeaways:
- Historically, the U.S. and the UK have been the top donors at more than US$20 billion each.
- The top donors in IDA21 were U.S., U.K., Japan, Germany, and France who collectively accounted for 59% of total donor contributions.
- At least 20 donors have contributed a total of over US$1 billion to IDA replenishment.
Historical Trends of Donor Contributions
The graph below shows how total donor contributions to IDA have changed over time since 1960. Overall, donor contributions have grown significantly during this period, with notable fluctuations at different junctures. Notably, IDA donor contributions have flattened over the past three replenishments amidst tightening fiscal conditions across the world.
DR’s Key Takeaways:
- Since 2012, donor contributions have declined steadily from US$26 billion to US$23.5 billion as contributions of all but 9 donors have decreased in absolute terms.
- In real terms, contributions of all OECD donor countries have decreased since 2012.
World Map Showing Regional Distribution of IDA Resources
The graph below shows the regional distribution of IDA resources, with Africa accounting for the lion’s share (>70%) followed by Asia-Pacific (14.5%), Europe (6.1%) and South America (3.9%).
DR’s Key Takeaways:
- African countries have accounted for the bulk of IDA’s resource disbursement. Over the IDA’s lifetime, African countries have accounted for approximately 73% of total IDA disbursements, totalling just over US$210 bn.
- Africa’s share of IDA’s resources is five times more than that of the second-highest IDA recipient region (East Asia) which accounts for 14.5%.
- Most African countries have accessed IDA resources, with only six African countries that have never accessed IDA resources.
Top Recipients of IDA Resources
The graph below shows the top recipients of IDA resources amongst recipient countries from all regions. Ethiopia leads the way with a cumulative amount of US$23.4 billion.
DR’s Key Takeaways:
- On a country level, 8 of the top 10 recipients of IDA funding are African countries – with Vietnam (US$18.5 bn) and China (US$10.2 bn) being the only two non-African countries.
- Ethiopia (US$23.4 bn), Nigeria (US$18.8 bn) and Tanzania (US$16.7 bn) are the top 3 African recipients of IDA resources.
- The average African country has received a total volume of IDA resources four times the average of the next region (US$4.4 billion vs US$1.8 billion).
Map of Africa showing amount that countries have received from IDA funding
The graph below shows the total amount of IDA resources that African countries have received over the life of the IDA, as of 2023.
Top African IDA Recipients in terms of access counts
The graph below shows the top African recipients of IDA resources in terms of number of IDA loans/grants received, as opposed to the total value.
DR’s Key Takeaways:
- IDA distribution amongst African countries is uneven. Not only are some African countries locked out of the IDA despite having significant levels of poverty, but there is also significant difference in access amongst African IDA recipients. For instance, Ethiopia, the top recipient, received US$16 billion more than Senegal, the 10th highest recipient.
Sectoral Breakdown of IDA Funding across the continent
The graph below shows the breakdown of IDA funding in Africa by sectors across three replenishments (IDA17-IDA19) for which disaggregated data is available.
DR’s Key Takeaways:
- Over the years, IDA typically contributes to social funding – with health and social care accounting for the bulk of IDA finance at 26% in IDA19.
Previous DR work
- How frequently do African countries access the IDA? https://developmentreimagined.com/imf-and-world-bank-annual-meetings-policy-brief-reimagining-the-international-finance-system-for-africa/
- Reimagining the World Bank’s IDA: https://developmentreimagined.com/event-reimagining-the-world-banks-international-development-association-ida-for-africa-going-beyond-the-replenishment/
- Is the World Bank’s IDA working for African Interests? https://developmentreimagined.com/is-the-world-banks-international-development-association-ida-working-for-african-interests/
- Three proposals for GFA reform in Africa’s interests: https://developmentreimagined.com/press-release-empowering-africa-three-proposals-for-equitable-global-financial-reforms/
