Economy Minister Stresses Importance of Replenishing IDA Resources

Speaking on behalf of the Chairmanship of the African Union, held by His Excellency Mr. Mohamed Ould Cheikh El Ghazouani, the President of the Republic, at a high-level conference on the 21st replenishment of the International Development Association (IDA), organized by the World Bank on 23 October in Washington, as part of the annual meetings of the World Bank Group and the International Monetary Fund, Mr. Sid’Ahmed Ould Bouh, the Minister of Economy and Finance, said that “the International Development Association (IDA) represents a lifeline for many low-income countries, which rely on grants and low or no-interest loans for vital investments in infrastructure and economic development”.

At the start of his speech, the Minister conveyed the greetings of His Excellency the President of the Republic to the audience, emphasizing that he pays particular attention to this institution, whose performance he praised in various international forums at the Nairobi and Abidjan conferences. He called for replenishing the resources of this important institution for Africans.

He noted that the call to replenish the institution’s $120 billion resources reflects the scale of the challenges facing Africa, in particular.

He added that IDA is a pioneer in concessional financing on the African continent, where this financing has doubled over the past five years, from $59 billion to $119 billion, helping to alleviate the debt crisis. Indeed, more than half the countries on the continent are faced with an unsustainable debt burden, the repayment of which represents 45% of these countries’ revenues, despite the need to transfer these amounts to development, which explains why the financing provided by IDA is so important, as it includes a high percentage of grants and long-term concessional loans.

The Minister asserted that the call for IDA replenishment means obtaining the resources needed to preserve what has been built and address the growing debt crisis to enable the poorest countries to continue on their path toward sustainable development.

The Minister also drew attention to the fact that Africa itself contributed to mobilizing resources during the institution’s 20th replenishment, with several African countries, including Algeria, Angola, and South Africa, demonstrating their commitment to the cause.

This is not just a call for extraordinary efforts on the part of donors, but a collective responsibility to continue this vital work”, he stressed.