Musings From Abroad

W’Bank chief Banga expects rich nations to meet Africa’s donation expectations

Published

8 months ago

May 1, 2024

Ajay Banga, President of the World Bank, has said that he thinks donor countries will follow through on African leaders’ desire to make record-high contributions to a low-interest facility for developing nations.

He explained that these were not gifts but investments in the future of those countries.

Ahead of a World Bank conference scheduled for later this year, African leaders on Monday called for rich countries to commit to record contributions to a low-interest World Bank facility for developing nations. At a meeting in Japan in December, African heads of state asked rich countries to help raise at least $120 billion for the International Development Association (IDA).

That would be a record for IDA, which gives poor countries long-term loans and works in cycles of three years. The most money was raised in 2021, when $93 billion was raised.

For funders to reach the goal of $120 billion, they will need to come up with about $30 billion, since the World Bank can borrow $3 for every dollar raised.

“There is no doubt that all the donor countries have their challenges and their fiscal responsibilities. But I think they all value the effect of contributing to IDA,” Banga said in an interview on Monday.

More than half of the 75 countries that use the IDA site are from Africa. A lot of people are dealing with big debts and natural disasters, but it’s hard for them to get cheap loans on foreign markets.

The African leaders said that this makes getting IDA loans very important.

Banga said that wealthy nations should understand that helping others is good for them. He used China and India as examples of countries that used to be poor but now have big economies after getting help from IDA.

“I think the most important message is actually that this is not a handout,” he said. “If Africa develops well, Africa has a lot to offer the world.”

Related Topics:Ajay Banga Featured World Bank

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Musings From Abroad

Swiss company Mercuria partners Zambia’s IDC in new metals trading firm

Published

24 hours ago

December 21, 2024

Ifeoluwa Dada

According to a statement released by Swiss commodities trader, Mercuria, on Thursday, it has established a metals trading arm with Zambia, the second-largest producer of copper in Africa.

The trading unit is jointly owned by Mercuria and an arm of Zambia’s Industrial Development Company (IDC), and its purpose is to allow Zambia to engage directly in the minerals trading market.

The joint venture “envisages the establishment of a vehicle to market and trade Zambian copper by mutual leverage,” according to a statement from Cornwell Muleya, the CEO of IDC.

The southern African nation wants to increase copper output to roughly 3 million metric tonnes within the next ten years, and in 2023, it produced roughly 698,000 tonnes of copper, down from 763,000 metric tonnes the year before.

In June, the Zambian government announced that it would establish a minerals trading unit.

Investors including First Quantum Minerals and Barrick Gold are ramping up production, with output set to receive a further boost once Vedanta Resources’ Konkola Copper Mines restart activity.

“Our joint venture with IDC marks a significant milestone for Zambia as it positions itself more strategically in the global minerals market,” Kostas Bintas, Mercuria’s global head of metals and minerals, said in the statement.

Musings From Abroad

Blinken to reveal UN Sudan funding additions

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

Additional financing for humanitarian aid to Sudan and initiatives to strengthen civil society in the nation, where a conflict has killed tens of thousands of people and displaced millions, will be announced by U.S. Secretary of State Antony Blinken at the United Nations on Thursday.

Blinken will make many announcements when he leads a UN Security Council meeting on Sudan on Thursday, which will centre on humanitarian aid and civilian protection, Deputy U.S. Representative to the UN Ned Price told reporters on Wednesday.

According to Price, the announcements would include more money for humanitarian help, initiatives to strengthen civil society, and the return of democracy.

“Sudan, unfortunately, has risked becoming a forgotten conflict,” Price said.

“So part of the reason the secretary … opted to convene a signature event on this very topic is to make sure it remains in the spotlight,” Price said.

For almost 18 months, the paramilitary Rapid Support Forces and Sudan’s army have been engaged in combat, resulting in a severe humanitarian crisis that has forced over 12 million people from their homes and made it difficult for U.N. organisations to provide aid.

A power struggle between the RSF and the Sudanese Armed Forces preceded a planned shift to civilian administration, which sparked the conflict in April 2023.

Although the army declined to join this year’s U.S.-mediated peace negotiations in Geneva, the warring parties did pledge to increase assistance access, which prevented any movement towards a ceasefire.

Price stated that before President Joe Biden’s term ends next month, the United States would keep collaborating with allies to enhance humanitarian access in Sudan and eventually end hostilities.

“We are going to leave nothing on the field in our efforts to work with allies, with partners, with the Sudanese stakeholders themselves, on the issues that matter most – humanitarian access, the provision of humanitarian assistance, ultimately, the process by which we can work to get to a cessation of hostilities, which is most urgently needed,” he said.