Finland will contribute EUR 107 million to the 21st replenishment of the International Development Association (IDA), which is part of the World Bank. IDA supports the world’s poorest countries.
On 6 December 2024, the donor countries of the International Development Association (IDA) and representatives of the countries that receive funding from the organisation agreed on IDA’s replenishment for 2025–2028.
IDA provides concessional loans and grants to the poorest and most vulnerable countries in the world. A total of 75 countries are currently eligible to receive IDA funding. IDA’s aim is to end poverty on a livable planet. The upcoming replenishment period will focus on improving economic well-being, developing jobs and infrastructure, and increasing people’s well-being in developing countries and fragile countries. Other areas of focus will be gender equality, climate, and environmental issues.
IDA’s advantage is its unparalleled ability to mobilize other financing. The countries negotiated a financing package of approximately USD 100 billion, of which around USD 23,7 billion are contributions from donor countries and the rest are loan repayments from developing countries and market financing.
“I am pleased with how impactful IDA is. Through IDA, we are helping to strengthen developing countries’ own domestic resource mobilization and to channel private capital to development projects. Finland’s development policy priorities, including the rights of women and girls, education, digitalization, climate action and the rights of persons with disabilities, are strongly present in IDA’s activities,” says Minister for Foreign Trade and Development Ville Tavio.
Donors meet every three years to agree on the replenishment of IDA resources. During the previous 2022–2025 replenishment round, Finland supported IDA by EUR 125 million, which means that the grant element pledged by Finland will decrease by about 14 per cent. In addition, in 2023, Finland granted EUR 92 million to the IDA Crisis Facility for the financing needs of Ukraine and other countries affected by Russia’s war of aggression. EUR 12 million of the amount was allocated as a grant and EUR 80 million as a concessional loan.
“Due to funding cuts to development cooperation during this government term, Finland’s contribution will be smaller than before. IDA is one of the most important channels for Finland to support the least developed countries, so the cuts have been kept moderate,” says Minister for Foreign Trade and Development Ville Tavio.
