WASHINTON, USA – Denmark announced its early, significantly increased financial commitment to the World Bank’s International Development Association (IDA), the bank’s fund for low-income countries.
Demonstrating the country’s continued dedication to global development, Denmark’s pledge of DKK 3,300 million represents a 40 percent increase compared to the previous IDA replenishment cycle.
Denmark’s announcement ahead of the final 21st replenishment (IDA21) meeting in December marks a bold commitment to eradicating poverty, promoting sustainable development and climate action, and addressing pressing global challenges. It is also a deliverable to the African heads of states who called for an ambitious replenishment in April.
“We all want a more prosperous and equitable world. This financial commitment signifies Denmark’s resolve and dedication in achieving the Sustainable Development Goals and the Paris Climate Agreement. I am proud to answer the call from our African partners for more funding,” said Mette Frederiksen, prime minister of Denmark. “We urge other countries to join forces with us. To act and make the necessary investments. Only together, can we tackle the most pressing development and climate challenges facing the world today.”
“The magic of IDA is not only the lifeline it offers to these countries, but its unique capacity to multiply every donor dollar four times. It’s the best deal in development. This commitment from Denmark will have a tangible impact on people’s lives,” said Ajay Banga, president of the World Bank Group.
IDA’s resources are replenished once every three years. IDA21, the latest replenishment cycle, will culminate in a final pledging meeting in Seoul, Korea on December 5-6, 2024. The last replenishment yielded a $93 billion package to finance projects that boost economic growth, build resilience, and improve people’s lives across countries.