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The World Bank Group President, Jim Yong Kim, said on Sunday that the multilateral institution has earmarked $57 billion to finance sustainable development projects in sub-Saharan Africa, over the next three years. Kim made the statement following the meeting of finance ministers and central bank governors from the G20 countries.

“This financing will help African countries continue to grow, create opportunities for their citizens, and build resilience to shocks and crises,” he said after the G20 meeting, which took place in Germany from March 17-18.

$45 billion of the total funds (or 79%) will be provided by the International Development Association (IDA), the arm of the World Bank Group that provides grants and interest-free loans for the world's poorest countries. An estimated $8 billion will also be raised from the International Finance Corporation (IFC), for private sector investments. The International Bank for Reconstruction and Development, the World Bank's arm providing financial and technical assistance for projects and programmes in developing countries, will contribute $4 billion financing.  

“With this commitment, we will work with our clients to substantially expand programmes in education, basic health services, clean water and sanitation, agriculture, business climate, infrastructure, and institutional reform,” the World Bank president added.

The financing is expected to target 448 projects that are already underway in sub-Saharan Africa. It will scale up investments focused on tackling conflict, fragility, and violence; build resilience to crises such as forced displacement, climate change, and pandemics; and reduce gender inequality. Also, up to 400 million people will receive essential health and nutrition services. The financing will provide access to improved water sources for up to 45 million people, and 5,000 MW of additional generation capacity in renewable energy. The funding is available for the IDA18 period, which runs from July 1, 2017, to June 30, 2020.

The IFC and the Multilateral Investment Guarantee Agency (MIGA) – the World Bank's arm that promotes foreign direct investment into developing countries by offering political risk insurance and credit enhancement guarantees – will work together to spur local currency lending.

Germany, which currently holds the presidency of the group of world's leading industrialised and emerging economies, said a partnership called "Compact with Africa" would be a priority of its presidency this year.