The World Bank announced on Thursday that it has successfully secured nearly $24 billion in contributions to its International Development Association (IDA), which serves as the concessional lending arm for some of the world’s poorest countries. This funding, totaling $23.7 billion from donor nations, represents a slight increase from the $23.5 billion pledged during the previous fundraising round three years ago. By leveraging these contributions on financial markets, the World Bank estimates it can generate up to $100 billion in new loans and grants—an increase from the $93 billion raised in 2021.

In a statement, the World Bank described the IDA21 replenishment as a “historic success,” emphasizing the confidence and support from donors and recipients alike. World Bank President Ajay Banga highlighted the importance of the funding, stating it would be allocated to 78 of the world’s most vulnerable nations to invest in critical areas such as health, education, infrastructure, and climate resilience. Additionally, the funding aims to stabilize economies and foster job creation in these countries.

The announcement followed two days of discussions in Seoul, South Korea, underscoring IDA’s vital role in providing concessional finance for climate initiatives. Over the past decade, two-thirds of IDA’s resources have been directed toward African nations. The replenishment process, which occurs every three years, depends heavily on contributions from major donors such as the United States, Japan, the United Kingdom, Germany, and France.

The United States pledged a record $4 billion in new funding this year, joined by increased contributions from other nations, including Norway and Spain. Notably, 35 former recipients of IDA aid, such as China, Turkey, and South Korea, have transitioned to donor status, reflecting the fund’s success in aiding economic growth and development over the years. These efforts reinforce the World Bank’s commitment to fostering global economic stability and sustainable development.