John Kaninda
6 September 2007
Johannesburg — UGANDA, Cameroon, Chad and the Central African Republic emerged as the biggest beneficiaries of an increase in the World Bank financial commitments in International Development Association (IDA) resources in the last fiscal year.
The bank committed a record $5,7bn in IDA resources to subSaharan Africa in the last fiscal year, $1bn more than in the year before.
In addition, the International Finance Corporation (IFC), the bank group's private sector arm, provided $1,38bn in financing for its own account and mobilised $261m in financing through syndications.
A significant factor in the bank's increased commitment is an expanding investment in infrastructure badly needed to sustain healthy growth in the higher-performing economies, and to raise productivity in slow-growth countries.
In the fiscal year 2007, which ended on June 30, the bank committed $2,4bn of IDA funds to infrastructure projects, of which $660m was lending for the energy and mining sectors and $870m was transport sector lending.
Uganda, where power shortages have constrained development, will benefit from a package of $360m in loans and guarantees to support up to 250MW of additional generating capacity, and a more reliable and efficient power system. Regional projects, another emerging priority for Africa, accounted for a record $707m for the year.
By helping to integrate Africa's small, fragmented economies, these projects are critical to establishing an enlarged economic space for the region, while providing critical links for economically vulnerable landlocked countries.
Among these investments, the bank approved a $201m operation to finance transport and trade improvements in Cameroon, Chad and the Central African Republic, an area that accounts for the costliest transportation on the continent.
The project spurs significant additional investments from the countries, as well as development partners, to improve linkages among the three countries, and alleviate the economic isolation of landlocked. Chad and the Central African Republic.
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