What to expect as IDA21 State Summit kicks off in Kenya

Mobilizing finance and tackling development crisis remained a central focus as African leaders converged in Kenya’s Capital for this year’s Heads of State Summit in Nairobi. The 21st International Development Association (IDA21) Summit, organized by the World Bank, brought together key stakeholders to discuss strategies for poverty reduction, economic impact, climate-focused projects, and data-driven development priorities in Africa. CNBC Africa's Tabitha Muthoni spoke with Axel Van Trotsenburg, Senior Managing Director of Development Policy And Partnerships at the World Bank, to gain insights into the key areas of focus for the IDA in Africa. Van Trotsenburg highlighted the significant amount of funding, amounting to about 70 billion dollars, that is being directed to Africa through the International Development Association. These funds are utilized for various development projects in crucial sectors such as education, health, infrastructure, electricity, agriculture, and climate change adaptation. One of the key metrics used by IDA to measure the impact of its investments is the number of people reached and the tangible difference made in households. While traditional economic indicators are important, Van Trotsenburg emphasized the importance of translating investments into concrete outcomes that benefit communities and individuals. The focus on poverty reduction has been a core objective of IDA, which has contributed over 550 billion dollars in investments over the past 60 years, leading to a significant reduction in global extreme poverty rates. Van Trotsenburg highlighted the shift in focus towards Africa in recent years, underlining the importance of sustained support for the continent's development agenda. With a roadmap emphasizing sustainability and resilience, the World Bank and IDA are committed to scaling up climate financing and attracting additional private sector investment for climate-focused projects in Africa. Van Trotsenburg emphasized the importance of collaboration with governments, multilateral institutions, and the private sector to address the massive investment needs in Africa, particularly in the face of climate change. Leveraging funding to encourage private sector involvement and job creation is a key strategy to ensure sustainable development outcomes. Data analytics play a crucial role in identifying and prioritizing development projects in African countries. Van Trotsenburg highlighted the role of data in project design, implementation, and assessment, emphasizing the use of AI and satellite data for informed decision-making. The World Bank is dedicated to narrowing the digital divide and utilizing data for prevention and response to health and climate crises. The IDA21 Summit serves as a platform for African leaders to inform the strategies and support programs of the World Bank, with a focus on aligning development initiatives with African priorities. Van Trotsenburg noted that the insights gained from discussions with finance ministers and heads of states at the Summit would shape the next three years of development initiatives in Africa. As the World Bank prepares for its replenishment cycle, the input and guidance from African leaders are crucial in defining the future of development finance on the continent.