Sweden gives SEK 8.2 billion to world’s poorest countries

The IDA’s work to eradicate poverty comes at a time of stagnating social and economic development in many low-income countries around the world. In recent years, these countries have been hit by rising debt, increasing climate-related risks and limited access to funding.

“We are living in a period characterised by increased economic and geopolitical uncertainty, which particularly affects the world’s low-income countries. Sweden is therefore contributing to a record-breaking replenishment of the fund with a total of SEK 8.2 billion. This is a vital investment in the future, for the world’s low-income countries and for Sweden. Every development assistance krona that goes to the IDA gives three to four kronor in World Bank loans to support economic reforms and better conditions for companies to invest, trade, grow and employ people in the world’s poorest countries,” says Minister for International Development Cooperation and Foreign Trade Benjamin Dousa.

The IDA’s innovative financing model means that every krona of development assistance invested equates to three and a half to four kronor in loans and grants to recipient countries. Over the next three years, the programme will involve USD 100 billion in financing that will reach 1.9 billion people in 78 of the world’s poorest countries. The IDA focuses on areas such as employment, private investment, support to refugees and host communities, and climate. These are also high-priority areas for the Government. At least 45 per cent of the financing will go to climate measures.

With this support totalling SEK 8.2 billion, Sweden remains one of the most generous donors to the IDA, and the second-most generous in proportion to the size of its economy. The IDA is currently the single largest recipient of core support from the Swedish Government. The World Bank is also an important cooperation partner for Sweden. During the period 2024–2026, Sweden’s Minister for Finance Elisabeth Svantesson is chairing the World Bank and International Monetary Fund’s (IMF) Development Committee, the institutions’ highest advisory body for development issues.

“The major replenishment of the IDA demonstrates donors’ trust in the World Bank as an effective and reliable cooperation partner. I am especially glad about the institution’s focus on job creation and growth promotion reforms in these times of global economic uncertainty and low growth,” says Ms Svantesson.