Paul Wolfowitz , who will soon take his first trip to Africa as head of the World Bank, says a case can be made for more development aid to the struggling continent. It will get high priority during his five-year term as World Bank president.

In particular, the Bank plans to increase lending for infrastructure projects such as building roads, improving water and sanitation services, and increasing power production, from the current US$ 1.8 billion (EUR 1.5 million) a year to US$ 3 billion (EUR 2.5 billion) a year. Gobind Nankani, the Bank's Vice President for Africa, calls the increase a first step, noting that infrastructure investment in Africa would have to reach US$ 17 billion (EUR 14 billion) a year for African countries to reach growth rates of 7 per cent a year needed to sharply reduce poverty.

Infrastructure Director Michel Wormser says that the World Bank is working closely with other donors to set a program for higher investment in Africa ahead of teh July 2005 G8 meeting of major industrialised countries.

Wolfowitz also plans to address corruption. "You can't have successful development assistance" if funds are being siphoned off. The World Bank is financing 334 development projects in Africa with a price tag of US$ 16.6 billion (EUR 13.7 billion).

Source: World Bank, 7 Jun 2005; World Bank, 8 Jun 2005

Tags: policies & legislation