The World Bank allocated over $73B in 2021 — where is it going?

In 2021, the World Bank added 554 new projects into its monthly operational summaries — a series of reports that compile all the programs that enter the bank’s pipeline and provide relevant information such as description, financing, sector, and status. These projects are included from the point of identification up to the signing of the loan, credit, or grant agreement, which means that the amount is still subject to change until the project is signed. Devex dug into the MOS reports published throughout 2021 to see how the bank allocated its funding for new projects in different regions and sectors. We also identified top countries and projects. Overall, the World Bank allocated $73.39 billion to new projects in 2021 — an increase of $13.9 billion, or 23.4%, from the previous year. Other donors such as the Asian Development Bank, Asian Infrastructure Investment Bank, Japan International Cooperation Agency, and KfW provided an additional $6.03 billion. The growth in allocations is part of a sharp increase in World Bank funding over the past years, largely driven by its response to the COVID-19 pandemic. The bank divides its funding into 16 thematic sectors. Of these, transport saw the biggest increase — from $4.82 billion in 2020 to $10.18 billion in 2021, a 111.4% rise. The bank also divides its funding into 10 world regions. Of these, eastern Africa saw the largest rise — from $2.66 billion in 2020 to $7.17 billion, a 169.6% increase. Geographical focus Almost half of the funding for new projects went to just three regions: South Asia with $13.39 billion, West Africa with $11.61 billion, and Latin America and the Caribbean with $8.85 billion. South Asia and West Africa were also among the most funded in 2020, while Latin America and the Caribbean overtook East Asia and the Pacific. The rest is divided among other Asian and African regions and Eastern Europe. Among the countries, India remains the most funded with $6.91 billion — $1.5 billion more than the previous year. This accounts for 51.7% of the allocation to South Asia and 9.4% of the total funding. Bangladesh ranked next with $3.4 billion — $653.5 million more than the previous year — while funding to Ethiopia tripled from $1.05 billion in 2020 to $3.09 billion in 2021. Sectoral priorities Health remains the priority sector with $12.99 billion — $3.76 billion more than 2020. It accounted for 17.7% of the total allocation for 2021. The biggest chunk, worth $8.86 billion, went to COVID-19 responses, including vaccine rollouts. The remaining amount went to projects such as strengthening health care systems and supporting maternal and child health. Transport saw the biggest leap among all sectors. The total funding was $10.18 billion or 13.9% of the total allocation for 2021 — $5.37 billion more than 2020. This increase is due to the addition of 19 more projects in 2021. The projects ranged from improving transport accessibility, constructing roads, to financing transit systems. Energy received $2.6 billion more than the previous year, with $7.96 billion or 10.9% of the total allocation for 2021. The projects include modernizing power grids, expanding and increasing power supply, and supporting the transition to clean energy. The remaining $42.25 billion went to all the other sectors including agriculture, education, environment, finance, and water. Top projects Below are the biggest new projects that entered the World Bank’s pipeline in 2021: • $1.5 billion for COVID-19 response and recovery in Brazil, focusing on its vaccine rollout and strengthening the health care system for future emergencies. • $800 million to support the poor and vulnerable population in Nigeria. • $800 million for pandemic response and strengthening the health care system in South Africa. • $750 million each to support the Strategic Revenue Growth Initiative and improve the business environment Nigeria. • $750 million for a Transport and Connectivity Support Project in the Democratic Republic of Congo, which targets the eastern and Kasai regions. • $700 million to support secondary education, and $600 million for infrastructure and technology to improve trade and transport conditions in Bangladesh. • $600 million for transport decarbonization in the metropolitan area of Buenos Aires, Argentina. • $500 million for the expansion of an electricity grid network and private sector participation in renewable energy generation in Ethiopia. An additional $45 million funding will come from the Green Climate Fund. • $500 million for the Green Agricultural and Rural Revitalization Program in China. • $500 million to support climate resilience in Costa Rica. Janadale Leene Coralde contributed to this article. Try out Devex Pro Funding today with a free 5-day trial, and explore funding opportunities from over 850+ sources in addition to our analysis and news content.