International Development: World Bank announces The Africa Catalytic Growth Fund

In a press release issued Feb 21, the World Bank announced that the World Bank Group Board approved creation of The Africa Catalytic Growth Fund (ACGF).

The new multi-donor trust fund would complement existing International Development Association (IDA) development programs by providing rapid financing for country programs to be selected according to specific criteria to address specific constraints holding back their potential for shared growth.

International donors are being encouraged to contribute as much as $1 billion to the ACGF, which will be managed by the World Bank. The United Kingdom already has pledged British pounds 200 million to the fund for the 2006-2008 period.

The fund, which is considered a pilot financing vehicle, will be subject to an independent evaluation after three years of operation.