According to Reuters, Bridgewater Associates and advocacy group Global Citizen have forged an alliance to provide macroeconomic research aimed at aiding the World Bank in securing approximately $5 billion to extend loans to developing nations.
The partnership, unveiled on Monday, sees the $112.5 billion hedge fund offering essential insights to bolster the initiative.
The research aims to empower governments worldwide in making informed decisions regarding potential contributions to the World Bank’s International Development Association (IDA) fund.
Nir Bar Dea, CEO of Bridgewater, underscored that the research will focus particularly on Africa, a region that has benefited from the IDA fund in recent times.
He highlighted Africa’s shifting demographic landscape, pointing out projections indicating that sub-Saharan Africa will encompass a quarter of the global working-age population within a few decades, surpassing even China in about a decade.
Bar Dea emphasized the urgency of increasing strategic investments by the public sector, especially in critical areas like access to electricity and healthcare.
With almost five decades of experience as a macro hedge fund trading various assets across multiple countries, Bridgewater has a history of leveraging economic research to inform its investment strategies.
Its track record, positioning it as the fourth most profitable fund according to LCH Investments, underscores its expertise in this field.
While Bar Dea did not disclose Bridgewater’s current allocation of investments in African assets, Global Citizen’s role will be to utilize Bridgewater’s research to raise awareness of the continent’s urgent needs.
Hugh Evans, co-founder and CEO of Global Citizen, expressed optimism that this partnership would enhance the World Bank’s fundraising endeavors.
He highlighted that the research would be accessible to Global Citizen’s 12 million members and G20 countries, which are critical donors to the IDA fund.
