The World Bank approved a Development Policy Financing of $50 million, which will support the Republic of Congo’s reform efforts to improve governance, revenue mobilization and public financial management, create the conditions for inclusive and sustainable growth in the country.
This Development Policy Financing is the first in a programmatic series of three over the period 2022-2024 financed by the International Development Association (IDA)* with the aim of putting the economy on the path of recovery in line with the Governments’ National Development Plan 2022-2026.
“The reforms supported by the Development Policy Financing are expected to have a positive, medium-term impact on economic growth, poverty reduction, and environmental sustainability” says Abdoulaye Seck, World Bank Country Director for the Republic of Congo.
Improving the business environment will help reduce the cost of running a business by reducing the frequency of inspections and stimulate private investment. Improving service delivery in education and health should deliver more equitable and timely release of funding to schools and health centers. Improving social protection by establishing a permanent safety net program will provide more and sustainable support to vulnerable households, reducing poverty and enhancing social inclusion. The reforms will also tackle the issue of reducing gas flaring and venting to comply with commitments to zero flaring by 2030 and with carbon emissions reduction as set out in Congo’s Nationally Determined Contribution.
*The International Development Association (IDA) is the World Bank’s fund for the poorest. Established in 1960, it provides grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 76 poorest countries, 39 of which are in Africa. IDA resources help effect positive change in the lives of the 1.6 billion people living in the countries that are eligible for its assistance. Since its inception, IDA has supported development work in 113 countries. Annual commitments are constantly on the rise and have averaged $21 billion over the past three years, with about 61% going to Africa.
Distributed by APO Group on behalf of The World Bank Group.