08/06/2020 | Press release | Distributed by Public on 08/06/2020 17:31
WASHINGTON, August 6, 2020 - The World Bank Board of Directors today approved a total amount of $250 million in International Development Association (IDA)* credit and grant to help Niger develop its human capital and to mitigate the impact of the COVID-19.
The Second Laying the Foundation for Inclusive Development Policy Financing (DPF) is the last operation in a programmatic series aimed at reducing gender gaps and providing cash transfers to households that are mostly affected by COVID-19. The program will also help expand access to electricity and potable water, improve debt management and transparency, and reduce fiscal risks.
'The new program will help the Government pursue the reforms started to create enabling conditions for sustained and accelerated medium-term growth and tackle key structural challenges related to stark gender inequality and low access to key infrastructure,' said Joelle Dehasse, World Bank Country Manager for Niger. 'This operation has been adjusted to reinforce actions that complement the government's efforts to mitigate the impact of the CODIV-19 pandemic.'
In 2019, Niger's economic performance remained robust, driven by strong performance in the primary and tertiary sectors. Real GDP growth was 5.8 percent, with 1.9 percent per capita growth. However, since March 2020, the COVID-19 pandemic is straining the country's economy, mainly due to increased spending on health and social assistance services for vulnerable households. The pandemic's adverse impact on regional and international trade, and on foreign direct investments is also severely affecting the country's economic and social development.
'The adoption of reforms through this DPF series will help improve the livelihoods of communities in these times of COVID-19 pandemic,' said Luc Razafimandimby World Bank's Senior Economist and co-Task Team Leader for the project. 'Beyond the much-needed quick fixes, the DPF maintains its core structure to protect the future, which will also sow the seeds of post COVID-19 recovery through mutually reinforcing measures.'
The operation is a result of an extensive consultation process involving government officials, development partners, civil society, and other key partners. It is fully aligned with the Government's strategy through the National Economic and Social Development Plan (2017-2021) and also with the World Bank Country Partnership for Niger (CPF 2018-2022).
* The World Bank's International Development Association (IDA), established in 1960, helps the world's poorest countries by providing 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. Resources from IDA bring positive change to the 1.6 billion people who live in IDA countries. Since 1960, IDA has supported development work in 113 countries. Annual commitments have averaged about $21 billion over the last three years, with about 61 percent going to Africa.