Connect with us

Economy

New World Bank Group Program to Boost Djibouti’s Efforts to Reduce Poverty

Published

on

world bank - Investors King

The World Bank Group’s Board of Executive Directors on September 23, 2021 discussed the new 2022-2026 Country Partnership Framework (CPF) for Djibouti, which supports the country’s goal of reducing poverty through a strong focus on private sector development.

The five-year CPF guides the work of the World Bank, the International Finance Corporation (IFC) which focuses on the private sector in developing countries, and the Multilateral Investment Guarantee Agency (MIGA), which facilitates foreign direct investment through political risk insurance and credit enhancement guarantees.

“The new Country Partnership Framework for Djibouti seeks to take advantage of Djibouti’s strategic location, at the crossroads of regions and continents,” said Marina Wes, World Bank Country Director for Egypt, Yemen and Djibouti. “With a strong focus on poverty reduction and shared prosperity, our partnership will support private sector development to boost productivity and job creation, with a renewed emphasis on human capital development and governance.”

Creating a more conducive environment to develop the private sector is critical for building long-term resilience to economic shocks such as COVID-19. The CPF will aim to address the immediate needs related to the pandemic while supporting medium- to long-term reforms to create the right environment for inclusive and job-creating growth. Aligned with Djibouti’s Vision 2035 and guided by the priorities of the government’s national strategy, the program has two main focus areas:

  • To promote inclusive private sector-led growth, job creation and human capital by stimulating entrepreneurship and Small and Medium Enterprise (SME) development, and strengthening productive skills and access to jobs, including for women and youth. The World Bank Group will also support government efforts to promote private sector development in key sectors such as tourism, housing and agribusiness while continuing its engagement in energy and infrastructure and improving intra-regional connectivity.
  • To strengthen the role and capacity of the state by supporting the government’s efforts to improve access to and the delivery of basic services in health, education and water; and to promote the transparency, accountability and efficiency of the public sector with a focus on enhancing transparent management and public debt sustainability.

Throughout the two focus areas, the CPF will foster digital transformation, strengthen transparency to support good governance, and promote gender parity. To help strengthen Djibouti’s resilience to external shocks, regional integration will be core to the program which also maintains engagement in climate change adaptation, mitigation and disaster response.

The Djibouti Country Partnership Framework will support business environment reforms to boost productivity and encourage private investment in Djibouti with IFC and MIGA support.

“The private sector plays an essential role in creating jobs and promoting economic growth. IFC will continue to work closely with the government of Djibouti and with the World Bank to explore opportunities to support reforms that will improve Djibouti’s business environment and investment climate and help the country achieve its development goals,” said Jumoke Jagun-Dokunmu, IFC Regional Director for Eastern Africa.

Aligned with the World Bank’s regional strategy for the Middle East and North Africa, the Djibouti Partnership Framework is underpinned by the Systematic Country Diagnostics (SCD), the World Bank Group’s  comprehensive analysis of the opportunities and challenges for Djibouti to achieve poverty reduction and shared prosperity in an inclusive and sustainable way. It builds on extensive consultations with a broad range of stakeholders including the government, private sector, civil society and development partners. Implemented jointly by the World Bank, IFC and MIGA, the CPF will span two International Development Association (IDA) cycles – IDA19 and IDA20.

“Our new Country Partnership Framework takes into account the global pandemic, its impact on Djibouti’s economy and population and current regional dynamics”, said Boubacar-Sid Barry, World Bank Resident Representative in Djibouti. “We will work closely with the authorities to support the new development program, with the goal of reducing poverty and achieving more sustainable and inclusive growth, while also boosting regional integration.”

The World Bank’s portfolio in Djibouti consists of 13 projects totaling US$248 million in financing from the International Development Association (IDA), the World Bank’s arm for the poorest countries. The portfolio is focused on education, health, social safety nets, energy, rural community development, urban poverty reduction, the modernization of public administration, governance, and private sector development with an emphasis on women and youth.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Continue Reading
Comments

Economy

World Bank Says Nigeria’s Economy is Static, Per Capita Income Unchanged in 40 Years

Published

on

Sweden's economy

The World Bank claims Nigeria’s per capita income has been static since 1981, which is a total of 40 years.

The Country Director of the World Bank, Shubham Chaudhuri said this at the breakout panel session of the 27th Nigerian Economic Summit on Lightning Nigeria: Solution framework for power recovery held in Abuja.

He further went on to advise Nigeria’s economic managers to quickly assemble potent strategies to harness the robust potential of the country.

He went on to say that the medium-term development plan for 2021-2025 is set on the development agenda for sustainable growth driven by new and emerging sectors. He claimed about three million Nigerians come of working age yearly, but surveys have shown that they aspire to go abroad to earn a better standard of living.

Per Capita Income is an Economic indicator that indicates the average income earned per person in a country in a specified year. It is calculated by dividing the country’s total income by its total population. In 1981, according to World Bank data, Nigeria’s per capita income was $2,180.2 and per capita income was $2,097 in 2020, meaning there has been no significant change in four decades.

 Earlier in the session, the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed called for a paradigm shift in running the country’s economy through comprehensive and targeted reforms, a reorientation of national values, and a radical shift in attitudes to taxation and public financial management. 

She said, “This is consistent with the focus of this administration on targeted investment in critical infrastructure and social development.

 The Nigerian Economic Summit is the flagship event of the Nigerian Economic Summit Group (NESG) and it is organized in collaboration with the National Planning Commission (NPC). The Nigerian economic summit has consistently focused on job creation, small and medium-sized enterprises (SME) growth, competitiveness, dismantling the pillars of corruption, encouraging sustainable growth and development, and aligning home-grown long-term agenda with the UN sustainable development goals. The 27th Nigerian Economic Summit has the theme Securing our Future: The Fierce Urgency of Now.

Continue Reading

Economy

East African Countries to Discuss Economic Recovery and Investments Promotion this Week in Kigali

Published

on

Trade - Investors King

More than 100 decision-makers and economic stakeholders will gather in Kigali this week to discuss the road to social and economic recovery and how to attract investments in East Africa. The meeting known as the 25th session of the Intergovernmental Committee of Senior Officials and Experts (ICSOE), will take place from 27 to 29 October 2021. 

The ICSOE is the annual gathering of the office for Eastern Africa of the UN Economic Commission in Africa (UNECA) organised in collaboration with the Rwanda Ministry of Finance and Economic Planning. The theme of this year’s meeting is: “Strengthening resilience for a strong recovery and attracting investments to foster economic diversification and long-term growth in Eastern Africa”.

Dr Mama Keita, Director of UNECA in Eastern Africa said that the Covid-19 pandemic has weakened the economic conditions of all countries in the region. She stressed that the ICSOE meeting will provide a platform for various stakeholders from governments to have a conversation with experts and private sectors on the needed economic recovery and on how to re-ignite the engines of trade and investment.

Dr Uzziel Ndagijimana, Minister of Finance and Economic Planning said that this meeting is timely and significant. “This is the time for Rwanda to discuss with other countries of the region the potentials and the ability to rise and be responsive to the socio-economic challenges, exacerbated by the Covid-19 crisis.

According to Ms Keita, the African Continental Free Trade Area (AfCFTA) is undoubtedly critical to support the recovery from the severe adverse impacts of the Covid-19 pandemic, increase the economic multiplier in the region and will help countries to build back better, grow their economies and create jobs that foster inclusive growth.

The participants at the meeting will discuss thematic issues such as deepening Regional Value Chains, environment for investment Opportunities and Interlinkages between peace, security and development.

The subregional office for East Africa of UNECA serves 14 countries: Burundi, Comores, RD Congo, Djibouti, Eritrea, Ethiopia, Kenya, Madagascar, Rwanda, Seychelles, Somalia, South Sudan, Tanzania and Uganda.

Continue Reading

Economy

Federal Government to End Petrol Subsidy by June 2022 as World Bank Condemns N2.9 Trillion Funding

Published

on

Petrol - Investors King

The Minister of Finance, Budget, and National Planning, Mrs Zainab Ahmed, said the Federal Government had made plans for petrol subsidy only up to the end of June 2022.

The minister disclosed this while speaking at the 27th National Economic summit on Monday in Abuja.

She said the Federal Government only factored in subsidy for the first half of the year. In the second half of the year, the Government is looking at complete deregulation of the sector, thereby saving foreign exchange and potentially earning more from the oil and gas industry.

This comes as the World Bank decried the continued spending by the Nigerian Government on petrol subsidy, which it said is on track to gobble up to N2.9 trillion this year. The Country Director for the World Bank in Nigeria, Shubham Chauduri speaking at the National Economic Summit, said the country could channel money being spent on petrol subsidy to primary healthcare, basic education, infrastructure such as rural roads, and industries.

He went on to say that Nigeria is on track to spend N2.9 trillion on Petrol subsidy this year, more that is spent on health in the country, and likened Nigeria to a malnourished individual needing urgent treatment.

He said “I think the urgency of doing something now is because time is going in terms of retaining the hope of young Nigerians in the future and potential of Nigeria. The kinds of things that could be done right away – the petrol subsidy; yes, I hear that six months from now, perhaps with the Petroleum Industry Act coming into effect, it might go away. But the fact is, can Nigeria afford to wait six months? There is a choice being made; N2.9 Trillion to Petrol subsidy which is depriving states of much-needed revenue to invest in basic services.

Meanwhile, the Chairman of the President Economic Advisory Council, Prof Doyin Salami, said he had argued for a very long time that petrol subsidy needs to go.

A petrol subsidy is a program in which the Government or any other organization pays for a portion of gasoline, heating oil, or some other fuel. Nigeria is the biggest producer of crude oil in Africa but still needs to import Petrol, this situation made subsidizing petrol necessary as the exchange rate in which it is being imported puts the price out of the reach of the average consumer.

Continue Reading




Advertisement
Advertisement
Advertisement

Trending