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PRESS RELEASE April 12, 2018

The World Bank Supports Economic Recovery Reforms in the Central African Republic

WASHINGTON, April 12, 2018 – The World Bank approved today a $25 million International Development Association (IDA)* grant for the Government of the Central African Republic to support its efforts to reestablish basic fiscal management and transparency and achieve economic recovery in the country.

The Second State Consolidation Development Program (PACE2) is structured around two pillars: 1) reestablishing basic fiscal management and transparency, which will help boost fiscal revenue, improve wage bill management, curb the use of exceptional budgetary procedures, and increase budget control and transparency; 2)  supporting economic recovery, which will support a pro-poor, post-transition reform agenda that revitalizes the drivers of economic growth in roads, agriculture, and telecommunications (ICTs) sectors. The reforms under these two pillars are closely related and can help improve the living conditions of the poor, who are among the bottom 40% of the welfare distribution.

“The restoration of political stability in the Central African Republic presents a real opportunity to build peace, strengthen stability and resilience, and lay the foundation for economic recovery and development,” said Robert Bou Jaoude, World Bank Country Manager for the Central African Republic.  “This assistance from the World Bank is coming at a critical time and will support the current transition phase of the Government’s reform agenda, providing budgetary and technical assistance to implement economic reforms.”

“By creating more fiscal space, the program will expand initiatives to reduce poverty and improve service delivery (such as health and education), especially into rural areas where most of the poor live. Reforms targeting more effective management of fiscal exemptions are expected to help ensure that these resources, which account for roughly 2% of GDP, are contributing to poverty reduction and development,” said Michel Ragnvald Malberg, World Bank Task Team Leader.

The PACE series is aligned with the Government’s national recovery and peacebuilding plan (RCPCA) 2017-2021.  It is complementary to recovery and development activities supported by other development partners since the international donor conference in Brussels in November 2016.

* 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 75 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to the 1.5 billion people who live in IDA countries. Since 1960, IDA has supported development work in 113 countries. Annual commitments have increased steadily and averaged about $18 billion over the past three years, with about 54% of commitments going to Africa.


PRESS RELEASE NO: 2018/115/AFR

Contacts

Bangui
Edmond B. Dingamhoudou
+ 235 6543 0614
edingamhoudou@worldbank.org
Washington
Ekaterina Svirina
+1 (202) 458-1042
esvirina@worldbank.org
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