The World Bank Board of Executive Directors today approved US$25 million for Burundi's Fourth Economic Reform Support Grant (ERSG IV). ERSG IV is the first in a new series of operations that aim to consolidate many of the reforms that began in the last series (ERSG II and ERSG III).
ERSG IV focuses on two main areas: improving budget credibility, planning, and controls; and strengthening the business environment and performance of the traditional export crop sectors.
"After more than a decade of conflict, Burundi has made progress toward restoring macroeconomic stability, implementing financial and structural reforms, improving social services, and promoting investment and economic growth," said Jean-Pascal Nganou, the World Bank's Task Team Leader for this operation. "This grant will help improve fiscal transparency and accountability; as well as make the business environment more conducive to private sector-led growth."
The public finance management component of ERSG IV has three main sub-components: strengthening strategic and budget planning to improve the quality of public spending; reinforcing PFM systems; and improving the management of the public wage bill.
Private sector development includes three main sub-components: promoting private investment development through improvements in the legislative framework and economic infrastructure; facilitating the restructuring or privatization of public enterprises; and modernizing export sectors.