Creating the conditions necessary to increase investment
WASHINGTON, May 10, 2016— The World Bank Executive Board of Directors approved today a US$5 million International Development Association (IDA)* credit to support the Competitiveness for Tourism Development project in Cabo Verde.
Cabo Verde’s tourism sector is set to be the engine of growth of the economy while offering numerous opportunities for diversification and further linkages with the local private sector. The project will boost the competitiveness of the tourism sector in the country through direct support to the local private sector and assistance to the agencies responsible for governing the tourism sector and investment into it.
According to Louise Cord, World Bank Country Director for Cabo Verde, “the tourism sector is one of the key priorities of the strategy the World Bank is to develop with the newly elected authorities in the country.”
The five-year project will help the Government and the private sector to benefit from the economic opportunities provided by the growing tourism sector. The private sector will receive technical assistance to diversify the types of accommodation and tourist attractions available in the country, while also benefitting from improvements to the business environment including enhanced access to finance for small and medium enterprises. The Government will receive support to enhance the governance of the sector, including capacity to promote investment and encourage tourism.
“Citizen Engagement will be essential in this project,” said Penelope Demetra Fidas, World Bank Task Team Leader, who emphasized that “project beneficiaries will be engaged in the process of designing activities, especially those related to the quality label.”
* 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 77 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to the 1.3 billion people who live in IDA countries. Since 1960, IDA has supported development work in 112 countries. Annual commitments have averaged about $19 billion over the last three years, with about 50 percent going to Africa.