WASHINGTON, December 10, 2018-- The World Bank today approved a $40 million (about FCFA24 billion) International Development Association (IDA)* grant to help Togo pursue its efforts to improve fiscal sustainability and promote economic growth. Like its predecessor, the second Fiscal Management and Infrastructure Reform program (FMIR2) supports measures to improve tax revenue mobilization, public investment efficiency and debt management. It will also help improve the performance of the energy and information, communication and technology (ICT) sectors.
“This is the second in a programmatic series of two development policy operations to help Togo pursue the implementation of critical reform measures to strengthen fiscal management and address persistant issues in the energy and ICT sectors. The reforms implemented under the FMIR2 will restore macroeconomic stability and contribute to the country’s economic growth. The new operation builds upon the results of the first (FMIR1) which helped the country improve its macro and fiscal situation and make satisfactory advances on policy reforms in the targeted areas”, said Pierre Laporte, World Bank Country Director for Togo.
The new program is structured around two main pillars. The first supports government’s effort to improve fiscal management through enhancing tax revenue mobilization and collection efficiency, and seeks to strengthen public investment and debt management. The second focuses on measures to improve financial viability and service delivery in the energy and ICT sectors.
FMIR2 is consistent with Togo’s National Development Plan 2018-2022 which aims to structurally transform the country’s economy for strong, sustainable, resilient, inclusive growth that creates decent jobs and leads to improved social well-being. It is also aligned with the World Bank Group’s 2017-2020 Country Partnership Framework for Togo which specifically supports improved governance and economic performance objectives.
FMIR2 will be released in a single tranche.
* 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 averaged about $18 billion over the last three years, with about 54 percent going to Africa.