WASHINGTON, December 16, 2019- The World Bank Board of Executive Directors today approved a $150 million International Development Association (IDA)* Development Policy Financing for Togo. This financing aims to support the efforts of the Government of Togo to improve fiscal and debt management, reduce the cost of electricity and promote the use of renewable energy.
This Development Policy Financing is the first of two operations designed to support the Government in boosting private sector development and creating fiscal space to increase public investment and social spending. The program will support reforms to strengthen tax revenue mobilization, enhance the quality and efficiency of public procurement procedures, and improve debt management and transparency. It will also help the Government achieve its goal of 60 percent access by 2022 and universal access by 2030 to affordable, reliable, and modern electricity services. These reforms will also help reduce the cost of power production and significantly increase the installed capacity of solar photovoltaics.
“This financing will support the government reform agenda to strengthen fiscal and debt management and improve the financial viability of the energy sector. The program of reforms should contribute to more inclusive growth by increasing private investment and creating more decent jobs,” said Hawa Cisse Wague, World Bank Resident Representative for Togo.
The new Development Policy Financing is closely aligned with the Togo National Development Plan 2018-2022, which aims to transform the economy and achieve sustainable, resilient and inclusive growth, create jobs, and improve social welfare. It also builds on the reforms supported under the previous DPF series, which helped reduced tax exemptions, increased energy utility revenue collection, and doubled the number of internet users.
*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 76 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to the 1.6 billion people who live in IDA countries. Since 1960, IDA has supported development work in 113 countries. Annual commitments have averaged about $21 billion over the last three years, with about 61 percent going to Africa.