New World Bank financing to support competitive value chains and to generate jobs
WASHINGTON, 23 June 2021—The World Bank approved this Wednesday new financing to support Côte d’Ivoire to strengthen the competitiveness of export-oriented agro-industrial and manufacturing value, a key objective of the government’s Vision 2030. The financing also aims to increase access to long-term finance for start-ups, young small and medium enterprises (SMEs), as well as large enterprises carrying out green investments.
With $200 million in total financing from the International Development Association (IDA*), the Competitive Value Chains for Jobs and Economic Transformation Project (PCCET) will support the efforts by the Ivorian authorities to ensure the structural transformation of the national economy through economic diversification and strengthening the competitiveness of its key sectors, notably agricultural, agro-industry and manufacturing.
The project will assist actors in supported value chains to overcome market failures by providing services aiming to improve the quality standards, add value to their products and access higher value markets. These services will support at least 3000 smallholder farmers and 65 enterprises, transporters and other services providers. Through the establishment of a Long-Term Investment Facility (LTIF), the project will also improve access to financing for at least 200 startups and young SMEs - including those led by women – and 30 large enterprises involved in green investments. In addition, the project will support the digital transformation of eligible microfinance institutions, especially those operating in rural or remote areas.
“Accelerating economic transformation by increasing productivity and competitiveness of Ivorian value chains, stimulating private sector investment as well as support for jobs, are directly in line with the National Development Plan of the Government », noted Coralie Gevers, World Bank Country Director for Côte d’Ivoire, Benin, Guinea, and Togo. « The PCCET Project will improve the way that Ivorian farmers and enterprises participate in global value chains by adding more value and accessing more attractive markets.”
Another important aspect of the PCCET Project is the support it will bring for the implementation of a set of policy and institutional reforms, in particular those that will boost trade facilitation, access to industrial land, and sectoral reforms aiming to improve the business environment in Côte d’Ivoire.
*The International Development Association (IDA) is the World Bank’s fund for the poorest. Established in 1960, it provides 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 1.6 billion people. Since 1960, IDA has supported development work in 113 countries. Annual commitments have averaged $21 billion over the last three years, with about 61% going to Africa.