Washington — The World Bank's Board of Executive Directors today approved US$100 million from the International Development Association (IDA)* to support the Government of Burkina Faso's ongoing efforts to catalyze private-sector growth and job creation, improve governance and enhance public-resource management, build economic resilience and reduce the vulnerability of its many farmers to drought and other shocks.
"Burkina Faso's Government has built an impressive record of economic stability, a record which it has maintained in the face of serious and unpredictable shocks ranging from recurrent droughts in its agricultural regions to instability and conflict in its neighboring countries," said World Bank Country Manager for Burkina Faso Mercy Miyang Tembon.
"Today's program will focus on removing obstacles to employment growth in the country's private sector as a whole, while also devoting particular attention to agriculture, the country's primary source of employment and a critical safeguard against food insecurity."
Today's funds support Burkina Faso's Third Growth and Competitiveness Operation, the third in a series of operations that support the government's new generation of poverty reduction strategy papers, the Strategy for Accelerated Growth and Sustainable Development (Stratégie pour la Croissance Accélérée et le Développement Durable - SCADD), adopted on March 16, 2011.
The Third Growth and Competitiveness Credit Operation has three pillars.
The first pillar supports efforts to promote private-sector-led growth by improving the functioning of the agricultural input market, facilitating increased trade flows by reducing the administrative cost of cross-border trade, and promoting investment in private transportation capital.
Under Pillar 2, the program supports measures to increase transparency in the mining sector, enhance the effectiveness and accountability of the judicial system, and consolidate key reforms in public financial management.
"The direct beneficiaries of today's funding include farmers, importers, communities in mining regions, female entrepreneurs, and communities vulnerable to food insecurity," said World Bank Task Team Leader Samba Ba.
"I look forward to effective implementation of policy reforms included in this program so that it can help transform high economic growth rates into widespread employment, broad-based poverty reduction, improved food security and the delivery of basic social services to all of the communities in Burkina Faso."
Under Pillar 3, the program's actions are aimed at strengthening the resilience of the economy by improving local communities' capacity for social-service provision, expanding access to credit, especially by female entrepreneurs, and reinforcing national food security and food-crisis preparedness.
- The World Bank's International Development Association (IDA), established in 1960, helps the world's poorest countries by providing loans (called "credits") and grants 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 81 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change for 2.5 billion people living on less than $2 a day.
Since 1960, IDA has supported development work in 108 countries. Annual commitments have increased steadily and averaged about $15 billion over the last three years, with about 50 percent of commitments going to Africa.