(Ecofin Agency) - The Central African Republic (CAR) will benefit from a new cooperation framework with the World Bank over the next five years. This was announced by the institution in a press release issued on Tuesday, September 1, 2020.
The new cooperation framework aims to strengthen investments in human capital, connectivity, economic management, and governance. It will also serve to consolidate stabilization, inclusion, and resilience while allowing the state to establish its legitimacy challenged by the presence of numerous armed groups in the territory and to stimulate growth.
While the country, on the eve of a presidential election crucial to its future, is still marked by several decades of deadly conflict, the covid-19 crisis has exacerbated the shortage of financial resources already facing the state. However, investment needs are constantly growing in terms of infrastructure, but also in terms of human capital, and it is estimated that 140,000 additional Central Africans could slide into extreme poverty.
To finance these investments, the World Bank says it is ready to disburse $355 million in aid over the next three years, provided that "the country continues on its path to stabilization and peace.
“CAR is at a crossroads. The peace agreement reached 18 months ago has proven difficult to implement, but it is holding firm. As the country prepares to hold presidential and local elections, it has a unique opportunity to create the conditions that will allow Central Africans to take full advantage of the peace dividend,” said Han Fraeters (photo), the World Bank's operations manager for CAR.
A $50 million grant from the International Development Association (IDA) has been approved by the institution to help the government implement structural reforms aimed at strengthening social inclusion and fiscal management.
Moutiou Adjibi Nourou