(Ecofin Agency) - The World Bank agreed to grant Benin $230 million to help enhance the country’s economic and climate resilience. In a September 18 statement, the lender said this new financing will specifically support private-sector-led growth, boost national revenue collection, and build social and climate resilience.
Funds will be channeled through International Development Association (IDA), the World Bank Group's window dedicated to the poorest countries. “The program has three pillars. The first pillar supports the establishment of a new public-private partnership (PPP) framework, the creation of a new ecosystem for the development of micro, small, and medium enterprises, and the improvement of the investment climate. The second pillar supports reforms to boost domestic revenue collection, creating the fiscal space needed for public investment and debt sustainability. The third pillar targets reforms aimed at building social and climate resilience, in particular through subsidized health services for the poor, adaptive social protection, and strengthened disaster risk management,” the statement reads.
According to the World Bank, Benin ranks 152nd out of 181 countries on the extreme climate vulnerability index. The increased frequency of flooding is exacting a heavy toll on the population and the agricultural sector, and its rate of coastal erosion, one of the highest in the Gulf of Guinea, poses a threat to more than 50% of the population living in the coastal region, the existing key infrastructure, and economic activity.