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World Bank Talks Cabo Verde’s New Partnership Strategy

World Bank Talks Cabo Verde’s New Partnership Strategy

From allAfrica

The World Bank Group’s Board of Executive Directors discussed the new Country Partnership Strategy (2015-17) to support the Republic of Cabo Verde implement its development agenda, agreeing to provide up to 49.5 million of IDA resources over the next three years to help end extreme poverty and boost shared prosperity.

Cabo Verde will also have access to IBRD resources during the CPS period. IBRD lending limits will depend on country performance, IBRD’s lending capacity, demand by other borrowers and global economic developments.

IFC will pursue private sector investments in agribusiness, financial institutions, infrastructure, and tourism, and offer advisory support to the government in structuring effective public-private partnerships.

Between 2000 and 2007, Cabo Verde’s strong growth (6 percent annually) driven by a steadily growing tourism sector and accelerated capital accumulation, translated into considerable poverty reduction and boosted shared prosperity.

Achievement of all the Millennium Development Goals (MDGs) by 2015 is now within reach for Cabo Verde. As a small island open economy, Cabo Verde is vulnerable to external shocks. Since 2008, Cabo Verde has been severely affected by the global financial crisis and the impact of the European sovereign debt crisis on markets.

The Government, through its Third Growth and Poverty Reduction Strategy Paper (GPRSP III), recognizes that capital accumulation alone cannot sustain high growth rates indefinitely, and that it must diversify its sources of growth.

Against this background, the proposed WBG CPS will focus on two interdependent programs, namely: (i) enhancing macro-fiscal stability in order to lay the foundation for sustained growth and poverty reduction; and (ii) improving competitiveness and private sector development.

 

Read more at allAfrica