The World Bank Group pledged an additional $175 million over the period 2020-2022 to support Comoros’ development through its National Emergent Plan. The announcement was made at the Development Partners Conference for Comoros, held in Paris on December 2 and 3, 2019.
This funding consists of grants and concessional credits from the International Development Association (IDA), the World Bank’s arm that provides grants and low to zero-interest loans to the world’s poorest countries and contributions from the International Finance Corporation (IFC), a sister organization of the World Bank that provides financing for the private sector in developing countries. The Multilateral Investment Guarantee Agency (MIGA), another member of the World Bank Group, will also support Comoros through the implementation of the National Emergent Plan.
The IDA funds will help strengthen human capital development through better investments in nutrition and social protection programs. They will support the country’s recovery and reconstruction of infrastructure, roads and housing after cyclone Kenneth. The World Bank Group’s support will also help promote private sector and value chains development in agriculture and tourism, boost inter-island connectivity, renewable energy supply, and digital finance while increasing financial inclusion.
IFC will leverage IDA funds and other Development Partners’ programs to scale up private sector financing contribution to the National Emergent Plan and its reform agenda. IFC will focus on improving the investment climate and is ready to invest and provide advisory services following the successful implementation of the required reforms.
Comoros is a country with huge potential and important natural resources. However, two Comorians out of 10 live in extreme poverty and a third of the children under five suffer from chronic malnutrition. The human capital index of the Comoros is 0.41, meaning that a child born today in Comoros will have only 41% of the productivity he could have had if he had benefited from an education, comprehensive health care and nutrition.
“With this new financing, the World Bank is committed to accompany Comoros in its efforts to achieve an inclusive and sustainable growth. We stand ready to work with other development partners to support the Government and the people of Comoros to address some of the urgent development issues, including enhancing the human capital and promoting better and more connected people”, said Mark Lundell, World Bank Country Director for Mozambique, Madagascar, Mauritius, Comoros and Seychelles.
“IFC looks forward to continuing the collaboration with the Government of Comoros and its development Partners to strengthen the investment climate, including in areas related to property rights and access to credit. These building blocks will enable IFC to mobilize private investment to support food security, financial inclusion and sustainable job creation”, said Ousseynou Nakoulima, IFC Regional Director for Western Europe.
“MIGA is committed to supporting Comoros’ development goals and the government’s program to boost foreign private sector participation in key sectors. MIGA will play a critical role in de-risking private investment by insuring cross-border investors against non-commercial risks in sectors such as telecommunications, energy, and transport”, said Hoda Moustafa, MIGA Regional Head for Africa.