World Bank approves $15 million International Development Association package for Djibouti
DJIBOUTI – The World Bank has approved a $15 million International Development Association package for Djibouti, meant to support an expanded and enhanced social safety nets system and improve access to basic services in targeted poor communities.
The financing includes US$10 million in IDA credit, the World Bank’s arm for the poorest countries, and a US$5 million grant from the IDA18 Sub-Window for Refugees and Host Communities. Djibouti is one of 14 countries eligible to access this financing.
The IDA18 Sub-Window for Refugees and Host Communities was created in response to demands from refugee-hosting countries like Djibouti, as a mechanism for development assistance and concessional financing from the World Bank Group.
“Djibouti’s biggest wealth is its population. For equitable and sustained growth, investments are needed to develop the country’s human capital, especially for young children and poor communities,” said Atou Seck, the World Bank’s Resident Representative in Djibouti.
“These investments must support the supply of quality basic services as well as encourage households to adopt behaviors that strengthen the development of human capital for young children.”
This new operation is meant to support Djibouti’s ambitious strategy to build a social protection system that integrates different forms of social assistance, including the scaling up of a poverty-targeted cash transfer program and promoting health and nutrition in the early years at the local level.
It is also expected to strengthen social protection delivery systems through institutional capacity building support for partner government institutions, and community-based investments in basic services to improve human capital
The Integrated Cash Transfer and Human Capital Project will expand the PNSF, the National Program for Solidarity and Family, to cover 5,000 of the poorest and most vulnerable households in Djibouti and provide critical consumption revenue.
“This project will build on the achievements of the Djibouti Crisis Response – Social Safety Net Project which developed community-based mechanisms for promoting nutrition and supported the establishment of the national social registry,” said John Van Dyck, the World Bank’s Task Team Leader for the program. “It will also support Djibouti’s commitments to facilitating the integration of refugees by supporting their inclusion in the national social registry and financing socio-economic infrastructure in localities with refugees.”
The World Bank’s portfolio in Djibouti consists of 12 IDA-funded projects totaling US$171 million. The portfolio is focused on social safety nets, energy, rural community development, urban poverty reduction, health, education, modernization of public administration, governance and private sector development, with particular emphasis on women and youth.