World Bank Updates

1. Mauritius - Third Development Policy Loan Project
2. Ghana - Second Additional Financing for Small Town Water Supply and Sanitation Project
3. US$8 million Emergency Grant to Rehabilitate Power Supply in Central African Republic:

The World Bank yesterday approved a grant of US$8 million to support the Government of the Central African Republic to rehabilitate the country’s power infrastructure, balancing supply and demand in the capital Bangui, and helping the power utility to improve its financial and operational sustainability. During the recent energy crisis in June 2008, over half of the electricity supply was lost for several weeks, affecting Bangui’s water supply, which relies on electric power for pumping water around the city. Hospitals were also affected by the lack of power. The project will reduce the risk of such a crisis reoccurring in one of Africa’s poorest countries.

Africa World Bank releases

Benin- Fifth Poverty Reduction Support Grant (PRSC-5)
WASHINGTON, January 22, 2009 - The following project was approved today by the World Bank’s Board of Executive Directors:

IDA Grant: US$30 million
Project Description: This grant aims to support implementation of Benin’s poverty reduction strategy. Specifically, it would support: (i) modernizing the regulatory framework and policy environment for private investment and infrastructure; (ii) increasing progress toward the MDGs by raising the quality, efficiency and access for basic social services; and (iii) promoting better governance through public financial management reforms.

Improving Access to Basic Services and Enhancing the Investment Climate in Benin
The World Bank Group Board of Executive Directors today approved the Fifth Poverty Reduction Support Grant for the Republic of Benin. The $30 million equivalent grant resources will support the implementation o f the Government’s reform agenda in the following areas: (i) improving the regulatory framework and policy environment for private investment and infrastructure; (ii) pursuing progress towards the Millennium Development Goals (MDGs) by improving access to basic services and ensuring greater efficiency o f public expenditures on human capital formation; and (iii) promoting better governance, notably through public financial management reforms.

Botswana-Botswana - Morupule B Generation and Transmission Project


World Bank appoints new Country Director for Kenya
The World Bank is pleased to announce the appointment of Mr. Johannes Zutt as Country Director for Kenya, Comoros, Eritrea, Rwanda, Seychelles and Somalia.
Mr. Zutt, a Dutch national, joined the World Bank in August 2000, where he has held various positions in the Africa department, the East Asia department, the office of the Managing Director, and most recently the Integrity department. Mr. Zutt has wide-ranging experience in Africa, having served as the country program coordinator for Angola, Malawi, Mozambique and Zambia. He has also been the Bank’s country program coordinator for China and Mongolia.
Prior to joining the World Bank, Mr. Zutt was involved in program planning, monitoring and evaluation in various countries in eastern and southern Africa. He has also served as a lecturer at the University of Nairobi. He holds a law degree from Harvard University and a doctoral degree from Oxford University.
Mr. Zutt’s top priority in the countries under his responsibility will be to strengthen the Bank’s cooperation, with a view to accelerating and sustaining poverty reduction.
His appointment became effective on January 12th, 2009, and he will be based in Nairobi.
Mr. Zutt replaces Mr. Colin Bruce, who served as Country Director until June 2008.

Statement by World Bank Group President Robert B. Zoellick on the Summit of G20 Leaders

"This summit of G-20 leaders and the G-20 meeting of finance ministers last weekend have begun to lay a productive foundation of discussion, input, and agreement.

What matters now are the follow up actions. People are looking to leaders for a global, coordinated and fast response.
If September and October were about coordinated and cooperative monetary policies, then November and December will be increasingly about starting fiscal stimulus. China’s recent $580 billion stimulus package was well timed and shows leadership. Further decisive actions will be needed. Such actions must take into account the interests of the poor and most vulnerable in developing countries.

Last month I called for a reform of the G7 and for a modernized multilateralism to better reflect the realities of the 21st century. It is a positive step forward that leaders of developed economies are now meeting together with leaders from the rising economic powers. But the poorest developing countries must not be left out in the cold. We will not solve this crisis, or put in place sustainable long-term solutions by accepting a two-tier world.

I welcome the reaffirmation by the Heads of Government of the importance of the Millennium Development Goals and their commitment to honor their pledges of overseas aid. If we are going to avert a human crisis, we will have to do more. At $100 billion a year, the amount spent on overseas aid is a drop in the ocean compared to the trillions of dollars that are now being spent on financial rescues in the developed world."

Read the whole statement.

World Bank Report Suggests Strategy For African Growth Based On Mapping Of Economic Geography

History shows that severe crises can cause nations to become inward-looking, sometimes with negative consequences. The World Development Report 2009: Reshaping Economic Geography, released last week, argues that policies that facilitate geographic concentration and economic integration, both within and across countries as well as within the global economy, will promote long-term growth. This is key in Africa, where accelerated growth is critical for poverty reduction in the years ahead.

“Growth does not come to every place at once, with markets favoring some places over others,” said Indermit S. Gill, Director of the report. “To encourage prosperity, governments should facilitate the geographic concentration of production, rather than fight it. But they must also institute policies that make the provision of basic needs—schools, security, streets, and sanitation—more universal.”

The report notes that Sub-Saharan Africa today faces the triple challenges of low density or scarce and scattered populations; long distances between remote areas and centers of economic activity; and deep divisions in national, religious, and ethnic terms. These dimensions of economic geography reduce connectedness between economic agents within the region, as well as with the rest of the world.

“In Sub-Saharan Africa, we can reduce the disadvantages of our poor economic geography through better urbanization, more domestic specialization, and more regional integration,” said Shanta Devarajan, Chief economist of the World Bank’s Africa Region. “Regional cooperation, labor mobility, investments in trade, communication and transport infrastructure, and peace and stability need to remain high on our agenda, even as countries work to contain the spillover effects of the global financial crisis.”

It is commonly assumed that economic activities, within a country or region, must be spread geographically to benefit the poorest and most vulnerable. However, the WDR emphasizes that trying to spread out economic activity can hinder growth and is not effective in fighting poverty. For rapid, shared growth, governments must promote economic integration which, at its core, is about the mobility of people, products, and ideas.

Joint Statement on Zimbabwe by the African Development Bank and the World Bank

"The African Development Bank and the World Bank Group welcome the power-sharing agreement signed on Monday in Harare as a potential opportunity for Zimbabwe to begin to deal with its mounting economic, social and governance problems.

We look forward to the completion of work on other details of the agreement. We also look forward to a demonstration that it can form the basis for tackling some of the most urgent human needs, especially of vulnerable women, youth and children, such as those arising from hyperinflation, and the food and fuel crisis.

As concrete progress is made on the ground, we would be ready to join other development partners in exploring a program of technical and, as appropriate, financial assistance."

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