The World Bank Board of Executive Directors approved on Tuesday, a $100 million – half in grant and half in credit – from the International Development Association (IDA)* to help the Government of Senegal in responding to the social and economic impact of the pandemic and improving access to services for the most vulnerable. This financing will provide additional money for the government’s budget to cover anti-crisis measures.
The Government of Senegal has taken decisive measures to contain the pandemic and mitigate its socio-economic impact, but financing is severely constrained. In addition to health, sanitary and containment measures, the Government is implementing a comprehensive reaction plan, the Economic and Social Resilience Program.
“Through this financing, we are supporting Senegal in preparing for a post-COVID recovery. The aim is to protect the livelihood of the most vulnerable populations, who have suffered the most from the pandemic, and promote opportunities through better access to electricity and ICT services,” said Nathan Belete, World Bank Country Director.
“Growth is expected to gradually recover once the crisis recedes, driven by a robust return of private consumption and rapidly growing investment. The Government is committed to meeting the fiscal deficit target of the West African Economic and Monetary Union (WAEMU) and to implement the Medium-Term Revenue Strategy and expenditure rationalization,” indicated Markus Kitzmuller, Senior Country Economist and Task Team Leader.
World Bank Group COVID-19 Response
The World Bank Group, one of the largest sources of funding and knowledge for developing countries, is taking broad, fast action to help developing countries strengthen their pandemic response. We are supporting public health interventions, working to ensure the flow of critical supplies and equipment, and helping the private sector continue to operate and sustain jobs. We will be deploying up to $160 billion in financial support over 15 months to help more than 100 countries protect the poor and vulnerable, support businesses, and bolster economic recovery. This includes $50 billion of new IDA resources through grants and highly concessional loans.
* The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 76 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to the 1.6 billion people who live in IDA countries. Since 1960, IDA has supported development work in 113 countries. Annual commitments have averaged about $21 billion over the last three years, with about 61 percent going to Africa.