World Bank Approves New Funding for Burundi
The World Bank Board of Executive Directors today approved US$25 million for Burundi’s Fourth Economic Reform Support Grant (ERSG IV). ERSG IV is the first in a new series of operations that aim to consolidate many of the reforms that began in the last series (ERSG II and ERSG III).
Key Focus Areas of ERSG IV
ERSG IV focuses on two main areas: improving budget credibility, planning, and controls; and strengthening the business environment and performance of the traditional export crop sectors.
“After more than a decade of conflict, Burundi has made progress toward restoring macroeconomic stability, implementing financial and structural reforms, improving social services, and promoting investment and economic growth,” said Jean-Pascal Nganou, the World Bank’s Task Team Leader for this operation. “This grant will help improve fiscal transparency and accountability; as well as make the business environment more conducive to private sector-led growth.”
Strengthening Public Finance Management
The public finance management component of ERSG IV has three main sub-components: strengthening strategic and budget planning to improve the quality of public spending; reinforcing PFM systems; and improving the management of the public wage bill.
Supporting Private Sector Growth in Burundi
Private sector development includes three main sub-components: promoting private investment development through improvements in the legislative framework and economic infrastructure; facilitating the restructuring or privatization of public enterprises; and modernizing export sectors.
