BJ PRSC 9 Poverty Reduction Support Cdt.

closed

This program document proposes the first operation in a programmatic series of three poverty reduction support credits (PRSCs 9 through 11) to the Republic of Benin and follows two previous stand-alone operations (PRSCs 7 and 8). The proposed PRSC-9 will be in the amount of SDR 13.1 million (US$20 million equivalent), disbursed in a single tranche on standard International Development Association (IDA) terms. This programmatic series is designed to assist the recipient's efforts to accelerate growth and extend opportunities for equitable growth by addressing key challenges in the areas of governance, public financial management (PFM) and business-climate reform. Its supported actions focus on strengthening the integrity of PFM, improving port performance and facilitating agricultural diversification. Benin's economy relies heavily on re-export and transit trade with Nigeria and other neighboring countries, and on agricultural production, cotton in particular. Similarly, an improved business environment will be necessary to increasingly formalize the economy, create official salaried employment and to fully exploit Benin's geographic position as a gateway to the Nigerian market and to landlocked countries to its north. While clear progress has been made, public sector capacity remains weak, governance issues persist, and the business environment remains far from ideal and bureaucratic costs continue to impose a substantial burden on the private sector.