NIGER - Shared Growth Credit I

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The development objective of the First Shared Growth Credit Program for Niger is to support reforms that would help improve the business environment for investment and trade, increase agricultural productivity, and strengthen public financial management. The First Shared Growth Credit (SGC-1) for SDR 32.3 million (US$50 million equivalent) for Niger is the first in a series of three planned programmatic development policy operations. The credit would be disbursed in one tranche and provide Niger with financing for its 2012 budget and contribute to the funding of poverty reduction strategy (PRS) related expenditures. The SGC series will support reforms to foster shared growth, with a focus on improvements in the businesses environment and agriculture and rural development. The credit will also support reforms to achieve greater efficacy of public expenditures, including through closer alignment of public expenditures with the PRS and strengthening of public financial management and procurement systems. A more diversified economy and a strengthened agriculture sector are critical to enhancing Niger's resilience to severe external shocks. The policy reforms supported by this operation contribute to the two pillars of the Africa Region Strategy competitiveness and employment and vulnerability and resilience as well as to the foundation of the Africa Region's strategy governance and public sector capacity.