Second Consolidation and Social Inclusion Development Program

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The Second Consolidation and Social Inclusion Development Program (CSIDP 2) supports the Government of the Central African Republic (CAR) as it implements structural reforms designed to continue the consolidation of fiscal management and to support social inclusion. The proposed operation in the amount of US$50 million equivalent is the second in a programmatic series of two IDA grants. The Program is aligned with the Government’s economic recovery, poverty reduction and structural reform priorities, as set forth in the National Recovery and Peace Building Plan (RCPCA) for 2017-2023 and other key strategic documents. The operation is aligned with both the World Bank Group (WBG) Country Partnership Framework (CPF) 2020-2025 for CAR (in preparation), the WBG strategy on fragility, conflict, and violence (FCV) and the WBG twin goals of boosting shared prosperity and ending extreme poverty. Significant budget support from the proposed operation and other development partners will contribute to closing the financing gap in 2020. COVID-19 has widened the financing need (including grants) in 2020 to CFAF 128.1 billion, about US216.5 million dollars or 9.4 percent of GDP. Through the program and the Supplemental Financing of the previous operation in the series (CSIDP 1), the World Bank is providing US75 million dollars (3.3 percent of GDP). Through an Extended Credit Facility (ECF) and a Rapid Credit Facility (RCF), approved in December 2019 and April 2020, respectively, the IMF expects to provide US87.2 million dollars (3.8 percent of GDP). The African Development Bank (AfDB), the European Union (EU), and France are expected to provide US47 million dollars (2 percent of GDP). Debt service relief under the IMF’s revamped Catastrophe Containment and Relief Trust (CCRT) and the G20 Debt Service Suspension Initiative (DSSI) for Poorest Countries contribute to closing the residual financing gap.