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Republic of Congo (FY20-24) CPF Results Matrix

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Republic of Congo (FY20-24) CPF Results Matrix Document of The World Bank Public Disclosure Authorized FOR OFFICIAL USE ONLY Report No. 126962-CG INTERNATIONAL BANK FOR RECONTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL FINANCE CORPORATION MULTILATERAL INVESTMENT GUARANTEE AGENCY Public Disclosure Authorized COUNTRY PARTNERSHIP FRAMEWORK FOR THE REPUBLIC OF CONGO Public Disclosure Authorized FOR THE PERIOD FY20-FY24 November 12, 2019 International Bank for Reconstruction and Development International Development Association The International Finance Corporation Public Disclosure Authorized The Multilateral Investment Guarantee Agency This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank Group authorization. i The date of the last Country Partnership Strategy FY13-16 for the Republic of Congo was September 24, 2012 (Report No: 71713-CG) CURRENCY EQUIVALENTS (Exchange Rate Effective as of October 1, 2019) Currency Unit = CFA Franc (XAF) US$1.00 = 601 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AfDB African Development Bank AFD Agence Française de Développement ANS Adjusted Net Savings ASA Advisory Services and Analysis BEAC Bank of the Central African States (Banque des États de l'Afrique Centrale) CAFI Central African Forest Initiative CCDB Cour des Comptes et Discipline Budgétaire CEMAC Central Africa Economic and Monetary Union CCSA Cross-Cutting Solutions Area CLR Completion and Learning Review CPIA Country and Policy Institution Assessment CSO Civil Society Organizations DB Doing business DDF Digital Development Fund DDR Disarmament, Demobilization and Reintegration DHS Demographic and Health Survey DPF Development Policy Financing ECOM Congolese Households’ Survey (Enquête Congolaise auprès des Ménages) EITI International Board of Extractive Industries Transparency Initiative FCI Finance, Competitiveness and Innovation FCV Fragility, Conflict and Violence FCPF Forest Carbon Partnership Facility FIP Forest Investment Plan ii FSC Forest Stewardship Council GBV Gender Based Violence GDP Gross Domestic Product GEF Global Environment Facility GII Gender Inequality Index GNI Gross National Income GP Global Practice HDI Human Development Index HIPC Heavily Indebted Poor Countries HIV Human Immunodeficiency Virus IBRD International Bank for Reconstruction and Development ICT Information and Communications Technology IDA International Development Association IDP Internally Displaced Person IFC International Finance Corporation IGF Inspection Générale des Finances IMF International Monetary Fund INDC Intended Nationally Determined Contribution IPF Investment Project Financing LMIC Lower Middle-Income Country LUCF Land-Use Change and Forestry MFD Maximizing Finance for Development MIC Middle-Income Country MICS Multiple Indicator Cluster Survey MtCO2e Metric tons of carbon dioxide equivalent MSMEs Micro, Small, and Medium Enterprises NGO Nongovernmental organizations NOGDP Non-oil gross domestic product NOPB Non-oil primary balance NPL Non-performing loan NSS National Statistics System PAPAN Port Autonome de Pointe-Noire PBF Performance-based financing PEFA Public Expenditure and Financial Accountability PEMFAR Public Expenditure Management and Financial Accountability PER Regional Economic Program PFM Public Financial Management PIT Personal Income Tax PND Plan National de Développement (National Development Plan) iii PPF Production Possibility Frontier PPP Public-Private Partnerships REDD Reducing Emissions from Deforestation and forest Degradation RRA Risk and Resilience Assessment SCD Systematic Country Diagnostic SME Small and Medium-sized Enterprises SNE Société Nationale d’Electricité SOE State-Owned Enterprise SSA Sub-Saharan Africa STEM Science, Technology, Engineering, and Mathematics TFP Total Factor Productivity TVET Technical and Vocational Education and Training UMG Université Marien Ngouabi UN United Nations UNESCO United Nations Educational, Scientific and Cultural Organization UNHCR United Nations Refugee Agency US$ United States Dollars WDI World Development Indicators IBRD/IDA IFC MIGA Vice President: Hafez Ghanem Sergio Pimenta Keiko Honda Director: Jean-Christophe Carret Aliou Maiga Merli Baroudi TTLs: Korotoumou Ouattara Frank Douamba Moritz Nebe/Paul Levy Judith Laufman Mehita Sylla iv Table of Contents I. INTRODUCTION .............................................................................................................. 1 II. COUNTRY CONTEXT AND DEVELOPMENT AGENDA ......................................................... 3 A. Social and Political Context.......................................................................................... 3 B. Recent Economic Developments and Outlook .............................................................. 5 C. Poverty Profile .......................................................................................................... 10 D. Development Challenges and Opportunities .............................................................. 13 III. WORLD BANK GROUP COUNTRY PARTNERSHIP FRAMEWORK ................................... 21 A. Government Program and Medium-Term Strategy .................................................... 21 B. SCD Findings and Lessons Learned ............................................................................. 21 Main findings from the Systematic Country Diagnostic (SCD) .............................................. 21 Lessons Learned .................................................................................................................... 22 Feedback from Stakeholder Consultations ............................................................................ 24 C. Proposed World Bank Group Country Partnership Framework ................................... 24 D. Implementing the Country Partnership Framework ................................................... 32 IDA Allocation and IBRD Envelope ......................................................................................... 32 Financial Management and Procurement ............................................................................. 35 Partnerships and Donor Coordination ................................................................................... 36 Monitoring and Evaluation and Data for Decision Making ................................................... 37 IV. MANAGING RISKS TO THE CPF PROGRAM .................................................................. 37 ANNEXES Annex 1: Republic of Congo (FY20-24) CPF Results Matrix .................................................... 41 Annex 2: Republic of Congo Country Partnership Strategy Completion and Learning Review 49 Annex 3: Selected Indicators of Bank Performance and Management .................................. 82 Annex 4: Operations Portfolio (IBRD/IDA and Grants) .......................................................... 83 Annex 5: Statement of IFC’s Held and Disbursed Portfolio .................................................... 84 v Annex 6: IMF Engagement with the Republic of Congo ......................................................... 85 Annex 7: Gender Issues in the Republic of Congo CPF ........................................................... 86 Annex 8: Summary of Stakeholder Consultations ................................................................. 89 Annex 9: Donor Mapping ..................................................................................................... 92 Annex 10: Map of the Republic of Congo ............................................................................. 93 Figures Figure 1: Congo – Real GDP Growth and Budgetary Trends .................................................................................. 5 Figure 2: Most of the poor are not in poor areas ...................................................................................................... 11 Figure 3: Linkages between Government priorities, SCD pathways and CPF Focus Areas .................... 22 Figure 4: Portfolio evolution (not including trust funds) ..................................................................................... 34 Tables Table 1: Republic of Congo Selected Macroeconomic and Financial Indicators .......................... 12 Table 2: Indicative IDA and IBRD Lending Program (US$ million) ................................................ 33 Table 3: Indicative Advisory Services and Analytics (ASA) Products for FY20-FY22 ..................... 34 Table 4: Systematic Operations Risk Rating Tool (SORT) for Congo ............................................. 38 Boxes Box 1. Assessing the Drivers of Fragility and Factors of Resilience in Congo ................................. 4 Box 2: Republic of Congo and the Human Capital Index ................................................................ 7 Box 3: Expanding the Reach of Social Safety Nets and Human Development: “Lisungi” Project 13 Box 4: Gender Disparities in Agriculture in Congo ........................................................................ 15 Box 5: The Imperative of Private Sector Development in Congo ................................................. 18 vi FY2020-FY2024 COUNTRY PARTNERSHIP FRAMEWORK FOR THE REPUBLIC OF CONGO I. INTRODUCTION 1. The Republic of Congo, which joined the ranks of lower middle-income countries (LMIC)1 on the back of strong oil revenues for more than a decade, has yet to fully leverage its natural resource endowments
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