Document of The World Bank Group FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 122878-BI INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL FINANCE CORPORATION MULTILATERAL INVESTMENT GUARANTEE AGENCY Public Disclosure Authorized COUNTRY PARTNERSHIP FRAMEWORK FOR THE REPUBLIC OF BURUNDI FOR THE PERIOD FY19-FY23 Public Disclosure Authorized June 10, 2019 Country Management Unit, AFCE1 Africa Region The International Finance Corporation 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 Public Disclosure Authorized Bank Group authorization. i The date of the last Performance and Learning Review was February 25, 2015 Exchange rate as of July 31, 2018 Currency unit: Burundi francs (FBu/BIF) US$1.00 = 1,767.97 ABBREVIATIONS AND ACRONYMS AfDB African Development Bank LIC Low-income country BRB [Banque de la République du LRRP Landscape Restoration and Burundi} Central Bank of Resilience Project Burundi CDD Community-driven LVEMP2 Lake Victoria Environnemental development Management Project II CE Citizen Engagement M&E Monitoring and evaluation CLR Completion and Learning MDG Millennium Development Goals Review CPF Country Partnership Meranka Social Safety Nets Project (“Be equal Framework bandi to others”) MIGA MIGA Multilateral Investment Guarantee Agency CSCP Coffee Sector Competitiveness MSMEs Micro, small, and medium Project enterprises CPIA Country Policy and Institutional NDP National Development Plan Assessment CSO Civil society organization NPF New Procurement Framework DPF Development Policy Financing NGO Non Governemental Organsation DP Development partner PASEC Program for the Analysis of Education Systems DRC Democratic Republic of Congo PBF Performance Based Financing EAC East African Community PEA Political Economy Analysis EGLP Early Grade Learning Project PE Political Economy EAPHLN East Africa Public Health PER Public Expenditure Review Laboratory Network ECAAT Eastern and Central Africa PEFA Public Expenditure and Financial Agricultural Transformation Accountability Project ECVMB Enquête sur les Conditions de PIU Project Implementing Unit Vie des Ménages au Burundi ii (Survey on Household Living Conditions in Burundi) FBu Burundian franc PPP Public-private partnership FCV Fragility, conflict, and violence PRODEMA Agro-Pastoral Productivity and Markets Development Project FDI Foreign direct investment PRSP Poverty Reduction and Strategic Plan Forex Foreign exchange PSW Private Sector Window GAP Gender Acton Plan RGLIADP Regional Great Lakes Integrated Agriculture Development Project GBV Gender-based violence RRA Risk and Resilience Assessment GLESGBV - Great Lakes Emergency Sexual RRFHP Regional Rusumo Falls Hydroelectric WHP- Gender- Based Violence and Project Women’s Health Project HIMO Haute Intensité de Main- RSRHC Regional Sub-window for Refugees d’Oeuvre (labor-intensive labor and Host Communities approach) HSDSP Health Sector Development SSA Sub-Saharan Africa Support Project HCI Human Capital Index SCD Systematic Country Diagnostic IDP Internally displaced person SCLP Sustainable Coffee Landscape Project IEY&F Investing in Early Years & SBGV Sexually based gender violence Fertility IEG Independent Evaluation Group SDG Sustainable Development Goals IFC International Finance SICGEP Strengthening Institutional Capacity Corporation for Government Effectiveness Project ISTEEBU Burundi Institute of Statistics TPM Third Party Monitoring and Economic Studies IREP Infrastructure Resilience YSEP Youth Skills & Employability Project Emergency Project JMHP Jiji and Mulembwe Hydropower WBG World Bank Group Project KIRA Health System Support Project (“health and good wealth in Kirundi”) LDJP Local Development for Jobs Project iii FY19–FY23 COUNTRY PARTNERSHIP FRAMEWORK FOR THE REPUBLIC OF BURUNDI TABLE OF CONTENTS I. INTRODUCTION .......................................................................................................... 1 II. COUNTRY CONTEXT AND DEVELOPMENT AGENDA ...................................................... 4 A. Social and Political Context .................................................................................................................. 4 B. Economic Context and Outlook ............................................................................................................ 5 C. Poverty, Inequality, and Jobs ............................................................................................................... 9 D. Development Challenges and Opportunities ..................................................................................... 11 III. WORLD BANK GROUP PARTNERSHIP STRATEGY ........................................................ 18 A. The Government Program and Medium-Term Strategy .................................................................... 18 B. WBG Country Partnership Framework ............................................................................................... 18 C. Focus Area I: Building Human Capital and Inclusion .......................................................................... 23 D. Focus Area II: Strengthening Foundations for Economic and Social Resilience ................................ 27 E. Foundations: Macroeconomic Stability, Structural Reforms, and Governance ................................. 30 IV. IMPLEMENTING THE BURUNDI CPF ........................................................................... 36 A. Financial Envelope .............................................................................................................................. 36 B. Financial Management, Procurement, and Other Government Systems .......................................... 39 C. Managing Programs ........................................................................................................................... 40 D. Partnerships and Donor Coordination ............................................................................................... 42 V. MANAGING RISKS TO THE CPF PROGRAM ................................................................. 43 LIST OF FIGURES Figure 1: Burundi’s Cycle of Fragility and Poverty ................................................................................. 2 Figure 2: Burundi Poverty Map .............................................................................................................. 9 Figure 3: Links between the National Development Plan, the SCD, and CPF Focus Areas .................. 20 Figure 4: The CPF Framework ............................................................................................................. 22 LIST OF TABLES Table 1: Main Economic Indicators 2015-2020...................................................................................... 8 Table 2: IDA Portfolio Trends over the CPF Cycle ................................................................................ 38 Table 3: ASA Pipeline ........................................................................................................................... 39 Table 4: Systematic Operations Risk-Rating Tool (SORT)..................................................................... 44 Table 6: PLR Development Outcome Ratings by Strategic Objective .................................................. 58 Table 7: CLR Development Outcome Ratings by Strategic Objective .................................................. 59 Table 8: ASA Delivered during the PLR ................................................................................................ 64 iv LIST OF BOXES Box 1: Key CPF Expected Outcomes over the CPF Period ............................................................................. 4 Box 2: Horn of Africa and The Great Lakes Region: Refugees and asylum-seekers by country of asylum as of 31 January 2019 ........................................................................................................................................ 5 Box 3: IMF Engagement in Burundi .............................................................................................................. 8 Box 4: Burundi’s Successes and Challenges in Education ........................................................................... 12 Box 5: RRA recommendations .................................................................................................................... 14 Box 6: Gender aspects in Burundi ............................................................................................................... 15 Box 7: Burundi’s Regional Integration Challenges and Opportunities........................................................ 17 Box 8: Putting Women’s Empowerment at the Forefront of WBG Programs in Burundi .......................... 27 Box 9: Coffee sector in Burundi .................................................................................................................. 29 Box 10: Applying MFD Principles in Burundi ............................................................................................... 32 Box 11: Examples of WBG leveraging innovative use of ICT in Burundi .................................................... 33 Box 12: Active and Indicative Pipeline (Only IDA financing) ....................................................................... 37 Box 13: Working Differently in Burundi .....................................................................................................