Lesotho: New World Bank Group Strategy Focuses on Job Creation, Human Capital, and Climate Resilience
WASHINGTON — The World Bank Group Board of Executive Directors endorsed a new Country Partnership Framework (CPF) for Lesotho, laying out the World Bank Group’s strategy in the country for FY2024–2028.
The five-year CPF is centered around three high-level, long-term outcomes: (i) increased employment in the private sector through improving the enabling environment for Micro, Small, and Medium Enterprises’ growth to crowd in private investment for enhanced job creation, (ii) improved human capital outcomes through the strengthening of the quality of education, health, and social protection; and (iii) strengthened climate resilience through improving the management of natural resources and access to climate resilient infrastructure. The CPF, which builds on the lessons of the previous CPF FY2016-2020 and the findings of the Systematic Country Diagnostic (SCD) Update, is well aligned with the country’s second National Strategic Development Plan.
“The World Bank remains committed to support Lesotho’s development aspirations. The people of Lesotho are at the center of this new CPF with a strong focus on building their resilience to social, economic, and climate shocks,” said Marie Francoise Marie-Nelly, World Bank Country Director for Lesotho.
A stronger private sector can help enhance sustainable and inclusive economic growth, create jobs, and reduce poverty in Lesotho. “The International Finance Corporation (IFC) is a longstanding partner with the Government of Lesotho and its private sector, and we will leverage the new CPF to ramp up our efforts to support projects that promote a conducive business environment, expand access to finance for smaller businesses, improve trade facilitation, and deepen value chains, “said Adamou Labara, IFC Country Manager for Lesotho.
“Crowding in private finance is critical for Lesotho. The Multilateral Investment Guarantee Agency (MIGA) will continue to explore opportunities to use political risk insurance guarantees in promoting cross-border investment in critical and emerging sectors,” said Hiroyuki Hatashima, Acting MIGA Director of Economics and Sustainability.
The CPF will use innovative approaches to achieve impact at scale by adopting “a territorial development approach” to sharpen focus and ensure synergies in poor regions and urban areas. The program will directly support improvements in governance and capacity building in the public sector. Specific attention will be given to gender equality and digitalization throughout all activities. The CPF reflects consultations with the government, the private sector, civil society, youth, and academia as well as development partners.