The International Development Association (IDA), a unit of the World Bank, recently issued a credit of USD 15 million to the Women and Youth Entrepreneurship Project to facilitate financial, educational and technical support for young people and women of all ages operating enterprises in Djibouti.
The first component of the project includes USD 7 million to create a partial credit guarantee fund to reduce the default risk for private lenders to micro-, small and medium-sized enterprises. The second component has a budget of USD 6 million to produce entrepreneurship training sessions, business plan competitions and an online information resource portal. The remaining USD 2 million is reserved for administration and monitoring. The overall goal is to reach 2,300 small and medium-sized enterprises as well as 6,000 microentrepreneurs.
The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2018, it has 189 member nations. The group encompasses (1) the International Bank for Reconstruction and Development (IBRD) and IDA, which make up the World Bank; (2) the International Finance Corporation; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During the 12 months ending June 2017, the World Bank Group disbursed funds totaling USD 44 billion.
The World Bank provides grants, loans and equity investments as well as technical support to entities based in middle- and low-income countries. As of June 2017, IBRD and IDA reported total assets of USD 406 billion and USD 197 billion, respectively. As of the same month, they reported outstanding loans of USD 177 billion and USD 138 billion, respectively. During the 12 months ending June 2017, IBRD disbursed USD 18 billion in new loans to 133 projects and IDA loaned USD 13 billion via 257 projects.
By Nicholas Galimberti, Research Associate
Sources and Additional Resources
World Bank press release
http://www.worldbank.org/en/news/press-release/2018/06/08/support-for-entrepreneurs-in-djibouti-to-benefit-6000-women-and-youth
Women and Youth Entrepreneurship Project detail
http://documents.worldbank.org/curated/en/462471527192967678/pdf/DJIBOUTI-PAD-05212018.pdf
Partial Credit Guarantee background
http://siteresources.worldbank.org/INTGUARANTEES/Resources/IBRD_PCG.pdf
MicroCapital Brief; June 8, 2018; World Bank Donating $13m to Support Angel Investors, Networking for Startups in Gaza, West Bank
https://www.microcapital.org/microcapital-brief-world-bank-donating-13m-to-support-angel-investors-networking-for-startups-in-gaza-west-bank/
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/
Similar Posts:
- MICROCAPITAL BRIEF: World Bank’s IDA Lending $15m to Djibouti for Low-income Housing Finance, Policy Reform
- MICROCAPITAL BRIEF: World Bank ARISE Program Includes $230m Loan for Farmers in Ukraine
- MICROFINANCE EVENT: Global Forum on Remittances, Investment and Development (GFRID); June 14-16, 2023; Nairobi, Kenya
- MICROCAPITAL BRIEF: EBRD Loans $21m to BMCI of Morocco as Part of Women in Business (WiB) Program
- MICROFINANCE PAPER WRAP-UP: “The Global State of Financial Inclusion and Consumer Protection 2022,” by Buddy Buruku et al, published by the World Bank Group
