The World Bank Group adopts a New Partnership Framework for Panama
City of Washington, February 27, 2024. The Executive Board of the World Bank Group endorsed a new Country Partnership Framework with Panama. In this strategy, which will be effective during the period 2024-28, key areas of action are determined to support job creation, economic diversification, foster inclusion, strengthen human capital and the provision of basic services, and increase resilience to natural crises and climate change.
To boost job creation, the strategy aims to promote access to financing for small and medium-sized enterprises, especially those led by female entrepreneurs. It also aims to strengthen investment management and financial systems at the public level, as well as foster partnerships aimed at mobilizing private investments in infrastructure. Given that inclusion is at the forefront of efforts, this framework focuses particularly on strengthening public institutions and creating opportunities for women, indigenous groups, Afro-Panamanian communities, and other vulnerable populations.
In order to improve Panama’s human development level, the strategy also aims to strengthen the country’s human capital and address learning losses exacerbated by the COVID-19 pandemic. Another objective is to modernize health systems and safety nets by promoting the use of digital technologies to facilitate access to basic services for indigenous communities and other vulnerable populations.
Additionally, this Partnership Framework will continue to support Panama’s efforts to increase resilience to natural crises and climate change through adaptation and mitigation measures. It will also support the transition to more efficient and carbon-free energy sources by promoting measures to preserve and sustainably manage natural capital. This includes assisting with the climate strategy of the Panama Canal and increasing the adoption of biodiversity-friendly agricultural and land use practices in rural areas.
“This strategy reflects our ongoing dialogue with authorities and fruitful consultations with a wide range of stakeholders in the country, with the purpose of validating how the World Bank Group could have a greater impact in Panama,” said Michel Kerf, World Bank Director for Central America and the Dominican Republic. “We are committed to helping the country maintain its impressive growth trajectory while improving the delivery of basic services in a more inclusive and equitable manner for the benefit of all Panamanians.”
“Private sector solutions are fundamental to increasing productivity and inclusion in Panama,” said Sanaa Abouzaid, Regional Manager of the International Finance Corporation (IFC) for Central America, the World Bank Group entity dedicated to the private sector. “IFC, through its investments and advisory services, will continue to focus on supporting financial inclusion (with a special focus on women-owned businesses), addressing critical infrastructure needs (including through public-private partnerships), and bolstering resilience and sustainability.”
The development of this strategy was led by institutions within the World Bank Group, including the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA). This framework is based on a comprehensive analysis of the country’s development challenges and consultations with the government, private sector, civil society, and other development partners.
In Panama, IBRD has an active portfolio consisting of nine operations focusing on infrastructure, human capital development, institutional management, resilience, adaptation to climate change, and sustainable rural development, with an investment of USD 503 million. IFC’s portfolio in the country amounts to USD 359 million distributed across nine projects, including initiatives to improve access to affordable housing for women and provide loans to women-owned enterprises, as well as infrastructure investments, particularly in support of the Panama Canal. Meanwhile, MIGA has a portfolio of USD 670 million divided into three projects focusing on transportation and financial inclusion, including social housing and small and medium-sized enterprises.