Baku: The World Bank Group (WBG) Board of Directors discussed and adopted a new Country Partnership Framework (CPF) for Azerbaijan, outlining its strategic engagement with the country over the next five years, APA-Economics reports. The CPF is designed to support Azerbaijan’s transition toward a more competitive, greener, and inclusive economy while addressing key development challenges.
According to Azeri-Press News Agency, the CPF strategy focuses on two high-level outcomes: increased productivity and better jobs, as well as increased resilience and sustainability. Specifically, the framework aims to improve Azerbaijan’s business environment and enhance access to better jobs. This includes support for job creation, micro-, small-, and medium-sized enterprise development, and enhanced access to finance with a focus on sustainable and green finance. The CPF also emphasizes fostering inclusion by supporting women entrepreneurs and vulnerable groups.
The framework outlines the strengthening of transport and digital connectivity, focusing on the development of the Middle Corridor for trade and transit, improving digitalization and digital connectivity, and promoting the adoption of emerging technologies like artificial intelligence. Additionally, it aims to accelerate the shift to renewable energy by strengthening energy infrastructure, attracting private investment in renewable projects, and promoting green energy corridors.
Enhancing adaptation to climate change is another priority, with efforts to develop climate-resilient urban ecosystems, green buildings, and climate-smart agriculture practices. The CPF also seeks to improve water efficiency and security, including expanding private sector participation.
Stefanie Stallmeister, World Bank Country Manager for Azerbaijan, stated, “This CPF reflects our commitment to supporting Azerbaijan’s transformative journey toward a more sustainable and prosperous future. We are confident that our partnership will help Azerbaijan unlock its full economic potential.”
The CPF collaboration involves the IBRD, IFC, and MIGA, implemented through investments and advisory services. The WBG will work closely with other development partners and the private sector to maximize the development impact.
Ivana Fernandes Duarte, IFC’s Regional Manager for the South Caucasus, highlighted IFC’s commitment to sustainable development in Azerbaijan, noting efforts to mobilize private investments to enhance infrastructure, energy access, and key sectors such as green finance, agriculture, and digital connectivity.
The CPF aligns with Azerbaijan’s Strategy for Socio-Economic Development for 2022-2026 and the World Bank’s Evolution Roadmap, addressing global challenges like climate change, inequality, and fragility. Since joining the World Bank in 1992, Azerbaijan has benefited from over 50 investment operations, advisory, and technical assistance programs. Azerbaijan became an IFC member in 1995, receiving around $900 million in investments across nearly 60 projects.