Posted by: APO | 31 May 2008

Djibouti / World Bank supports food prices crisis in Djibouti

World Bank supports food prices crisis in Djibouti

Press Release No:2008/346/MNA

WASHINGTON, May 29, 2008 — The World Bank’s Board of Directors approved today a US$5 million development policy grant in response to the Djibouti Food Prices Crisis. The grant will be funded through the Food Price Crisis Response Trust Fund which was also approved by the Bank’s Board of Directors today.

‘This grant will help the Government mitigate the social and fiscal consequences of the current food crisis. This support is critical to sustain social and economic development under the current conditions’ said Claudia Nassif, World Bank Task Team Leader.

The policy measures supported by this grant are:

– Elimination of the domestic consumption taxes on five basic food items predominantly consumed by the poor (rice, sugar, cooking oil, wheat flour and powder milk).

– Expansion of food aid and existing social assistance programs (e.g. school feeding and workfare programs); scaling up of programs which help to improve food security and access to water of the drought-affected population.

– Development of an action plan to improve targeting of the poor and create more cost-effective, direct social protection mechanisms.

‘We are pleased to be able to help Djibouti face the immediate needs of vulnerable population groups and to supplement the ongoing efforts of the government to mitigate the risks of the food crisis, ‘ said Emmanuel Mbi, World Bank Country Director for Egypt, Yemen and Djibouti.


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