The World Bank Group's Board of Executive Directors has approved a new five-year Country Partnership Framework (CPF) for Armenia. This initiative aims to address poverty and promote prosperity by creating better job opportunities, improving human capital outcomes, and enhancing resilience in the country.
Despite significant development progress, Armenia faces challenges such as infrastructure gaps, low domestic and foreign investment levels, and high unemployment rates. Uneven education and health outcomes limit the employability and productivity of its population. Additionally, the social protection system needs reforms to support vulnerable populations effectively during crises. Armenia is also at risk from earthquakes and increasingly vulnerable to climate change impacts.
The new strategy emphasizes building resilience against economic shocks, fragility, conflicts, natural hazards, and climate change. The CPF will focus on creating more jobs by improving private sector growth conditions and addressing workforce skill gaps. It also aims to strengthen human capital through better access to quality healthcare and improved social protection. Furthermore, it seeks to build a resilient economy by promoting climate-adaptive activities and strengthening government systems.
“This new partnership framework is a testament to our commitment to supporting Armenia in building a more sustainable, resilient, and inclusive economy,” said Carolin Geginat, World Bank Country Manager for Armenia. “By focusing on job creation, human capital, and resilience, we aim to improve the lives of Armenians and help the country navigate future challenges.”
The strategy involves mobilizing private capital through collaboration across World Bank Group institutions: the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA). IBRD plans to fund approximately $1 billion over five years for reforms that would enable IFC and MIGA to attract more private capital.
IFC intends to increase investments in infrastructure sectors through public-private partnerships under this framework. Its focus includes supporting sustainable infrastructure development like green energy projects while working with financial institutions on climate-focused products. IFC’s investments are projected between $500 million to $700 million.
“We are committed to driving private sector growth in Armenia by leveraging our expertise in sustainable finance and mobilizing private capital,” said Ivana Fernandes Duarte, IFC's Regional Manager for the South Caucasus. “Through our collaborative efforts under the new strategy, we aim to promote green development ensuring long-term environmental & economic well-being.”
Since 1992 World Bank has provided around $3 billion towards various initiatives aimed at reducing poverty & fostering prosperity within Armenia; this includes an ongoing portfolio valued at roughly $400 million consisting primarily of investment lending/grants/analytical work/technical assistance facilitated via both IBRD/trust funds/International Development Association(IDA).