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This is the sixth Annual Report of the Competitive Industries and Innovation Program (CIIP), a multidonor partnership among the World Bank Group (WBG); the European Union (EU); the African, Caribbean, and Pacific Group of States (ACP) Secretariat; and the governments of Austria, Norway, and Switzerland. This report outlines the progress that CIIP has made in implementing the program’s objectives during its fiscal year (FY) from July 1, 2018, to June 30, 2019 (FY19).
CIIP continues to support its client countries to deliver systemic change through policy reform and sustainable investments. According to the United Nation’s 2019 World Economic Situation and Prospects report, despite an improvement in growth prospects at a global level, growth has been uneven across regions. The world economy faces increased risks that could potentially exacerbate developing challenges across the globe. Those risks include the escalation of trade disputes, an abrupt tightening of global financial conditions, and intensifying climate risks. The sharp drop in commodity prices in 2014/2015 continues to weigh on fiscal and external balances of commodity-exporting countries. Economic activity in many high-growth countries is often driven by core industrial and urban regions, a pattern that leaves peripheral and rural areas behind. These global trends and conditions underscore the importance of CIIP’s objective of sustainable and diversified private sector growth and the value of its catalytic approach of leveraging public, private, and donor financing to prioritize and sequence policy reforms and investment that address core constraints that prevent private sector initiative.
Since its inception, CIIP has helped create 56 public-private dialogue (PPD) mechanisms, implement more than 69 strategies or priority reforms, adopt 16 laws or regulations, and leverage more than $3.1 billion in public financing and an additional $934 million in private investment. Those types of industry-specific interventions have created more than 30,000 jobs and 500 new firms, trained more than 3,100 firms, facilitated more than $100 million in new revenues from the sale of goods and services, and generated $78 million in additional export value.
CIIP’s global reach now totals 61 countries. This annual report profiles the 11 knowledge activities and 21 country operations active in FY19, as well as the 6 country projects that closed during this fiscal year. During this reporting period, CIIP operations leveraged $118 million in public investment. For example, in Kenya, a new diagnostic tool for the assessment of incubators and accelerators will be used to support competitively awarded performance contracts with innovation ecosystem intermediaries. The project aims to support more than 100 firms in developing innovative products. In Ethiopia, the construction of two new industrial parks (IPs), Bole Lemi II and Kilinto, is near complete, and more than 260 hectares of industrial land have been serviced. These two things have led to a $55 million commitment in new private investments in the parks. The grant’s continued support to Bole Lemi I through skills development and links has contributed to 4,677 new jobs. In Madagascar, CIIP supported the follow-on growth poles operation through a Market Competition Policy Assessment of the vanilla and lychee sectors and a Destination Gap Analysis for tourism, both of which aim to inform agribusiness and tourism interventions in the targeted regions. Fifty agribusiness and tourism businesses are expected to leverage new or clean technologies, and the project expects to create more than 7,500 jobs. Also, 6,567 people and 130 trainers were trained, and more than 35 strategies and reform programs were designed across the active portfolio.
CIIP continued to investigate the role of innovation and new technologies on industrial competitiveness and growth. During this year’s final call for proposals, through the global knowledge window, CIIP approved funding for a flagship report that aims to generate new measures of technology adoption and to develop a new global and comparable database on technology adoption at the firm level. The study will offer new insights into technology disruption and trends in developing countries and will support those countries in implementing more effective policies to facilitate technology adoption. CIIP also funded a study of private sector digital platforms that aims to enhance understanding of CIIP’s role in the new economy and to assess the regulatory framework for digital platforms as well as the prospects and policies needed for the services sector to drive productivity and job creation.