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                                   The Kingdom of Swaziland

                       Country Partnership Strategy for FY2015-2018

                                        Chair Summary*

                                       November 20, 2014

        Executive Directors discussed the IBRD/IFC/MIGA FY15-18 Country Partnership
Strategy (CPS) for Swaziland. Directors welcomed the strong alignment of the CPS with the
World Bank Group (WBG) strategic goals. Directors noted that Swaziland faces substantial,
interrelated challenges ‒ high poverty rates and inequality, high unemployment, low growth, and
the severe burden of disease ‒ which require a shift in the development paradigm, to focus more
on greater state effectiveness and catalyzing private sector investments.

        Directors welcomed the two pillars of the CPS, namely: (i) promoting growth and job
creation; and (ii) strengthening state capabilities. They urged staff to build on lessons learned
from prior experience, especially the need for realism and attention to client’s capacity for
sustained and effective engagement. Directors appreciated the selectivity reflected in the CPS,
particularly the focus on service delivery in the areas of health, local government capacity, public
sector efficiency, and job creation. They strongly supported WBG efforts for targeting of health
programs and human development, including assistance through partnership programs,
especially for the national health program in fighting HIV/AIDS/TB.

         Directors strongly emphasized efforts to reduce poverty and inequality, including the
critical importance of jobs and skills among the youth and women and improved targeting of
social protection programs to support the most vulnerable. Directors recognized the potential for
further development through land reform and trade, noting the importance of income growth
among agricultural smallholders and the linkage between agriculture and climate risk. They
emphasized improved governance through enhanced transparency and accountability of the state,
as well as capacity building in the key areas of public finance, statistics, and macroeconomics
and regulatory reforms to improve the investment climate. Directors noted the importance of
statistical data and country diagnostics for assessing development challenges and guiding
activities under the CPS.

        Directors encouraged the WBG to pursue opportunities with highest impact on growth,
jobs and poverty reduction, including agribusiness, skills, and social protection. Given the
modest scale of WBG assistance to Swaziland, they noted the importance of coordination and
complementarity among the WBG, IMF, and other partners. They also encouraged regional
development and integration efforts to promote growth. Directors underscored the importance of
an integrated approach among WBG entities and an expanded role for IFC and MIGA, seeking
new opportunities to support private investments in national priority areas. They looked forward
to strengthening the role and presence of gender in the country poverty and growth diagnostics
and in the WBG program.

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*This summary is not an approved record.