World Bank Group’s New Strategy to Boost Montenegro’s Sustainable Growth and EU Accession Efforts

WASHINGTON, September 12, 2024-The World Bank Group's Board of Executive Directors today discussed a new Country Partnership Framework (CPF) for Montenegro for 2025-2029. This ambitious strategy aims to support sustainable economic growth and enhance climate resilience as Montenegro pursues its European Union accession goals.

The CPF aims to unlock Montenegro's full economic potential through improved fiscal management, increased competitiveness, and better integration with other markets in Europe.

The strategy places a strong emphasis on environmental sustainability, with initiatives ranging from waste, forestry and water management systems to renewable energy and energy efficiency projects, positioning Montenegro at the forefront of green transition.

The framework also promotes sustainable natural resource management, climate adaptation, and protection of natural areas, improving overall quality of life, enhancing public health and Montenegro's attractiveness as a tourism destination.

"Our latest strategy for Montenegro embodies a shared vision for a prosperous and environmentally sustainable Montenegro," said Christopher Sheldon, World Bank Country Manager for Bosnia and Herzegovina and Montenegro. "By combining economic support with a focus on green development, we aim to steer Montenegro toward a resilient future on its journey toward EU integration."

The International Finance Corporation (IFC), a member of the World Bank Group that is focused on the private sector, will leverage its advisory expertise to catalyze significant private sector investments. This approach, together with guarantees provided by the Multilateral Investment Guarantee Agency (MIGA) has the potential to amplify the impact of the World Bank's initial $350 million in lending committed as part of the CPF.

"Our strategy for Montenegro reflects IFC's commitment to fostering private sector-led growth while supporting the country's green transition," said Nicolas Marquier, IFC Regional Manager for the Western Balkans. "By focusing on connectivity, sustainable tourism and services, renewable energy, and broader access to finance, we aim to help Montenegro accelerate its economic integration and build a more resilient and sustainable future in alignment with its EU aspirations."

The World Bank's current portfolio in Montenegro includes three projects totaling $63.18 million, complemented by two regional projects amounting to $31.30 million.