DILI, 18 april 2023 (TATOLI) –Australia Government will provide AUD$2.9 million to International Finance Corporation (IFC) to finance Timor-Leste Private Sector Partnership (TL-PSP) over three years.
The support aimed to help private sector investment in Timor-Leste puts resilient, gender and climate-smart private sector development at the heart of efforts aimed at unlocking economic growth and jobs.
A statement seen by Tatoli highlights that the government of Timor-Leste has identified private sector investment as key to the nation’s overall development strategy and transition from fragility to resilience.
“We are pleased to see the formation of this important new partnership which is aligned with the Government of Timor-Leste’s priorities, including our efforts to diversify the economy, drive job creation, and promote inclusive economic growth,” said Timor-Leste’s Finance Minister Rui Augusto Gomes. “Whilst Timor-Leste has made some progress, we still face significant challenges and we see the TL-PSP as an investment that is good for our people today and will help the country to develop a stronger and more resilient economy in the future.”
The key goals of the TL-PSP are to improve the competitiveness of the private sector in Timor-Leste and to stimulate an inclusive and sustainable economic recovery from COVID-19 by increasing private investment in the country’s key growth areas.
Work through the partnership will aim to provide an enabling environment for the private sector through reforms to reduce the cost of doing business and create a more attractive environment for private investment.
It will support the establishment of essential financial infrastructure to enhance access to finance for Timorese men, women, and businesses. The partnership will also aim to accelerate economic diversification and catalyze private investment that delivers high social and economic returns with potential target areas to include tourism, agribusiness, renewable energy, transport, and logistics.
“We are pleased to sign this new partnership between the Australian Government and the IFC. The partnership will stimulate private sector investments, including in renewable energy. Private investment will be central to driving economic growth and diversification in Timor-Leste,” Australian Ambassador to Timor-Leste Bill Costello said. “With Australian support, the IFC will work with the Government of Timor-Leste to improve the business operating environment — crucial to attracting private investment.”
Under the new partnership, IFC will coordinate with Australia and PROSIVU, Australia’s flagship program for providing support to Timor-Leste’s central government agencies and economic line ministries.
While Timor-Leste has made significant economic progress in recent years, it continues to face some key development challenges. Like many countries, it’s also at risk from the impact of climate change. Climate shocks and hazards, changing precipitation patterns, and rising sea levels are expected to aggravate pressures related to poverty, food security, and malnutrition. Widespread flooding in April 2021 served as a strong reminder of the potential impact of climate change and the need for an adequate mitigation strategy.
“The people of Timor-Leste know only too well the impacts of extreme rainfall events and the threat posed by rising temperatures, so green and resilient development will be the cornerstone of the strategic focus of this new partnership,” said Randall Riopelle, Acting IFC Country Manager for Indonesia and Timor-Leste. “IFC and the Australian Government already have a strong relationship in terms of development assistance across the Pacific and elsewhere and this new partnership, which is in lockstep with the priorities of the government and people of Timor-Leste, will build on those strong foundations.”
The TL-PSP supports a vision of an inclusive private sector that provides all people with equal opportunities.
TATOLI
