APA-Banjul (Gambia) – The financial institution intends to help “improve governance and strengthen fiscal resilience” in mainland Africa’s smallest country.
On October 3, the Board of Directors of the African Development Bank (AfDB) Group approved a $6.72 million grant for The Gambia. The objective is to support the implementation of the first phase of the country’s public financial management and economic reform program, including the strengthening of social protection systems to reduce poverty among vulnerable populations.
“AfDB’s financial support comes under Pillar 1 of the Transition Support Facility, which targets countries affected by situations of fragility and conflict,” according to a statement seen by APA.
The Gambia will be supported in participatory budgeting, including climate budget labeling, transparent procurement, effective financial reporting, and improved external audit and parliamentary oversight of budget management, the statement said.
In addition, “the program plans to strengthen prudent and transparent debt management and accelerate domestic resource mobilisation reform, with a focus on consolidating progress made in revenue administration.”
It will also strengthen governance, in particular the policy, legal and regulatory framework of the social protection system. The aim is to support the establishment of an inclusive and targeted system, while developing the framework for expanding social protection coverage.
Ultimately, “these reforms will improve revenue mobilisation from key fiscal sources, including customs revenues (expected to increase by 11%) over the life of the program. The poverty rate is expected to fall from 53% to 48%,” the release added.
As of June 30, 2023, the African Development Bank Group’s active portfolio in The Gambia comprised 13 projects with a total commitment of $200.83 million. The transport sector accounted for 60.3% of the portfolio, followed by agriculture (16.7%), energy (11%), water and sanitation (9%), and governance (3%).
ID/te/as/APA