The International Development Association (IDA) has been granted $60 million in funding by the World Bank board to assist the Government of The Gambia in realizing its full potential for productivity and strengthening its resilience to climate change.
These grants will improve domestic revenue mobilization, procurement, economic governance of State-Owned Enterprises (SOEs), and social and climate resilience.
Despite recent external shocks, The Gambia is doing well, but structural impediments still exist. The Gambia must pursue and expedite transformative reforms in order to realize its full growth potential and enhance the living conditions of vulnerable populations, according to Wilfried A. Kouame, the project’s task team leader and senior economist for the World Bank.
Programme to foster resilience in 3 steps
This is the first in a new series of development policy support operations meant to support policies that promote equitable and resilient growth.
The Gambia Recovery-Focused National Development Plan, 2023–2027, was taken into consideration when designing this operation. By enhancing the nation’s adaptation and resilience to climate change through better prevention, readiness, and reaction to climate shocks, the reform program promotes the green, resilient, and inclusive development goal.This is the first in a new series of development policy support operations meant to support policies that promote equitable and resilient growth.
The Gambia Recovery-Focused National Development Plan, 2023–2027, was taken into consideration when designing this operation. By enhancing the nation’s adaptation and resilience to climate change through better prevention, readiness, and reaction to climate shocks, the reform program promotes the green, resilient, and inclusive development goal.
The programme is based on three pillars.
By establishing the framework for private sector involvement in the energy sector, encouraging competition and leveling the playing field in the food sector, and facilitating the use of digital and electronic payments, the first pillar helps remove bottlenecks in important enabling areas.
The second backs changes aimed at creating fiscal room as well as increasing efficiency and openness in the way public institutions and resources are used.
The third pillar focuses on changes meant to strengthen social and climate resilience, particularly by enhancing the framework for disaster risk management and the flexible social assistance program, all the while making sure that the needs of women and girls are satisfied.
Enabling The Gambia to achieve much-needed investment
Among 181 countries, The Gambia is ranked 148th for extreme climate vulnerability. The populace and important sectors are being severely impacted by the rising frequency of floods. Anticipated sea level rise is a serious concern because more than half of the nation’s population lives in metropolitan areas and eighty percent of those people reside 20 kilometers or less from the Atlantic coast.
With this new financing, The Gambia will be better equipped financially to meet the immediate needs of natural disasters. A $20 million Catastrophe Deferred Drawdown Option (Cat DDO) will be available, which can be fully or partially disbursed in the event of a natural disaster, including emergencies related to public health.
“This funding will help the government implement significant changes to free up funds for critical investments in human and material resources, enhance public finance administration, and promote the growth of crucial industries,” stated Feyi Boroffice, a resident representative for the World Bank.
In addition, “the proposed operation offers a crucial line of contingent finance to support The Gambia’s improved financial readiness to address immediate demands in the wake of a natural disaster.”
