By Omar Bah
The World Bank board yesterday approved $60 million in financing from the International Development Association (IDA) to support the Gambia’s efforts to strengthen procurement, unlock productive potential, improve the economic governance of SOEs and domestic revenue mobilization, and enhance climate and social resilience.
Wilfried A. Kouame, World Bank Senior Economist and Task Team Leader of the project said The Gambia is on a good growth trajectory despite the external shocks of recent years. Still, structural bottlenecks remain. Therefore, “to unlock the growth potential and improve the living conditions of the vulnerable populations, it’s essential to pursue and accelerate transformational reforms,” he said.
This is the first development policy support operation in a new series designed to underpin reforms conducive to resilient and inclusive growth. The program is on three pillars. The first pillar supports tackling bottlenecks in key enabling sectors by creating the conditions for private sector participation in the energy sector, fostering competition and leveling the playing field in the groundnut sector, and making the conditions for enabling digital and electronic payments. The second supports reforms to build fiscal space and improve transparency and efficiency in using public resources and institutions. The third pillar targets reforms aimed at increasing social and climate resilience, notably through improved disaster risk management framework and the adaptive social protection system, while ensuring that the needs of women and girls are met.
The Gambia ranks 148th out of 181 countries regarding extreme climate vulnerability. The increasing frequency of floods is having a heavy impact on the population and critical sectors. With more than half of the country’s inhabitants living in urban areas and 80 percent of the urban population living within 20 km of the Atlantic coast, the expected rise in sea level is a significant risk; this will help The Gambia better prepared financially to meet the immediate needs of natural disasters, this new financing includes a $20 million Catastrophe Deferred Drawdown Option (Cat DDO) that can disbursed in the event of a natural disaster, including public health-related emergencies.
“This financing will enable the government to carry out important reforms to create the fiscal space required for much-needed investments in human and physical capital, improve public finance management, and facilitate the development of key sectors. The proposed operation also provides a critical line of contingent financing to support The Gambia in being better financially prepared to respond to immediate needs following a natural catastrophe,” said Feyi Boroffice, World Bank Resident Representative.
This operation aligns with the Gambia Recovery-Focused National Development Plan, 2023-2027. The reform program supports the green, resilient, and inclusive development agenda by strengthening the country’s adaptation and resilience to climate change through improved prevention, preparedness, and response to climate shocks.
