The World Bank has approved Supplemental Financing for The Gambia Second Fiscal Management, Energy and Telecom Reform Development Policy Financing (DPF).

Announcing the approval in a statement on its website, the bank said the $20 million grant will support the government’s efforts to improve debt and public investment management; strengthen financial viability and service delivery in the energy and telecommunications sectors.

It stated that it will also enhance the transparency and governance framework of state-owned enterprises (SOEs).

‘The supplemental financing responds to the spillover effects of the war in Ukraine on The Gambia’s economy compounding an already challenging situation due the Covid-19 pandemic’, the statement read.

‘The conflict disrupted agricultural supply chains and food trade, impacting food, feed, fertiliser, and fuel prices and driving inflation up to double digits for the first time in three decades’.

World Bank Country Economist and Task Team Leader of the project, Wilfried Kouame, said the war in Ukraine has led to a slowdown in economic activities in The Gambia and, as a result, severely impacted the country’s economic growth.

‘This has reduced domestic revenues; at the same time, the country has to meet pressing basic social and productive sector needs exarcebated by rising inflation’, he said.

The bank further revealed that the grant will support efforts to improve the country’s economic resilience and recovery by mitigating revenue losses, boosting forex reserves, cushioning the impact of rising prices of essential products on the most vulnerable, and ensuring that the government’s reform program remains on track.

Source: World Bank

Photo source: Jpoelen