The World Bank Group today approved $45 million in grant financing from the International Development Association (IDA) to support the Government of The Gambia’s efforts to enhance domestic revenue mobilization, lay key infrastructure, regulatory, and skill foundations for private sector development, and strengthen climate resilience.
“The Gambia is on a good growth trajectory despite the external shocks of recent years, but growth remains fragile due to a combination of structural weaknesses, including climate vulnerability. To sustain its growth and improve the living standards of the population, it is essential for The Gambia to pursue and accelerate transformational reforms,” stresses Ephrem Niyongabo, World Bank Economist and Task Team Leader of the project.
This is the first development policy support operation designed to underpin reforms conducive to inclusive and sustainable growth. The program is based on three pillars. The first pillar seeks to increase government revenue by broadening the tax base and rationalizing tax expenditures.
The second pillar seeks to foster private-sector-led growth by tackling bottlenecks in key enabling sectors, such as energy, telecom, and the business environment, while advancing human capital development, with a focus on expanding opportunities for women and youth. The third pillar aims to strengthen The Gambia’s resilience to climate challenges by establishing a robust institutional and legal framework to guide climate action and coastal zone management.
“This financing will enable The Gambia to carry out reforms to build fiscal space, facilitate the development of key sectors, improve human capital and business environment to enhance participation of the private sector in the economy. The proposed operation provides a critical line to improve access to essential services, enhance women and youth employment opportunities while enhancing environmental sustainability,” said Franklin Mutahakana, World Bank Group Resident Representative in The Gambia.
This operation has been designed to meet the authorities’ priorities outlined in 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 a robust legal and institutional framework for climate governance and climate resilience, ensuring that territorial and sectoral planning integrates climate adaptation and disaster risk management.
