Tunis — The Board of Directors of the African Development Fund (ADF) on Wednesday in Tunis, approved a grant of 1.4 million Units of Accounts (UA*), about US$ 2.2 million, to the Gambia to finance the country's Institutional Support Project for Economic and Financial Governance. The grant will cater for all foreign exchange and part of the local cost requirements for strengthening macroeconomic management.

The project's objective is to strengthen capacities in key public institutions engaged in economic management and governance, with a view to helping reduce poverty. The targeted general areas of improvement are: strengthening macroeconomic management; and improving financial governance and fiscal accountability.

The project will help the government get better accountability, reduce public sector corruption, develop service delivery, improve the fiscal position, as well as reduce domestic and external debt. This will be instrumental in the effort of the Gambia to eradicate poverty through sustained economic growth that will have a positive impact on the entire population of the country, estimated at 1.6 million. The project will assist the government in its efforts to reduce the proportion of people living in poverty from 61% in 2007 to 40% by the year 2011.

The project is consistent with the Gambia Country Strategy Paper Update and is in conformity with the draft AfDB World-Bank Joint Assistance Strategy for 2008-2011.

The total cost of the project is estimated at UA 1,473,109. The ADF grant will finance 95% of the project. The Gambian government will provide UA 0.073 million, or 5% of the overall cost.

The African Development Bank started its operations in the Gambia in 1974. To date, the Group's cumulative commitment in the country stands at US$ 324 million for 54 operations.

* 1 UA = 1.57188 US$ = 29.6839 GMD as at 21/11/2007