The World Bank Group has approved $30 million in financing from the International Development Association (IDA) to assist The Gambia in enhancing its productivity and economic governance. This financial support aims to improve procurement systems, strengthen state-owned enterprises' economic management, increase domestic revenue mobilization, and reinforce climate and social resilience.
The initiative is part of the Gambia Second Boosting Resilience and Unlocking Productive Potential Development Policy Financing project. It is a component of a comprehensive support package designed to help The Gambia maintain reform gains and socio-economic development as it recovers from the COVID-19 pandemic.
"While The Gambia is experiencing promising economic growth despite recent external challenges, structural obstacles remain. To fully unlock its growth potential and improve the living standards of its vulnerable populations, the country must prioritize and accelerate transformational reforms—precisely what this support aims to achieve," stated Wilfried A. Kouame, World Bank Senior Economist and Task Team Leader of the project.
World Bank Group reports indicate that The Gambia's economy grew by an estimated 4.8% in 2023 due to strong performances in agriculture, telecommunications, services, and construction. However, reliance on rain-fed agriculture and seasonal tourism continues to make the economy vulnerable. This budget support operation seeks to enhance private sector participation, strengthen procurement processes, boost economic governance of state-owned enterprises (SOEs), improve domestic revenue mobilization (DRM), and bolster climate and social resilience.
"I commend the effort of the Government of The Gambia in providing an environment for transformational reforms. This financing will support the Government to implement these reforms with the aim of creating fiscal space for essential investments in human and physical capital. It will also enhance public financial management and support the development of key sectors including the private sector," said Franklin Mutahakana, World Bank Group Resident Representative.
This operation aligns with The Gambia’s Recovery-Focused National Development Plan (2023–2027) supporting green, resilient, inclusive development agendas aimed at improving adaptation to climate change through enhanced prevention, preparedness, and response capacities against climate shocks.