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Gambia, EU sign D2 billion financing agreement

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The Gambia and the European Union have signed a new financing agreement for the implementation of the 4th State and Resilience Building Contract for The Gambia. The total funding of the European Union to the Financing Agreement is 40 million euros, (D2,93 billion) and 36 million euros of that money will be disbursed during the fiscal years 2023 and 2025 – and 4 million euro for complementary support.

The overall objective of the Financing Agreement signed by Hon. Minister of Finance and Economic Affairs Seedy Keita and EU ambassador Corrado Pampaloni is to support the government in its efforts to consolidate a peaceful, inclusive and democratic society, while also promoting gender equality.

The European Union Ambassador to The Gambia, Corrado Pampaloni, said the agreement serves as a tangible manifestation of EU’s shared commitment to strengthening the foundations of governance, stability, and resilience in The Gambia.“The objectives outlined in this agreement are not just financial commitments. They embody a common vision for a Gambia that is not only economically stable but also socially inclusive and politically resilient. We are placing particular emphasis on bolstering key sectors that are instrumental for sustainable development.”

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The agreement focuses on:

o          The Implementation of the White Paper commitments related to the recommendations from the TRRC;

o          The formulation and implementation of the National Development Plans for 2023-27;

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o          The expansion of Social Protection support programmes for the vulnerable population;

o          Enhancing relevance and accountability of Public Financial Management for the delivery of essential services to the citizens of the Gambia;

o          Migration management with a specific focus on readmission and reintegration, in recognition of the multifaceted challenges faced by both Europe and The Gambia on irregular migration.

The funding of the financial agreement is per se is not earmarked for specific expenses. The funding goes to the General Treasury to ensure the State’s ownership over the national budget. However, in the framework of our budget support programmes The Gambia and the EU agree on a certain number of objectives translated into indicators. In concrete terms, a part of the budget support is disbursed in forms of fixed tranches. Another chunk of the budget support funding is disbursed via variables tranches that a related to the implementation of these specific agreed indicators. In other words, 100% of a given variable tranche is allocated provided that 100% of the related indicators are met. To ensure an efficient implementation of the programme, both parties carry out a regular policy dialogue encompassing all the key results identified in the Financing Agreement.

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