AfDB and CAR Sign FCFA 3.56 Billion Budget Support Agreement
The African Development Bank (AfDB) Group and the Central African Republic signed on 25 February 2011 in Bangui, a UA 4.5-million (FCFA 3.56 billion) budget support grant agreement to enable the country build capacity in economic and financial management.
The agreement was signed by CAR’s Planning, Economy and International Cooperation, Minister of State, Sylvain Maliko, and the AfDB’s Resident Representative at the Cameroon-CAR Regional Office (OCFP), Racine Kane.
The grant will enable the government to implement its capacity building project in economic and financial management (PARCGEF). The project, funded by the African Development Fund (ADF) and the Fragile States Facility, constitutes part of the first pillar of the Bank’s intervention strategy in the CAR, and includes consolidation of administrative and economic capacities.
Approved by the AfDB Group’s Board on 31 January 2011, the project will involve training 300 senior government economic and financial managers in budget management with a view to improving the country’s business climate
The PARCGEF is expected to help the government to improve the budget processes, reduce delays in submitting the draft budget to Parliament, as well as better control of internal and external debt.
It will also reduce delays in starting businesses, support ongoing public-private dialogue, and build capacity among 400 operators of which 15% are women.
The AfDB support complements other donors’ efforts to increase CAR’s capacity to mobilize internal resources and improve the business climate thereby ensuring the success of poverty reduction programs.