AfDB donates US $10 million to reform economic governance in Burundi
On December 18, 2014, the Board of Directors of the African Development Bank (AfDB) Group approved a donation of US $10,249,000 to the Republic of Burundi, from the resources of the Transition Support Facility (TSF).
This funding is to support the Economic and Governance Reform Support Programme phase I (PARGE I), the first phase of a series of two operations comprising programmatic budget support for the 2014 and 2015 fiscal years. It also anticipates a list of measures that will trigger phase two (PARGE-II). This programmatic approach optimizes aid planning and helps align it with the country's development policies. PARGE-I is fully in line with the second Poverty Reduction Strategic Framework (SFPR II) for 2012 to 2015 and with "Vision Burundi 2025".
The program is a continuation of previous budget supports (PARE I-V) granted since 2004, which have contributed not only to implementation of SFPR I and II, but also, and specifically, to the national system for the management of public finances and the development of the private sector. These operations have created the conditions for inclusive, sustainable growth to gradually bring the country out of its fragility.
PARGE will consolidate the achievements of previous operations, helping to establish the conditions for better budget management and stimulating the development of the private sector. It will support the Burundian government to implement SFPR II, which covers the period 2012-2015, in its operational goals: improvement of the mobilization and predictability of public resources and control of budget implementation; support for the promotion of entrepreneurship; and private sector access to finance.
This program, whose main aim is to consolidate the conditions for inclusive growth, will help sustainably reduce unemployment and poverty. The impact of PARGE will be all the more significant since unemployment and poverty are among the biggest challenges that Burundi must address in order to escape the vicious circle of fragility.