The Gambia: US$ 11.8 Million ADF Grant for Microfinance Development
Tunis, 15 November 2006 – The Board of Directors of the African Development Fund (ADF), the concessional window of the African Development Bank (AfDB) Group will support the development of micro enterprises in The Gambia following the approval on Wednesday in Tunis of a grant of 8 million Units of Account (UA*), equivalent to US$ 11.84 million, to finance an Entrepreneurship Promotion and Microfinance Development Project in the country.
The objective of the project is to support the diversification of the sources of rural income generation, provide increased access to financial resources and build the capacity of non-bank financial institutions to provide the rural population as well as medium and small-scale enterprises with more sustainable access to help reduce poverty.
The project will comprise three components:
- Entrepreneurship and Market Development,
- Micro-finance Scheme,
- Project Management.
It will support 24,000 rural women, men and youth in five divisions through training in entrepreneurship and skills development. The project will further provide access to financial services for 116,000 microfinance clients and create 14,345 new rural micro-finance loans while enabling savings mobilisation of up to 108 million Dalasi.
In order to reach out to the most vulnerable group, at least 70% of the trainees will be women and young females. The project will target the most vulnerable and poor segments of the population, in the five districts with special focus on the rural population. The participation of young entrepreneurs from the Banjul City Council and Kaninfing Municipal Council will be limited to 25% of the total beneficiaries in order to provide more project resources outside the urban centres. Beneficiaries of this project will include rural households whose economic situation is precarious due to the lack of diversification in their economic activities.
These households will be identified through a community-based demand-driven approach after extensive information dissemination on project activities.
The ADF grant will finance 90% of the project cost. Counterpart funding of UA 0.89 million representing 10% of the cost will be provided by The Gambia government and beneficiaries.
The Bank Group commenced operations in the Gambia in 1974 and to date has approved 52 operations with total commitments, net of cancellations, amounting to UA199.3 million ( USD 294.97 million).
- Name of Project: Entrepreneurship Promotion and Microfinance Development Project (EPMDP)
- Location: 5 Divisions: Lower River Division, Upper River Division, North Bank Division, WD, Central River Division.
- Executing Agency: Social Development Fund (SDF) Banjul, The Gambia - E-Mail: firstname.lastname@example.org - Tel: +220 227221/ +220 227954
- Estimated Starting Date: January 2007
- Duration: 60 Calendar months
- Procurement: Procurement of goods and works and procurement of consultancy services financed from ADF resources will be in accordance with the Bank’s Rules of Procedure for Procurement of Goods and Works or Rules of Procedure for Use of Consultants, as appropriate, and the Governments Procurement Rules.
* 1 UA = 1.48004 US$ = 41.5920 GMD as at 15/11/2006
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