The SDA programme will contribute to cushioning the poorer groups from the transitional adverse effects of the on-going Government reform programme through the provision of re-training facilities and credit to small-scale enterprises involved in employment and income generating activities.
The proceeds of the SDF were specifically to be used to finance the following four areas of the SDA programme. (i) micro-enterprises and poverty alleviation projects/programmes; (ii) poverty assessment and monitoring; (iii) training and institutional strengthening; and (iv) action oriented policy research. The ADF loan was to be used to cater the training and micro-enterprises initiatives of retrenched workers both in the public and private sectors. The social welfare requirements of the vulnerable groups such as food, health and education subsidies were to be met from the Government contributions to the SDF.
Those retrenched will be retrained so that they could be re-absorbed into productive employment. Credits will be made available for micro-enterprises proposed by those adversely affected by the reform programme.
As a result of the reform programme, many people will be impoverished including those that will lose their jobs, and the poor people who would have to pay higher prices for their goods and services. The SDA component of the Loan is to assist this class of people.