Response strategy
Synthesis of cooperation strategy
The EC response strategy to The Gambia’s development and poverty reduction challenges is based on the Government’s own development priorities, as outlined in the PRSPII (2006).
The 10th EDF Country Strategy aims to support The Gambia’s efforts to foster accelerated economic growth and to reduce poverty. By addressing key issues that are currently hampering economic and social development, the strategy draws on past experience of EC-Gambia cooperation and on existing EC comparative advantages, especially with regard to infrastructure. Referring to The Gambia’s commitment to good governance and economic reform, the Government has submitted to the EC its list of prospective commitments.
The commitments have been assessed by the EC and an incentive tranche of €12.7 million in order to improve governance has been decided and allocated to increase the initial indicative amount of €63.3 million to totalling €76 million. The government has reallocated this amount to the focal sectors of the NIP (except €1m for tackling illegal migration in the non-focal sector). The overall analysis of the country situation shows a number of key areas that are relevant for The Gambia’s development agenda and will be addressed under the 10th EDF CSP/NIP, namely:
· infrastructure and interconnectivity, particularly transport, as a precondition for economic and social development and for regional integration;
· economic and trade reforms, including measures related to the implementation of EPAs and improvement of SPS conditions ;
· overall weaknesses in governance and the slow pace of implementation of decentralisation;
· existing shortcomings in public service delivery and public/private partnerships;
· shortcomings in the judicial system for equitable access and timely dispensation of justice to the poor and economic operators;
· budget support in the medium term for appropriate and predictable funding of the country’s PRSP II in order to achieve the relevant MDGs;
· the low impact and absorption rates of EC-funded programmes, and improving ownership and donor coordination;
· the need for capacity building of all actors at all levels in The Gambia–EC Cooperation Strategy.
4.2. Sectors of concentrationFocal sector 1: infrastructure and regional interconnectivity
The transport infrastructure sector will continue to be a key development sector receiving EDF financing support. Energy could be supported through the Energy Facility or any appropriate grant instrument other than the EDF. Regarding transport, careful consideration will be given to establishing links between separate parts of the same transport mode and between different modes.
Such links also include connectivity between the North and South Banks of the River Gambia (bridges) and cross- border transport networks with neighbouring countries. Interventions in the transport sector might be complemented by additional funding instruments such as the EIB Trust Fund for infrastructure, in particular as part of the European Initiatives for regional and continental economic integration of infrastructure in Africa.
The Gambia will reinforce its cooperation with Senegal to define and defend common transport programmes, notably the important crossing-point bridge investment at Farafenni, and other longitudinal roads along the common borders to facilitate trade, economic investment, rural development and communication between population groups on both sides of the River Gambia and with Senegal.
The “Farafenni bridge” will be considered under the 10th EDF RIP. The feasibility study for the construction of the bridge is being addressed by the OMVG (“Organisation de la Mise en Valeur du Fleuve Gambie”). Key among the crossing points requiring investments for better flow of traffic and trade is the Banjul-Barra crossing point, for which there exists a feasibility study that may need updating.
Given its particular geographic situation, the improvement of Gambian transport infrastructure will be highly consistent with the ECOWAS Transport Policy and Plan in terms of regional integration and the expected implementation of the West African EPA.The main risk associated with this component is the mobilisation of adequate resources to sustain the Road Fund for maintenance.
Focal sector 2: Governance
Governance is the second priority focal sector for the 10th EDF cooperation strategy. The improvement of economic and political governance is a determining factor for sustained growth and poverty reduction. EDF support in this area will target (a) decentralisation and local development, including the promotion of equitable access to justice by the poor and economic actors, and probably also the reform of the civil service, in collaboration with other donors; and (b) government efforts to implement economic and trade reforms in response to the realities of regional integration and the EPAs. Other donors supporting governance are the DfID and the World Bank in public financial management, and the UNDP in democracy, elections, and the National Assembly.
A sector budget support will be directed to the judiciary sector. The expected results of these efforts will positively impact on governance and service delivery at decentralised levels and the business environment. Measurable improvement of key indicators in governance is considered crucial for the efficiency of the PRSP II, sustained donor support and private investment.This focal sector will finance the Support to Decentralisation & Local Development (SDLD) project. It was not financed under the 9th EDF, following a decision in the ETR.
However, a readjustment of the project will be necessary. Actions in decentralisation policy will also take into account rural development needs, in particular as far as the groundnut sector reform is concerned. However, a real commitment from Government to the decentralisation process is a prerequisite. The main risk associated with this component is the implementation of the Government’s commitments.
General Budget Support
Given the need for supporting the PRSP II and in order to improve aid effectiveness, general budget support will be provided. In line with the PRSP II objectives and Government’s firm commitment to improving public finance management through effective reforms and capacity building, general budget support will be provided under the 10th EDF Strategy. However, budget support will be implemented only when general eligibility criteria are met.
EDF budget support will enhance the implementation of The Gambia’s PRSP II covering the period 2007-2011, with particular emphasis on government spending in the social sectors of education, health and road infrastructure (secondary and feeder roads). These should be monitored using an agreed set of indicators and targets for poverty reduction. It would also depend on a stable and sustained macro-economic environment and confident relations with the IMF.
The disbursement of budget support will also be linked to EC requirements for this tool and continued improvement in public finance management including procurement. A joint mechanism for annual review of progress in poverty reduction and adequate mechanisms for donor coordination and alignment will facilitate the implementation of EDF budget support.The risks associated with implementation through budget support are the capacity to reach the target of the chosen indicators (which will be done in collaboration with other donors), continued maintenance of a programme with the IMF, improved management of public finance and the availability of reliable data. No other donors are committed yet in a General Budget Support (GBS) policy with The Gambia.
Support in non focal sectors – capacity building
The lack of institutional and human resource capacity has been repeatedly emphasised throughout this document. Hence support in the non-focal sector will be dedicated to capacity building recognised as a cross-cutting issue and an accompanying measure for the effective implementation of the 10th EDF.
In this respect, The Gambia’s Human Development Report 2005 “Building Capacity for the attainment of the MDGs in The Gambia” represents a good basis for identifying the need for capacity building This approach will complement the focal sectors and act as strategic support for the implementation of the PRSPII.
Funding for the Technical Cooperation Facility (TCF), continued support for non-state actors, an integrated capacity building programme and support for activities addressing the issue of illegal migration have been selected in this sector. Support for activities addressing the issue of illegal migration could also be supported with funds allocated to the non-focal sector. National contribution to regional programmes and projects could also be financed. The main risks associated with this component will be the availability of a broad-based civil society platform for structured dialogue and coordination, and difficulties of finding and keeping staff to implement the programmes and projects.
