What does the plan cost and how will it be resourced?

To ensure the full realization of the National Development Plan, Government has formulated a financing strategy, which is presented in a separate document.

Total Gross Budget is $2.4 Billion (USD)

The total gross budget, without accounting for available resources, stands at $US2.4 billion. The main cost drivers are energy and infrastructure (57 percent), agriculture (11.2 percent) and human capital (8.34 percent). Combined, the three strategic priorities account for 76.5 percent of the budget. With respect to the highest cost driver, which is infrastructure and energy, some of the financings will be acquired through PPP and other innovative financing models.

$1 Billion (USD)
$471 Million (USD)
$157 Million (USD)

Total cost of flagships and priority projects is $1.6 Billion (USD)

The government will put in place robust mechanisms to ensure that the plan is fully and effectively implemented. The main elements of this are: clarity with respect to the roles and responsibilities of key national actors and stakeholders; appropriate institutional mechanisms; and a well-thought-through implementation strategy.

  • Strategies to Mobilize Resources

To meet the financing needs of the plan, the government will pursue three interlinked strategies, in addition to traditional development assistance:

  • Concessionary financing;
  • Domestic resources mobilization; and
  • Innovative financing instruments.
  • Concessionary Financing

Because of the state of the economy, external support will be vital to enable The Gambia to meet the immediate financing needs of the National Development Plan. Limited fiscal space, due to high debt servicing, means that government has to rely on grants and loans of a highly concessionary nature in order to avoid further debt exposure and increasing the fiscal risks and vulnerability of the economy. The government will work with both traditional and non-traditional partners to secure the necessary financing.

  • Domestic Resource Mobilization

Reliance on domestic resourcing is becoming increasingly important for meeting the financing needs of developing countries. Already the Gambia relies heavily on taxation to finance government expenditure.

However, because of its debt servicing obligations, the government has been unable to allocate significant resources to finance development. In the context of the National Development Plan, three measures will be adopted to increase the government’s contribution to implement its development agenda:

  • Continue the path of prudent fiscal management, sound monetary policy and structural reforms which are expected to rationalize the budget;
  • Prudent debt management, especially domestic borrowing, and debt restructuring, which will lead to increased fiscal space; and
  • More efficient revenue collections mechanisms and simplifying and expanding the tax base.
  • Innovative Financing

To ensure the successful implementation of the National Development Plan, a critical focus must be anchored on alternative and more innovative ways of financing. Public-private partnerships, capital markets, blended finance among other means will be explored as priorities to ensure sustainability and efficiency, especially considering the modern economy and the global financing agenda of moving away from overdependence on aid.

    The government’s goal is to “deliver good governance, accountability, social cohesion, national reconciliation, a revitalized and transformed economy for the wellbeing of all Gambians”.

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