The African Development Bank has agreed to provide a $10m grant to improve public financial management in Sierra Leone.
Both the bank and the government of Sierra Leone said they were committed to good governance and tackling corruption to build a stronger economy.
AfDB said yesterday the funding would boost the country’s inclusive economic management program, designed to sustain development and shared economic growth.
The programme will work under two components. First, the program is expected to promote inclusive and green growth by introducing PFM reforms, including improving value for money in procurement and maintaining fiscal discipline and budget credibility. Steps will also be taken to strengthen the recommendation of the Auditor General, so that at least 60% are implemented by 2015.
Second, the programme is expected to improve governance of the extractive and energy sectors, with the adoption of an updated Core Minerals Policy that incorporates environmental and social regulations, and submission of National Power Authority accounts to the Auditor General.
‘The rational for this program lies in the need for consolidating the country’s transition out of fragility while managing the risks of reversal,’ according to an AfDB document.
‘The next three years have the potential to be the most transformative in the country’s history, as they determine the country’s pattern of development and lay the foundation for achieving middle-income status.
‘2013-2016 will be a period during which growing revenues from natural resource wealth will create huge investment opportunities and the government will have to take decisions that will have lasting consequences.’
During the signing of the grant on May 22, Aly Abou-Sabaa, the AfDB’s vice-president in charge of governance, agriculture and human development, said the money would boost the country’s economic reform program.
‘We applaud the good progress in Sierra Leone’s economic governance reforms, especially in introducing the new extractive revenue management bill and the updating of its public financial management legal framework,’ he said.
Friday May 30, 2014