ADB Approves $5.94 Million in Funding for the Comoros
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The Board of Directors of the African Development Bank Group has approved a $5.94 million grant to the Comoros to bolster financial governance reforms and enhance electricity supply in the country.
The funding, greenlighted on 19 July 2024, will be channeled towards the Energy Sector Reform and Financial Governance Support Programme.
This initiative is part of the Transition Support Facility, a financial mechanism established by the African Development Bank Group to assist countries undergoing economic transitions.
The programme has also secured additional funding from key partners including the World Bank Group, the International Monetary Fund, the Agence française de développement, and the European Union.
Nnenna Nwabufo, the Bank Group’s Director General for East Africa, highlighted the programme’s goal.
“The programme is a budget support operation aiming to contribute to improving the economic and financial performance of the Comoros through enhanced economic and financial governance and a better public electricity supply.” she said.
Nwabufo noted that the program assumes improved financial governance and enhanced energy sector performance will boost the financial resilience and economic stability of the Comoros.
Read: African Development Bank Grants $1 Billion Loan to South Africa’s Transnet
The programme is structured around two primary components and encompasses several key activities. These include a tax verification process, the creation of a department to oversee medium-sized and large businesses, the enactment of a law governing public corporation management, and the establishment of an energy regulation authority.
By providing the Comoros with financial resources to enhance public service delivery and a robust regulatory framework to promote financial governance, the initiative is projected to have a long-lasting impact on the country’s development.
The private sector in Comoros is anticipated to benefit from increased competition as a result of these reforms.
Public corporations are also poised to gain from the establishment of the national energy regulation authority and the creation of a department to manage state shareholdings and monitor the financial performance of public entities.
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