AfDB supports economic recovery in Mali with Over US$60mn loan
The African Development Bank Group (AfDB) approved, on Wednesday in Tunis, Tunisia, a CFA 30 billion (over US$60.2million) loan to Mali, to be drawn from its concessional window, the African Development Fund (ADF), to finance an Emergency Economic Recovery Support Programme (EERSP). The EERSP is an emergency budget support operation and part of a concerted effort by the international community to help Mali out of its successive security, political and institutional crises that have affected the country, by providing support to the re-establishment of public services and fostering economic recovery.
AfDB said in a statement announcing the approval that the operation will contribute to the consolidation of peace initiatives and social cohesion undertaken under the ongoing transition.
The money will help to enhance the reconstruction of the country ,including the rebuilding of the capacities of the State, and equally improve macroeconomic and budgetary framework as well as create the conditions required for economic recovery.
The program’s specific economic outcomes are, among others, restoration of functioning and rebuilding of the capacities of the public administration, restoration of access to basic social services, especially health and education services and support to economic growth expected to increase from 1.2% in 2012 to an average of 5% between 2013 and 2014.
The EERSP will help the State respond to urgent social and economic needs in the wake of the successive crises and its implementation.
The programme beneficiaries will be the Malian population as a whole, i.e. about 15.4 million inhabitants, and, in particular, those living in the northern part of the country, especially those displaced as a result of the conflict, AfDB said.
The bank added that more specifically, the beneficiaries are people living under difficult conditions due to the absence of basic public services in the areas affected and the congestion of basic public services in the areas that accepted the displaced persons.
The main beneficiary structures comprise the school network, public health services, and in general, the public administration which must return to a normal working order.
The African Development Bank Group in Mali approved to date over US$281.1million.
It could be recalled that Mali suffered two destabilisation in 2012 with a coup in March while armed groups who were fighting for independence in the northern parts since January, took control of two thirds of the country in April.
Since January 2013, a military operation led by French troops and African soldiers regained control of areas formerly held by Islamists.