AfDB supports PFM reform in Chad

11 Dec 15

The African Development Bank has approved $18.34m in grants to support public financial management reforms in Chad.

The programme of reforms will work to improve PFM in the country, whose economy is struggling to deal with the combined shock of plummeting oil prices and terrorist threats from groups including Boko Haram.

The AfDB said that the programme will reduce social inequalities, improve the recovery of non-oil sector domestic resources and enhance the efficiency and transparency of public spending.

This will be achieved by broadening the tax base to raise contributions from the non-oil sector, ensuring that public expenditure better meets social development indicators and enabling fairer access to public contracts for the private sector and to budget information for citizens.

The funding will come from the AfDB’s African Development Fund ($4.62m) and the bank’s Transition Support Facility ($13.72m).

AfDB said the programme is in line with its 2015-20 country strategy, which looks to improve the effectiveness and efficiency of public action, as well as other long-term, Africa-wide initiatives concerning improvements in governance, accountability and living conditions.

It added that, along with support from the World Bank, European Union and other donors, the programme is expected to stabilise Chad’s macroeconomic framework, increase fiscal revenue mobilisation and build the government’s capacity to finance its development agenda in areas such as infrastructure and rural development.

At the same time, the AfDB announced $34.93m in funding to improve water and sewage services in Bulawayo, Zimbabwe’s second most populous city.

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