Mousa Gibril Bala Gaye, Secretary of State for Finance and Economic Affairs on Wednesday tabled before members of the National Assembly, the International Fund for Agricultural Development (IFAD) loan for Rural Finance Project for possible ratification.

The loan agreement which entered into force on December 8th 2006, between the International Fund for Agricultural Development (IFAD) and the government of the Gambia, amounting to SDR 4.150M, equivalent to US$ 6.12M  and a grant of SDR 280,000, equivalent to US$400,000, is to finance the Rural Finance Project.
The goal of the project is to create an enabling environment for rural poverty reduction. The purpose of the project, among others, are to foster self-sustaining rural micro-finance in Visaca’s and non-bank financial institutions and to ensure that micro-finance institutions have consolidated access to qualified support, as well as to forge partnership with other projects including those with grant resources for socio-economic infrastructure and to use loan resources effectively.

Presenting the loan before members, SoS Gaye said that the project will target to benefit the economically-active rural poor, including the food in secure households with special attention to women and other vulnerable categories in local societies, such as rural youths and minorities. He added that the Rural Finance Project consist of three components. “Component A, dilates on the institutional strengthening of micro-finance institutions with the training of management committee members being the main objectives. Visaca’a, NGOs and Non-Bank financial institutions. Component B, dilates on institutional strengthening of supporting institutions and technical service providers. These components shall enhance the capabilities of the micro-finance department of the Central Bank of the Gambia to efficiently supervise and regulate micro-finance institutions. Component C, is to establish an autonomous project support unit and the back stopping of the project support Unit on micro-finance,” he said.

According to SoS Gaye, The Gambia is a densely populated country where agricultural production is decreasing, due to enactive weather and inefficient market storage. ”Almost half the population live in the urban areas and rural families rely on livelihood that require little or no land, but few rural people can access credit to finance other activities. With this project, about 180,000 poor people in rural areas of The Gambia will have better access to credit, insurance services and business advice,” he pointed out.
SoS Gaye then noted that the Rural Finance Project will provide skills and technical training to local micro-finance institutions in six rural divisions in the Gambia.

 He added that the training will help project [participation to identify and develop new financial products, such as business development services for rural credit, as well as improve the management information system and expand the outreach of their services.
He then clearly stated that Rural Finance Institutions will plan and evaluate the project and its impact on the clients. “There will also be an annual evaluation by village men and women to generate recommendation for further activities,” he concluded.