The African Development Bank Group’s Board of Directors has sanctioned a $5.94 million grant for the Comoros, aimed at advancing financial governance reforms and improving the nation’s electricity infrastructure. Approved on July 19, 2024, the funds will be allocated to the Energy Sector Reform and Financial Governance Support Programme.
This initiative falls under the Transition Support Facility, a financial tool created by the African Development Bank Group to support nations in the midst of economic transitions. Additional financial backing for the programme has been secured from prominent partners such as the World Bank Group, the International Monetary Fund, Agence française de développement, and the European Union.
Nnenna Nwabufo, the Bank Group’s Director General for East Africa, emphasized the programme’s objectives. “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 stated.
Nwabufo pointed out that the program aims to strengthen the financial resilience and economic stability of the Comoros through better governance and an optimized energy sector.
Read: African Development Bank Pledges Continued Support for Sudan Amid Ongoing Conflict
The programme comprises two main components and includes several critical activities. These activities encompass a tax audit process, the formation of a department to manage medium-sized and large businesses, the implementation of a law regulating public corporation management, and the creation of an energy regulatory authority.
By channeling financial resources to improve public service delivery and establishing a strong regulatory framework for financial governance, the initiative is expected to have a lasting impact on the Comoros’ development.
The private sector in the Comoros is likely to experience heightened competition as these reforms take hold. Public entities stand to benefit from the creation of a national energy regulatory authority and a department dedicated to managing state shareholdings and overseeing the financial performance of public enterprises.