WORLD BANK, AfDB LEAD DONORS IN EAC BUDGET

 

BY GRACE MACHA IN ARUSHA

The World Bank Group and the African Development Bank (AfDB) will top remittances to be made by donors for the 2023/24 budget of the East African Community (EAC).

While the Bretton Woods institution expects to remit $12.5 million, the continental bank has pledged to raise $9million out of  a total of $44.8million the development partners have committed to raise.

The EAC budget estimates for the 2023/24 financial year were tabled before the East African Legislative Assembly (EALA) last week.

Out of $ 103 million approved for the coming fiscal year, a combined $ 51.4 million will be contributed by the partner states while $ 44.8 million will be raised by donors.

The budget summary availed to the media indicates that the World Bank Group will raise  a total of $12million for the EAC budget for 2023/24. 

AfBD, on the other hand, has committed to inject some $ 9 billion to support the budget currently being debated by EALA's budget sitting in Arusha.

Budget support funds from the two financing institutions will be channeled to various development projects under implementation in the region.

For the Bretton Woods institution, these include $ 502,600 budget for cooperation in climate change and resilience in the Nile river basin.

The WB has also committed to remit $ 1.6million for East Africa Skills for Transformation and Regional Integration Project (EASTRIP).

Another $ 5.5million will go to the Eastern Africa Regional Statistics Programme-for-Results being implemented in the region.

The World Bank, which remains one of the leading development partners to the EAC, will during the 2023/24 remit another $ 4.8 million to an unspecified project.

AfDB has committed to raise about one million through the infrastructure project support window and another $ 115,088 to Lake Victoria Basin Commission (LVBC).

AfDB will also raise $ for the EAC Capacity Building Project during 2023/24 while some $ 4 million has been earmarked for Payments and Settlement Systems Integration Project (PSSIP) under the EAC.

The European Union (EU), another leading donor, has this time around pledged a total of $ 1.9 million as budget support to the Community.

Other development partners who will make significant budget support to the EAC in 2023/24 include the African Union (AU) which is expected to raise $1.9million.

Some $ 370,000 and 1.2million are expected from the Alliance for Green Revolution in Africa (AGRA) and Bill and Melinda Gates Foundation respectively.

The UN Food and Agricultural Organization (FAO) and the International Fund for Agricultural Development (IFAD) will raise a combined $ 570,000 for the EAC budget.

The Federal Government of Germany will remit $ 9.5 million while some $ 22,875 is expected from its development cooperation agency (GIZ) during 2023/24.

The Swedish International Development Agency (SIDA) will raise $ 2 million with some 4.8 million expected from the United States aid agency (USAID), among others.

The seven nation EAC has projected to projected to spend a total of $ 103million for the 2023/24 financial year, starting on July 1st.

According to the estimates tabled before the regional Assembly last week, each partner state will be obliged to contribute $ 7.3million to the kitty.