The Republic of The Gambia has received an African Development Fund (ADF) loan to finance the implementation of the Gambia Incentive-based Risk Sharing System for Agricultural Lending (GAMIRSAL) Establishment Project. The Project overall cost is estimated at UA 6.41 million and the African Development Fund will cover 78% (or UA 5 million) of the total cost of the Proiect while the Government of the Republic of the Gambia will finance 22% (or UA 1.41 million) of the total cost of the Project.
1.The Project Development objective is to increase access to lending from Financial Institutions (Fls) to actors in agricultural value chains. The project specific objectives are: i) increase access of FIs to risk mitigating instruments to crowd in investments in the agricultural sector; il) improve Fls’ knowledge of the agricultural sector and skills in analysing, financing, and managing agricultural project portfolios, including climate risk main streaming in investment portfolio: and iii) improve skills of agriculture value chains* actors in business governance (enterprise governance structure, board structuring and oversight, ownership structure, etc.), financial and credit risk management, climate risk management, as well as reporting.
2. The project is structured around three components: A) Establishment of the risk sharing facility (GAMIRSAL), B) Institutional strengthening and C) Project management.
(A) Component I: Establishment of GAMIRSAL
The sub-components under this component are as follows: Sub-component 1.1: Development of the Legal and Regulatory requirements
- Recruit a legal consultancy firm to develop the legal requirements and a detailed roadmap indicating the steps for establishing GAMIRSAL.
- Sub-component 1.2. Setting up of GAMIRSAL
- Establish the credit guarantee scheme and de-risking tools that will be deployed to reduce risks associated with lending to agribusinesses.
- facilitate provision of pledged seed capital from the Bank and the Government;
- procure required equipment for GAMIRSAL (IT, transport, office, etc.);
- support the recruitment of the Board of directors of GAMIRSAL
- support the recruitment of GAMIRSAL start-up staffing;
- develop a climate change and low-carbon strategy;
- provide resources for GAMIRSAL’s recurrent costs
- carry out annual audit of accounts, annual audit of ESMS, and annual audit of climate change and carbon footprint monitoring; and
- ensure project visibility and communication.
- Sub-component 1.3.: Studies (GATP-PPF)
- Carry out preparatory studies for the Gambia Agriculture Transformation Programme (GATP) which was undertaken through a Project Preparatory Fund (PPF)
- Reimburse the PPP advances.
(B) Component 2: Institutional Strengthening
The sub-components are as follows:
Sub-component 2.1: Technical Assistance Facility to Lenders
- provide technical assistance to financial institutions to improve their knowledge of the agricultural sector.
- mainstream and manage climate change risks in investment portfolios,
- support them develop relevant and innovative financial products and services, and
- build their capacities in analyzing and assessing financing requests, as well as manage project portfolios in the agricultural sector,
- mainstream and manage climate change risks in investment portfolios,
- Sub-component 2.2: Technical Assistance Facility to Borrowers
- raise awareness about the project’s activities and strengthen the capacity of actors along the agricultural value chains in developing bankable and climate-proofed business plans, financial literacy, and credit management
- (C) Component 3: Project coordination and management
The sub-components are as follows:
Sub-component 3.1: Technical assistance to the executing agency
- recruit an international consulting firm experienced in establishing similar financial institutions, preferably in the Gambia, to support the executing agency in establishing GAMIRSAL.
- recruit an international consulting firm experienced in establishing similar financial institutions, preferably in the Gambia, to support the executing agency in establishing GAMIRSAL.
- Sub-component 3 2: Project management
- implement day to day project activities, including coordination, financial management, monitoring and evaluation, procurement, audit, environmental and social management system (ESMS) and climate change and gender main streaming
- The Procurement of goods and works, and acquisition of consulting services will be carried out in accordance with the “Procurement Policy and Methodology for Bank Group Funded Operations” (BPM). dated October 2015
- Request for Expression of Interest for the acquisition of consultants for the provision of various services and bidding documents for goods to be procured for project activities are expected to be issued in March 2024.
- Interested bidders may obtain further information and should confirm their interest by contacting:
The Project Director, GAMIRSAL
Ministry of Agriculture
Central Project Coordinating Unit
Former Cooperative Department Building
14 Marina Parade. Banjul Tel: +220 315 2000
Email: alijawo@gmail.com