DFC (GCDB)

closed

This project addresses the credit needs of rural and urban enterprises and seeks to build up GCDB as a financial intermediary. It includes a line of credit to assist agricultural and agro-industrial investments as well as small- and medium-scale industries. It also provides for improvements in GCDB's operations by assisting the rehabilitation of its accounting system, upgrading appraisal procedures and participating in the financing of its new office building. The direct beneficiaries of the project will be about 80 rural and urban entrepreneurs and artisans who are expected to create about 700 jobs at an average cost of US$4,000 per job. Improvements in the financial system will benefit the country as a whole. The small size of the domestic market, the seasonal nature of the economy and its dependence on groundnuts and tourism are not particularly conducive to private investment. However, the size of the project and its targeting of intended beneficiaries are appropriately tailored to the opportunities which do exist; the project therefore bears no other special risk.