Central African Republic - Economic And Financial Reforms Support Programme (PAREF), Phase II


Project Summary

Approval Date 29 Jan 2018
Signature Date 05 Feb 2018
Planned Completion Date 31 Dec 2018
Last Disbursement Planned Date 31 Dec 2018
Sovereign / Non-Sovereign Sovereign
Sector Multi-Sector
DAC Sector Code 43010
Commitment U.A 7,000,000
Status Completion

Project General Description

This program is the second phase of the Economic and Financial Reform Support Program, Phase II (PAREF-II). It intervenes in a context of standardization of the country's institutions, with the adoption of a new constitution in December 2015 and the election of a new president in February 2016. The Program is part of the continuation of the measures supported by the two CARs that accompanied the Transitional Government in restoring the capacity of financial and social administrations. PAREF-II will include more structural measures to help revive the economy and improve public finance management. It is expected that the program's measures will be implemented: (i) an increase in tax revenues from 7.1% of GDP in 2015 to 8.7% of GDP in 2018; (ii) a reduction in direct contract procurement from 90% in 2015 to less than 50% in 2018; (iii) a reduction in the number of days for business creation, from an average of 22 days in 2015 to an average of less than 14 days in 2018; and (iv) lowering the cost of starting businesses from 204 percent of per capita income in 2015 to less than 150 percent of per capita income in 2018. The total cost of the program is estimated at UA 7 million for a planned execution period from December 22, 2017 to December 31, 2018. The Program has two components: (i) Component 1: Improved tax revenue mobilization and public expenditure management; (ii) Component 2: Improving the business environment and governance of the productive sectors. The two components are complementary. The mobilization of tax revenues and the improvement of public expenditure management will enable the Government to progressively release fiscal space to consolidate the recovery of the economy.

Project Objectives

The goal of PAREF is to contribute to the improvement of the management of public finances and the revival of economic growth. The program aims to have a positive impact on the country's economic growth and social situation. It will contribute to: (i) improve tax revenue collection; (ii) improve transparency and the rate of budget execution, particularly in the social sectors; and (iii) consolidate economic growth by improving the business climate and governance in the productive sectors (agriculture, forestry and mining).

Beneficiaries

The direct beneficiaries of the Program are the public administrations and structures in charge of the reforms supported by the Program. The final beneficiaries are the Central African populations.

Participating Organization

Funding
African Development Fund
Implementing
Ministère des Finances et du Budget

Information

IATI identifier 46002-P-CF-K00-007
Last Update 09 Sep 2019

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Contact Details

Name LUMBILA Kevin Numbi
Email k.lumbila@afdb.org

Geographic Location

Country Central African Republic