Project Summary

Project General Description

The proposed operation concerns a grant of UA 1 million to the Central African Republic (CAR), under Pillar III of the Transition Support Facility (TSF), for the implementation of the Public Private Dialogue Support Project (PADPP). Indeed, the country faces many challenges, including the mobilisation of sufficient resources to finance its National Recovery and Peacebuilding Plan for the Central African Republic (RCPCA) and the development of the private sector to make it the main engine of the structural transformation of the economy. The justification for the PADPP also lies in the need to continue the support that the Bank has provided to CAR in the areas of governance and public finance management as well as in improving the business climate. The needs in terms of capacity building were assessed in a participatory manner with the various stakeholders and some Technical and Financial Partners (TFPs). Within the framework of the PADPP, the Bank intends to consolidate its commitment in CAR to strengthen governance in order to support increased mobilisation of domestic resources and promotion of the private sector. The PADPP is thus divided into three (3) components: (i) Capacity building for public-private dialogue; (ii) Strengthening the implementation of fiscal policy; and (iii) Project management. The project will contribute to the improvement of the living conditions of the population by helping to improve the business climate (by reducing the time needed to pay taxes and increasing the formalisation of SMEs) while contributing to the efficiency of the tax policy (by reducing tax expenditure). The implementation period is thirty (30) months.

Project Objectives

The overall objective of the intervention is to strengthen the public-private dialogue in order to improve the fiscal dimension of the business environment. This consists of contributing to the strengthening of economic resilience by enabling government structures to accompany and assist private enterprises on fiscal aspects, thus contributing to strengthening revenue mobilisation. More specifically, the project aims to support: (i) the reinforcement of skills in the area of taxation by producing specific studies on the interaction between the government and the private sector on tax issues such as the time needed to make declarations or access to public contracts; (ii) the reinforcement and facilitation of the framework for state-private sector dialogue on specific tax issues; (iii) support to tax policy on aspects such as the effectiveness of taxation of the informal sector and e-commerce, thus contributing to revenue mobilisation; (iv) an analysis of emerging financing opportunities, such as green and climate finance.

Beneficiaries

The direct beneficiaries of the project are: the Ministry of Economy, Planning and Cooperation and the Ministry of Finance. The project activities will indirectly benefit other structures such as the Ministry of Trade and Industry and the Ministry of Small and Medium Enterprises, Handicrafts and the Informal Sector. Employers' structures, especially those involved in dialogue with the Government, will also be indirect beneficiaries of the project. The institutional capacities of the beneficiary structures will be strengthened, in particular through training and support, by making high-level expertise available and preparing studies and analytical work that contribute to the development of knowledge. The indirect beneficiaries of the project will be the citizens of the CAR, which should enable them to benefit from more opportunities to undertake and/or obtain employment as a result of the improved business climate.

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