Cape-Verde - Private Sector Competitiveness and Local Economic Development Programme (PSCLED)

Cape-Verde - Private Sector Competitiveness and Local Economic Development Programme (PSCLED) – Phase II

Project Summary

Approval Date	12 Dec 2019
Signature Date	12 Dec 2019
Planned Completion Date	31 Dec 2020
Last Disbursement Planned Date	31 Dec 2020
Sovereign / Non-Sovereign	Sovereign
Sector	Multi-Sector
DAC Sector Code	15124
Commitment	U.A 15,962,838.51
Status	Completion

Project General Description

The proposed intervention concerns a EUR 20 million to the Republic of Cabo Verde to finance the Private Sector Competitiveness and Local Economic Development Programme - Phase II (PSC-LED-II). PSC-LED-II is the second phase of a programme-based budget support operation covering fiscal years 2018 and 2019, with an overall financing of EUR 40 million. The first phase of PSC-LED implemented in 2018, was successful in supporting reform efforts to promote competitiveness and economic diversification as well as spatially inclusive growth and development. Key achievements of phase I include the strengthening of institutional capacity for competitiveness-enhancing policy-making, through the operationalisation of a competitiveness reforms coordination unit. PSC-LED II aims to consolidate the gains from phase I, by (i) supporting Cabo Verde's efforts to tackle critical challenges related to lack of productivity and economic diversification through reforms to improve overall competitiveness, while also (ii) seeking to set the basis for local economic development.

Project Objectives

Like PSC-LED-I, the main objective of PSC-LED-II is to contribute to inclusive growth and economic diversification, with particular attention given to the domestic private sector and local actors given their potential contribution to the economy. This second phase pursues the same operational objectives as PSC-LED-I, namely: (i) Improved legal framework and systems for business competitiveness and investment, (ii) Skills development anchored in private sector needs, (iii) Improved factor efficiency in support of MSME development, (iv) Improved local government support for enterprise development, (v) Updated legislative framework for local economic development and decentralisation and (vi) Improved local economic development planning.

Beneficiaries

PSC-LED-II will benefit the entire Cabo Verde population. The results from improved overall competitiveness as well as enhanced private sector and local economic development improve the population’s living conditions in an inclusive and sustainable way. Increased competitiveness through a streamlined legal framework, skills development and improved factor efficiency will create expanded opportunity and boost incomes. Efforts to empower local authorities to plan for and lead on local economic development policies, along with support for enterprise development at the local level, will ensure growth is inclusive across the territory and social strata. These positive effects will spur economic growth in the country for the good of the people.

Participating Organization

Funding

African Development Bank

Implementing

MINISTERE DES FINANCES ET DE L'ADMINISTRATION PUBLIQUE DIRECTION GENERALE DU TRESOR

Information

IATI identifier	46002-P-CV-KA0-009
Last Update	25 Mar 2023

Export

Contact Details

Name	Yannis ARVANITIS
Email	y.arvanitis@afdb.org

Geographic Location

Country	Cape Verde

Coordinates	Location Name
14.9315 -23.5125	Praia

Project Classification

Finance Type	Aid Loan Excluding Debt Reorganisation
Flow Type	ODA
Aid Type	General Budget Support

Commitments

U.A 15,962,838

African Development Bank

U.A 15,962,838.51

Disbursements

Repayments (Interest & Loan)

Document Type	Language	Document
Appraisal report	fr	viewer
Appraisal report	en	viewer
Evaluation Report	fr	PN10953 SR FR
Project Completion Report	fr	viewer
Project Completion Report	en	viewer
Project Completion Report	fr	PR11054 SR FR

Indicator	Indicator Measure	Target Year	Target Value	Actual Year	Actual Value
Youth trained under contract programs between municipalities and technical & vocational institutions	Number	2019	600.0	2020	3601.0
Youth trained under contract programs between municipalities and technical & vocational institutions - of which women	Number	2019	240.0	2020	1640.0
Credit to the private sector ( as a percentage of GDP)	%	2019	60,6	2020	65,5
Labor contribution to value added growth	%	2019	2.0	2020	2,2
Increase the number of training centers developing Public Private Partnership (PPP)	Number	2019	4.0	2020	2.0
Increased participatory economic planning at municipality level	None	2019	9 locally developed participatory development plans framed in the regionalised	2020	Achieved : all plans have been developed with a participatory approach
Effective set-up of the competitiveness reform coordination unit	None	2019	Unit structure approved head of unit in place and 50% of the staff mentioned in the approved organigram recruited	2020	Set-up effective
Revision of the code for commercial companies	None	2019	New code approved	2020	Code approved
Approval of the industrial policy and related action plan	None	2019	The strategy and its action plan are adopted	2020	Policy and action plan finalized and approved
Develop a Roadmap for PPPs in vocational training	None	2019	The Roadmap has been developed and adopted to put in place PPP	2020	Study finalised
Increase private sector participation to Technical and Vocational Education and Training (TVET)	None	2019	TVET Law enforcement decree passed	2020	Draft law finalized, but more work required
Guarantee registry established up and running	None	2019	Fund manager for the guarantee scheme selected	2020	The Fund was established and started being operational
Completion of land mapping and digitisation	None	2019	Land mapping 100% completed	2020	Land mapping conducted
New law on the status of municipalities	None	2019	New law is submitted to parliament	2020	Legislation approved
New law on municipal financing	None	2019	New law is submitted to parliament	2020	Legislation approved
Endorsement of the regionalised Economic Plan for Sustainable Development (PEDS)	None	2019	Regionalised PEDS endorsed by authorities	2020	Regional PEDS endorsed
Local Economic Development structure integrated	None	2019	Effective set-up of the structure	2020	Prerogatives for LED were moved to the Planning directorate and a specialised staff nominated. Recruitements did not take place
Doing business indicators improvements	None	2019	Distance to frontier is 60 pts (DB 2020)	2020	The ‘Distance to frontier’ concept has been altered to a score over 100 points after the DB report of 2018 (for the year 2017). The initial indicator was based on a 6% improvement in the distance to frontier. A new baseline would then be the 2018 DB score of 55.93. In 2019 only small progress was noted with an increase of this score to 55.95
Dependency ratio on government transfers (% of revenues from direct central government transfers)	None	2019	3 municipalities above 80% and 10 above 60%	2020	4 municipalities above 80% and 12 above 60%
Approval of secondary legislation for insolvency	None	2019	Approval of the statutes, guidelines, and regulatory practice for judicial insolvency administrators	2020	Secondary legislation for insolvency approved
Approval of the strategy and action plan for the transition from the informal to the formal sector	None	2019	The committee on the transition from the informal to the formal sector formed (2018–prior action) and a strategy adopted	2020	A committee was formed and an action plan was developed
Interface between housing registry and municipalities for the issuance of property tax certificate (certidião matricial)	None	2019	Interface up and running	2020	Done for municipalities with an existing cadastre but is ongoing for others