|Approval Date||12 Dec 2019|
|Signature Date||12 Dec 2019|
|Planned Completion Date||31 Dec 2020|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||15124|
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.
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.
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.
African Development Bank
MINISTERE DES FINANCES ET DE L'ADMINISTRATION PUBLIQUE DIRECTION GENERALE DU TRESOR
|Last Update||26 May 2020|