Madagascar - Economic Competitiveness Support Programme - Phase I (PACE-I)


Project Summary

Approval Date 28 Nov 2017
Signature Date 05 Dec 2017
Planned Completion Date 31 Dec 2026
Last Disbursement Planned Date 31 Dec 2026
Sovereign / Non-Sovereign Sovereign
Sector Multi-Sector
DAC Sector Code 43010
Commitment U.A 10,000,000
Status Completion

Project General Description

The Economic Competitiveness Support Program (PACE) in Madagascar is part of the support initiatives for reforms to address post-crisis challenges, including the investment gap, which is one of the largest. The first phase of this program (PACE I), which is the subject of this support, aims at consolidating the gains of the previous programs (PARSE and PARGE) through the improvement of Madagascar's economic competitiveness and the promotion of investments. The program pays particular attention to the various factors that contribute to strengthening resilience and the fight against fragility, such as increasing investments to support the process of sustainable economic and social transformation, and improving infrastructure to open up the most remote economic areas of the country, and support for innovative approaches in agriculture focused on the development of agricultural growth poles and agribusiness platforms. The PACE I reform measures revolve around two components that are complementary and mutually reinforcing. Component 1 "Strengthening the Regulatory and Institutional Framework to Promote Public and Private Investment" will contribute to (i) creating a regulatory and institutional framework conducive to the promotion of public-private partnerships (PPPs) to finance structural infrastructure projects, and (ii) modernize the legal and institutional frameworks conducive to increased investment in agribusiness. The second component "Improving sectoral governance in support of economic competitiveness" will focus on improving the performance of the energy and transport sectors.

Project Objectives

The objective of PACE-I is to contribute to the creation of favorable conditions for strong and inclusive economic growth, through the improvement of economic competitiveness in Madagascar. In this regard, the program will contribute to addressing the investment gap which is a major challenge in Madagascar and improving the governance of the energy, transport and agribusiness sectors.

Beneficiaries

PACE should benefit the Malagasy population as a whole. A better regulatory framework for investment promotion and better sectoral governance (energy, transport and agriculture) will improve the business climate and attract more investment in job-creating sectors for the Malagasy population. The population will also benefit from improving the governance of state-owned companies (JIRAMA and Air Madagascar), thanks to a better performance of the latter. The private sector will also benefit from the increased competitiveness of the economy that will result from the implementation of the reforms supported by the program. JIRAMA and AIR Madagascar will also be beneficiaries of the program, with regard to the improvement of their performances.

Participating Organization

Funding
Fragile States Facility
Implementing
Ministère des finances et du budget (MFB)

Information

IATI identifier 46002-P-MG-K00-011
Last Update 25 Jul 2019

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Contact Details

Name UMUBYEYI Angelique
Email a.n.umubyeyi@afdb.org

Geographic Location

Country Madagascar