|Approval Date||28 Nov 2017|
|Signature Date||05 Dec 2017|
|Planned Completion Date||30 Jun 2018|
|Last Disbursement Planned Date||30 Jun 2018|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||43010|
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.
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.
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.
Fragile States Facility
Ministère des finances et du budget (MFB)
|Last Update||06 Jun 2019|