|Approval Date||20 Jul 2018|
|Signature Date||28 Aug 2018|
|Planned Completion Date||31 Dec 2018|
|Last Disbursement Planned Date||31 Dec 2019|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||15124|
The Economic Competitiveness Support Programme (PACE) is a three-year programme-based operation covering the 2017, 2018 and 2019 financial years. The first phase approved in November 2017 provided a list of reform measures indicatively considered as conditions precedent to the second phase, which have all been fulfilled. The outcomes of the first phase (PACE I) were deemed highly satisfactory. All planned measures to establish a suitable regulatory and institutional framework for the promotion of investments, including: (i) the design of the PPP strategy; (ii) the adoption of the law on SEZs; and (iii) the adoption of the law on industries, have been completed. As a follow-up to the first phase, PACE II continues the reforms jointly identified in 2017 by the African Development Bank Group and the Malagasy authorities. PACE II reforms aim to consolidate the achievements of previous programmes and support Government’s efforts to implement the reforms listed in the National Development Plan (NDP) 2015-2019. PACE II will place emphasis on improving Madagascar’s competitiveness, to attract more public and private investments in job-creating sectors like agro-industry. PACE Phase II has two components. The first component: “Strengthen the regulatory and institutional framework for the promotion of public and private investments” and the second component “Improve sector governance to support economic competitiveness” will place emphasis on enhancing energy and transport sector performance.
PACE will contribute to creating favourable conditions for strong inclusive economic growth by improving economic competitiveness in Madagascar. In this regard, PACE will help to remedy the investment deficit in Madagascar and improve governance in the energy, transport and agro-industry sectors. The programme’s expected impact will be to raise the GDP growth rate from 4.2% (2016) to 5.5% (2020), and improve Pillar 2 (infrastructure) of the Global Competitiveness Index from 1.9 (2016) to 2.3 (2020).
PACE will benefit the entire population of Madagascar. An improved regulatory framework for the promotion of investments and better sector governance (energy, transport and agriculture) will help to improve the business climate and attract more investments in higher value-added job-creating sectors for the Malagasy people. Improved governance of State-owned enterprises (JIRAMA and Air Madagascar) will also benefit the population through better performance of these companies. Furthermore, the private sector will take advantage of the enhanced economic competitiveness arising from the delivery of programme-supported reforms. The programme will benefit JIRAMA and Air Madagascar by improving their performance.
Fragile States Facility
Ministère des Finances et du Budget (MFB)
|Last Update||28 Jan 2022|