|Approval Date||26 Nov 2019|
|Signature Date||19 Dec 2019|
|Planned Completion Date||31 Dec 2020|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||15124|
The proposed operation concerns phase three of the Economic Competitiveness Support Programme (PACE III). PACE is a three-year programme-based operation covering the 2017, 2018 and 2019 financial years. PACE III 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 III will lay emphasis on improving Madagascar's competitiveness to attract more public and private investment in job-creating sectors such as agro-industry. Therefore, the programme has two components. The first component: “Strengthen the regulatory and institutional framework for the promotion of public and private investment” will help to create a favourable environment for the promotion of public-private partnerships (PPPs) to develop backbone infrastructure projects. The second (“Improve sector governance to support economic competitiveness”) will place emphasis on enhancing energy and transport sector performance. The continuity sought in this Phase III also stems from the programme-based nature of the operation. This approach will help to establish a medium-term dialogue platform with the authorities and improve aid predictability in order to facilitate alignment with the country’s development policies. It will provide part of the country’s funding needs for the 2019 financial year.
PACE will contribute to creating favourable conditions for robust inclusive economic growth by improving economic competitiveness in Madagascar. In this regard, the PACE programme 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% in 2016 to 5.5% in 2020, and improve Pillar 2 (infrastructure) of the Global Competitiveness Index from 1.9 in 2016 to 2.3 in 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.
African Development Fund
Fragile States Facility
GOUVERNEMENT DE MADAGASCAR MINISTERE DES FINANCES ET DE ECONOMIE DIR. TRESOR
|Last Update||20 Mar 2020|