Madagascar - Economic Competitiveness Support Programme, Phase III (PACE III)


Project Summary

Approval Date 26 Nov 2019
Signature Date 19 Dec 2019
Planned Completion Date 31 Dec 2020
Last Disbursement Planned Date 31 Dec 2020
Sovereign / Non-Sovereign Sovereign
Sector Multi-Sector
DAC Sector Code 15124
Commitment U.A 9,970,000
Status Completion

Project General Description

The proposed operation concerns phase three of the Economic Competitiveness Support Programme (PACE III) in Madagascar. 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 country'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.

Project Objectives

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.

Beneficiaries

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.

Participating Organization

Funding
African Development Fund
Funding
Fragile States Facility
Implementing
GOUVERNEMENT DE MADAGASCAR MINISTERE DES FINANCES ET DE ECONOMIE DIR. TRESOR

Information

IATI identifier 46002-P-MG-KA0-012
Last Update 07 Jul 2020

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Contact Details

Name SOW Koudeidiatou
Email i.sow@afdb.org

Geographic Location

Country Madagascar