Mali - Economic Growth Support Programme II (PACE-II)

Project Summary

Approval Date	13 Nov 2019
Signature Date	29 Nov 2019
Planned Completion Date	31 Dec 2019
Last Disbursement Planned Date	30 Jun 2020
Sovereign / Non-Sovereign	Sovereign
Sector	Multi-Sector
DAC Sector Code	15124
Commitment	U.A 12,440,000
Status	Completion

Project General Description

The Economic Growth Support Programme – Phase II (PACE-II) is the second phase of a programme-based budget operation to support reforms over the 2017-2019 period. PACE-II is a continuation of PACE-I. It covers 2019 and aims to consolidate the gains of previous budget support operations in general and PACE-I, in particular, through such complementary structural reforms as: (i) the adoption of a revenue mobilisation optimisation action plan; (ii) the publication of tax exemption related social expenditure; (iii) the revision of the Mining and Customs Codes; and (iv) the operationalisation of the Sustainable Development Fund. The appraisal of PACE II took place in a context of worsening global security with the appearance of new pockets of conflicts in the centre of the country, especially in Ségou and Mopti Regions. Structured similar to Phase I of the programme, PACE II comprises three complementary components: (a) improvement of public finance management; (b) promotion of competitiveness and private sector development; and (c) strengthening of inclusive development. These three components will contribute to addressing the main constraints and challenges facing the country.

Project Objectives

PACE II is the second phase of PACE whose main objective is to contribute to the creation of conditions for a robust, sustained and inclusive economic growth driven by a more dynamic private sector by strengthening public finance sustainability and implementing structural reforms. Specifically, the programme will place emphasis on reforms aiming to: (i) improve public revenue mobilisation; (ii) strengthen public expenditure effectiveness to create a deeper impact on the country’s economic and social development; (iii) support the competitiveness of the economy with special emphasis on capacity building for the private sector and energy sector reforms; and (iv) strengthen inclusive development through the furtherance of decentralisation and improvement of social inclusion. Thus, the programme hopes to respond to the major challenges and constraints facing the country.

Beneficiaries

PACE-II will benefit the entire people of Mali thanks to better public finance management and the development of a more dynamic private sector. Strengthening public finance management will indeed enhance basic social service delivery and facilitate access thereto. Support for greater economic competitiveness will also foster the emergence of a crop of more dynamic entrepreneurs, thereby helping to lay the groundwork for sustained inclusive growth. Vulnerable population groups will also benefit from the reforms targeting more inclusive development in Mali. Specifically, PACE II will help to create conditions for a multi-pronged approach to enable women to access social protection and local development through their registration in the unified social register to serve as a basis for the targeting of all development projects and programmes in favour of vulnerable persons. In the same vein, support for private sector development will help to build the operational capacity of SMEs headed by women and to improve their access to financing, thereby contributing to their autonomy and the reduction of gender inequalities. The project is classified in “Category 3” according to the Bank’s Gender Marker System. The other programme beneficiaries are Government departments (Ministry of Economy and Finance, Ministry in charge of the Private Sector, Ministry in charge of Decentralisation, Ministry in charge of Solidarity, etc.).

Participating Organization

Implementing

Ministère de l'Economie et des Finances

Funding

African Development Fund

Information

IATI identifier	46002-P-ML-KA0-008
Last Update	25 Mar 2023

Export

Contact Details

Name	Sandrine Ida EBAKISSE TSANGA
Email	s.ebakisse@afdb.org

Geographic Location

Country	Mali

Coordinates	Location Name
12.65 -8	Bamako

Project Classification

Finance Type	Aid Loan Excluding Debt Reorganisation
Flow Type	ODA
Aid Type	General Budget Support

Commitments

U.A 12,440,000

African Development Fund

U.A 12,440,000

Disbursements

Repayments (Interest & Loan)

Document Type	Language	Document
Appraisal report	en	viewer
Appraisal report	fr	viewer
Project Completion Report	fr	PN10982 SR FR
Project Completion Report	fr	viewer
Project Completion Report	en	viewer

Indicator	Indicator Measure	Target Year	Target Value	Actual Year	Actual Value
Number of public procurement agents trained	Number	2019	800.0	2021	800.0
Global Competitiveness Index	Scale (1-7)	2019	3,8	2021	3,05
Tax receipts (as a percentage of GDP)	%	2019	16,5	2021	14,7
Electricity access rate	%	2019	46,26	2021	50.0
Internal credit to the private sector (as a percentage of GDP)	%	2019	26.0	2021	26,01
Priority social expenditure	XOF billion	2019	438,84	2021	502,12
Budget devolution rate (% of expenditure)	%	2019	19,77	2021	21,35
Draft law prohibiting the granting of all new discretionary tax exemptions	None	2019	Draft law adopted in CM	2021	Minutes of the Council of Ministers (CM) adopting the draft law available
Eligibility threshold for investments benefiting from exemption	XOF million	2019	100.0	2021	100.0
Action plan on resource mobilisation in the mining and telecommunications sectors	None	2019	Plan adopted in CM	2021	Statement of CM conclusions and recommendations confirming the adoption of the action plan onthe optimisation of domestic tax revenue in the short and medium term, including in the mining and telecommunications sectors, as well as the tax revenue mobilisation action plan
Amount of exemptions-related tax expenditure	None	2019	Exemptions-related tax expenditure is published	2021	Exemptions-related tax expenditure for the year 2017was published
Connection of structures involved in revenue collection	None	2019	All structures are connected	2021	A Note from the Support Unit for the Computerisation of Financial and Tax Services (CAISFF) sent by MEF
Draft General Tax Code, the Mining Code and the Customs Code revised	None	2019	The draft codes are adopted in CM	2021	The revised draft General Tax Code is being prepared. It will be approved in 2021. The revised draft Mining Code was adopted in 2019. The revised draft Customs Code was adopted in June 2018
Report on the performance of public procurement units established	None	2019	Performance report of units available	2021	The performance assessment of public procurement units created within contracting authorities has not yet been carried out, due to the long delays in starting this activity
Internal audit departments in ministries and specialised bodies	None	2019	Internal audit departments created	2021	In view of the recurrent costs that would be induced by the creation of internal audit services in all ministries, Government finally decided to postpone their creation. Discussions are underway to identify less expensive options, including the establishment of audit services by sector and no longer by ministry
Number of risk maps at ministerial level	Number	2019	2.0	2021	5.0
Draft Investment Code	None	2019	Draft Investment Code adopted in CM in 2017	2021	The draft Investment Code revised and adopted in 2019
National SME Development Agency	None	2019	Instruments on the creation of the agency adopted in CM in 2017	2021	The National SME Development Agencywas not created. Instead, Government finally created a National Directorate of SMEs
Energy sector reform action plan	None	2019	Plan prepared and adopted	2021	An Energy Sector Reform Action Plan was prepared by a consultant. However, the plan was not adopted as the Ministry of Energy was not fully satisfied with the work done. The ministry will set up a team of internal experts responsible for finalising the plan
Sustainable Development Fund	None	2019	Creation of the Sustainable Development Fund adopted in CM in 2017	2021	The Sustainable Development Fund was created
Revised draft law on the Local Authorities Code	None	2019	Revised draft law on the Local Authorities Code adopted in CM in 2018	2021	The revised draft law on the Local Authorities Code was adopted in CM
Unified social register	None	2019	Unified social register adopted in 2017	2021	The unified social register was adopted in CM
National Social Protection Policy	None	2019	National policy adopted in CM in 2018	2021	The National Social Protection Policy was developed and adopted
Universal Health Insurance Scheme (RAMU)	None	2019	RAMU adopted in CM in 2018	2021	RAMU was adopted in CM
PEFA PI-19: Openness to competition, optimum resource useand public procurement control	None	2019	A score	2021	PEFA PI-24: Public procurement management (PEFA 2016 methodology): B+
Number of SMEs having benefited from capacity building suppor	Number	2019	50.0	2021	260.0
Establish a Tax Cadastre in Bamako District and Kati Circle	None	2019	Tax Cadastre in Bamako District and Kati Circle operational	2021	Letter from MEF confirming the establishment of a Tax Cadastre in Bamako District
Conduct and publish the audit of contracts awarded in 2015	None	2019	2015 audit report finalised and published in 2017	2021	The audit of contracts awarded in 2015 was conducted in 2017
Implement the use of the Integrated Public Procurement Management System (SIGMAP) in all ministries	None	2019	SIGMAP implemented in all ministries	2021	All ministries were connected to SIGMAP
Develop and adopt a Small and Medium-sized Enterprises Development Support Programme (DSP-SME)	None	2019	The DSP-SME was adopted in CM in 2017	2021	The DSP-SME was adopted in CM
Conduct an institutional, organisational, technical, commercial and financial audit of the EDM, with an analysis of the entire electricity sector	None	2019	Audit report finalised	2021	An institutional, organisational, technical, commercial and financial audit of the EDM, with an analysis of the entire electricity sector
Revise the law amending Law No. 2011-036 of 15 July on the fiscal resources of Communes, Circles and Regions	None	2019	Revised draft law adopted in 2017	2021	The revised draft law on the fiscal resources of Communes, Circles and Regions was adopted in CM in 2017