Mauritius - Development Budget Support Loan for The Economic Reform Program


Project Summary

Approval Date 28 Mar 2007
Signature Date 17 May 2007
Planned Completion Date 31 Dec 2010
Last Disbursement Planned Date 31 Dec 2010
Sovereign / Non-Sovereign Sovereign
Sector Multi-Sector
DAC Sector Code 43010
Commitment U.A 21,924,375.52
Status Completion

Project General Description

The Development Budget Support Loan (DBSL) for the Economic Reform Programme aims to maintain macroeconomic stability to accelerate growth in the medium term. It's in the amount of US$ 30 million, in line with the GOM’s request. The loan is intended to support the implementation of the GOM’s reform programme help fill a portion of the financing gap of the Government during three fiscal years from 2006/7 to 2008/9 should be disbursed in three equal tranches – US$ 10 million annually over a period of three years. The first tranche, to be disbursed in 2007, would account for about 4 percent of the projected budget deficit in the financial year 2006/2007. Strong ownership of the programme should greatly enhance the likelihood of success of the support being provided by the development partners. The proposed DBSL should support the priority policy actions outlined in the reform programme and the Country Strategy Paper (CSP). The reform agenda comprises four pillars: (i) consolidating fiscal performance and improving the public sector, efficiency, (ii) improving trade competitiveness, (iii) improving the investment climate, and (iv) democratizing the economy through participation, social inclusion and sustainability.

Project Objectives

The overriding objective of the DBSL is to put the economy onto a higher growth path and make it less vulnerable to external shocks. The programme aims to (i) reduce the budget deficit and the debt burden in order to bring them to more sustainable levels; (ii) improve productivity in the traditional sectors of the economy with a view to restoring their competitiveness and facilitating the development of exports; (iii) improve the institutional framework for business by streamlining procedures for business registration and incentives schemes in order to attract more foreign direct investments, and (iv) facilitate employment creation and promoting social equity.

Beneficiaries

The beneficiaries are the people of Mauritius.

Participating Organization

Funding
African Development Bank
Implementing
Ministry of Finance and Economic Development

Information

IATI identifier 46002-P-MU-K00-002
Last Update 31 Oct 2019

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Geographic Location

Country Mauritius