|Approval Date||26 Nov 2021|
|Signature Date||24 Feb 2022|
|Planned Completion Date||31 Dec 2026|
|Sovereign / Non-Sovereign||Sovereign|
|Sector||Industry, Minning & Quarrying|
|DAC Sector Code||32110|
PAAICE will provide direct support to the Government’s Competitiveness and Employment Acceleration Programme (PACE) which is a flagship post-COVID-19 recovery and long-term development programme that is consistent with the Adjusted and Accelerated Priority Action Plan (PAP2A). The operation will help to accelerate the transfer of resources allocated to selected projects and reforms in order to ensure rapid and effective implementation thereby achieving development outcomes within a reasonable lapse of time. The programme will also make it possible to co-finance operations designed together with other development partners so as to contribute significantly to the Government’s agenda aimed at implementing the post-COVID-19 recovery plan and achieving the objectives of structural transformation set out in the PSE and promoted by PAP2A. The programme comprises four components defining the thrust areas that can help to achieve set objectives, namely:(1) a “Competitiveness” component that aims to strengthen priority value chains through better understanding of bottlenecks and the reforms to be implemented;(2) a “Financing” component that seeks to improve access by MSMEs to financing and the formalization of economic actors; (3) an “Assistance and Technology” component aimed at supporting the private sector to own technologies and access markets; and (4) a “Private Investment” component that aims to attract new financing and develop transformative projects, particularly through the promotion of PPPs. The Programme total Cost is UA 90 million for Five years, covering the 2022, 2023, 2024 and 2025 fiscal years.
PAAICE’s development goal is to support economic recovery, accelerated industrialization and job creation in Senegal by improving: (i) the competitiveness of value chains; (ii)productivity and adoption of hardware and organizational technologies; (iii) access to financing; and (iv) private sector development.
The programme will benefit project owners, MSMEs, self-employed entrepreneurs, women entrepreneurs and the Senegalese people. Senegalese MSMEs will be the direct beneficiaries of the operation through the support provided by the FONGIP Guarantee Fund, the DER-FJ and FONSIS. The programme will also place particular emphasis on MSMEs operating in low-carbon value chains and with high potential to support green growth, in order to support Senegal’s march towards carbon neutrality. Lastly, the Senegalese people are expected to benefit from this programme, particularly through the jobs created in the enterprises supported. The programme also targets entrepreneurs in the informal sector, who represent more than 90% of the Senegalese economic fabric, and a large part of whom are young people and women. The latter will benefit from direct support for formalization, as part of the technical support activities carried out by the DER-FJ, and from enhanced access to financing, which is one of the main obstacles to productivity gains. The informal sector, whose unmet need for financing is estimated at nearly twice that of the volume currently granted.
African Development Bank
African Development Fund
MINISTERE DE L'ECONOMIE ET DES FINANCES
|Last Update||05 Dec 2022|
|Name||STOULLIG Olivier Georges|