African Development Bank, Pledges €20 million to Enhance Private Sector Competitiveness in Cape Verde
By Abdul Rahman Suagibu –
NEW AFRICA BUSINESS NEWS, Freetown, Sierra Leone- CAPE VERDE, Board of Directors of the African Development Bank on 16th December, 2019 validated €20 million loan to rejuvenate the private sector’s role in Cape Verde’s economic growth.
This will supplement the second phase of the Private Sector Competitiveness and Local Economic Development Programme (PSC-LED-II). The programme will extend fiscal 2019 budget support to the government of Cabo Verde as it undertakes reforms to boost domestic productivity and the country’s overall economy.
Distinctive developments of PSC-LED-II include promoting the competitiveness environment by means of the relation of a revised commercial companies code, key legislation for judicial insolvency as well as a strategy of transition from the informal to the formal sector. The African Development Bank project partners include the World Bank and the European Union, as well as the governments of Luxembourg and Portugal.
Furtherance’s, the Bank’s ettle to industrialize Africa and to upgrade the lives of its people, two of its High 5 development priorities.
Approval of the loan by the Bank’s Board of Directors demonstrated the successful completion of the first phase of the project, which set out a project framework and proposed reform measures.
Abdoulaye Coulibaly, Director of the Bank’s Governance and Public Financial Management Coordination Office noted that“ The overall performance of the programme is good and we continue to work closely with authorities and with development partners,” said.
The planned reforms gears to revamp Cabo Verde’s private sector by tackling the Atlantic island nation’s score on a number of competitiveness and economic development indicators. These include increasing credit to the private sector from 63% in 2016 to 70% of GDP in 2020; improving Cape Verde’s score on the World Bank’s 2020 Doing Business index; and boosting labor contribution to value added growth from 1.1% in 2014-2017 to 2% in 2017-2020.
A few hours after the approval of the project by the Board of Directors, an agreement was signed at the Bank’s headquarters between Marie-Laure Akin-Olugbade, the Bank’s Director General for West Africa and the Ambassador of Cabo Verde in Senegal, Felino de Carvalho.
“The signing of this loan agreement affirms the Bank’s commitment to supporting Cape Verde’s economic advancement. We have every confidence the government will continue the vital reforms needed to strengthen the private sector and decentralization.” Akin-Olugbade noted.
For New Africa Business News Abdul Rahman Suagibu Reports, Africa Correspondent