The loan from the African Development Fund, the Bank Group’s concessional financing window, includes funding from the Transition Support Facility.
ABIDJAN, Ivory Coast…, The Board of Directors of the African Development Bank Group approved a loan of $67.3 million to Madagascar. The loan will implement the first phase of its economic growth-inducing Financial Management and Resilience Support Program for 2024-2025.
The loan from the African Development Fund, the Bank Group’s concessional financing window, includes funding from the Transition Support Facility.
“The program aims to contribute to the creation of favorable conditions for strong and inclusive economic growth by strengthening economic and financial governance and improving economic resilience,” said Adam Amoumoun, manager of the African Development Bank’s Country Office in Madagascar.
“It is supporting the Malagasy authorities in implementing the priority reforms of Madagascar’s General State Policy (PGE) 2024-2028 and New Energy Policy for 2015-2030. It will help remedy the investment deficit by increasing the budget. It will do this through releasing extra resources for economic recovery. It will also improve governance in the energy sector,” he explained.
The program plans to support the roll-out of the Integrated Tax Administration System (SAFI) to modernize tax management. It will computerize tax operations. It will help local revenue collection and taxpayer management. It will also combat tax fraud. It will also support the creation of a national register of beneficial owners of legal entities and legal structures. This register will find people controlling businesses. It will simplify investigations in case of corruption.
Improving governance in the energy sector
The program will support the action plan established by the JIRAMA (Madagascar’s public corporation for electricity and water services). It will improve its short-term technical and financial performance. This will reduce the need for state support.
The program will support the people of Madagascar. It will create a better regulatory framework for promoting investments in the development of public-private partnership (PPP) projects. The program will also improve sectoral governance, specifically in energy. This will help improve the business environment and attract investments in sectors that create jobs.
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