Cape-Verde - Private Sector Competitiveness and Local Economic Development Programme (PSCLED) – Phase II

The proposed intervention concerns a EUR 20 million to the Republic of Cabo Verde to finance the Private Sector Competitiveness and Local Economic Development Programme - Phase II (PSC-LED-II). PSC-LED-II is the second phase of a programme-based budget support operation covering fiscal years 2018 and 2019, with an overall financing of EUR 40 million. The first phase of PSC-LED implemented in 2018, was successful in supporting reform efforts to promote competitiveness and economic diversification as well as spatially inclusive growth and development. Key achievements of phase I include the strengthening of institutional capacity for competitiveness-enhancing policy-making, through the operationalisation of a competitiveness reforms coordination unit. PSC-LED II aims to consolidate the gains from phase I, by (i) supporting Cabo Verde's efforts to tackle critical challenges related to lack of productivity and economic diversification through reforms to improve overall competitiveness, while also (ii) seeking to set the basis for local economic development.