Madagascar - Economic Competitiveness Support Programme - Phase II (PACE II)

The Economic Competitiveness Support Programme (PACE) is a three-year programme-based operation covering the 2017, 2018 and 2019 financial years. The first phase approved in November 2017 provided a list of reform measures indicatively considered as conditions precedent to the second phase, which have all been fulfilled. The outcomes of the first phase (PACE I) were deemed highly satisfactory. All planned measures to establish a suitable regulatory and institutional framework for the promotion of investments, including: (i) the design of the PPP strategy; (ii) the adoption of the law on SEZs; and (iii) the adoption of the law on industries, have been completed. As a follow-up to the first phase, PACE II continues the reforms jointly identified in 2017 by the African Development Bank Group and the Malagasy authorities. PACE II reforms aim to consolidate the achievements of previous programmes and support Government’s efforts to implement the reforms listed in the National Development Plan (NDP) 2015-2019. PACE II will place emphasis on improving Madagascar’s competitiveness, to attract more public and private investments in job-creating sectors like agro-industry. PACE Phase II has two components. The first component: “Strengthen the regulatory and institutional framework for the promotion of public and private investments” and the second component “Improve sector governance to support economic competitiveness” will place emphasis on enhancing energy and transport sector performance.