Multinational - Regional Institutional Support Project for Public Financial Governance Phase II (RISPFG)

The African Economic Outlook (AEO) warns that 1.8 million people across the continent could be pushed into extreme poverty in 2022, and this number could swell by an additional 2.1 million in 2023. At the global level, the International Monetary Fund (IMF) predicts that the world economy to grow by half a percentage point less in 2022 than previously expected (down from 4.9% to 4.4%). This is due to a number of factors including continued COVID 19 outbreaks and lockdowns, persistent inflation and reduced prospects in key global economies including China and the USA. This is the regional and global backdrop which informs the design of this investment operation which seeks to support African countries’ abilities to mobilize domestic resources and apply these resources judiciously to development outcomes including the aspirations in Agenda 2063 and the Sustainable Development Goals (SDGs). In line with the 2022 AEO, the operation also promotes climate resilience and considerations for developing low carbon economies through climate smart tax policies and budgeting. The project does this by supporting two key pan-African institutions, the Africa Tax Administration Forum (ATAF) and the Collaborative Africa Budget Reform Initiative (CABRI). It is designed successor to the Regional Institutional Support Project for Public Financial Governance (RISPG) Phase I which was approved in 2016 and closed successfully in September 2021 at 100% disbursement. No climate finance for this project.