Senegal - Resource Mobilisation and Reform Effectiveness Support Programme – Phase I (PAMRER I)

The Resource Mobilisation and Reform Effectiveness Support Programme (PAMRER I) is the first phase of a series of three programme-based budget support operations covering the 2019, 2020 and 2021 financial years, with an overall indicative financing package of EUR 62.5 million. It presents the programme’s multi-year framework and provides a list of reforms considered to be the indicative triggers for the second (PAMRER II) and third (PAMRER III) phases. The programme seeks to address two major issues, namely: (i) Increased mobilisation of domestic resources to finance PSE projects and reforms in the long term; (ii) Acceleration of the implementation of strategic reforms and projects geared towards enhancing investment attractiveness. It comprises therefore two complementary components, namely: (i) Domestic Resource Mobilisation and Broadening of the Tax Base; and (ii) Implementation of Strategic Reforms and Projects to Enhance Investment Attractiveness. The programme aims to meet the following outcomes:(i) improvement in tax administration by increasing the Doing Business score from 48.08 points in 2018 to 50 points in 2022;(ii) broadening of the tax base by increasing the tax burden from 15.3% of GDP in 2018 to 20% in 2023, as well as a Global Forum on Transparency and Exchange of Information for Tax Purposes rating of “largely compliant” following the inclusion of new standards on beneficial ownership; and (iii) enhancement of the country’s attractiveness as an investment destination through an increase in foreign direct investments (FDIs) from 3% of GDP in 2018 to 6% in 2022.