AfDB Board approves €15-million loan to finance governance and investment programme in Cape Verde

17/10/2014
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The Board of Directors of the African Development Bank Group on Wednesday, October 15 in Abidjan approved a €15-million general budget support loan to finance the Public Corporate Governance and Investment Promotion Support Programme in Cape Verde (PAGEPPI-II). The programme, now in its second year, aims to improve public corporate governance and promote private investment to streamline public expenditure and promote private sector contribution to growth.

It seeks to contribute to the consolidation of the macroeconomic framework and foster growth recovery by improving public corporate governance and promoting private investment. In view of its recent ranking among middle-income countries, Cape Verde would increasingly rely on non-concessional loans to finance its development.

Thus improving the governance of public enterprises would help to optimize their financial and operational performance, thereby reducing their losses which weigh heavily on the State budget. It would also promote international and local investment as well as foster private sector development.

This programme is expected to benefit the population of Cape Verde as a whole and, in particular, public enterprises, the domestic private sector, foreign investors as well as users of public services (electricity, water and transport).

  • Eritrea – Interim Country Strategy Paper 2014-2016

The AfDB Board also approved the Interim Country Strategy Paper (I-CSP)for Eritrea. The I-CSP covers the period 2014-2016 and aims to assist the Government of Eritrea in addressing its binding development challenges in a coordinated and consultative manner.

The strategy focuses on enhancing skills development and technology, in support of inclusiveness and transition to green growth. In addition, the Bank will support the government to build resilience and capacity to deal with, and adapt to a challenging environment to promote inclusive growth and poverty reduction.

It will also scale up advisory services through economic and sector work as well as assist in creating capacity and conditions necessary for the finalisation and implementation of the National Development Plan (NDP) as well as preparation of a full-fledged Country Strategy Paper.