ADF Supports Growth, Poverty Reduction and Good Governance in Cape Verde
The African Development Fund (ADF) has decided to support the process with a loan of 2.50 million Units of Account (UA*), equivalent to 3.67 million US dollars, approved by its Board of Directors in Tunis on Wednesday.
The programme comprises four components: Consolidation of public finances; Strengthening of governance; Intensification of poverty reduction actions; and Elimination of structural constraints on growth and private sector development.
The macroeconomic objectives are to achieve, by the year 2005, an annual real growth rate between 5% and 7% on average; an annual average rate of inflation of not more 3%; a budget deficit, excluding grants, of 8.5% of GDP; a current account deficit, excluding grants, of 14.9% of GDP; and a level of international reserves representing between 2.5 and 3 months of imports of non-factor goods and services.
External resource requirements in the country during the 2004-2005 periods are estimated at 385 million US dollars.
The World Bank, the IMF, the European Union and the Netherlands are also supporting the reforms.
Bank Group operations in Cape Verde started in 1977. To-date, the Group has committed a total of 128 million UA, equivalent to 188 million US dollars in 38 operations.
Project Information Sheet
- Name of Programme: Economic Reforms Support Programme III (ERSP III)
- Start-up date and Duration: December 2004, 6 months
- Executing Agency: Ministry of Finance, Planning and Regional Development
- Procurement of Goods and Services: All public or semi-public sector imports of goods and services with contract amounts not less than UA 500 000 shall be procured through international competitive bidding while contracts below this threshold shall be procured on the basis of international shopping.