Senegal - Resource Mobilisation and Reform Effectiveness Support Programme – Phase I (PAMRER I) (AFDB-P-SN-KA0-014)

Countries
  • Senegal
Where the impacts of the investment may be experienced.
Financial Institutions
  • African Development Bank (AFDB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
U
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Nov 21, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
GOUV. DU SENEGAL /MINISTERE DE L'ECO. DES FINANCES ET DU PLAN
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 35.75 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported U.A 49,645,333.74
Converted using 2019-11-21 exchange rate.
Bank Documents
Primary Source

Original disclosure @ AFDB website

Updated in EWS Jun 14, 2020


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Project Description

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.

The overall objective of the programme is to strengthen domestic resource mobilisation and promote strategic reforms to attract investments.

The direct programme beneficiary is the Government of Senegal. However, PAMRER I will benefit the entire population of Senegal. A better adapted fiscal policy should increase Government's resources and help to finance public services, thus improving the living conditions of the population. A more efficient tax administration should lower transaction costs for taxpaying individuals and reporting companies. This will be a direct benefit to these entities and, at the same time, help to improve tax compliance as well as the business environment. Lastly, the effective implementation of PSE strategic reforms and projects should help to attract investments and create jobs.

Investment Description
  • African Development Bank (AFDB)
Contact Information

ARVANITIS Yannis

y.arvanitis@afdb.org

ACCOUNTABILITY MECHANISM OF AfDB

The Independent Review Mechanism (IRM), which is administered by the Compliance Review and Mediation Unit (CRMU), is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an African Development Bank (AfDB)-financed project. If you submit a complaint to the IRM, it may assist you by either seeking to address your problems by facilitating a dispute resolution dialogue between you and those implementing the project and/or investigating whether the AfDB complied with its policies to prevent environmental and social harms. You can submit a complaint electronically by emailing crmuinfo@afdb.org, b.kargougou@afdb.org, b.fall@afdb.org, and/or s.toure@afdb.org. You can learn more about the IRM and how to file a complaint at https://www.afdb.org/en/independent-review-mechanism/.