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REPORT OF LAST WEEK (from 07/10/13 to 11/10/13)

by Dario Galluccio

This Blog is sponsored by http://www.reflexecogroup.com

Kenya: CFC Stanbic Bank partners Aeolus to build wind power plant

Kenya’s CFC Stanbic Bank has partnered Aeolus Kenya (AKL) – a member of the Power Africa initiative led by the United States President Barack Obama- to build a Sh12.9 billion ($150 million) wind power plant in Kinangop, Kenya. The proposed power plant will be the largest wind power generation project to be built in sub-Saharan Africa to date, outside of South Africa. It is expected to come on line in mid-2015. The wind project has already been registered under the United Nations’ Clean Development Mechanism.

The Kinangop Wind Plant which will provide electricity to approximately 150,000 Kenyan households, will add a further 60MW to Kenya’s 1,672MW national power grid.

According to CfC Stanbic Bank’s East Africa Head of Debt Solutions and Infrastructure Finance, Kwame Parker, “The project is designed to provide a clean source of electricity to Kenya. It will not only contribute to the social and economic development of Kenya, but will also significantly help ease the energy supply deficit that the country is grappling with.”

Ghana: Improved energy will push forward growth

Mr. Emmanuel Armah Kofi Buah, Minister of Energy has said that the vigorous expansion of various energy programmes is to increase power production as well as support the growth and expansion of all the weak sectors of the national economy. He said government is rolling-out the various programmes and projects, particularly in the Western Region, as part of the energy expansion drive — which is geared toward positioning the sector to play the critical role expected for directing Ghana’s effort toward industrialisation.

Speaking at the World Tourism Day at Nkroful in the Ellembelle District of the Western Region, he noted that the country’s oil and gas sector is currently underdeveloped. According to him, the discovery of oil and gas in commercial quantities on the Western Region culminated in an influx of people — the stage is set for integrated tourism development in the region, so that instead of a potential threat from oil and gas activity to our environment, oil and gas activities will be made conducive to our situation and be a blessing to our environment.

Ghana: EU to support agriculture production

The European Union (EU) is to support Ghana to revolutionalise its agricultural production.

Mr Dacian Ciolos, EU Commissioner for Agriculture and Rural Development, who made this known in Accra, said the support would be in the form of financial and technical interventions.

Agriculture is not only an economic issue, but also a social issue and this calls for the support,” he said. Stressing that the EU would take Ghana’s agricultural development objectives into consideration.

Dr Yemi Akinbamijo, Manager of Forum for Agricultural Research in Africa (FARA) said the partnership between EU and Ghana, which is under negotiation would take place from 2014- 2020. He said, it is a period for the promotion of agriculture and security.

Dr Akinbamijo said : agriculture would provide greater help to reduce poverty if done properly; pointing out that production, trading, finance, as well as infrastructure, education, science and technology and regional integration; are the seven pillars of FARA, which would be used to develop Ghana.

Ghana: Oil production hits 115,000 barrels daily

Daily oil production hit 115,000 barrels per day in June 2013, significantly higher than the projected average for the year, the African Center for Energy Policy (ACEP) report on Government Compliance with the Oil Revenue Management Act in the 2013 budget has revealed. Total oil revenue of GH¢1.15 billion also far exceeded the projected target by GH¢362.3 million.

The report urged government to initiate discussions with Sabre Oil and Gas to recover the capital gains tax from the sale of its stake in offshore blocks. It also indicted the 2013 budget for failing to capture capital gains tax as one of the revenue streams. It added “the Petroleum Income Tax Law should be harmonized with the Internal Revenue Act.” Released by the Executive Director of ACEP Mohammed Amin Adam, the report also said the projected transfers to the Ghana Petroleum Holding Fund will be exceeded when the data on petroleum is released.

Ghana: Government commits GH¢350 million towards road sector

Government has since June released GH¢ 350 million for the road sub-sector out of the GH¢ 706 million allocated in the 2013 budget. Alhaji Amin Amidu Sulemani, Minister of Roads and Highways, said the Ministry has also improved upon revenue generation into the Road Fund for maintenance works. The total fund accrued from January to June was GH¢ 126 million, an increase of GH¢ 9 million over the amount recorded during the same period in 2012.

Alhaji Sulemani, who made this known during the inauguration of the Progressive Road Contractors Association (PROCA), urged members as well as the Association of Road Contractors to unite for the growth of the industry.

Alhaji Sulemani told members of PROCA: “As a result of the many interventions that have been made in the sector since the last couple of years, the condition mix of the road network has improved from 29% good, 27% fair and 44% poor in 2000, to 43% good, 25% fair and 32% poor as at end of 2012.

Mrs Joana Adjei, National President of PROCA promised to run an open door policy as well as an all inclusive administration to make the association stronger. She said the new administration would help revive the training programmes of the Association. Mrs Adjei said majority of contractors are suffering as a result of delayed payment for work done. Mr Michael Aidoo, the outgoing President of PROCA advised the new executives to take criticism in good faith.

Ghana: Omega Capital launches 2 funds

According to Nana Kumapremereh Nketiah, Chief Executive Officer of Omega Capital Limited, a private equity and investment management firm, the capital market is currently underserved and it behoves industry regulators and fund managers to adopt a results-driven approach in order to bridge the gap.

Speaking in an interview on the sidelines of the launch of the company’s twin funds — Omega Income Fund and Omega Equity Fund — in Accra, he said the capital market has huge potential which calls for result-driven measures in order for such potential to be fully tapped.

On the way forward, Nana Nketiah called for improved investor education to, among others, enlighten the public on the benefits of investment as a means to financial and socio-economic development. He said introduction of the funds onto the market is the company’s way of empowering the general public to secure their future: “The funds seek to empower investors to secure their future. By encouraging them to invest, we are helping them to link their future to investments.”

Omega’s income fund is a medium-term open-ended mutual fund that seeks to achieve growth in income while conserving principal by investing in a diversified portfolio of fixed income securities. The equity fund targets superior long-term returns by investing in stocks and fixed income securities. Both funds will be managed by Omega Capital Limited, which is a licenced investment fund manager, with HFC Bank as fund custodian. It targets individuals, pension and provident funds, and other corporate institutions.

Tanzania: It Is All Rosy for Tanzania

It is good news for Tanzania as the economy grows impressively above the region’s projected rates, inflation is well controlled and the foreign investments pour in thanks to macroeconomic stability maintained over almost a decade and institutional and policy reforms.

The 2013 African Economic Outlook report launched last week, confirmed the impressive performance of the economy which grew to 6.9 per cent in 2012 and is estimated reach seven per cent this year and 7.2 per cent in 2014. The projected rates of the sub-Saharan region are 4.8 per cent in 2013 and 5.3 per cent in 2014. Mining boom, particularly gold production, tourism, construction transport and communication activities have been the main drivers of the growth.

The future looks ever brighter, with an impressive series of offshore gas discoveries set to further boost the economy and propel the country into a middle income status by 2025 as envisaged in the national development roadmap, the vision 2025. The mining portfolio is performing equally impressive with gold production going on well despite a slump in price at the world market and uranium extraction set to commence soon. With this kind of picture, it is hard to complain about the economy. Everything looks so rosy, albeit at the face value, that it covers the weak areas.

Ghana: Mining sector to reach US$774m

The value of the country’s mining sector is anticipated to reach US$774million in 2017, up from US$669 million in 2012, as bauxite and gold production see substantial increases.

This is a significant break from the past decade, when the mining sector value barely rose as gold output declined — offsetting much of the increases in price. “We expect gold to be the main driver of growth, but see bauxite playing a growing role,” Ghana Mining Report quarter-four survey conducted by the Fast Market Research, an online aggregator and distributor of market research and business information has revealed.

Figures from the Minerals Commission indicate that the mining industry attracted US$1.0billion of total investment inflow into the country in 2012. These investments came from producing, exploration and support Service companies. The multiplying effect of this investment in the country’s economy cannot be overestimated. The Bank of Ghana also reported that the mining industry’s contribution to total merchandise export earnings was about 43 percent in 2012.

Data from the Ghana Statistical Service show that the mining sub-sector grew by 23.5 percent in 2012. This compared favorably with the 18.8 percent it achieved in 2011. Furthermore, the Ghana Revenue Authority (GRA) has stated that the mining sub-sector maintained its position as leading contributor to the authority’s domestic tax contribution in 2012.

Africa: World Bank boosts outlook for Sub-Saharan African economies

Sub-Saharan Africa’s economic growth should increase to 5.3 per cent next year, with strong private and public investment underpinning the region’s robust performance, the World Bank said yesterday. The bank lifted its forecast for 2014 from the 5.1 per cent projected earlier this year. The region was expected to grow 5.5 per cent in 2015, up from a previous forecast of 5.2 per cent.

Growth for this year is forecast at 4.9 per cent, higher than last year’s 4.2 per cent. The figure is more than double the bank’s 2.3 per cent estimate for global growth in 2013, underscoring the attractiveness of the continent for investors. But African countries could be vulnerable to declining commodity prices and the eventual tapering of the US Federal Reserve’s bond-buying stimulus, the organisation said.

Although strong export growth has also contributed to the region’s economic advance, many countries are prone to major swings in their fortunes because they rely on a single commodity for more than 50 percent of export earnings.

Foreign direct investment flows to Sub-Saharan Africa are expected to rise 24 percent to around $40 billion in 2013. Governments in the region, such as Ethiopia, Ghana, Nigeria and South Africa, have also increased spending on public investment, much of it geared towards transport and power infrastructure.

Angola: Access to Banking Services May Reach 30 Percent By Year-Rend

The National Reserve Bank (BNA) pledges to work toward increasing the access to banking service rate among the Angolan population by at least 30% by the end of 2013, against 23% achieved in 2012, Angop has learnt. The information is expressed in a press release from the Southern Regional Delegation of National Reserve Bank, comprising the provinces of Benguela and Kwanza Sul. In order to achieve this goal BNA intends to resume in November its financial education programme, reads the document, signed by the regional delegate, Luis Henrique da Silva.

Mozambique: Investment to create 172,000 jobs over three years

Mozambique is to receive ten billion US dollars in investment over the next three years, creating 172,000 jobs, according to the government’s Investment Promotion Centre (CPI). CPI Deputy Director Godinho Alves explained that 900 projects have already received approval for implementation over the period.

The daily newspaper “Noticias” reported on Monday that foreign investment has stimulated economic development, with Mozambique being one of the world’s fasted growing economies.

Despite these positive developments, the Maputo Corridor Logistics Initiative (MCLI) has warned that investors continue to be concerned about minimising risk and maximising returns. This is because the country has a history of some projects not reaching their promised potential.

Sub-Saharan Africa: To attract 33.8 million visitors from tourism in 2012

Sub-Saharan Africa earned over $36 billion from tourist visits in 2012, a new World Bank report says October 3, 2013. According to the World Bank, the continent attracted 33.8 million visitors in 2012, up from a low 6.7 million in 1990.

The report, “Tourism in Africa: Harnessing Tourism for Growth and Improved Livelihoods”, indicated that the amount earned from tourism in 2012 was 2.8% of the region’s GDP.

The report showed that Africa’s tourism is set to boost economic growth, create new jobs and will “now outpace other regions for new tourism investment”. The report highlighted the potential of African countries to improve and expand their tourism sector, and suggested that 33 of sub-Sahara Africa’s 48 countries currently have the capacity for tourism success through establishing strong political support for developing the industry and attracting increased private investment to help finance and sustain it. The industry is expected to directly employ 6.7 million people in the region by 2021, according to the World Bank report.

Ghana: Pension savings seen rising fivefold driving sales

The end of a monopoly by Ghana’s state-owned pension fund is poised to boost savings fivefold by 2017, helping revive the nation’s corporate bond market and end a drought in initial public offerings.

According to Ekow Fynn-Aikins, regulations officer at the National Pensions Regulatory Authority in Accra, the retirement industry, with assets of 1.06 billion cedis ($484 million) in 2012, may jump to 5.5 billion cedis over the next four years. While the Ghana Stock Exchange’s Composite Index (GGSECI) has climbed 68 percent this year, the best performance in Africa, the bourse’s last IPO was more than two years ago. No company has sold bonds on the domestic market since 2008. 

There’s a perceived demand out there for new issues,” Sam Mensah, chairman of the Ghana Stock Exchange and an adviser at the Finance Ministry, said in an interview. “It’s still early days and we’ll have to wait for the pension industry to grow to know exactly what their impact can be.”

Since Ghana implemented a 2010 law in December compelling employers to commit more toward workers’ pensions and set aside contributions for private money managers for the first time, volumes on the bourse surged 75 percent as of June. The number of pension managers increased to 45 from zero when the authority began registering last year.

Tanzania: Isles courts Chinese investors

The Zanzibar First Vice- President, Seif Sharif Hamad, has asked investors from China to establish businesses in the Islands, saying there are ample opportunities in the tourism sector.

“We would love to have investors from China to invest in tourism including eco-tourism in Pemba Islands. The investment climate is conducive,” said Hamad to China Councillor General in Zanzibar, Mr Xie Yun Liang.

The Vice-President informed the ambassador that Zanzibar also welcomes investments in deep-sea fishing. Liang, who was recently appointed to the post, visited Hamad for familiarization.

“The government has been improving infrastructure which include expansion of the Zanzibar International Airport, roads, and having stable supply of electricity,” he said.

Ambassador Liang welcomed the offer saying that the historical relationship between China and Zanzibar would be further cemented by the coming of investors from China.

Uganda: To seek investor to build $2.5 Billion oil refinery

Uganda is looking for a lead investor to develop a refinery estimated to cost $2.5 billion, two weeks after issuing its first production license to China National Offshore Oil Corp. as it seeks to exploit reserves.

The investor, either a company or a group of them, will be named by April and will take an interest of as much as 60 percent in the facility, which is proposed to have capacity of 60,000 barrels a day, Robert Kasande, an assistant commissioner in the Energy Ministry, said today by phone from Entebbe, near the capital, Kampala.

Uganda, classified as one of the world’s poorest nations by the World Bank, discovered oil in 2006 and has an estimated 3.5 billion barrels of crude, according to the Energy Ministry. London-based Tullow Oil Plc (TLW), Cnooc and France’s Total SA (FP) are jointly developing the finds. The country has sub-Saharan Africa’s fourth-biggest oil reserves.

The government’s stake in the facility will account for as much as 40 percent, and the nation has invited Kenya, Rwanda, Burundi and Tanzania, which are partner countries in the East African Community, to buy an interest of as much 10 percent in the facility from Uganda, he said.

Tanzania: Inflation down to 6.1 percent

The inflation rate went to over two and half years’ low rate of 6.1 per cent last month, showing that the country’s economy is on the right track. National Bureau of Statistics (NBS) indicates that the inflation descended from 6.7 per cent of August to 6.1 per cent in September, this year. The decline, according to NBS, was supported by all four major measures of inflation index – energy, food and non-food and non-energy – that also decreased satisfactorily in September.

The new National Consumer Price Index released by NBS for September also indicated that the Annual Inflation Rate for energy and fuels has decreased to 9.6 per cent in September compared to 15.2 recorded in August.

While the Tanzania rate descends to a pleasing level, in Kenya and Uganda the inflation rate climbed up in September to 8.29 per cent and 8.0 per cent from 6.67 per cent and 7.3 per cent in August respectively.

Tanzania’s inflation rate averaged 7.72 per cent from 1999 until 2013. It reached an all time high of 19.8 per cent in December, 2011 and a record low of 3.4 per cent in February, 2003.

Nigeria, Brazil: To sign MoU on trade, investment

Nigeria and Brazil in Abuja signed a Memorandum of Understanding (MoU) to strengthen their bilateral cooperation on trade and investment. The Minister of Industry, Trade and Investment, Mr Olusegun Aganga, signed on behalf of Nigeria, while Mr Ricardo Shaefer, his Brazilian counterpart on Development, Industry and Foreign Trade, signed for his country. The News Agency of Nigeria (NAN) reports that the agreement aims at strengthening bilateral cooperation on the promotion and facilitation of trade and investment between the two countries.

According to Aganga, the agreement goes beyond trade and investment to include industrial cooperation and financing as well as how both countries can double their trade volume. The minister listed the sectors covered by the MoU to include infrastructure, power, automobile, agriculture and sugarcane to sugar among others.

“This agreement will cover cooperation in all these areas including how we double trade between the two countries, and of course how we attract investment into strategic areas of the economy.”

Nigeria: Dangote plans U.S.$34.7 Billion fresh investment in economy

The President of Dangote Group, Alhaji Aliko Dangote, has said that the Group is poised to make an additional investment totaling $US 34.7 billion in the economy by 2017. He also said the cement arm of the group will commission an additional 10 million metric ton capacity in Nigeria by mid 2014 with an additional plan to also invest US $4.7 billion over the next four years in order to ensure that cement supply stays ahead of demand.

In a keynote address during the just ended Nigeria’53rd Independence Anniversary Lecture, organised by the Lagos Chamber of Commerce and Industry, LCCI, Dangote said, the Nigerian financial sector has demonstrated its ability to support big ticket industrial projects – the most recent being the US$9 billion refinery project by Dangote Group and is poised to invest $US 34.7 billion by 2017.

Dangote said in setting an agenda for the next decade, government should improve the business climate and continuously benchmark our business environment against “best-in-class” investment destinations, implement the recently unveiled Nigeria Industrial Revolution Plan, support the new investors in the power sector to ensure they “hit the ground running” and provide the kind of outcomes Nigerians desire. He said their investment in agriculture is driven by our desire to create jobs for thousands of Nigerians and that It will increase their workforce from its present level of 26,000 employees to 750,000 employees .

Somalia: Oil and gas discovery offers ‘hope’ for investment

Somali Minister of Finance and Planning Mohamud Hassan Suleiman encouraged foreign investors to “seize the opportunity” to invest in Somalia during the Somalia Oil and Gas Summit in London Monday (October 7th).

“The discovery of oil and gas in Somalia opens up an array of hope and opportunities for the new Somalia, enabling it to influence the pace of economic recovery and the future stability of the country,” Suleiman said. “International investors and multi-national corporations are turning their attention to Somalia and we must now seize the opportunity and work with them.” Suleiman added that the government recently revised the Investment Law to make Somalia “investment friendly”, while at the same time ensuring that a fair portion of profits from the industry are re-invested in the country’s economic growth.

Ghana: Indonesian investors confer with Chamber of Commerce

A delegation of investors from Indonesia have held bilateral discussions with the Ghana Chamber of Commerce and Industry (GCCI), aimed at strengthening business relations cooperation between the countries. The delegation was led by the Director for African Affairs at the Ministry of Foreign Affairs of the Republic of Indonesia, Mr Lasro Simbolon.

Mr Lasro Simbolon underscored the need for the two nations to forge ahead in business by creating opportunities that can help increase cross-border investments.

He said was particularly impressed with the country’s development agenda, especially in areas such as infrastructures, agriculture, technological development and capacity building, which, he said are geared up to meet the expansion plans of the country.

The President of the GCCI, Hon Seth Adjei Baah, who received the delegation, said it is time to review and explore new areas of cooperation that the two countries can share experience and benefit from. He said the two countries’ interest should be in line with national development plans which are geared towards enhancing economic growth for the welfare of their people.

Nigeria: Barclays to expand operations ‘cautiously’

Barclays Bank CEO, Anthony Jenkins said the British banking group is planning to expand its footprint in Africa’s second largest economy, Nigeria without making a large or expensive acquisition in the country.

We have a rep office there. We do some business in Nigeria and we are going to grow that business and I think quite cautiously over time, and then we will see what opportunities present themselves,” Jenkins said.

Although Barclay does not have much representation in Nigeria, it is likely to launch corporate banking in Nigeria like it did with First Rand’s Rand Merchant Banking (RMB) in order to tap into the opportunities being presented by multinational companies looking to invest in Africa. RMB previously had a representative company but was awarded a merchant banking license in Nigeria last year.

Jenkins said all options are still open as the bank has not decided whether to apply for a license or acquire some business in the country. He also noted that there are opportunities for corporate banking. “We have quite a footprint from the African continent and so bringing our corporate customers to Africa is going to be a very important strategic focus for us and that’s the unique advantage of Barclays because we have got a global footprint and we have got the presence. If you put those two things together it’s a very powerful combination. So a lot of this is about execution and accelerating the pace of execution within the context of the aspiration to be the Go To Bank,” Jenkins said.

Ghana: Petroleum sector to see a $20 Billion investment over the next 5 years

Ghana’s Oil and Gas Industry is projected to attract a $20 billion investment in the next five years on the many discoveries that have been made. This was disclosed by the deputy Minister of Energy and Petroleum, Dr. Ben Dagadu, in Accra at the launching of a book titled ‘Oil and Gas Ghana’.

He stated that the government, since the discovery of oil, had taken measures to see to it that the petroleum sector was run efficiently to ensure that the resource benefits all Ghanaians.

In this wise, the deputy Minister said several legislations such as the Petroleum Revenue Management Act and the Petroleum Commission Act had been worked out to provide direction and clarity for the management of oil revenues and for regulating the sector. The Minister noted that in order to build the capacity of Ghanaian entrepreneurs, small and medium scale enterprises – which form major stakeholders in the industry – for the realization of this goal, the Ministry together with the Jubilee Partners had established the Enterprise Development Centre (EDC).

Rwanda, Uganda: Ties Stronger

Uganda has made economic progress over the years both as a country and as a core believer in the region’s integration process, especially as its ties with Rwanda gets ever stronger, Amb. Richard Kabonero has said.

The Ugandan High Commissioner to Rwanda was hosting his compatriots working and living in the country as well as well-wishers at his residence in Nyarutarama, Kigali, to celebrate Uganda’s 51st Independence anniversary.

“We have been growing despite some shocks and challenges. We have made tremendous investments in infrastructure and energy. At regional level, Uganda has played a big role in promoting peace in the region, including hosting nine summits that seek peace in the DR Congo,” Amb. Kabonero said.

He said bilateral ties between Uganda and Rwanda will always remain strong through collaboration on several development projects.

Nigeria: To plan regular Bond sales in bid to build yield curve

Nigeria is planning to raise debt abroad regularly as Africa’s largest oil producer seeks to develop a benchmark for borrowers, Finance Minister Ngozi Okonjo-Iweala said.

The government returned to international debt markets for the first time in two years in July, issuing $1 billion in five-year and 10-year Eurobonds. The country now plans to raise $100 million by selling so-called diaspora bonds targeted at citizens living overseas.

If it succeeds, we’ll do more,” Okonjo-Iweala said, adding that the sale will take place in the first quarter of next year. “We intend to enter the market on a regular basis because we’re trying to build a yield curve.”

Nigerians abroad would have sent $21 billion home by the end of 2013, according to World Bank figures, and the government wants “to tap some of that,” Okonjo-Iweala said. The nation is stepping up debt sales to finance infrastructure as it faces inadequate budget allocations for capital spending.

The yield on Nigeria’s $500 million in Eurobonds due July 2023 dropped 18 basis points this month to 5.94 percent yesterday, the lowest level since July 23, according to data compiled by Bloomberg.

The Nigerian economy may expand 6.75 percent next year, compared with an estimate of 6.5 percent in 2013, Okonjo-Iweala said. The budget deficit will stay little changed at 1.9 percent of gross domestic product, she added.

Ghana: Turkey to build industrial parks

Turkey is to construct two industrial parks at Accra and Kumasi respectively beginning next year at a cost of over $300 million.

Outgoing Charge d’Affairs of Turkey Embassy in Accra, Simay Erinoglo, speaking to journalists in Accra, said the two projects, which are designed to attract many Turkish investors into Ghana would be funded by the Turkish Exim Bank.

The Ankara Chamber of Industry and the Ghana National Chamber of Commerce & Industry signed an agreement to that effect recently. Ms Erinoglo said Turkish exports to Ghana last year recorded $223.5 million while it imported $303.5 million worth of goods from Ghana. For the first six months of 2013, Turkey exported $103.6 million worth of goods to Ghana while it imported $128.9 million worth of goods from Ghana.

Ms Erinoglo said Turkish investors were eyeing a number of projects in the various sectors of Ghana’s economy, including construction. Also, it intends to help with the construction of an international airport. In the health sector, Turkey wants to assist with the construction of eight pre-fabricated hospitals at a cost of $118 million.

The Turkish Development Agency (TIKA) is working on a lot of projects in Ghana, she indicated. Turkish investors are hesitant to come over to Ghana to invest because of the monstrous land acquisition challenges, she stated.

Cape Verde: AfDB approves $24m budget support loan

The Board of Directors of the African Development Bank Group, approved a €15-million general budget support loan for Cape Verde, to help the country finance its Public Corporate Governance and Investment Promotion Support Programme (PAGEPPI). The Programme aims to help Cape Verde consolidate its macroeconomic framework and foster growth by improving public corporate governance in State-owned enterprises and promoting private investment.

The PAGEPPI’s operational objectives are to improve public corporate governance so as to streamline public expenditure and promote private investment to spur economic growth and foster job creation.

On completion, the Programme is expected to strengthen public corporate governance and improve the operational and financial performance of State-owned enterprises. This will help to reduce the burden on the State budget and corresponding risks on public finances. The Programme is also expected to clarify the State’s role as both a shareholder and a regulator as well as to implement international and local investment promotion measures that will create a more attractive environment for economic activities and private sector development. The Programme will enhance Cape Verde’s overall development strategy which rests on economic diversification based on competitive clusters. In particular, it will support governance and private sector development reforms that constitute two main pillars of the government’s Growth and Poverty Reduction Strategy Paper (GPRSP) 2012-2016.

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