The African Development Bank Group (AfDB) has granted a $20.7 million loan to support the second phase of Cabo Verde’s E-Governance and Public Financial Management Reform Programme (E-PFMRP).
E-PFMRP is a multi-phased initiative, primarily supported by AfDB and World Bank. The programme aims to modernise public administration, improve fiscal transparency, and drive economic growth through digital transformation.
Approved earlier this week, the funds build on continued support from last year as the island seeks to leverage technology for economic growth and administrative efficiency, said the financial institution.
The aim of the budgetary support is to stimulate economic growth through digitisation while advancing e-governance reforms to modernise public administration and consolidate public finances; benefiting key entities such as the Ministry of the Digital Economy, Central Bank of Cabo Verde, Institute for Gender Equality and Equity, National Directorate of State Revenue, and Public Procurement Regulatory Authority.
As part of the initiative, the first component of the plan will advance ongoing digitisation reforms to strengthen private-sector competitiveness.
Key measures include the introduction of e-justice to digitise judicial processes, and the launch of a call for proposals to attract private operators to the country’s technology park under the digital nomads programme.
Admission criteria will be developed to facilitate the establishment of digital nomads and high-growth technology firms, noted AfDB.
It added that that the second component aims to modernise public administration and consolidate fiscal sustainability.
Furthermore, the programme will continue to support policy actions aimed at strengthening transparency and improving the efficiency of public resource management.
“An action plan to rationalise tax expenditures will be developed and published, along with full estimates of annual tax expenditures in the 2026 budget to improve transparency,” emphasised the institution.
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