2023-05-03 02:50:56
One month before the end of the World Bank’s financial year for this year, we learn of the forthcoming disbursement of support which will constitute a leverage effect on the Malagasy economy.
A breath of fresh air for the economy. Budget support of $100 million is expected from the World Bank next month, reported the president of the Groupement des entreprises de Madagascar (GEM). This testifies to Madagascar’s good rating in terms of good financial governance, a guarantee of donor confidence in the Executive, which leads to this decision for the next allocation. We note in particular the progress of priority actions and the effectiveness of the management of public finances and the budgetary mechanisms put in place by the government. Among others, the efficiency of tax and customs revenue collection for the past two years and the recent mining code reform project. As budget support, this is a fund that will not affect the principal or interest of our external debts. In other words, it’s a welcome breath of fresh air at this time.
Continuity
This envelope will be used in part to absorb the difficulties related to the current expenses of a few pillar entities. According to the information, this aid should make it possible to settle the State’s unpaid VAT credits for free enterprises and suppliers of the road maintenance fund (FER). Regarding FER arrears, an audit will be carried out to identify inadmissible invoices for work not carried out or non-compliant. The information suggests embezzlement and embezzlement. On the other hand, invoices that are in order will be regularized. The private sector fears the ongoing dismantling of the law on Free Zones and Enterprises, causing legal and fiscal instability, detrimental to investment in this sector. Industrialization is, however, one of the spearheads of the current regime for the economic development of Madagascar, of which the industrial free zones are an integral part.
Moreover, the Executive meets unofficially or officially with the Malagasy private sector, at least most often. “If we want to aim for industrialization, the State must defend the decisions taken during public-private dialogues, vis-à-vis donors or before Parliament”, insisted Tiana Rasamimanana, president of the Union of industries of Madagascar. “When drafting texts, you have to start a dialogue and consider each sector on a case-by-case basis, to be sure to have the right information and not leave the economic dimension to oblivion” he continues. The boss of industrialists seeks the outstretched hand of the State on a continuous basis, regardless of the change of regime, to be the spokesperson for the ambitions and aspirations of Malagasy entrepreneurs and industrialists to benefit the economy and the social.
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