Supporting a Development Breakthrough in the Sahel

Too often, commentators turn to bleak narratives to describe the Sahel, a vast area of 10 countries that stretches the length of northern Africa.

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There is no doubt the region suffers a multiplicity of severe challenges, including drought, extreme poverty, and fragility, but there is opportunity there too—and strong signs that the Sahel’s promise can be translated into prosperity.

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Supporting growth, jobs, and stability in the Sahel is a high priority for IFC and the rest of the World Bank Group, whose $10.2 billion support package for the region includes up to $1.7 billion for the private sector, $1.2 billion of that from IFC. ?

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In September, I traveled to three Sahel countries —Mauritania, Niger, and Burkina Faso—to meet with public and private sector partners and to experience first-hand the region’s dynamism, but also its daunting challenges.

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We flew from country to country over the Sahara Desert, capturing magnificent perspectives of this historic region where trade, knowledge, and cultural exchange have happened for centuries. From above, the Sahel can sometimes appear to be a homogenous whole. Though Sahelian countries share many of the same challenges and opportunities, each is unique with its own competitive advantages, cultures, and paths to development.

Mauritania, September 8-10:

This was my first visit to Mauritania, a vast desert country larger than Nigeria but with a population of less than five million people.

It is rich in natural resources, with the Senegal River Valley offering exceptional opportunities for agribusiness, livestock, and green energy, though poverty is widespread.

IFC has been supporting growth and job creation in Mauritania with investments in mining and energy that total $715 million over the past two fiscal years.

With the Mauritanian economy regaining some dynamism after the shock of COVID-19—growth is expected to reach between 3% and 4% in 2021— President Mohamed Ould El-Ghazaouani and Minister of Economic Affairs, H.E Ousmane Kane, explained to me that the government plans to make the private sector the cornerstone of the country’s development. I, in turn, conveyed IFC’s commitment to support Mauritania’s recovery from the pandemic and beyond.

During my short stay, I was delighted to experience Mauritania’s warm hospitality, frequently expressed through the famous “attaya,” a delicious and energizing mint tea.

Niger, September 12-15:

Niger was my first official visit when I became IFC vice president in 2018. I was glad to return to attend the official opening of IFC’s permanent office in the country and to meet with government officials, private sector businesses, and IFC and World Bank colleagues.

Although Niger is landlocked, its southern border faces Nigeria, the biggest market on the continent and one that prizes Niger’s beef, millet, leather, Violet de Galmi onions, and more.

Like many countries in the Sahel, Niger has great potential but has yet to unlock it—and could export much more to Nigeria and elsewhere when it does.

Over the last several years, IFC has expanded its work and impact in Niger. In agriculture, we have helped more than 1,200 farmers adopt irrigation practices and equipment to help ensure food security and boost exports. In the financial industry, IFC has established loan facilities with some of the country’s banks to expand access to finance for hundreds of SMEs, contributing more than 11 billion CFA francs (US$20 million) to trade financing.

Meeting with men and women running smaller businesses in the country was a highlight of my time in Niger. I was keen to understand the challenges the private sector faces, and the solutions entrepreneurs are finding.

Improved access to reliable, affordable energy is a priority for Niger’s private sector. To help, IFC, through the World Bank Group’s Scaling Solar Program, announced a partnership with Niger’s government in June to increase the country’s installed generation capacity by nearly 20 percent, using renewable energy.

In my meetings with Niger’s President, H.E Mohamed Bazoum, and Prime Minister, H.E Ouhoumoudou Mahamadou, I stressed IFC’s intention to do more to support Niger’s small but resilient private sector.

Opening a permanent office in the country is part of that commitment, as was the appointment of, Ahoua Coulibaly , a national of Cote d’Ivoire with a depth of experience supporting public-private partnerships, as IFC’s first country officer in Niger.

I couldn’t leave Niger without souvenirs, so I bought some beautiful pieces of local art in the market in Niamey.

Burkina Faso, September 15-18:

IFC’s largest portfolio in the Sahel is in Burkina Faso, where we have committed and mobilized roughly $850 million in long- and short-term financing over the past 10 years.?

Last year, despite the disruption of COVID-19, IFC appointed a country officer, Arnaud Ligan, for the Ouagadougou office as a permanent point of contact for government, and to work with our partners, supporting the cotton sector, helping SMEs manage the crisis, and maintaining trade flows.

During meetings with H.E President Roch Kabore and H.E Prime Minister Christophe Dabir, I underscored IFC’s support for the Government of Burkina Faso’s recently launched Plan National de Développement Economique et Social (PNDES) 2021-2025—this is an ambitious growth roadmap that gives the private sector a central role—and our commitment to help Burkina organize a roundtable on private sector financing.

Access to energy—a challenge across the Sahel and in most parts of Africa—was a recurrent theme during my engagements in Burkina Faso.

Progress is being made here with an IFC-supported battery storage study that could help boost the country’s use of renewable energy.

Also on the theme of energy, I met with Alioth Systems, a fast-growing company established in 2016 that provides off-grid solutions and innovative payment systems to supply rural areas with power. Later, I signed an advisory agreement with energy firm Sodigaz to boost access to cleaner energy through liquified petroleum gas (to replace charcoal and firewood) and solar solutions. Under the agreement, IFC’s Advisory Services team will support Sodigaz to upgrade and expand its liquified petroleum gas (LPG) distribution and service stations, increase solar home kit sales, and introduce solar mini grid solutions.

Speaking of energy, I was certainly energized when meeting with BurkinAction, a networking and mentoring platform, and Forth Investment, an incubator targeting diaspora investment and advice.

It was heartening to engage with young people at these organizations—their optimism was practically tangible—though the private sector will need to rise to the challenge of absorbing a large percentage of the 1.2 million young Sahelians who enter the labor market each year.

I look forward in the coming weeks and months to providing updates on IFC activities in each of these countries and across the region.