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Africa

Understanding institutional investors for infrastructure – The collaborative model

Rajiv Sharma's picture


One of the key objectives for our research program at the Stanford Global Projects Center is to understand how the largest sources of capital in the world can be channeled into critical infrastructure and development projects most in need of it. In particular, we focus on long-term institutional investors (pension funds and sovereign wealth funds) and private development firms at one end of the spectrum, and government procurement agencies and departments at the other. We are essentially trying to assist in overcoming a number of inefficiencies that seem to be apparent in linking the original source of capital to projects on the ground. In this blog post, we would like to highlight some of the latest trends and issues confronting the institutional investor space; in subsequent blogs, we will showcase some of the work we have done at the government procurement level to facilitate investment.

The next generation of African scientists need a more sustainable career path

Rama George-Alleyne's picture
A professor teaching cell biology and biochemistry at a university in Africa. (Stephan Gladieu / World Bank)

Happy UN Day for South –South Cooperation!
 
Investment in skills is vital to economic growth and competitiveness and poverty reduction. I believe that there is no better way to do that than to educate young graduates with expertise in high-demand areas to help grow African economies, create jobs, and support research.

On the road to sustainable growth: measuring access for rural populations

Edie Purdie's picture


This is part of a series of blogs focused on the Sustainable Development Goals and data from the 2016 Edition of World Development Indicators.  This blog draws on data from the World Bank’s Rural Access Index and on results presented in the report Measuring Rural Access: using new technologies

In Nepal, 54 percent of the rural population lives within 2 kilometers of an all season road.

Nepal, Rural Access Index: 2015

Just over half of the rural population in Nepal lives within 2 kilometers of a road in good or fair condition as measured by the Rural Access Index (RAI) in 2015, leaving around 10.3 million rural residents without easy access. The map shows how the RAI varies across the country: in the southern lowlands, where both road and population density are high, the RAI is around 80 percent in some districts. In the more rugged northern regions, lower road density and poor road quality leave many disconnected, resulting in a low RAI figure – in many places less than 20 percent.

Challenging conventional wisdom about girl’s schooling

Tricia Koroknay-Palicz's picture



There are many stories about why children fail to enter, attend, or complete schooling, in places like Liberia. As a researcher with the Africa Gender Innovation Lab, I had the opportunity to examine this issue through an impact evaluation of the International Rescue Committee’s Sisters of Success (SOS) program, in Monrovia Liberia.

Our recently released baseline report depicts a different reality than many would expect. Data and findings come from households in Monrovia, Liberia, with 12-15 year old girls who registered for the SOS program.  The extent to which our study results can reasonably represent the results one would expect for other girls in Greater Monrovia depends on how similar girls and households in the study sample are to a representative sample of Greater
Monrovia. Analysis, which can be found in the full report, suggests that they are in fact quite similar.

Are you being served? The gap between effective and nominal access to infrastructure services

Sumila Gulyani's picture
 
 Sumila Gulyani / World Bank
Amina and her family in Dakar, Senegal have a metered private water tap in their yard, 
but they don’t use it. (Photo: Sumila Gulyani / World Bank)

Amina and her family had recently moved to their new house on the outskirts of Dakar, Senegal. It was built by the government to relocate families from low-lying and flood-prone neighborhoods in the city. The house was small for her extended family of ten, but it was water that she worried about. I was puzzled. Usually people complain that water connection costs are too high, but she received that connection for free—the meter and tap were right there in her front yard.

Why did she worry?

Delivering water and sanitation services in Niger: challenges and results

Taibou Adamou Maiga's picture

Niger is one of the world’s poorest countries (44.5% of poverty incidence in 2014). The country faces a number of challenges in meeting the national (PROSEHA, the National Program for sustainable development) and global targets to increase access to sanitation and potable water, particularly in rural areas where the access to water is 44.2% and 7% for sanitation (2015 Ministry of Water and Sanitation data).

Overcoming these challenges while satisfying increasing demands for better or expanded service, the government began investigating options that bring in the know-how of the private sector. This has led to a growing domestic private sector provision of services in Niger.

Are progressive refugee laws sufficient to ensure self-reliance for refugees? Insights from Uganda

Varalakshmi Vemuru's picture
Uganda’s refugee laws are among the most progressive in the world. As the third largest host country in Africa with over 568,000 refugees, Uganda’s approach of giving refugees the right to work, freedom of movement and access to social services among others, has allowed refugees to positively contribute to their own and Uganda’s economic and social development. To understand better the economic impacts of these progressive policies, the World Bank along with UNHCR and Government of Uganda undertook a study on Uganda’s Progressive Approach to Refugee Management
 
We observed that over 78 percent of refugees in rural settlements, where they receive agricultural land, are engaged in agricultural activities compared to 5 percent in urban areas. Crop surpluses attract Ugandan traders to the refugee settlements, operating as a direct supply chain for sale of agriculture produce but also supply of agriculture inputs like fertilizers and seeds.
 
Refugee farmer in Nakivale settlement area, Uganda   (Photo: UNHCR)


However, about 66 percent of respondents reported that local traders use faulty scales when weighing produce, which shortchanges them. Seventy percent decried the extremely low prices offered by local traders for produce, with implications for the ability and timing of refugees to become self-reliant. This was made worse by the significant losses in quality and quantity of agriculture produce due to poor harvest handling techniques and inadequate storage facilities, and surpluses were sold immediately after harvest at the lowest point in the price cycle. This shows that while refugees have land to cultivate, they are unable to realize the potential due to lack of technical, infrastructural and marketing support, contributing to food insecurity and under nutrition among smallholder farming refugee families, especially during lean seasons.
 
Business enterprises such as bars, hair dressing, milling, transportation, money transfers, and retail are run by refugees. Twenty-eight percent of female refugees are involved in agriculture, trade, or are self-employed; their participation in the formal sector is low—only 9 percent. Initiatives such as Community Savings Groups and women savings and credit groups have provided female refugees with seed money to start businesses. There is reportedly some level of gender discrimination with respect to access to land, credit, employment, and self-employment opportunities.  
 
We observed that almost 43 percent of the refugees are actively engaged in the labor market of their host communities: 12 percent in the formal sector and 31 percent self-employed. However, refugees expressed constraints accessing formal employment both in urban areas and rural settlements, relating to unfamiliarity with the language, legal issues, poor interview skills, discrimination, and a lack of relevant documents. Refugees are mainly engaged in occupations that provide little income, social protection, or job security.
 
Refugee settlement areas have attracted the attention of Ugandan private enterprises, such as the Ugandan telecom companies, which launched several initiatives aimed at targeting refugee users of SMS banking and transfer services. For example, Orange Uganda Limited, a provider of telecommunication and Internet services in Uganda, invested in a large radio tower in the Nakivale settlement to promote its "Orange money" services. In Rwamwanja and Adjumani, a number of refugees operate as mobile money unit agents providing employment for them, while facilitating other refugees in accessing remittances from their relatives and friends within or outside the country. This mobile money is hugely helpful to refugees trying to meet expenses, including school fees for their children.
 
But in Uganda, and across the rest of the Horn of Africa, refugee camps and settlements are located in areas where the host communities are among the most underserved, with significant development deficits of their own. The majority of refugee settlements in Uganda are in the relatively stable north, though it has communities still in a state of latent conflict, driven by new and long-standing grievances, poverty, perception of marginalization, competition over national resources, and societal fracture as legacies of decades of violent conflict. The region also has high levels of poverty and youth unemployment which poses challenges to refugee efforts at self-reliance.
 
This got us thinking about a couple of important questions: "Are progressive refugee laws and policies sufficient to ensure self-reliance for refugees? What insights does this provide to the range of organizations including UNHCR and NGOs engaged in advocacy efforts aimed at more progressive refugee laws and policies?"
 
We believe that progressive refugee laws that guarantee freedom of movement and right to work and own property are critical for economic self-reliance of refugees, without which it would be an impossibility. However, the Ugandan experience also tells us that while refugees have engaged in economic activities and employment, they haven’t all achieved self-reliance and many remain aid dependent. For us an important learning is that only when progressive refugee laws are complemented by significant developmental investments in the host communities can refugees have a real shot at self-reliance, benefitting from the attendant reduction in poverty, increase in quality of basic services, better infrastructure and economic opportunities.
 
We see a huge opportunity in Uganda with the recent government-led efforts to address the development challenges of settlements that are home to locals and refugees with the inclusion of the Settlement Transformative Agenda (STA) as part of National Development Plan II (NDP II 2015/16–2019/20). The STA aims to promote social and economic development in the refugee hosting areas for both locals and refugee communities in partnership with the UN agencies in Uganda, the World Bank and other stakeholders. The World Bank is supporting this effort through the Development Response to Displacement Impacts Project (DRDIP) in Uganda, which will help improve access to basic social services, expand economic opportunities, and enhance environmental management for communities hosting refugees in Adjumani, Arua, Isingiro and Kyriandongo districts.
 

How can water utilities provide reliable water to poor people in African cities?

Chris Heymans's picture
Urban Africa: Rapidly growing and densifying.
Photo Credit: Kathy Eales / World Bank

Sustainable Development Goal (SDG) 6 targets “universal and equitable access to safe and affordable drinking water for all”. However, in Africa’s fast-growing cities, just accessing water is a daily struggle for many poor families. While Africa’s urban population is expected to triple by 2050, the proportion of people with improved water supply has barely grown since 1990, and the share of those with water piped to their premises has declined from 43 percent in 1990 to 33 percent in 2015. Poor families bear the brunt of these inadequacies through poor health, the long time required to collect water, and higher costs when purchasing from on-sellers’.

However, some cities stand out as exceptions. What can we learn from cities and utilities that successfully provide reliable and safe water to almost all of their inhabitants? A study I led recently, Providing Water to Poor People in African Cities Effectively: Lessons from Utility Reforms, analyzed how the water utilities in Kampala, Nyeri, Dakar, Ouagadougou and Durban achieved stand-out performance, and how this made a difference for the poor people in these cities.

The Importance of Mapping Tech Hubs in Africa, and beyond

Rachel Firestone's picture

As the World Bank’s ongoing mapping of Tech Hubs in Africa comes out with its newest edition, we wanted to share the rationale behind this exercise and highlight its links to other efforts in this innovative space.

Our mapping activities began tracking tech hub and incubators in the African context since 2014 with periodic updates, focusing specifically on those who support digital entrepreneurship.
 
Complementing other World Bank work in this realm, such as research on mLabs and mHubs, contributions to the Makers’ movement, support to mobile app competitions, bootcamps and hackathons, and an upcoming Pan-African Acceleration program, the Tech Hubs in Africa map highlights the presence and potential interaction between digital entrepreneurs, while furthering the World Bank’s twin goals of ending poverty and increasing shared prosperity. The exercise also provides data points for ongoing inquiry into the relationship between innovation, entrepreneurship, job creation, and sustainable livelihoods. 

Experience from the Horn of Africa: Using area-based and inclusive planning to coordinate the humanitarian-development response to forced displacement

Varalakshmi Vemuru's picture

In the previous blog, we wrote about some essential features of a development response to forced displacement, which is the first question that we confronted in preparing a project to support the Horn of Africa (HOA) region address the impacts of protracted refugee presence.

We are just starting work on this Development Response to Displacement Impacts Project (DRDIP) in the HOA, informed by our understanding documented in the joint World Bank-UNHCR Forced Displacement and Mixed Migration report. As we move forward, we are gaining useful insights on coordinating the humanitarian-development response.
 
Among the countries of the HOA, which have been hosting refugees for a long time now, Ethiopia hosts the largest number of refugees. The refugees reside in 23 refugee camps located in the five National Regional States of Afar, Benishangul-Gumuz, Gambela, Tigrai, and Ethiopian Somali in 16 Woredas and 15 kebeles. The environmental impact of the refugee presence, stemming from fuelwood and construction timber needs, extends across 117 kebeles.

Project preparation took us to the Sherkole refugee camp in Benishangul-Gumuz and the Asaiyta refugee camp in Afar National Regional States. Through interactions with local host communities, refugees, woreda and kebele officials, Administration for Refugee and Returnee Affairs (ARRA -- Government of Ethiopia’s refugee agency), and UNHCR field staff and local NGOs, we learned, for example, that both host and refugee communities wanted accessible secondary and high school education for their children; had to travel long distances, as much as 60 kilometers, if they needed a surgical intervention; and spent more time each day traveling to meet their fuel wood needs due to receding tree cover.

Classroom in Nakivale, Uganda (Photo: UNHCR)

However, discussions also revealed that the planning processes for the multi-agency refugee response (often led by ARRA and UNHCR in Ethiopia) and the development planning led by national and local government entities were essentially two separate processes – the former focusing primarily on refugees, and the latter on host communities. Both were functioning under a budget and capacity constraint.

The reality was that refugee children in Asaiyta who did not have access to high school in the camp attended the high school run by the government, and refugee women sought medical care at the local government hospital when the primary health centre was ill-equipped to address the problem.

For Sherkole, UNCHR was planning to establish a high school which could potentially support both refugees and host communities, as the existing high school was oversubscribed. But the conversation had not happened yet on how best to complement an existing high school so that both host and refugee children would be able to save time currently spent on walking to school and avoid the discomfort of sitting in congested classrooms.  

These realities led us to better focus on value for money of investments – efficiency, effectiveness and sustainability – and a potential tool for planning which could bring the government and UNHCR as well as NGOs that operate in these areas to exchange information and coordinate better their existing, ongoing and planned investments in service delivery.

Our experience in the Horn of Africa shows that area-based and inclusive planning has the following elements that would increase efficiency, effectiveness, and sustainability:

  • Both hosts and refugees are participants in the planning process and enabled to share their priorities, challenges and proposals;
  • Break the silos of planning and consider the needs of both host and refugee communities while planning an intervention irrespective of who was initiating the intervention;
  • Given that government would be the long-term custodian of the infrastructure and services, it was critical that all facilities created in an administrative area are recorded on government books and budgetary provisions made by local governments for operations and maintenance with contributions also coming in from the UNHCR;
  • Service delivery norms for basic social services are adhered to in terms of population served, irrespective of how many were local and refugees, in deciding the level of service provision (health clinic, primary health centre, or hospital) based on what was already available; and
  • Ensuring parity in qualification and remuneration of staff to ensure both UNCHR and government facilities are staffed and functional.

Some may argue that area based and inclusive planning is not new and offers an opportunity for intersectoral planning focused upon spatial or locational investment decisions, and that this is key to designing solutions to address problems and achieve functional integration between sectors. However, translating this concept into practice on the ground is the challenge, which all stakeholders are likely to face in the displacement context given their individual mandates and narrow beneficiary focus.

The DRDIP preparation process has however convinced us of the commitment of all concerned to stay focused on the beneficiaries and their needs, ensuring value for money through optimum utilization of limited capacities and resources. Some of the regions e.g. Afar and Ethiopian Somali where the project will be implemented already have experience in an area based planning approach that has been developed and implemented under the World Bank financed Pastoral Community Development Project (PCDP). What is different is the context and the prevalent practice. A very encouraging beginning indeed and a long journey ahead.
 


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