While most adults in developed countries have an account at a bank or another formal financial institution, this is not the reality in many developing countries, including Senegal. A recent World Bank Group (WBG) Financial Capability Survey revealed that less than one in five Senegalese adults (17%) report owning an account at a formal institution, which includes banks, microfinance institutions, or e-money agents. While Senegal’s financial inclusion levels are similar to those in other lower-middle income economies, the country lags behind the average inclusion rate among Sub-Saharan African economies.
Smallholder farmers, even those in structured value chains such as cocoa farmers in Côte d’Ivoire, are largely unable to access banks, microfinance institutions and other formal financial institutions. Providing meaningful financial services to these customers in an affordable and sustainable manner is a great challenge.
Women entrepreneurs in Ethiopia are disadvantaged from the start. They have less access to the finance, networks, and education which help their male counterparts advance. They face regular discrimination and harassment from society--sometimes even from their own families and communities. The challenges a woman entrepreneur in Ethiopia faces in growing her business are overwhelming.
The remittances sent home every year by the African Diaspora should create a doorway to still greater opportunities, and the key to this door is financial access. While remittances do impact the living standards of beneficiaries directly, the banks that pay out the remittances month after month should offer recipient families a basic financial package including savings accounts, payment services and small loans for microenterprise. This should facilitate growth from current levels of remittances saved and invested. Leveraging of remittances through financial inclusion is certain to increase their development potential.
I always say, environmental management is woven into something bigger, much bigger than simply saying “Let’s do some good, let’s not pollute.” For me, it’s a question of how we encourage the development boom underway in Africa today, while still keeping our eyes focused on environmental management.
In the World Bank’s Africa Region, we are working on the belief that we can find a way to support sustainable development that combines the least amount of environmental damage with the best desirable outcome possible. Put simply, we can “green” growth and make it more inclusive.
The way to do this is to weave environment into all development programs. We believe that development is key to reducing poverty and improving livelihoods in Africa.
For example, let’s say that you are planning to build a really big road going through a national park. This is an opportunity for all stakeholders, government officials, community members, donors, NGOs, and others to gather and ask themselves not just how this road will improve economic growth, but what is the future of this national park? Will this road provide poachers with new access to pristine woodlands and endangered wildlife?
In a new report, "Enhancing Competitiveness and Resilience in Africa", we lay out a new approach to environmental management that makes it the core of everything we do. This means that when we think about a project or program in any sector, we also think about how it will impact the environment.
At a fishing enclave called Baie des Anges on Guinea Conakry's Atlantic coast, the country's development challenges are laid bare. In this make-shift settlement shrouded with blue tarpaulins and weighted down with stones and old tires, families battle the constant threat of flooding while they struggle to make a living from fish they smoke on cinder-block stoves. For the poor people of Guinea, better times can't come fast enough.
The statistics are tough to read. Here in Guinea, it rains for six months a year and yet drinking water is hard to find. The country has some of the world’s largest deposits of bauxite and iron ore, and still one in two people lives in grinding poverty. And it’s getting worse. The poverty rate has jumped from 53% of the population in 2007 to more than 55% in 2012. Blessed with some of Africa’s most significant agricultural and hydro-electric potential, few homes outside downtown Conakry have power at night unless they run generators; and food is often in short supply.
I joined the World Bank’s Vice President for Africa, Makhtar Diop, on a recent trip to Guinea where he held development talks with the President, Professor Alpha Condé, the Prime Minister, Mohamed Said Fofana, Cabinet Ministers, and local business leaders. In his discussions Diop was optimistic about the country’s development future and its potential to tackle its energy shortages, boost its agriculture production, and use its rich mining resources to transform the economy and development prospects of some of Africa's poorest people.
On June 5, the World Bank will host an event focused on the ongoing relationship between Brazil and countries in Sub-Saharan Africa. The event will be web streamed. Panelists will discuss Brazil’s experiences in the areas of agriculture, social protection and vocational training, and ways in which African countries can benefit.
Ahead of the event, we’re seeking your questions and comments. Please read the recently launched report Bridging the Atlantic: Brazil and Sub-Saharan Africa Partnering for Growth. The report highlights these key points:
I met Roselynd Laubhouet in 2004 when, as a recent graduate, she accepted an assignment as a Junior Professional Associate with the World Bank's Africa Region in Washington, D.C. From day one, it was evident that Roselynd was special. Being an entrepreneur at heart, she was filled with dreams, aspirations, and a passion for her home country of Senegal (and her continent) that set her apart.
When Roselynd and I reconnected in Abidjan last December, eight years after our first meeting, I was pleasantly surprised to learn that not only had she moved home to Senegal, but she had also started a successful international business. The journey from bureaucrat to entrepreneur was not easy, but it was clear that--having returned home--Roselynd was realizing her dreams.
I was curious to learn the secrets of her success, to understand the challenges facing returnees, and gather any advice for other Africans in the Diaspora considering a return. Roselynd was kind enough to share her experiences with me in the hopes that other young women in the Diaspora might be inspired to follow in her footsteps.
Stevan Lee, Senior World Bank Economist, is co-author of this post.
Attracted by the prospects of large unexploited natural gas reserves in the south of Tanzania, big players are in town. The British Gas Group has publicly announced that it may invest over US$35 billion in the next 25 years – 1.5 times Tanzania’s current GDP. Policymakers and donors are jockeying to position themselves and understand what is at stake.