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.
Like many African countries, Senegal has a young population in search of decent jobs and salaries. A report covering the last national census of the Senegalese population, published every ten years by l’Agence nationale de la statistique et de la démographie (ANSD) (National Statistics and Demographics Agency), reveals that the average age of the population is approximately 22 years and that one in every two Senegalese is under 18 years of age. Those under 15 years of age represent more than 42% of the population, clearly indicating the predominance of the youth demographic. However, this segment of the population is most affected by under-employment and unemployment with young people representing 60% of job seekers.
Many urban residents these days will find it hard to imagine a life without mobile apps that help us locate a restaurant, hail a cab, or find a subway station—usually in a matter of seconds. for example, geospatial data on land-use change and built-up land expansion can provide for more responsive urban planning, while information on traffic conditions, road networks, and solid waste sites can help optimize management and enhance the quality of urban living.
The “urban geo-data gap”
However, information and data that provide the latest big picture on urban land and services often fail to keep up with rapid population growth and land expansion. This is especially the case for cities in developing countries—home to the fastest growing urban and vulnerable populations.
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?
Also available in: Français
Small towns* typically have not been well served by national or regional water utilities. Decentralization has become increasingly widely adopted, but even if local governments at the small town level have the power to operate a water utility, they often lack the capital and skills to do so. In response, some local governments and public institutions concentrate improvements on upgrading public utilities’ operations or strengthening community based management. In other cases, they choose to bring in the private sector knowledge of how to get clean water and sanitation services to more people more efficiently, affordably or sustainably.
There are many ways in which the public sector can leverage its own resources through partnering with the private sector. For the domestic private sector to fully realize its potential at scale in the small town sub-sector, we found they need capable and enabled public institutions to structure the market and regulate private operators.
Lessons learned from case study countries (Colombia, Bangladesh, Philippines, Uganda, Cambodia, Niger and Senegal) in a new global study published by the Water Global Practice’s in order to build a conducive business climate for market players in small towns Water Supply and Sanitation (WSS) service delivery:
“The mentality of youth in Senegal is changing. These days, young Senegalese aren’t waiting for job opportunities to fall from the sky. They are actively working towards creating them for themselves, and for other youth.” These words, spoken by 30 year old Thierno Niang, a social entrepreneur and co-founder of Rev’evolution, a youth run, self-funded start up incubator, struck a chord with me. Thierno and I were discussing his role as a panel moderator for the Youth Forum on Employment, Training, and Inclusion: A Knowledge-Sharing Event for Sub-Saharan Africa, the first ever youth event of its kind organized by the World Bank office in Senegal.
With almost half of its population living in urban areas, Senegal is ahead of Sub-Saharan Africa’s average urbanization rate of 40%. Senegal’s urban population has almost doubled in the last few decades, rising from 23% in 1960 to 43% in 2013, and is projected to reach 60% by 2030. This growth comes with immense challenges, but also constitutes an opportunity for Senegalese policymakers to structurally transform the Senegalese economy.
For the first time in history, the number of people living in extreme poverty has fallen below 10%. The world has never been as ambitious about development as it is today. After adopting the Sustainable Development Goals and signing the Paris climate deal at the end of 2015, the global community is now looking into the best and most effective ways of reaching these milestones. In this five-part series I will discuss what the World Bank Group is doing and what we are planning to do in key areas that are critical for ending poverty by 2030: good governance, gender equality, conflict and fragility, preventing and adapting to climate change, and, finally, creating jobs.
Seawater is rising in coastal Bangladesh. The soil contains more and more salt as the sea encroaches on the land. As a result, farmers see their crops declining. Communities are hollowing out, as working-age adults move to cities. Freshwater fish are disappearing, reducing the amount of protein in local diets. And in the dry season, mothers have to ration drinking water for their children – in some areas, to as little as two glasses a day.
Climate change is finally being taken seriously in the developed world, but it is generally seen as a future threat, to be managed over the coming years. For poor people in poor countries, particularly those living along coastlines, in river deltas, or on islands, it is a clear and present danger – and increasingly, a dominant fact of life.
As a former country manager in Benin, my team and I advised the national administration on the Public-Private Partnerships (PPP) Project Law then under consideration and engaged in PPPs. This effort took place after the private sector, both domestic and international, made a strong commitment to finance large infrastructure programs. Timing is everything, of course, and the window for passing the legislation through parliament before legislative elections was tight – ultimately, too tight. A better understanding of PPPs and the options these partnerships can offer to a country like Benin, which needs substantial infrastructure investments, would have helped the process tremendously.
At the time, however, PPP educational options for French speakers were scarce. Although plenty of PPP resources exist in English, many fewer tools are available for Francophone African countries. These tools are critical to understanding PPPs, creating and adopting legislation, applying PPPs when they may serve a need, and knowing when not to use them to secure infrastructure services.
- public-private parternships
- Middle East and North Africa
- Cote d'Ivoire
- Congo, Republic of
- Congo, Democratic Republic of
- Central African Republic
- Burkina Faso
“The only way to achieve the sustainable development goals is to use more public capital strategically for unlocking private investment, particularly for infrastructure,” says Amadou Hott, CEO of the Senegalese Fund for Strategic Investments.
The Senegalese Strategic Investments Fund (FONSIS, for its acronym in French) is part of a rapidly expanding network of state-sponsored strategic investment funds (SIFs) now emerging in countries at all income levels. The World Bank Group and its partner, the Public Private Infrastructure Advisory Facility, work with FONSIS in an advisory role, and FONSIS provides input to the Bank’s research on SIFs. In the World Bank Group’s recently issued Climate Change Action Plan, SIFs feature as one of the tools to crowd in private capital to climate mitigation and adaptation projects.
Mr. Hott was in Washington last week for the Spring Meetings, and we caught up with him during a break in his schedule. Mr. Hott represents a new generation of African financial sector professionals and leaders, who have returned to opportunities at home after earning degrees at leading global universities and gaining extensive experience on Wall Street, in the City of London, and in other global financial centers. He was also nominated a Young Global Leader by the World Economic Forum.
Q. FONSIS has been doing some very interesting projects. Could you tell us about some of your signature investments?
One project that I think is innovative is our building and commercial operation of the POLIMED (Pôles d’Infrastructures Médicales) diagnostic center within the public hospital of M’Bour, a coastal city 70 kilometers from Dakar. The hospital itself couldn’t afford to buy the required advanced technological equipment, and we were asked to build and run the diagnostic center as a commercial operation, with the public doctors and technicians of the hospital providing the medical services to keep down patient fees. Since operations started at the end of December 2015, more than 4,000 patients have been diagnosed, and the financial results are looking good so far. We intend to replicate this model all over the country to upgrade our medical infrastructure.
Another interesting project is the 30 megawatt, €41 million, solar energy power plant Santhiou Mékhé, and a 9 km transmission line to the grid. We closed that deal this past February. We were approached by the project’s initial developer, and our role was to structure the financial side of the project, help finalize the power purchase agreement with the off-taker, reach out to potential investors, and negotiate the debt and equity contributions. We also put down about €1.0 million of our own capital as a cornerstone investor, to give the project credibility at the initial stage. We expect the plant to be producing electricity in late 2016. I think we’ve achieved a good result: about €40 of external equity and debt co-investment for every euro that we ourselves invested. In general, we aim to achieve a multiplier of around 10 on our own invested capital, but we achieved an exceptionally high multiplier in this case, as we managed to secure a debt/equity ratio of 80/20.