The document proposes a financing solution to address the infrastructure gap in Côte d'Ivoire, despite its impressive economic growth. It outlines the country's economic and political context, highlights ongoing challenges, and suggests the use of the International Development Association's partial risk guarantees to encourage private sector involvement in infrastructure projects. The analysis emphasizes the need for public-private partnerships to meet significant infrastructure demands while managing associated risks.

1. 1
Unlock financial opportunities in Côte d'Ivoirea
Financing solution that will unlock financial opportunities in
Côte d'Ivoire - West Africa
This blog post is written as a project work to fulfil the partial requirement of the
MOOC: Financing for Development: unlocking Investment Opportunities on edX
platform offered by the World Bank Group.
Assignment: Propose a financing solution that will unlock financial opportunities in a
developing country. The proposal should integrate the International Development
Association (IDA) Private Sector Window.
Target audience: General public
Summary: The Developing country I decided to work on is Côte d'Ivoire. The
proposal is structured on three sections. Section one presents a brief overview of the
country's economic, political and social context. The second section, identifies the
issue of infrastructure gap in côte d'Ivoire (northern and central regions) despite the
country's impressive economic growth. Finally, in section three, I suggested IDA's
Partial Risk Guarantees as a private sector solution which could help the country in
fostering its infrastructure, in particular, infrastructure projects within the northern and
central regions.
Source: @africahotnews.com
Country's Context
Côte d’Ivoire’s economic performance over the past 4 years has been impressive
with a robust GDP growth which resulted in a decline in poverty from an estimated
51% in 2011 to 46% in 2015. There has been a robust recovery of Côte d’Ivoire’s
economy in the wake of its 2010 post-elections crisis, with the average real growth
rate reaching 8.5% annually between 2012 and 2015. This has been one of the

2. 2
highest rates in Sub-Saharan Africa. For the year 2016 and 2017, real GDP growth is
projected to reach 7.8% and 8% respectively. The political situation in Côte d’Ivoire
has evolved positively in recent months. The peaceful reelection of President
Alassane Ouattara at the end of October 2015 confirmed the country’s stability since
the end of the political crisis in 2011.
Nevertheless, challenges remain. Political normalization, together with supportive
fiscal policy and structural reforms to improve the business climate enabled a strong
pickup in economic activity. Growth has been accompanied by a modest decline in
poverty, but other human development indicators have been slow to improve.
Issue: Infrastructure Gap
Despite increased investment in infrastructure over the past four years, significant
gaps still exist. Towns and cities have emerged because of the physical expansion of
exported raw-material areas, but these urban centres are not very attractive because
of poor electricity supply, inadequate logistics and fragmented regional policies.
While the public sector still dominates the provision of public infrastructure, in light of
large infrastructure needs and in the context of Côte d'Ivoire's National Development
Plan, the authorities are seeking a larger private sector involvement through public-
private partnerships (PPPs) which offer opportunities that allow risk sharing between
the public and the private sector. The latest portfolio now includes 114 projects for a
total amount of approximately CFAF 14,000 billion, mostly in the transportation (e.g.,
the metro-rail of Abidjan), energy, animal and fishing, and tourism sectors.
However, PPPs also present risks. PPP contracts can include explicit guarantees; for
example, agreements for the government to bear some downside risks associated
with the projects that usually take the form of state guarantees to incentivize private
sector participation. PPP contracts can also contain implicit guarantees; for example,
in case of failure of the private contractor and the government has to pursue the
project due to its “public goods” nature. The resulting fiscal cost can be significant if
risks materialize.
Proposed solution
In addition to PPPs, Côte d'Ivoire could tap on the Partial Risk Guarantee instrument
offered by IDA. Partial Risk Guarantees (PRGs) cover private lenders, or investors
through shareholder loans, against the risk of a government (or government-owned
entity) failing to perform its contractual obligations with respect to a private project.
International Development Association (IDA) PRGs are available for all countries
eligible for IDA credits.
Thank you very much for your time and interest in this blog post.