Written assignment of the massive open online course (MOOC) “Financing for Development: unlocking investment opportunities

1. Financing solutions to increaseCôte d’Ivoire
Energy supply in rural areas
World Bank Group MOOC “Financing for Development:
unlocking investment opportunities”
By Hadiza Hamid Algabid

2. ThispresentationisintendedtothegovernmentandpolicymakersofCôted’Ivoire.
It’swrittenasanassignmentofthemassiveopenonlinecourse(MOOC)“FinancingforDevelopment:
unlockinginvestmentopportunities”.
ItcouldbeusefultothepolicymakersandgovernmentofCôted’Ivoireforachievingtheir2020goals
andbeyond.
2
Targetaudience

3. Whatistheissue?

4. • Electricity remains inaccessible to 2 out of
3 Africans, according to the International
Energy Agency (IEA).
• Côte d’Ivoire is no exception to these
statistics especially in rural areas where
official statistics place at 13% the
percentage of people with access to
electricity. (source: UNDP)
• The recent conflict situation could have
been a major contributor to this low rate of
electricity access.
• Additionally, according to a recent study by
Sherbrook university, over the last 42
years, the electricity consumption growth
rate of 168% failed short to keep up pace
with the population growth rate estimated
at 370%.
Issue

5. • To achieve Addis Ababa sustainable development agenda by 2030. In particularly
goal 7 of this agenda that is to ensure access to affordable, reliable, sustainable and
modern energy for all,
Why wouldgovernment wanttoparticipateinseeking
additionalfinancingtoaddressthisissue?

6. • To improve efficiency in rural electrical network and capacity,
Why wouldgovernment wanttoparticipateinseeking
additionalfinancingtoaddressthisissue?

7. • To improve the welfare of the population through better access to medical services,
education, infrastructures, drinking water and other social services,
• To improve conditions for economic and industrial development,
• To reduce reliance on woods for energy needs and thus to better contribute to
environment’s protection,
• To supplement the limited public resources allocated to this sector,
• To improve socioeconomic conditions of the impacted population and make them
contribute to sustainable economic development in line of government’s policies of
reaching 2020 emerging goals.
Why wouldgovernment wanttoparticipateinseeking
additionalfinancingtoaddressthisissue?

8. • Lack of financing is the major obstacle to improving new infrastructure projects in rural
areas such as increasing electricity production,
• The Current regulatory environment does not help in attracting needed foreign direct
investment (FDI) and private local capital,
• Political stability remains fragile for reasons including the remaining tensions between the
fighting factions from a recent conflict (2000-2010) and the risk associated to the run up
2020 election,
• Corruption is also seen as another drawback to doing business,
• Capital control and taxation are cited among other slowing factors by foreign capital
provider.
Whatarethemainobstaclestounlockfinancialopportunities?

9. Government should:
• engage in promotion campaigns aim to addressing sources of uncertainty and to providing
information on the higher return investment potential in the sector,
• increase transparency in its finances, strategies and policies and strengthen justice and
private ownership protection,
• Easing doing businesses by creating and enforcing standards, developing data on investment
opportunities and providing subsidies to end users,
• make progress in the fight against corruption.
Potentialsolutionstounlockfinancialopportunitiesinorderto
increaseenergysupplyinruralareas

10. Government should:
• seek first all available free capital with philanthropic and development institutions,
• be a catalyst in bringing private and foreign capital by addressing potential source of risks
through:
 Providing some form of insurance up to a certain percentage of the first portion of
lost capital
 Improving business climate by streamlining regulations and reducing corruption
Potentialsolutionstounlockfinancialopportunitiesinorderto
increaseenergysupplyinruralareas

11. Government should:
• improve production’s efficiency of the public company (CIE) by breaking it’s monopoly,
• think of using innovative solutions to raise additional capital such as:
• bended finance,
• diaspora bond,
• remittances,
• infrastructure bonds,
• financial derivatives.
Multilateral banks (MIGA, AFB, IFC) ODA should also be part of the project by leading as pioneers.
Potentialsolutionstounlockfinancialopportunitiesinorderto
increaseenergysupplyinruralareas

12. • Addis Ababa Action Agenda of the Third International Conference on Financing for
Development
• From billions to trillion: MDB contributions to financing for development.
• Investments to end poverty, 2015, Meeting the challenge: reducing poverty to zero
• Official development assistance- definition and coverage
• Cataloque of the MDB and the IMF Financing Solutions
• Sherbrooke university database:
http://perspective.usherbrooke.ca/bilan/servlet/BMTendanceStatPayscodeTheme=6&codeSt
at=EG.USE.ELEC.KH.PC&codePays=CIV&optionsPeriodes=Aucune&codeTheme2=6&codeStat2
=RSE.BP.ELEC.GEN&codePays2=CIV&optionsDetPeriodes=avecNomP&langue=fr
• Rapport PNIASE-CI.PDF- Le PNUD en Cote d’Ivoire
• 2016 Development Finance Forum: unlocking opportunities in fragile Markets, Dublin, Irland,
May 18-19, 2016
• Electrification totale de la Côte d’Ivoire à l’horizon 2025, Homi Kharas and John McArthur
Wednesday, july 16, 2014
• Mobilizing Private investment for post-2015 sustainable development, Homi Kharas and John
McArthur Wednesday, july 16, 2014
• How to Stop Corruption: 5 Key Ingredients Transparency International blog post, 10 March
2016
• http://www.doingbusiness.org/~/media/WBG/DoingBusiness/Documents/Annual-
Reports/English/DB17-Report.pdf
References

13. Thank you!