Our dual key investment series features stories of our investments from our investments.

Boffa, Guinea is a coastal town located at the mouth of the Pongo river. The local economy was traditionally based on agriculture and fishing due to its rich marine and natural resources. However, the economic landscape of the city has been rapidly transformed since the signing of a $20 billion contract between the Guinean government and Chinese mining companies in 2017. The new upsurge in mining activities in the area has greatly impacted the local economy and city.

Boffa’s population of 28,000 inhabitants is growing quickly, having tripled within the last 7 years. The main driver of the population growth in Boffa is driving by mining activity. Due to the increase in bauxite exploitation, 4,000 direct and 40,000 indirect workers are expected to migrate the area within the coming years.

Despite the increased economic activity, Guinea’s National Statistics Bureau reports the poverty incidence rate is over 68% in Boffa. The quickly growing population, changing economic landscape, and persistent poverty in the area has created new challenges for the local government in funding and providing adequate infrastructure and services to residents.

In response to these challenges, Boffa Muncipial Council (BMC) invited United Nations Capital Development Fund (UNCDF) to provide technical and financial assistance to establish innovative financing approaches and increase revenue for the municipality. Increased revenue flow enables the municipality to fund local economic development projects, foster inclusive economic growth, and improve the lives of residents. UNCDF and BMC worked in collaboration to achieve these goals, expand the local fiscal space, and increase fixed capital formation

With the technical assistance and seed capital support from UNCDF, the following was accomplished

Technical Assistance on Public/Private Partnership to increase Boffa Municipal Council own financial resources

• Additional guarantee to support local financial development including by bank loan to private domestic investment
• Creation of modern and functional facilities for community to improve local economic activities

Financial Leverage unlocked by UNCDF:

• Chamber of mines committed to donate 0.5% of all royalties to fund local investments
• increased tax revenue by 200%
• Increased income generating activities
• Created 420 jobs

Investment Impact:

Support efficient management of community facilities and services between BMC and market private manager
• Increase local economic development
• Strenghten municipal capacities to provide improved services
• Develop full-time job opportunities for women and youth people in trade thanks to facilities

Carlos Barry is the Programme Manager for the Local Transformative Finance practice for UNCDF in Guinea, as one of the principal participant in this investment , he answered the following questions:

1) What made you enthusiastic about this investment?
The Urban Commune of Boffa is located in the Maritime Region of Guinea, along the Atlantic Ocean, with an area of 686 km2. The presence in Boffa since 1992 of the Charente-Maritime Cooperation (decentralized cooperation that supports the local authorities of Boffa) and the arrival of new mining companies such as BHP Billiton (alumina mining) in 2006 has favored the development of the city. The construction of a new market in Boffa is a project initiated by the municipality of Boffa in partnership with AGREM and Charente-Maritime Cooperation in order to provide the town with a commercial infrastructure to catalyze economic development and food security.

2) What were the challenges faced by this project?
- Involving the private sector in the financing of structural investments in partnership with local authorities;
- Successfully managing a complex project and setting up management and monitoring teams by the commune;
- Putting transparency and information sharing at the center of the support process;

3) What are the lessons learned from this example?
- Better definition of the roles and responsibilities of implementing partners can minimize the risk of delays and conflicts in the execution of a multi-partner project;
- Rigorous monitoring and control of the execution of the commitments of both parties (commune and promoter) is a condition for the success of the PPP.

Carlos Barry is the Programme Manager for the Local Transformative Finance practice for UNCDF in Guinea, with 24 years of professional experience in various fields, including management, monitoring and evaluation of development projects and programs, he ensures the operational and financial monitoring of all joint UNCDF projects in Guinea as well as some UNDP projects. He ensures the optimal use of resources and their visibility to the beneficiaries, the Government and donors, through actions in the field.

for more information please contact him :carlos.barry@uncdf.org