UNCDF participated to the Invest in Senegal Forum, held from July 6th to 8th, 2023, in Dakar, This forum showcased investment prospects for economic players, financial institutions, and industrial partners from Africa and around the world.

The event was organized by the National Agency for the Promotion of Investments and Major Works (APIX-S.A.) in collaboration with Global View Africa. The forum aimed to foster the development of local and regional markets, promote business opportunities in the private sector, and explore possibilities for market integration. One of the key highlights was the panel discussion titled "Senegal Post 2023: Projects and Opportunities to Seize."

Lea Desgranges : UNCDF - Portfolio Management Officer

The panel discussion addressed the challenge of accessing financing for public-private partnership (PPP) projects in developing countries. Despite the growth witnessed in Senegal, driven by the implementation of PPP projects, engaging the private sector in such initiatives remains a significant challenge.

The panel, chaired by Oulimata SARR, Minister of Economy, Planning, and Cooperation, featured esteemed speakers, including Olivier BUYOYA from the International Finance Corporation (IFC), Lamine LO, Coordinator of the PPP Unit at the Ministry of Economy, Planning, and Cooperation (MEPC), and representatives from various organizations such as CDC, FONSIS, BOS, and the African Development Bank (BAD). Additionally, international experts like Mr. Deepack Baladji from Planet One Holding Limited, UAE, Mr. Efraim MESLET from MITRELLI SENEGAL, Taslim Ngom from SERTEM Groupe, and Mike Salawou, Director of Infrastructure and Development at BAD, shared their insights and experiences.

During the forum, the United Nations Capital Development Fund (UNCDF) delivered a message emphasizing its longstanding involvement in Senegal for over 25 years. UNCDF has been a traditional partner of local authorities through programs like the National Program for Local Development (PNDL) in the Louga region. The organization's efforts have focused on supporting the local economy, strengthening the capacities and financing of local entrepreneurs, and revitalizing value chains such as Niebe, meat, and fish to stimulate investments in the region.

UNCDF positions itself as the Hub for sub-national finance, aiming to create a financing ecosystem tailored to the needs of regions, cities, and local authorities. This approach aligns with the achievement of the Sustainable Development Goals (SDGs), emphasizing the importance of local-level development. UNCDF, in cooperation with the United Cities and Local Governments (UCLG), established the Malaga Coalition, which aims to diversify local access to investment capital. Since local governments generally lack the necessary resources to borrow on their balance sheets, the focus is on strengthening intergovernmental fiscal transfer, own source revenue, domestic capital markets, domestic capital markets, and guarantee funds for cities mechanisms.

UNCDF's unique mandate within the United Nations system enables it to offer tools such as grants, loans, or guarantees to promote investment in small and medium-sized enterprises (SMEs) and intermediate-sized infrastructure projects, bridging the missing middle. The organization places territorialization and local-level development at the heart of its approach.

In Senegal, which has implemented a strong decentralization policy over the past 20 years, involving local authorities and mayors in the development process, it is crucial to provide them with access to such mechanisms and the necessary tools and support to implement PPPs. This will enable them to create infrastructure that drives economic and social development, meets the needs of the population, and supports local businesses, which in turn generate employment and wealth.

The forum also highlighted various opportunities for stakeholders. One key aspect was raising awareness among local authorities and businesses interested in investing in PPPs. To facilitate this, the DFPPP, led by Lamine LO, conducted the "Tabax Sunu PPP" campaign, aimed at familiarizing stakeholders with the 2021-1443 decree implementing the PPP law. Additionally, UNCDF prepared a guide for self-assessment of a municipality's capacity to engage in a PPP and established the Municipal PPP Task Force within the DFPPP. This task force will identify, source, and structure viable projects that can attract private investors.

Furthermore, blended finance and de-risking mechanisms were emphasized to support municipal PPPs. UNCDF's involvement in the localized Blue Peace initiative within the Gambia River Basin (Senegal, Gambia, Guinea, Guinea-Bissau) showcased the organization's commitment to developing water-related infrastructure projects that transform potential sources of conflict into catalysts for peace and cross-border cooperation.

For this purpose, the European Union's EFSD+ guarantee, amounting to €150 million, will be deployed in Senegal to develop infrastructure and PPPs led by local authorities. UNCDF invites partners interested in co-creating the modalities of this mechanism, including the former partner FONSIS, with whom they co-developed the WE!Fund dedicated to women's economic empowerment and eligible for PPPs, such as municipal infrastructure projects like fish markets, predominantly operated by women (Inclucity project).

Additionally, leveraging the diaspora's savings was discussed as an opportunity. Remittances from the Senegalese diaspora account for more than 10% of the national GDP. Redirecting these savings towards productive investment was emphasized. UNCDF, in partnership with ADEL SAS and CGF Bourse, has developed the FIT (Fonds d'Investissement Territorial) to sensitize the diaspora about saving and productive investment. The FIT aims to structure and source SME projects and bankable infrastructure projects to attract investment and savings from the diaspora. Matching grant mechanisms and de-risking approaches could be applied to channel savings into high-impact local projects through the FIT.

The Invest in Senegal Forum provided a platform for stakeholders to explore investment opportunities, discuss the challenges of financing PPP projects, and discover innovative approaches to promote economic development at the local level. With a focus on collaboration between public and private sectors, the forum aimed to drive sustainable growth, create employment opportunities, and foster socio-economic progress in Senegal.