Building Trust and Innovation

The second segment of the panel discussion centered on the critical question of how to create an enabling environment that fosters investor confidence and supports the effective implementation of innovative financing models in the Sahel. Panelists explored the policy and institutional reforms needed to attract sustainable investment, as well as the transparency and governance signals that can help mitigate perceived risks and encourage greater private sector participation in the region’s development. Ms. Kaoru Kojitani, Deputy Chief Advisor of the Project for Consolidation of Peace and Stability through the Human Resource Development of the Local Administration in the Sahel Countries (PCSRA) at JICA, emphasized the need for policy and institutional reforms to effectively adapt innovative financing models in the Sahel. She highlighted the crucial role of the public sector in developing infrastructure and creating an enabling environment for private and emerging sectors to thrive. Ms. Kojitani stressed that revitalizing economic activity at the community level requires a clear, step-by-step approach and advocated for a dual strategy—pursuing macro-level reforms alongside the development of localized, community-based models. She also underscored the importance of establishing strong support systems and partnerships to help local actors evolve into small and medium-sized enterprises, which can serve as a solid foundation for long-term, sustainable development in the region. In response to the question related to the requirements of investors before investing in a region, Ms. Soraya Diallo, Senior Vice President at Bloomfield Investment Corporation, emphasized that investors in the Sahel, like anywhere else, require transparent, reliable data to make informed decisions. She explained that Bloomfield Investment Corporation, as a Pan-African rating agency, plays a key role in providing this transparency by analyzing national development plans, public finances, debt ratios, and governance reforms to produce financial ratings for countries in the region. Ms. Diallo stressed that understanding both the opportunities and the risks is essential for investors, and that countries must be open about their challenges and the steps they are taking to improve their risk profiles. This openness, she noted, is crucial for building investor confidence and supporting sound investment decisions. She pointed out that, in West Africa, for instance, countries are expected to maintain a debt-to-GDP ratio below 70%, and Bloomfield’s evaluations assess whether these standards are met and if governments generate sufficient revenue through taxation. The resulting credit reports highlight both the strengths and weaknesses of each country, as well as the measures being implemented to address areas of concern.

Emphasizing the importance of addressing risk perception, Ms. Elsie Attafuah, UNDP Resident Representative in Nigeria, highlighted the importance of improving data accuracy to attract investment in the Sahel. She highlighted UNDP’s work through the Africa Credit Ratings Initiative, which helps countries present objective, investor-relevant data, and stressed the value of collaboration with partners like Bloomfield to shift the narrative toward the region’s opportunities. She also noted Japan’s role, through JICA and TICAD, in helping optimize development resources and promote resilience, particularly in fragile contexts where effective partnerships are essential. Examples like the Regional Stabilisation Facility (RSF) in the Lake Chad Basin Region shows how stabilization in previously distressed communities can draw in private investment. Attafuah highlighted digitalization, trade, and technology as key areas for innovation and deeper collaboration.

On climate and energy, she called for large-scale private sector investment, using Nigeria’s energy transition plan as a model. She pointed to de-risking tools, fiscal incentives, and innovative insurance schemes as ways to attract capital. Ultimately, she urged a move beyond traditional aid toward equal partnerships that make energy investment a driver of development and resilience in the Sahel.

Forging the Future: Strengthening Partnerships for Sustainable Development in the Sahel

The third segment of the panel discussion focused on the future of partnerships and collaborations for the Sahel, exploring how coordinated efforts between governments, international organizations, the private sector, and local communities can drive sustainable development and resilience in the region. Panelists highlighted the importance of innovative, inclusive partnerships to unlock new opportunities and address the Sahel’s complex challenges. Ms. Kaoru Kojitani, Deputy Chief Advisor of the Project for Consolidation of Peace and Stability through the Human Resource Development of the Local Administration in the Sahel Countries (PCSRA) at JICA, emphasized that the next phase of Japan’s partnership with the Sahel should prioritize youth engagement. She highlighted the importance of showcasing positive stories and the contributions of Sahelian youth to social development, while also fostering collaboration between Japanese and Sahelian youth. She stressed that JICA’s expertise in human resource development can play a key role in this effort. In discussing the return on investment from Japan’s involvement in the Sahel, Ms. Kojitani clarified that the goal is not charity, but the creation of a stable environment that enables economic recovery and encourages private sector investment. She cited community-based projects, such as infrastructure maintenance using sandbags, as examples that both build resilience and create short-term employment for youth. These initiatives help nurture small and medium enterprises, strengthen social cohesion, and lay the foundation for innovation and long-term investment in the region. While the representative of the private sector, Ms. Soraya Diallo, Senior Vice President at Bloomfield Investment Corporation, highlighted both the opportunities and challenges that the Africa Continental Free Trade Area (AfCFTA) presents from a private sector perspective. She noted that while AfCFTA offers a vast unified market, Africa’s financial markets remain fragmented, limiting cross-border financing and forcing countries and businesses to rely on external funding. Ms. Diallo suggested that developing regional and continental financial markets would enable more effective exchange and utilization of African resources. She also pointed out the need for greater precision in allocating and tracking financial resources, as funds are often absorbed into general budgets rather than targeted at specific projects, making it difficult to measure their real impact.

Building on this, Ms. Elsie Attafuah, Resident Representative of the UNDP Nigeria Country Office, explained that while transferring money across diverse African currencies remains a major challenge, it is being addressed through the Pan-African Payment and Settlement System (PAPSS), developed by Afreximbank. PAPSS enables seamless currency conversion and payments for intra-African trade, thereby promoting financial integration across the continent.

Questions from the audience 

 The panel discussion concluded with questions from the audience, focusing on Sahel’s significant mining resources and the need to improve governance in the sector to ensure sustainable and equitable management. One key point raised was the potential role of sovereign funds in achieving this goal. Ms. Soraya Diallo, Senior Vice President at Bloomfield Investment Corporation, explained that many countries’ revised mining codes require mining companies to contribute to mining funds through taxes or royalties. She highlighted Burkina Faso as an example, where Bloomfield is working with a mining company operating under such a framework. In Burkina Faso, the mining code establishes a sovereign wealth fund financed by royalties and fees from mining operators, intended to support both the mining sector’s development and broader national priorities, with independent management by the country.

In response to a question from a member of the audience, Ms. Elsie Attafuah emphasized that although the private sector may not be directly involved in managing sovereign wealth funds, these funds are subject to governance mechanisms such as boards and audits, which ensure accountability and transparency on the part of government. She pointed out that limited private sector involvement does not equate to an absence of transparency.

When asked about a Sahel country that could serve as a model, Ms. Kaoru Kojitani, Deputy Chief Advisor of the Project for Consolidation of Peace and Stability through the Human Resource Development of the Local Administration in the Sahel Countries (PCSRA) at JICA, pointed to Burkina Faso and Mali for their strong commitment to accountability and transparency in community development, which helps build trust between local governments and communities. Regarding plans to expand these strategies, Ms. Kojitani mentioned PCSRA (JICA Technical Cooperation Project) involving seminars and workshops designed to share lessons learned and knowledge across sectors in Sahel countries to maximize impact and attract international funding.

In conclusion, the event brought together a dynamic mix of Japanese and international specialists, creating a rich forum for examining innovative and actionable financing strategies to address the Sahel’s intricate challenges. Engaging discussions highlighted key enablers of sustainable development, from mobilizing diverse funding streams and promoting governance improvements to strengthening community engagement and encouraging economic diversification. These exchanges aimed not only to share insights but also to translate them into concrete steps forward, laying the groundwork for a more resilient and thriving Sahel region.