UNLOCKING FINANCIAL OPPORTUNITIESFOCUS ON TOGO .

Project BriefThe study is on finding a solution to unlocking financial opportunities in Togo through the integration of the International Development Association (IDA) private sector window.IDA as we all know is that part of the World Bank which helps the world’s poorest countries towards reducing poverty, improving living conditions of its people and boosting the economy of these countries. With 173 shareholders, IDA is said to be one of the largest source of assistance to the 77 poorest countries in the world, out of which 37 are African countries. As one of the largest source of development finance, IDA’s main focus is on the provision of support for health care, education, infrastructures, agriculture, economic & institutional development.IDA has help millions of people to escape poverty through job creation, access to clean water, provision of schools, roads & electricity. It has also help fund the immunization of over 227 million children, created better water sources to about 64 million people and gave 50 million people access to better health care services.

Does Togo need IDA Assistance/Grant? • Togo with a GDP per capita of $1,525 is ranked 12th among

the 25 poorest countries in the world, according to analysis and report by the Global finance magazine & based on data from the World Bank and IMF.• TOGO STATS:-• International reserve- $0.07 billion (2015)- IMF data• GDP - $4.9 billion (2017) estimate-IMF• GDP per Capita - $634.7 (2017) estimate IMF

data• GDP Composition - Agric-27.5%,industry-21.3%

Services-51.2%• Inflation - 2.5% 2017 Estimate.

• Between 2012-2015 under IDA assistance, 3,275 people benefited from the construction of 90 schools with 248 classrooms in Togo. 13 health care centres, 44 boreholes, 4 community latrines, 2 rural roads & 2 market sheds were also constructed through IDA grants and assistance.

• A total of 14,016 people received financial assistance as part of a social safety net program to combat child malnutrition between 2013-2015.

• Study shows that 35% of Togo’s workforce are under-employed, compared to less than 3% unemployed. This affect mostly the poorest and vulnerable youth living in rural areas who most times take ad hoc work to survive.

• There is need to provide or create income generating jobs targeted at helping the poor & vulnerable youth in the country who constitute 75% of the workforce.

• There is also need to further fund health, education and provide improved access to clean portable water to the people

• Recent report shows that only 3 out of 10 household have access to portable drinking water. 70% of schools have dilapidated structures that require rehabilitation while healthcare facilities have been overstretched with an estimated number of 6,500 inhabitants per 1 health care centre (2013 study)

Summary of Current IDA credits for Togo

Original principal Amount; 75; 47%

Undisbursed amount; 45; 28%

Disbursed amount; 20; 13%

borrowers obligation; 20; 13%

Togo

Summary of IDA Grants to Togo

Grant53%

Disbursed44%

Undisbursed3%

TogoGrant Disbursed Undisbursed

Conclusion• With the introduction of the private sector window which seek to

address need of de-risking projects in low income countries like Togo, it means IDA can now access more funds through the capital markets to provide additional credits and grants to meet some the SDG goals for Togo.• Also IDA’s new financing approach which take into consideration

1st private sector approach, PPP as the 2nd option or falling back to public sector solution as the last option if the 1st and 2nd didn’t work can be considered.• Although these can be achieved through a 3 pronged approach by;• 1. helping government create an enabling environment for

business & private investment and lowering existing information barriers.

• 2. Exploring risk sharing approach with the private sector to align risk opportunities and appetite • 3. Support the development of domestic capital market

and instruments suitable to investors in order to mobilize domestic resources and foreign investment as well.

• THANK YOU