Leveraging MDB experience to succeed in sub-Saharan Africa

These are crucial for driving sustainable development. My experience at ACML Construction & Engineering has shown the power of these collaborations. PPPs can bridge the infrastructure gap in sub-Saharan Africa by leveraging private-sector efficiency and innovation alongside public-sector resources and oversight.

The Bank’s experience in PPPs spans various sectors and includes projects of different scales and complexities. In eastern Europe and Central Asia, the EBRD successfully facilitated PPPs in areas such as energy infrastructure, transport networks and municipal services. This track record gives the Bank valuable insights into the challenges and best practices of implementing PPPs in emerging markets, which can be adapted to the sub-Saharan African context.

The EBRD should look to develop a robust PPP framework tailored to sub-Saharan African contexts. This involves providing technical assistance to governments in structuring and managing PPPs, acting as an honest broker between public and private entities, and offering risk mitigation instruments to attract private investment. Well-structured PPPs can accelerate infrastructure development, improve service delivery and create jobs while ensuring public interests are protected.

By promoting well-structured PPPs, the EBRD can accelerate infrastructure development, improve service delivery and stimulate economic growth across sub-Saharan Africa. The key is adapting its experience to the region’s unique challenges while leveraging its international networks to bring new players into its development landscape.

Second, foster regional integration through transport infrastructure.
The EBRD's extensive experience in promoting regional integration through transport infrastructure development in eastern Europe and Central Asia means that it is uniquely positioned to make a significant impact in sub-Saharan Africa.

The vast African continent, with its diverse geographies and often fragmented markets, stands to benefit immensely from improved regional connectivity.
In eastern Europe and Central Asia, the EBRD has been instrumental in developing cross-border highways, modernising railways and enhancing port facilities, which have not only improved trade flows but also fostered greater regional cooperation. This experience is directly relevant to the African context, where inadequate transport infrastructure remains a major impediment to economic growth and regional integration.

The Bank’s focus should be on developing comprehensive, multi-modal transport networks that connect countries and regions. This could involve projects such as:
• transnational highway systems that link major economic centres across multiple countries, similar to the successful Trans-European Networks (TEN-T) in Europe; these highways could significantly reduce transport costs and time, promoting intra-African trade and economic cooperation

• railway modernisation and expansion that connects inland areas to ports, enhancing the export capacity of landlocked countries; the EBRD's experience in railway projects in eastern Europe, where it helped upgrade Soviet-era rail systems, could be particularly valuable in modernising and expanding Africa's rail network

• port development and modernisation initiatives, especially in strategic locations along Africa's vast coastline; improved port facilities can serve as gateways for increased international trade and regional distribution hubs

• cross-border energy infrastructure projects, such as power transmission lines and gas pipelines, which can foster energy trade and improve overall energy security in the region.
The EBRD can add significant value to these initiatives by:

• leveraging its expertise in structuring complex, multi-country infrastructure projects – the Bank's experience in navigating the political and regulatory challenges of cross-border projects in eastern Europe and Central Asia will be invaluable in the African context

• playing a crucial role in mobilising and coordinating funding from various sources – its strong relationships with other multilateral institutions, bilateral donors and private-sector investors can help pool resources for large-scale infrastructure projects that individual countries might struggle to finance alone

• using its focus on environmental and social standards to ensure that infrastructure development is sustainable and benefits local communities – this is particularly important in the African context, where large-scale infrastructure projects can have significant impacts on local populations and ecosystems

• contributing to capacity building in project planning, implementation and maintenance – by working closely with local institutions and transferring knowledge, the EBRD can help build the long-term capacity necessary for sustaining and expanding regional infrastructure networks.

All of this aligns well with existing continental initiatives, such as the African Continental Free Trade Area, and will unlock the enormous potential of intra-African trade, economic cooperation and Africa’s integration into global value chains.

Third, establish a strong local presence.
Based on my experience across various African countries, a strong local presence is indispensable. It enables a better understanding of contexts, facilitates relationship-building and allows for more responsive and effective project management.

The EBRD should establish regional hubs and country offices in key sub-Saharan African markets. This involves hiring local and international staff and empowering them with decision-making authority.

Regular field visits and stakeholder consultations are essential, as is the development of local advisory boards to provide on-the-ground insights.

A strong local presence will enhance the EBRD's credibility, improve project design and implementation, and allow for a quicker response to emerging opportunities and challenges.

Fourth, coordinate with other development partners.
My work with multiple development institutions has shown that a coordinated approach is crucial to maximise impact. Uncoordinated efforts can lead to duplication, inefficiency and even counterproductive outcomes.

The EBRD should actively participate in donor coordination mechanisms at country and regional levels. This involves aligning its country strategies with national development plans and other partners' interventions. Seeking co-financing opportunities with other MDBs, EU initiatives and bilateral partners can amplify impact. Working together, sharing knowledge and lessons learned through inter-agency forums, will lead to more effective development, efficient use of resources and amplified impact.

Insights from working with the private sector

Below are my tips for any organisation looking to operate successfully in sub-Saharan Africa. These could be particularly useful for the EBRD.

Adapt to local business environments
Each country in sub-Saharan Africa has its own unique business practices, regulatory frameworks and cultural nuances. My experience leading companies in Côte d'Ivoire, Senegal and now The Gambia has taught me the importance of adaptability. This means thoroughly researching and understanding local business laws and regulations before entering a market. It's crucial to be prepared for longer timelines in business processes, from registration to contract execution. Developing a keen awareness of local business etiquette and communication styles is essential, as is creating flexible business models that can adapt to rapidly changing economic and political landscapes. For the EBRD, this adaptability will be crucial in designing financial products and services that truly meet local needs and in navigating the complex regulatory environments of different sub-Saharan African countries.

Invest in relationship building
Through my work with the ACCA Consulting Agency, I've found that strong local relationships are the bedrock of successful business operations in sub-Saharan Africa. The importance of personal connections and trust cannot be overstated. This involves dedicating time and resources to cultivating relationships with local partners, government officials and community leaders. Understanding and respecting local hierarchies and decision-making processes is crucial. It's important to demonstrate long-term commitment to the market, rather than seeking quick wins. Engaging in corporate social responsibility initiatives that genuinely benefit local communities can also go a long way in building trust and goodwill. For the EBRD, forming these relationships will be critical in identifying viable projects, navigating local bureaucracies and ensuring the long-term success of its investments.

Embrace innovation in project design
My experience working in developing economies has highlighted the need for innovative solutions tailored to local contexts. What works in developed markets often needs significant adaptation or complete reimagining in sub-Saharan Africa. This involves conducting thorough on-the-ground research to understand local challenges and needs.

Collaborating with local experts and entrepreneurs is essential to develop solutions that are both effective and culturally appropriate. It's important to be open to unconventional approaches that may not align with traditional banking or development models. Investing in local research and development to foster homegrown innovation can yield significant benefits. The EBRD should encourage this type of innovative thinking in its project designs, potentially setting up innovation labs or incubators to support the development of local solutions.
Prioritise skills development and knowledge transfer

In sub-Saharan Africa there is often a skills gap that needs to be addressed for businesses to thrive. Effective skills development strategies include implementing robust training programmes for local employees at all levels and partnering with local educational institutions to develop relevant curricula. Creating mentorship programmes that pair experienced professionals with local talent can accelerate knowledge transfer. Investing in technology transfer to build local technical capabilities is also crucial. For the EBRD, incorporating skills development components into its projects could significantly enhance its long-term sustainability and impact.

Leverage technology to overcome challenges
Effective use of technology includes using mobile solutions to reach underserved populations, particularly in financial services. Making use of data analytics can provide deeper insights into local markets and consumer behaviour. Implementing blockchain and other emerging technologies can enhance transparency and efficiency in transactions. Using remote sensing and Internet of Things (IoT) technologies can greatly improve the monitoring and management of infrastructure projects in challenging environments. The EBRD should consider how it can incorporate these technological solutions into its operations and the projects it supports in sub-Saharan Africa.

Avoiding common pitfalls

I’ve observed several mistakes that organisations often make when operating in sub-Saharan Africa.

Overlooking local expertise

One of the most significant mistakes I've witnessed is the undervaluation of local knowledge and talent.

During my tenure as a Special Representative in Côte d'Ivoire, I saw firsthand how critical local insights are to navigating the complex socioeconomic landscape of sub-Saharan Africa. Organisations often make the error of relying too heavily on external experts, who may lack deep understanding of local contexts.

To avoid this pitfall, the EBRD should actively seek out and incorporate local expertise into its decision-making processes. This means not just consulting with local experts, but also empowering them to take leadership roles within projects and initiatives. Establishing partnerships with local universities, think tanks and businesses can provide invaluable insights that result in more effective and sustainable interventions.

Underestimating infrastructure challenges

A common mistake is underestimating the logistical and technical challenges unique to the region. From unreliable power supplies to inadequate transport networks, these infrastructure gaps can significantly impact project timelines and costs.

To avoid this, the EBRD must conduct thorough assessments of infrastructure realities before embarking on projects. This means going beyond desk research and conducting on-the-ground surveys and consultations. Developing contingency plans for infrastructure-related setbacks and building in realistic timelines that account for these challenges will be crucial. Moreover, the Bank should consider how its projects can contribute to improving local infrastructure, creating a positive cycle of development.

Neglecting sustainability

A frequent mistake is focusing on short-term gains at the expense of long-term viability. This is particularly problematic in sub-Saharan Africa, where the need for immediate results can overshadow considerations of lasting impact.

To avoid this, all EBRD projects should have robust environmental and social safeguards. This goes beyond mere compliance with regulations and involves actively seeking ways to contribute positively to local communities and environments. Implementing thorough sustainability assessments at every stage of a project, from conception to completion and beyond, is essential. The Bank should also prioritise knowledge transfer and capacity building to ensure that local stakeholders can maintain and build on project outcomes long after the EBRD's direct involvement ends.
Ignoring political and economic volatility

Political and economic landscapes can change rapidly in sub-Saharan Africa. A common mistake is failing to anticipate and plan for this volatility. Organisations often design rigid strategies that can't adapt to sudden changes in government policies, economic conditions or social dynamics.

The EBRD must develop flexible strategies that can adapt to these shifts. This involves conducting thorough political economy analyses before entering new markets and regularly updating these assessments. Maintaining open lines of communication with a diverse range of stakeholders, including government officials, opposition leaders, civil society organisations and local businesses, can help the Bank stay ahead of potential changes. In addition, building diversified portfolios that can withstand shocks in particular sectors or regions is crucial.

Weak procurement processes

I have observed that weak procurement rules can lead to resource mismanagement and underperforming operations. This is a particularly sensitive issue in sub-Saharan Africa, where concerns about corruption and inefficiency can undermine the credibility of development initiatives.

The EBRD should prioritise strengthening procurement processes to ensure efficient use of resources and successful project implementation. This means developing clear, transparent procurement guidelines that are rigorously enforced.

Putting in place digital procurement systems can enhance transparency and reduce opportunities for corruption. Regular audits and evaluations of procurement practices, including assessments of their developmental impact, should be conducted. The Bank should also invest in building the capacity of local partners to meet high procurement standards, thereby strengthening the overall business environment in the countries where it operates.

Disregarding cultural nuances

The cultural landscape in sub-Saharan Africa is vastly different from eastern Europe and Central Asia. While the EBRD was created in the aftermath of the collapse of the Soviet bloc, where there was a certain level of cultural and ideological alignment, sub-Saharan Africa presents a far more complex and diverse cultural tapestry.

In sub-Saharan Africa, the EBRD will face a mosaic of disparities that goes far beyond anything it has encountered before. The region is not just divided into countries; it's a complex web of economic regions, each country further broken down into local communities, and within these, a multitude of ethnic groups, each with its own distinct cultural practices, languages, dialects and social norms. This level of diversity is unprecedented in the EBRD's operational history.

A common mistake for organisations entering sub-Saharan Africa is to approach it as a monolithic entity or to assume that strategies that worked in other developing regions will be equally effective here. This underestimation of cultural complexity can lead to severe misunderstandings, ineffective communication and, ultimately, project failures.

Designing flexible projects and implementation strategies that can be adapted to different cultural contexts within sub-Saharan Africa is crucial. This includes creating culturally sensitive communication strategies and implementing robust community engagement processes that recognise and respect local power structures and decision-making processes.

To sum up, the EBRD must recognise that its expansion into sub-Saharan Africa represents a fundamental shift in its operational context. Success will require a willingness to learn, adapt and reshape its approaches to fit the unique and diverse cultural realities of sub-Saharan Africa. This cultural adaptability will be as crucial to its success there as its financial and technical expertise.