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Morocco Economic Monitor, Summer 2024: Unlocking the Potential of the Private Sector to Spur Growth and Job Creation
(Washington, DC: World Bank, 2024-07-17) World Bank
This report includes a special focus chapter focused on the dynamics of the Moroccan private sector. It is based on the results of an analysis jointly conducted with the Moroccan Observatory of Small and Medium Enterprises (OMTPME) which exploits a comprehensive database on formal firms. The productivity performance of the private sector has been lackluster, primarily due to a worsening of allocative efficiency. Larger firms tend to exhibit a lower productivity than their smaller peers, suggesting that markets are not sufficiently rewarding more efficient and innovative firms. In addition, Moroccan SMEs struggle to grow, and the density of High Growth Firms remains very low. This is problematic feature of the private sector given that in other settings such firms have been shown to disproportionately contribute to job creation. Addressing the constraints facing the private sector would help overcome the disappointing job creation capacity that the Moroccan economy has exhibited in recent years.
Country Economic Memorandum for Burkina Faso: Making Growth More Efficient, Sustainable, and Inclusive
(Washington, DC: World Bank, 2024-07-17) Pajank, D; Abalo, K; Porte, J
Between 2000 and 2022, Burkina Faso’s economic output has more than tripled in real terms, but this has not translated into significant reductions in the number in extreme poverty. Economic growth has been highly volatile due to exposure to weather and climate shocks, political instability and conflict, and external shocks such as the COVID-19 pandemic and the war in Ukraine. Although the economy has undergone major sectoral changes, they do not reflect the degree of structural transformation needed to equip the country for future success. A slowdown in agricultural production over the past decade has left Burkina Faso less able to provide employment in rural areas and feed a growing population. Growth has not been efficient due to low productivity, a sub-optimal allocation of production factors, and major constraints to private sector development, including a low human capital base. Growth has also not been sustainable due to low levels of investment, the deterioration of public finances, and the destruction of natural resources, which all limit the economy’s resilience to shocks. Finally, growth has not been inclusive due to the underemployment of young people and women in the formal sectors of the economy, and little redistribution of the fruits of growth. The policy objective in this area will be to increase women’s engagement in higher-value sectors, improve their access to productive inputs, and increase their physical security and household agency. Under the high, sustainable, and inclusive growth scenario, significant per capita GDP gains would see Burkina Faso join the group of lower middle-income countries by 2040 and remain in the group thereafter.
Chad Economic Update April 2024 - Special chapter Hosting Refugees in an Inclusive Manner
(Washington, DC: World Bank, 2024-07-16) World Bank
The Chad Economic Update is a World Bank report series produced once a year, that assesses recent economic and social developments and prospects in Chad. The Economic Update also provides an in-depth examination of a selected policy issue, outlining its current challenges and potential going forward. It is intended for a wide audience, including policy makers, business leaders, financial market participants, and the community of analysts and professionals engaged in Chad’s evolving economy.
CPIA Africa, June 2024: Structural Reforms for a Vibrant Private Sector
(Washington, DC: World Bank, 2024-07-15) World Bank
The CPIA Africa report highlights policy trends, best practices, and key changes in Sub-Saharan Africa, following the World Bank's annual Country Policy and Institutional Assessment (CPIA). The analysis is designed to assess the elements of policies and institutional arrangements within a country's control for promoting sustainable growth and poverty reduction. Discussion is limited to countries eligible for financing from the International Development Association (IDA), the part of the World Bank that supports the world’s poorest countries. With government investment and spending in Sub-Saharan Africa currently constrained, there is an urgent need for the private sector to accelerate. This year's CPIA Africa report focuses on reforms across policy areas that bolster private sector growth and highlights the policy trends that have been instrumental in supporting business development in 2023. The CPIA 2024 report for Africa underscores several key developments. First, the region has made significant strides in economic management and policies for social inclusion and equity, surpassing the global IDA average. However, the slower improvement in the governance cluster remains a concern. Second, the region has implemented reforms to enhance resilience to international economic shocks, particularly in central bank independence and transparency. Nonetheless, exchange rate pressures have posed challenges for countries actively managing exchange rate fluctuations. Third, the growing debt service obligations in the region limit the amount of resources available for public-sector investment. Public spending is especially constrained in countries with heightened concerns about external debt distress with some countries resorting to increased arrears and monetary financing. Finally, the report highlights two major trends offering hope for private sector growth: digital technology and increased intraregional trade. These trends have the potential to be transformational and provide significant opportunities for increased competition, FDI inflows, and economic diversification.
Benin Economic Update: Adapting to Climate Change for Sustainable and Resilient Economic Growth
(Washington, DC: World Bank, 2024-07-03) World Bank
Economic growth remained strong and resilient at 6.4 percent in 2023 from 6.3 percent in 2022, despite the various shocks the country faced, including adverse climate conditions, policy changes in Nigeria, and border closures with Niger affecting trade. On the supply side, the agriculture sector's growth improved slightly, growing by 5.1 percent, while the service sector is estimated to have grown by 6.6 percent. The primary sector did not return to pre-pandemic growth levels in 2023, with cotton production still below 2021 levels, partially compensated by higher production of other industrial crops and food. The secondary sector, particularly the manufacturing industry and construction, although recording a moderation in their dynamism, continues to support growth. On the demand side, investment remains strong and is the main driver of growth. Private consumption growth fell due to rising prices, particularly of gasoline (kpayo), while public consumption increased to maintain the well-being of the population and support economic growth. Benin's average GDP growth in 2021-23 was higher than in 2010-19 and compared favorably with regional peers. Growth is projected to stabilize at 6.2 percent between 2024 and 2026 (average 3.5 percent per capita terms), driven by investment and the Glo-Djigbé Industrial Zone (GDIZ) expansion.
CEMAC Economic Barometer, May 2024, Vol. 6
(Washington, DC: World Bank, 2024-07-02) World Bank
The CEMAC Economic Barometer is a semi-annual World Bank publication that presents a snapshot of (i) recent developments in and the economic outlook of the CEMAC region, and (ii) key development and reform priorities in the CEMAC region, followed by (iii) a brief assessment at the country level.
Mini Grids for Underserved Main Grid Customers
(Washington, DC: World Bank, 2024-06-21) Tenenbaum, Bernard; Greacen, Chris; Shrestha, Ashish
Can mini grids help to solve the problem of poorly served main grid connected communities A mini grid is an electricity generation and distribution network that supplies electricity to a localized group of customers. Mini grids can be isolated from or connected to the main grid. To date, most mini grids in Sub-Saharan Africa have been built in electrically isolated rural villages not connected to the main grid. Based on broad experience working with mini grid programs in more than 20 low- and middle-income countries and five detailed case studies, the authors offer observations and recommendations about mini grids in general and a new type known as “undergrid mini grids” being used in Nigeria and India to serve poorly served communities.
Gender Disparities and Poverty - A Background Paper for the Togo Poverty and Gender Assessment 2022
(Washington, DC: World Bank, 2024-06-12) World Bank
Gender gaps in Togo cut across many dimensions. Inequality starts in childhood, when girls are disadvantaged in access to schooling because of prevalent social norms and gender roles. It continues into adolescence, when a larger share of girls starts dropping out of school (with fewer than one in two completing secondary education), unable to continue education because of a number of factors, including child marriage, adolescent pregnancy, and time use patterns shaped by gender norms. In adolescence and adulthood, women face the constraints of limited education and economic opportunities, restrictive gender roles that leave women little time for participation in the labor force, financial inequities, high levels of acceptance of violence against women, health risks, and a lack of agency and decision-making capacity. This background paper to the Poverty and Gender Assessment Togo (2022) highlights the importance of addressing gender disparities to achieve continued poverty reduction in Togo.
Unlocking Women's and Girl's Potential - The status of women and girls relative to men and boys in Guinea
(Washington, DC: World Bank, 2024-06-12) World Bank
Evidence shows that Guinean women and girls face important barriers across all dimensions of well-being that prevent them from having access to opportunities on an equal footing with men. The poor agency of women and girls, as reflected in the high prevalence of discriminatory legal and social norms, translates into gaps in health, education, employment, and entrepreneurship, ultimately undermining their capacity to fulfill their potential and imposing important societal costs. This report presents a summary of the key challenges facing Guinean women and girls relative to men and boys. The report has a particular focus on early family formation, a common phenomenon in the country with important implications for girls’ and women’s well-being and opportunities in life. On the basis of this diagnostic and a review of evidence of what works, the report proposes some strategic lines of action to address the existing constraints and effectively empower Guinean women.
The Critical Link: Empowering Utilities for the Energy Transition
(Washington, DC: World Bank, 2024-05-29) World Bank
As the conduit between power demand and supply, the utilities that operate the world's transmission and distribution networks will be the critical link in the energy transition. Utilities will need to expand and modernize their networks to integrate variable renewable energy sources and meet growing demands for cleaner and more flexible power. According to the International Energy Association (IEA), the equivalent of the entire length of the world's grid networks will need to be added or refurbished by 2040 if countries are to achieve their energy and climate goals: As the off-takers of power generation, utilities need to be financially viable to enable the coming massive scale-up of investment in renewable energy projects and grid infrastructure. Utilities will also need to lead the way in providing access to electricity to the nearly 700 million people who still lack it today, mainly in Sub-Saharan Africa. In addition, utilities will need to serve consumers with ever-more varied and complex power needs and an increasing range of distributed generation options, such as rooftop solar. In short, power utilities will be the critical enablers of the energy transition and achieving universal access. This paper aims to place the need for sustainable utilities in lower-income countries (LICs) and middle-income countries (MICs) at the heart of the energy sector dialogue. The focus of this paper is on the utilities that manage power transmission or distribution grids.