pension fund reserves. In Tunisia, most of the resources come from the savings deposits of the Caisse d'Épargne Nationale Tunisienne (CENT). In Gabon, Mauritania and Senegal, resources come primarily from consignments and deposits collected. Figure 1 shows the changes in the balance sheets from 2015 to 2018 (in billion euros). In Morocco and Tunisia, AuM are on the rise. The decline observed in 2017 in Tunisia is linked to the fluctuation of the TND/EUR exchange rate, but Tunisia’s CDC AuM in local currency has risen steadily over the period. In Gabon, despite a decline in 2016 due to the country's political/ economic climate, the CDC’s resources have grown from year-to-year. The 2018 results show an increase of 47 percent over 2017. In Mauritania, the resources of the Caisse des Dépôts et Développement have decreased since 2015, mainly due to the decline in deposits and interbank transactions. In Senegal, the resources of the Caisse de Dépôts et de Consignations rose by 20,63 percent from 2015 to 2018, despite a very slight contraction from 2016 to 2017 due to a decrease in deposits and consignments. All of the caisses illustrated show positive net results. Overall, resources are mainly used for enterprise financing and construction projects determined by the government. The financing of infrastructure projects holds an increasingly important part of investment strategies. In Tunisia, the CDC is establishing new infrastructure funds (AIIF, Hanon and Arkam). In Morocco, since 2002, CDG has relied on its infrastructure-focused subsidiary (MEDZ). The Mauritanian caisse is financing a project to build several hundred social housing units in Zouerate and Nouadhibou. The Gabonese CDC devotes 40 percent of its resources to financing the transport, social housing and energy sectors. Although financial capacities are, at this stage, not well adapted to finance large-scale infrastructure projects, African caisses have the potential to play, within defined risk limits, a pioneering and priming role. To do this, a caisse can invest through a dedicated vehicle or by becoming a long-term lender to the public administration. By capitalising on their public nature, Caisse de Dépôts can potentially assist government and local authorities in the design, implementation and management of projects, particularly in segments that are less attractive to private investment such as social infrastructure.
Author: Arnaud Floris
Dépôts have a long and rich experience on which sub-Saharan caisses can capitalise, in terms of management and of resource mobilisation and investment strategies. There is also a need to foster synergies with other types of institutional investors, as well as with regulatory authorities and development financial institutions. Potential supporting solutions include initiatives to help create special vehicles dedicated to infrastructure financing, establishing risksharing mechanisms, facilitating dialogue with regulatory authorities, establishing capacity building programmes for human resources, together with more traditional co-investment initiatives (investments in funds of funds, or specialised funds). In Africa, strengthening long-term investment in economic and social infrastructure is essential to ensure sustainable and inclusive growth. This can only be achieved through a significant growth in public and private investment. With a sound, prudent and long-term management strategy, combined with adequate support, African Caisse de Dépôts can play a key role in the process. i
Globally, promoting the sharing of knowledge and experience is crucial. Mediterranean Caisse de 116
ABOUT THE AfDB The African Development Bank Group (AfDB), or Banque Africaine de Développement (BAD), is headquartered in Abidjan, Côte d’Ivoire. It is a multilateral development finance institution that was founded in 1964 and comprises three entities: The African Development Bank, the African Development Fund and the Nigeria Trust Fund. The AfDB's mission is to fight poverty and improve living conditions on the continent through investment of public and private capital in projects and programmes that contribute to the economic and social development of the region. The AfDB is a financial provider to African governments and private companies investing in the regional member countries (RMC).
Source: Africa Development Bank Group, African Economic Outlook, 2018, page 104
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Beyond their characteristics as long-term investors, these public institutions can have a leveraging effect on private capital. In Europe, depending on the financial arrangements and the risks they bear, caisses can generally mobilise between five and 15 times the private investment for every euro committed.
ABOUT THE AUTHOR Arnaud Floris is a financial sector development advisor with the Making Finance Work for Africa (MFW4A) Partnership of the African Development Bank. He has a wide range of working experiences in strategic development, project management and resource mobilisation roles within development finance and private sector organisations across Europe and Africa.
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