Addressing displacement crisis in Africa

The world is currently grappling with a forced migration crisis that spans from the Sahel region to Ukraine. Conflict, climate change, and other factors have led to the displacement of over 80 million individuals globally. Sylvain Kakou, a Senior Manager for the Sahel region at the International Finance Corporation (IFC), emphasized the need for both immediate remedies and long-term solutions to address this crisis. According to Kakou, the scale and complexity of the forced displacement crisis necessitate a comprehensive approach involving multiple stakeholders, including governments, the international community, and the private sector. He highlighted the critical role of the private sector in achieving lasting solutions and addressing the root causes of displacement, particularly among impoverished populations lacking employment and security. Kakou outlined IFC's efforts to engage in addressing forced displacement since 2015, with investment and advisory projects spanning regions from Africa to Latin America, the Caribbean, the Middle East, and Eastern Europe. He emphasized the importance of partnerships, such as the collaboration with the United Nations High Commissioner for Refugees (UNHCR), to enhance the impact and relevance of interventions tailored to specific contexts. Key Points: 1. Partnership for Impact: Kakou stressed the significance of partnerships in addressing the displacement crisis, highlighting the need for collaboration among governments, development finance institutions, private organizations, and communities. By leveraging partnerships, stakeholders can develop impactful business models that support entrepreneurship among refugee and host communities, ultimately fostering long-term solutions. 2. Sahel Region Challenges: Kakou underscored the complexities and challenges faced by the Sahel region, particularly in the context of climate change, food security, security issues, and instabilities arising from conflicts. He emphasized the importance of proactive efforts to prevent crises, enhance humanitarian responses, and explore innovative models involving various sectors to promote economic development and inclusiveness. 3. Private Sector Engagement: Kakou emphasized the role of the private sector in moving into frontier markets and regions like the Sahel. He highlighted IFC's role in mobilizing private sector stakeholders through blended finance instruments and innovative financing approaches to de-risk projects in fragile and conflict-affected countries. Kakou emphasized the resilience of local and domestic firms amid crises and the need for thought leadership, advisory services, and support to promote investment opportunities and economic growth. Quote: "We think long-term in terms of, yes, there is a crisis, but how do we work today on the urgency to address what is required from the countries, but also the long-term possibility for creating the space for growth inclusiveness as we move on." - Sylvain Kakou, Senior Manager, IFC In conclusion, Kakou highlighted the key takeaways from the recent ERF edition, emphasizing a sense of urgency among all actors, including the public sector, development institutions, and the private sector, to address the humanitarian and development nexus. He emphasized the opportunity for businesses to scale up and expand operations across countries and regions, calling for collaborative efforts to tackle the challenges posed by displacement crises in Africa and beyond. Acknowledging the complexity of the issues at hand, Kakou stressed the need for humility, innovation, and increased collaboration to effectively address the displacement crisis and promote sustainable solutions.