ALGIERS, Algeria, May 22. Diversification of funding sources, including by attracting private capital, is critical in a context of limited public resources and growing needs, Country Director for the Maghreb and Malta at the World Bank (WB) Ahmadou Moustapha Ndiaye said during the panel discussion "From vision to action: economic diversification as a lever for structural transformation" within the framework of the Islamic Development Bank's (IsDB) Annual Meetings in Algiers, Trend reports.
"We are in a context where resources are scarce, especially at the public level, where there is a lot of demand, so it is important to diversify funding sources," Ndiaye stressed.
He noted that although the role of developing multilateral institutions remains important, the resources available to member countries are very limited.
"It is in this case that it is very important to carry out a mobilization campaign of private capital. On the part of the global market, what we are saying more and more, it should be used as a lever to attract private investments," he said.
According to the WB representative, appropriate conditions must be created for this to happen.
"We have to make sure that this country is ready. This is why, first of all, we have to work a lot on the macro level, so that there is a certain economic stability, a certain predictability, to allow private investors to develop," Ndiaye explained.
He also stressed the importance of setting priorities at the national level and pursuing a policy of macroeconomic discipline.
Speaking about strategic approaches, Ndiaye pointed out that one of them is the use of natural resources.
"There are many countries that are still endowed with a lot of natural and mining resources. What is important is to see how to enter the value chain," he also explained.
In this context, Ndiaye gave the example of Saudi Arabia.
"The country managed to use natural resources to climb the value chain for all that is refinery and industrial," the WB representative mentioned.
Furthermore, he noted that Algeria, which is hosting the current IsDB meetings, is an example of a country that uses its resources to develop export sectors.
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