Analysis of the rising security risks in the Sahel region and implementation of a guarantee mechanism to deal with these risks

The many challenges currently facing Decentralised Financial Systems (DFSs) now include the intensification of political and security risks (coups d’état and loss of control over territory due to the deterioration of security). The major direct effect is the increased vulnerability of populations, especially in rural areas that benefit from little protection.

This "new risk" affects the sustainability of DFSs as a result of a deterioration in the quality of their portfolios, automatically leading to a reduced capacity to attract external financing.

Based on similar experiences in other regions, in-depth analysis and the implementation of appropriate protection mechanisms are solutions that can be used by DFSs to better cope with this risk and to continue their work promoting the financial inclusion of vulnerable populations.

The aim is to coordinate sectoral discussions on the conditions and possible manner of establishing a guarantee mechanism specifically covering the political and security risk in the Sahel, with a view to supplementing existing guarantee mechanisms. These discussions will seek to stimulate debate on this subject, unite stakeholders and identify areas for further reflection with a view to identifying a mechanism that consolidates the portfolios of the region's DFSs.

The workshop will cover a variety of topics, including:

- The identification of major political and security risks in the Sahel region and their impact on the financial health of the DFSs, with the DFSs and their partners in the Sahel region sharing their experience of dealing with these risks, illustrated by the DAMAN project, and discussing the conditions required for it to succeed in the Sahel region.

- Outlining a potential guarantee mechanism specifically covering political and security risks in the Sahel, supplementing other existing guarantee mechanisms.

- Bringing stakeholders together and identifying potential approaches and ideas for further reflection.

• Target audience: this workshop is aimed at DFSs in the Sahel countries and financial and technical partners of the DFSs (investors, funders, technical partners and donors).