WESTERN GROWTH POLES PROJECT (PDPC)

Technical Assistance to the process of implementing industrial platforms in the different poles targeted by the PDPC in Democratic Republic of the Congo

Disclaimer: This document has been produced without formal United Nations review. The designations used and the presentation of the material in this document do not imply any expression on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area of its authorities, or concerning the delimitation of its frontiers, or its economic system or its degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgment on the status of a particular country or zone in the development process. The mention of names of companies or commercial products does not constitute an endorsement by UNIDO. The selection of projects illustrating UNIDO’s commitment aims to demonstrate their geographic and thematic variety and scope and is not endorsed by UNIDO. Copyright © United Nations Industrial Development Organization 2018. All rights reserved. Photo credits: UNIDO PTC / AGR, PDPC, Front Cover, pages 2, 4; Drew Hays on Unplash page 4. 1 PDPC Project four operational components:

1 AGRICULTURE VALUE CHAINS DEVELOPMENT IN KONGO CENTRAL Goal: Enhance productivity and employment in the targeted value chains of rice, cassava and palm oil sectors in the six poles identified in the corridors Inkisi - Mbanza-Ngungu – et Boma – – , in order to increase the income of 50,000 farmers, of whom at least 40 percent are women.

2 DEVELOPMENT OF THE MALUKU SPECIAL ECONOMIC ZONE (SEZ) Goal: Provide favorable business environment for investors and private sector operators facilitating Public-Private Partnership (PPP); strengthening the capacity of relevant ministries in SEZ development; and the physical infrastructure.

3 PROACTIVE BUSINESS DEVELOPMENT Goal: Improve the business environment with a view to promoting investments and support productive activities in the targeted value chains and poles. It aims at supporting and operationalizing the government approach to Strategic Partnership.

4 SUPPORT TO COORDINATION, MONITORING, COMMUNICATION AND IMPACT ASSESSMENT Goal: Strengthen the capacity of the Government in implementing the project in a coordinated and integrated way, building on existing structures strengthened through technical assistance and the establishment of an impact Monitoring and Evaluation System (M&E). 2 DEVELOPMENT OF AGRICULTURAL VALUE CHAINS IN KONGO CENTRAL

Broaden the social inclusion of agribusiness value chains The Government of the Democratic Republic of the Congo (DRC) has adopted ambitious goals to accelerate inclusive growth and create jobs, through the development of the Western Growth Poles Project (PDPC). The project aims to promote inclusive, resource-based growth by unlocking the growth potential of key productive sectors, including agriculture and agribusiness.

For the financing of the PDPC project (2013 - 2019), the Government obtained from the World Bank resources for a total amount of US$ 110 million. The project is expected to generate about 11,000 jobs, increase the incomes of nearly 50,000 farmers, at least 40% of whom are women, ensuring their integration into commercially viable business ties, and benefit at least 10 large enterprises and 30 small and medium-sized enterprises (SMEs) the advantage of secured and maintained industrial land in the Maluku Special Economic Zone.

Corridors of the Western Growth Poles in Kongo Central The two corridors of the Western Growth Poles have been selected in the province based on several criteria: (i) Minimum infrastructure platform; (ii) Significant economic potential: this potential can come from underutilized natural resources, an industrial advantage, an SME base, human capital; (iii) Geographical position (proximity of markets, routes or trade corridors, sources of demand), possibility of upstream or downstream links, transport terminals; (iv) Regions with a high prevalence of poverty, malnutrition; 3 m of inhabitants (v) Ownership: commitment of key 50,000 farmers actors in achieving development 40% of women goals and implementation of 3 Industrial reforms, existence of an economic Platforms in Kongo Central plan and a spatial strategy, strong KONGO CENTRAL civil society; Mbanza Ngungu (vi) Existence of lead or leading Tshela Inkisi investors and potential efficiencies; Lukula (vii) Existence of relevant projects DRC or programs supported by the Boma Kimpese government or development partners. 6 Poles on the Boma-Lukula- Tshela and Kimpese-Mbanza rice Ngungu-Inkisi Corridors palm oil cassava

3 ACTIVITIES CARRIED OUT UNDER UNIDO TECHNICAL ASSISTANCE UNIDO has mobilized its experts to support the process of implementing the platforms through:

1. Raising awareness of rural communities (around 1200 producers sensitized of whom 70% are women). 2. The recruitment of experts to carry out the environmental, social and feasibility studies and their validation. 3. The trips of 11 persons to UNIDO headquarters to participate in training programs on the defined model and assessment techniques for feasibility study. 4. Organization of study tours on agro-industrial parks in Morocco, France, Thailand and Indonesia. 5. Technical support by recruiting the industrial platforms manager. 6. Training of 24 actors of the project in the diagnosis of the agro-industrial value chains. 4 UNIDO technical assistance program to build productive capacities and create jobs Thanks to its expertise and experience in the development of industrial value chains in Kongo Central, UNIDO was chosen to provide technical assistance throughout the process of setting up industrial platforms in the nodal poles of the PDPC project. In the first component of the PDPC project (Development of Agricultural Value Chains in Kongo Central), UNIDO is responsible for operationalizing the activities of the component by ensuring: • Review and quality control of studies, operation plans and the construction, equipment and start-up of infrastructure. • Technical support to the construction and equipment of three agro-industrial platforms offering mutualizable services in the processing of agricultural products of the three main sectors (rice, cassava and palm oil) diversified carriers in the six nodal poles on the corridors Boma-Lukula-Tshela and Kimpese-Mbanza Ngungu-Inkisi.

Contribution to the rural economy and improvement of livelihoods In close collaboration with the Fragile States Financing Implementation Unit (CFEF), the Ministry of Finance of the Democratic Republic of the Congo, and other stakeholders of the PDPC project, UNIDO analyzes and validates an intervention aimed at developing agribusiness. The technical assistance provided by UNIDO, including the recruitment of an industrial platforms manager in charge of the execution of the activities 4 (Recruitment of the equipment manufacturer and the manufacturers of the industrial platforms) and 5 (Plan of operation and technical studies of realization) aims at: 1. Improving the quality of the raw material used and semi-finished products for the private food industry, located near the project sites. 2. Linking small producers with industrial platforms to market products with high added value, in line with international standards. 1

Commercial, technical and economic feasibility Capacity studies UNIDO technical assistance focuses 6 building 2 on several key pillars of agribusiness of actors Environmental development: (awareness raising, training and social impact • Improve the overall value chains; & exchange of studies • Strengthen the demand for technologies; experience) UNIDO • Promote innovative sources of financing; TECHNICAL • Stimulate the participation of the private ASSISTANCE sector; Plan of PDPC • Improve infrastructure and facilitate operation Study on the market access; and construction technical • Improve food safety and good practices. of industrial 5 studies related platforms 3 CX to$ realization Recruitment ofCX $ the equipment Project manufacturer andProject the manufacturer of industrial platforms 4 5 PROCESS OF IMPLEMENTATION OF INDUSTRIAL PLATFORMS

Transformation of subsistence agriculture into agriculture capable of supplying agribusiness UNIDO will support CFEF in the supervision of the construction and installation of equipment on three industrial platforms in order to ensure the development of rice, cassava and palm oil agro-food value chains in six sectors situated in the Kongo Central Province. These crops were chosen The UNIDO project will provide a based on their impact on poverty and economic growth. technical assistance to the process of • Cassava-derived products: The products occupy a prominent establishing multi-service platforms which place in the food consumption of most households, hotels- will allow farmers and entrepreneurs restaurants-cafeterias, as well as in the strategy developed by the access infrastructure, services and manufacturers in the cities of , , Boma, Moanda technologies to develop their skills, and Cabinda. With particular reference to the cassava sector, the products and thereby increase their aim is to industrialize it with the objective of promoting the crop income and generate jobs. and its derived products.

• Palm Oil products: The products are the main food oil in most of the country. It is clear that the function of transformation and the operation of agro-industrial operators’ activities represent an incentive for farmers to produce. Palm oil consumed by rural households and urban households comes mainly from village plantations and natural palm, while the palm oil consumed by processing companies comes from agro-industries.

• Rice: Produced in Agro-industrial platform of LUKULA DRC, rainfed rice is 1. Cassava Unit 4. Administrative building 7. Expansion opportunity grown using traditional 2. Palm Oil Unit 5. V.I.P. Villa area 3. Rice Unit 6. Restaurant Cafeteria 8. Heavy vehicles parking methods in small- 9. Weightbridge (weighing) scale fields that are 10. Guerite 11. E.U. treatment area for highly dependent on bassins imported rice. The 11 prospect of intensifying rice production in the country requires an agro-industrial approach 8 1 of which the family 3 2 producers will be the 8 primary carriers. 9 10

6 7 4 5

6 Value chain development through multi-service platforms

The establishment of activities in the framework of UNIDO technical assistance comprised two phases: 1. Supervision and validation of feasibility studies and technical studies: The financial analysis showed that the investments for the development of the three platforms are profitable whatever the operating scenario. The market study revealed a strong demand for finished products from the factories and emphasized the availability in sufficient quantity of raw materials produced locally. The evaluation of technical proposals in consultation with agribusiness enterprises has demonstrated the need for processing units for palm oil (pretreatment plant in Tshela and Lukula); for paddy rice (drying-dehulling unit at Kimpese and Lukula); for cassava (equipment allowing the valorization of roots in foufou, chikwangue, starch, but also leaves in Lukula, Tshela and Kimpese). 2. Support the development of operational plans for the implementation of industrial platforms: UNIDO is in charge of industrial equipment; the diagnosis of the peasant movement in the development of a technical training program for international good practices in agri-food processing; monitoring the implementation of compliant technical training; assistance during technical receptions and validations of reports.

Multi-service platforms Processing/pre-treatment unit Drying unit/storage/ extraction

Laboratory control hygiene Administrative Technical training center/ buildings management/ marketing

Infrastructures Water supply network storage/ and packaging/ in electricity logistics

UNIDO Technical Assistance project with regard to setting up a process for implementing industrial platforms in the various poles will enable the establishment of multi-service platforms.

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