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2017 Q1 Report CONTENTS 1. Results & Overall Progress 2. Sectors 3. Provinces 4. Gender Equality and Social Inclusion (GESI) RESULTS & OVERALL PROGRESS SUMMARY HIGHLIGHTS ELAN RDC launched several new partnerships and reached key milestones for existing partnerships in quarter one, while completing the annual review of 2016 activities. Technical Achievements: ✓ Mimosa, an agribusiness in Katanga, is expanding thanks to a new loan received from a commercial bank ✓ Copak, a cocoa cooperative, received quality certifications expected to raise farmer income ✓ Human Network International prepared the launch of financial education messages through the 155 platform ✓ FINCA, a microfinance institution, announced its first rural agent in Ex-Katanga region, as an extension to the pilot in Kongo Central Other Achievements: ✓ Completed Annual Review of 2016 activities ✓ Reviewed A/R recommendations and developed action plan ✓ Progress made implementing financial improvement plan ✓ Increased collaboration with Essor ✓ Increased resourcing in preparation for additional programme ramp during next fiscal year SELECT RESULTS Out of a total of 70 pilots (completed, on-going or just started) across ELAN RDC, 19 have been field monitored in Q1. Data has identified the following: Over 93,000 new poor people have demonstrated improved business practices of which, 16,802 poor women Of the new beneficiaries in in Q1 demonstrating improved business practices, 94% are poor producers vs. 6% consumers. 89% Ag-Perennial 90 % in East 47% Coffee 7 % in South 53% Cocoa 2 % in West 5% Renewable Energy 1 % in North 77% Pico 23% ICS 4% Ag-Non Perennial 1% Access to Finance SELECT RESULTS Results from the selected 19 interventions: Business Enabling Environment with ASSECAF Cocoa production quality improvement As a result of a successful advocacy campaign in 2015, A total of 2,748 poor producers, of which 488 poor export tax of cocoa and coffee have been respectively women, have demonstrated improved business reduced by 2.66 and 3.16% in late 2016. Overall, the tax practices. In the North with CTM, 44 cocoa producers reduction has benefited a net total of 78,905 SHFs in received technical assistance for fermentation aiming to the East, of which 15,785 poor women. There is a 46- improve production quality. In the East with COPAK, 54% split between coffee producers (36,434 SHFs) and 2,704 new cocoa producers got certified IMO, on top of cocoa producers (42,471 SHFs) impacted in the region. the 5,296 certified last year. Renewable energy Rural-agents banking with FINCA A total of 5,668 poor consumers changed their In Kongo Central, 1,063 poor people, of which 319 business practices through the effective use of a cost- women, opened accounts following the expansion of the saving equipment. In the East, the first 100 new users of rural agents’ network. To date, there are 24 rural agents solar lamps from GoShop through a credit from Procredit in the province who are working to get first time FINCA were registered. In the South, 3,683 users of solar accounts users. lamps from DevSolaire and 1,122 users of ICS from HaltBank have begun using renewable energy. In the North, 763 poor consumers adopted solar lamps sold by Inputs distribution EcoMwinda. A total of 4,935 SHFs, of which 1,901 poor women, have demonstrated improved business practices through the purchase and use of improved seeds across the country, particularly soya in the East, maize in the North and South, and other seeds in the West with access to technical assistance in the use of seeds. BENEFICIARY PROJECTIONS Based on current information, estimates are that the programme will raise the income of approximately one million Congolese by at least £30 by the year 2020. 1,000,000 946 118 800,000 715 931 587 584 Agriculture (non-perennials) 600,000 Transport Renewable energy products Agriculture (perennials) A2F: SMEs 400,000 A2F - BB 200,000 0 2017 2018 2019 2020 MARKET SYSTEM CHANGES As part of completing the 2017 business plan, ELAN RDC reviewed and refined its target Market System Changes (1/2) MARKET MARKET SYSTEM CHANGES PURSUED GROUPINGS In this sector, the first 4 MSCs were revised to provide further clarity such as to include mobile payment schemes in the case of access to finance (1.3) MSC 1.1 Traders, Exporters and/or Processors Set-up Outgrower Schemes and Provide Extension Service to Smallholder Perennial Farmers Agriculture MSC 1.2 Traders, Exporters and/or Processors Support the Installation of Processing Equipment, Supporting Infrastructure, and Value Adding Tools for Producers MSC 1.3 Financial Institutions Commercialize Credit Products Adapted to the Needs of Exporters, Traders, Cooperatives MSC 1.4 Industry Actors Organize to Develop/Promote Strategies to Stimulate Tax Decrease MSC 1.5 Exporters/traders ensure Congolese coffee/cocoa marketing MSC 2.1 Inputs suppliers provide quality inputs and advisory services to SHFs MSC 2.2 Agribusinesses and mines provide access to pre-financed inputs and services to SHFs Non-perennial MSC 2.3 Agribusinesses provide access to secured markets to SHFs Agriculture MSC 2.4 Agribusinesses access finance MSC 2.5 Agribusinesses develop industry-wide awareness and advocate for a more favourable tax regime In this sector, the MSCs were revised to broaden the scope of financial education and address specific constraints related to supply chain digitalization Branchless MSC 3.1 MNOs and Financial institutions develop financial education programs and other tools to increase confidence in Banking mobile money and other digital fiancial services MSC 3.2 MNOs and financial institutions offer appropriate products/services to poor consumers and entrepreneurs MSC 3.3 MNOs and financial institutions improve agents’ quality of service and expand agents network to serve poor consumers and ensure supply chain digitalization MARKET SYSTEM CHANGES As part of completing the 2017 business plan, ELAN RDC reviewed and refined its target Market System Changes (2/2) MARKET GROUPINGS MARKET SYSTEM CHANGES PURSUED SME Access MSC 4.1 Financial institutions market adapted and innovative financial products to Finance MSC 4.2 Consulting companies provide technical assistance in business management to SME owners. In this sector, MSCs were revised to cover market constraints in road transport Transport MSC 6.1 Transporters and traders advocate for a lower tax regime for river and lake transport MSC 6.2 Banks provide boat operators and traders with adequate financial products MSC 6.3 Focal points improve smallholder agricultural product aggregation In this sector, MSCs were revised to include the type of actors providing the most adequate financial products to poor consumers willing to access cost-saving products Renewable MSC 7.1 SMEs produce or import highly efficient energy technologies Energy MSC 7.2 SMEs implement innovative communication, marketing and distribution models to reach BoP households MSC 7.3 Banks provide SMEs & consumers with adequate financial products MSC 7.4 SMEs advocate for more favorable tax regime COORDINATION WITH ESSOR ELAN RDC and Essor, the complimentary DFID-funded PSD poject focused on improving the business climate in DRC, have been collaborating since programme inception. The two programmes have collaborated during Q1 at both the strategic and operational levels. Key Strategic Operational Quarter 2 Achievements Engagement Progress Objectives • Finalised a joint study on the • Reviewed collaboration to • Following a workshop in • Hold multiple sector strategy insurance sector to gauge date, highlighting strengths Lubumbashi, built ELAN RDC meetings to align new potential demand and identify and challenges with the joint stakeholders into Essor field research initiatives (Access to Finance, critical regulatory and efforts on cross-border trade / tax issues. Coffee) operational issues that must Based on the outcome, an be addressed as the sector is • Considered a framework for intervention will be developed using privatised. future collaboration the framework discussed. • The Access to Finance teams met to discuss opportunities for collaboration on financial education, facilitation of mobile payments, and next steps on leasing and insurance. QUARTER TWO PRIORITIES In the second quarter of 2017, ELAN RDC will continue developing a series of partnerships designed to contribute to the scale up strategy. This will be accompanied by several Intervention Development: - Perennial Agriculture: Saveur de Kivus coffee tasting event to further raise profile of Congolese coffee and launch coffee sector mapping - Non-perennial Agriculture: Prepare access to market partnerships with Katanga harvest approaching and plan response to fall army worm - Branchless Banking: Finalise several large partnerships including Trust Merchant Bank to extend financial inclusion, and launch message platform - SME Finance: Conduct evaluation and disseminate lessons from latest collateral management agreement pilot and develop new interventions in leasing - Renewable Energy: Launch several partnerships including Altech and research study on the impact of renewable energy products on households and businesses - River Transport: Extend pilot with transitaires to leverage the impact of the focal point model and finalise partnership for river transport information system Programme Management: - Respond to annual review recommendations including confirming changes to logframe indicators - Based on revised logframe indicators, confirm any changes to targets SECTORS PERENNIAL AGRICULTURE Quarter