IFC’s Conflict Affected States in Africa Initiative Final Report for CASA’s First Cycle (2008 – 2013) IFC ADVISORY SERVICES IN AFRICA (PEP AFRICA) Cover photo: Vegetable stall owner Salifou Bizo, a client of IFC partner MicroCred in Cote d’Ivoire This report was produced by Jason Hopps and Gregor Pfeifer from IFC’s Communications Team with invaluable support from the following: Colin Shepherd, Michel Botzung, and Markus Scheuermaier from CASA; Eva Bakonyi from IFC’s Donor Relations Team; and CASA’s country coordinators Oulimata Sarr, Tite Demba, Fatma Hervieu-Wane, Babacar Faye, Eric Mabushi, Kobina Daniel, Mahamoud Magassouba, Frances Gadzekpo, and Zahia Lolila. Editorial support: Bill Corcoran Design and layout: ITL Communication & Design IFC is committed to transparency and business, proprietary or other non- accountability, which are fundamental public information provided to IFC by to fulfilling its development mandate. its clients or third parties without the In January 2012, IFC launched its prior consent of such clients or third new Access to Information Policy (the parties. This approach is consistent with “Policy”), which is available on IFC’s the practice of commercial banks and of web site at www.ifc.org/disclosure. It most public sector financial institutions reflects IFC’s commitment to enhance for their private sector investments. transparency about its activities. Under Disclosing such information would be the Policy, IFC makes available to contrary to the legitimate expectations the public certain information about of IFC’s clients or third parties, who IFC’s activities, such as brief project need to be able to disclose to IFC descriptions, expected development detailed information without fear of impacts and actual results. compromising the confidentiality of their Pursuant to the Policy, IFC does projects or other proprietary information not disclose to the public financial, in a highly competitive marketplace. IFC’s Conflict Affected States in Africa Initiative MOST COMMONLY USED ACRONYMS CASA Conflict Affected States in Africa CCSD Center on Conflict, Security and Development Chinalco Aluminum Corporation of China FCS Fragile and conflict-affected situations GDP Gross domestic product IMF International Monetary Fund LIWEN Liberia Women Entrepreneurs Network MTR Mid Term Review Organization for the Harmonization of Business Law in Africa OHADA Treaty PPPs Public-private partnerships SEZ Special economic zone SME Small and Medium Enterprise 2 Final Report on CASA’s First Cycle (2008-2013) CONTENTS 1. Foreword 4 2. Conflict Affected States in Africa and IFC’s Role 6 3. CASA Overview 7 4. Our Development Partners 8 5. CASA I Objectives 10 6. Program Highlights by Country 11 7. Country Overview: Liberia 19 8. Country Overview: Burundi 21 9. Project Overview: Guinea’s Simandou Mine 23 10. CASA I Mid-Term Review 24 11. Knowledge Management and Communications 26 12. Looking Ahead: Mainstreaming CASA in IFC (CASA II) 28 Final Report on CASA’s First Cycle (2008-2013) 3 Participants in a business plan competion in Cote d’Ivoire 1. FOREWORD Imagine a young woman in Liberia who dreams is undergoing a seismic shift, with millions of starting her own business. Perhaps she has being pulled – and pulling themselves – from some savings, a workable idea, and plenty of poverty in Brazil, China, India, Indonesia, and determination – but little else. A long civil war other countries. The World Bank Group and has devastated her country, leaving her with only other development institutions are increasing patchy access to electricity, transport, education, their activities in fragile and conflict-affected and other basic infrastructure and services. Few situations (FCS) largely because they are projected training opportunities are available to her; almost to be home to 80 percent of the world’s poor nowhere can she benefit from networking or people by 2025. Clearly, any strategy to reduce mentoring support. She is repeatedly denied global poverty must be anchored on supporting access to finance to rent a shop or to buy the countries recovering from conflict. equipment she needs to turn her dream into reality. What happens to this entrepreneur? What CASA is at the heart of IFC’s efforts in Africa’s has happened to millions more like her – men and fragile situations. With coordinators working women – in fragile countries across Africa? on the ground to build relationships with public and private sector partners, CASA has helped IFC launched the Conflict Affected States in Africa coordinate IFC’s advisory services activities in (CASA) Initiative in 2008 to support private sector places like Burundi, Côte d’Ivoire, Liberia, and growth, job creation, and stability in Liberia and South Sudan. CASA was designed to help other places that have suffered through conflict. strengthen investment climates, support smaller businesses, and improve access to finance. In Today, CASA is active in eight countries, is reality, CASA has been active in many more areas, beginning to deepen it’s focus in Mali, Somolia including hosting and organizing conferences and and Zimbabwe, and plans to expand its support other events devoted to FCS, supporting business to other places in Africa, which is home to 17 of plan competitions, and helping implement large the 33 countries and territories the World Bank public-private partnerships (PPPs). Group categorizes as fragile and conflict affected situations. This report provides an overview of CASA’s activities and progress since its inception. Why is IFC increasing its focus on countries Supporting growth in conflict-affected states is recovering from conflict? The global economy challenging. We have suffered setbacks in many 4 Final Report on CASA’s First Cycle (2008-2013) Today, CASA is active in eight countries, is beginning work in two more and expects to expand its support to other places in Africa. Jean Philippe Prosper targeted countries, including the Central African than $800 million in FY14. By putting a priority Republic and South Sudan, where political events on further advisory services and investments in have – temporarily – trumped the best efforts these markets, IFC expects to see significantly of the international development community. increased investment activity in these markets But we have also enjoyed great achievements, in the coming years. Further private investment notably in Côte d’Ivoire, which has made a increases the role successful businesses can play remarkable turnaround from recent turmoil and in development following conflicts and in fragile violence. states. What matters most is the impact this program On behalf of IFC, I would like to thank CASA’s is having on real entrepreneurs in our target donor partners Ireland, the Netherlands, and markets like Liberia. The fact is that IFC has Norway. Additional support has been offered supported a PPP that is bringing access to by Denmark (in South Sudan) and Sweden (in electricity in Liberia’s capital Monrovia. We have Liberia). Without their continued, generous supported a commercial code and court, and a financial backing and knowledge-sharing, CASA number of other investment climate reforms that could not have achieved any of the results are making it easier to start and run businesses detailed here. A further testament to our donors’ in the country. We have supported the launch of support and CASA’s success is that IFC has a women’s network, where entrepreneurs can adopted the CASA model as its standard model learn from one another. We have also launched for supporting fragile countries globally. a program that helps small business owners gain access to finance. IFC Advisory Services and CASA have been essential to creating presence and credibility which is a foundation for investment from IFC Yours sincerely and others. From a low base, IFC increased its Jean Philippe Prosper investments in FCS countries in Africa to more Vice President, IFC Final Report on CASA’s First Cycle (2008-2013) 5 Manufacturing in Liberia 2. CONFLICT AFFECTED STATES IN AFRICA And IFC’S ROLE Africa is home to 19 of the 36 countries and While these interventions are important, and territories the World Bank recognizes as fragile or though most FCS enjoy a quick upturn in their conflict-affected. basic economic activity after fighting has ceased, sustaining long-term growth often proves Poverty rates in fragile and FCS average a problematic. staggering 54 percent – meaning that hundreds of millions of men, women, and children struggle IFC recognizes that targeted private sector to survive because their economic opportunities development through special policies and are undermined by conflict. instruments has a significant role to play in tackling poverty traps and cycles of violence in FCS. This combination of poverty and violence, which operates in a cyclical manner, one reinforcing the A reformed investment climate, coupled with small other, has dire consequences for those affected business development and improved access to by it. The 2011 World Development Report on finance, helps create jobs and sustainable economic Conflict, Security, and Development notes that opportunities. A well-functioning economy helps those living in FCS are: stabilize FCS, notably by providing ex-combatants with work and a way to be positively reintegrated • More than twice as likely to be under- into mainstream society. nourished as those in developing countries IFC’s advisory services work in FCS focuses on • Only one third as likely to be able to send helping smaller