2017 Q2 Report CONTENTS

1. Results & Overall Progress

2. Sectors

3. Provinces

4. Gender Equality and Social Inclusion (GESI) RESULTS & OVERALL PROGRESS SUMMARY HIGHLIGHTS During the second quarter, ELAN RDC added 11 new interventions covering 12 new partners as the programme made progress towards scaling up in each of its 6 core sectors and 4 regions.

Technical Achievements: ✓ ELAN RDC-supported Saveur du Kivu coffee cupping event highlighted increasing demand for Congolese coffee and the challenges and opportunities the sector is facing ✓ Launch of TASAI study to produce DRC-focused seed access index and HNI message service providing information on fall army worm threat will further contribute to the agriculture inputs sector ✓ First Pay-as-you-Go systems for the distribution of solar lamps tested ✓ Additional agriculture reviewed by commercial following ELAN technical assistance ✓ Several branchless banking interventions developed / launched to increase financial inclusion ✓ Supported freight forwarders preparing for the large evaluation of agricultural goods from September Other Achievements: ✓ Completed a revised Theory of Change paper ✓ Continued collaboration with Essor MACROECONOMIC FACTORS The macroeconomic situation in DRC has worsened dramatically between January and June 2017, with the Congolese Franc depreciating from approximately CDF 1,080 to CDF 1,480 against the US dollar.

ITEM IMPACT OF ECONOMIC CRISIS

Non- Overall agricultural production gained in competitiveness relative to imports, notably in the East and South regions which are highly exposed to food imports from neighboring countries. Perennial ELAN RDC market systems changes are negatively impacted by this situation, as imported agricultural inputs Agriculture (seeds, fertiliser and phytosanitary products) have become less affordable for low income Congolese farmers.

Perennial Coffee exports are gaining in price competitiveness, at an appropriate time when certification and marketing Agriculture activities have gained traction.

Loans contracted by partners are becoming less affordable and less predictable to reimburse, especially when SME Access the majority of SME revenues are in Congolese Franc. to Finance Congolese banks are under pressure due to the low currency reserves and are likely to become increasingly risk averse.

Branchless High inflation is deterring saving and discouraging the use of mobile money accounts in Congolese Franc. Banking Consumer loans in dollars are also increasingly difficult to reimburse for those earning in Congolese Francs.

Operational costs increased with petrol prices in Congolese Francs. River boat operators experience reduced Transport profit margins and less able to invest.

Renewable Imported solar lamps are becoming less competitive while savings accrued by consumers are decreasing, as local energy alternatives (e.g. charcoal) become more affordable. Energy Pay as you go systems in US dollar are becoming less affordable for those earning in Congolese Franc. CURRENCY IMPACT

During the second quarter, ELAN RDC started looking at the specific impact of currency devaluation on beneficiaries. In the renewable energy sector, the decreasing value of franc results in decreased savings in US Dollar terms.

• The recent FORCIER RE study shows that ICS users can save up to $10 per month, whereas solar lamp users save $7 per month, considering an exchange rate of CDF 1,300/$. • Savings are very sensitive to exchange rates. Our simulation shows that with a CDF rate of 1,600/$ monthly savings go down from $10 to $8 for ICS users, and from $7 to $5 for pico solar. • Most likely the rate during implementation will be even higher. ELAN RDC LOGFRAME - UPDATE The logframe has been revised as a result of 2016 Annual review and a new version is pending approval of DFID. New targets up to 2020 have been set:

2017 target 2018 target 2019 target 2020 target IMPACT INDICATOR 2: Achieved OUTREACH 2016 Old New Old New Old New Old New Cumulative number of Total 148,512 350,980 373,469 587,584 608,844 844,278 748,931 1,151,194 1,001,118 poor people who have Productive 96,147 122,843 130,714 264,413 273,980 422,139 374,466 575,597 500,559 experienced net activities positive income change Indirect - 55,245 80,345 173,547 238,046 366,068 378,133 672,284 630,320 Women 50,314 77,216 82,163 146,896 152,211 211,070 187,233 287,799 250,280 OUTCOME INDICATOR 2017 target 2018 target 2019 target 2020 target 1: PERFORMANCE Achieved 2016 Old New Old New Old New Old New Cumulative number of Total 218,647 526,470 560,204 881,376 913,266 1,266,417 1,123,397 1,726,791 1,501,677 poor people who report Women 76,271 131,618 140,051 220,344 228,317 316,604 280,849 431,698 375,419 a substantial increase in enterprise or household performance OUTPUT INDICATOR 2017 target 2018 target 2019 target 2020 target 2.1 Achieved 2016 Old New Old New Old New Old New Cumulative number of Total 316,366 701,960 746,938 1,175,168 1,217,688 1,688,556 1,497,862 2,302,388 2,002,236 poor people showing Women 111,243 175,490 186,735 293,792 304,422 422,139 374,466 575,597 500,559 significant changes in their practices RESULTS MEASUREMENT STATUS Over the first half of the year, the MRM team has field monitored 30 interventions out of a total of 69 interventions representing 130 closed and active partnerships

Total Outlook As end of Q1 2017 Q2 2017 Semester 1 Semester 2016 2017 2 2017

Cumulative Total 53 58 69 69 89 number of ITTs developed and showing results MRM - 22 30 30 89 evaluations

Total 113 118 130 130 170

Cumulative Closed - - - 78 - number of partnerships Active - - - 52 - Pipe - - - 40 - N.B.: One intervention/ ITT can be implemented by one or more partners SELECT RESULTS – CHANGE IN BUSINESS PRACTICES Over the past 6 months, 40% of ELAN’s portfolio has been measured and evidence shows progress in business practice changes. Further measurement at outcome and impact level is underway.

Over 172,100 new low income beneficiaries have demonstrated improved business practices of which, 43,497 poor women

92% are poor producers vs. 8% consumers. In semester 2, measurement of HNI, TMB, Naseco, Altech, Zoona, etc. will be conducted

430,572 new 52% Ag-Perennial 54 % in East beneficiaries change 37% Ag-Non Perennial 39 % in South business practices in 7% Renewable Energy 6 % in North 2017 (logframe target) 79% Pico 1 % in West 21% ICS 3% Transport 172,100 new 1% Access to Finance beneficiaries have 40% changed business measured practices between Q1 and Q2-2017 SELECT RESULTS Some highlights from the interventions field-monitored in Q2

Non-perennial agriculture Perennial agriculture In the West region over 1,000 farmers have benefited 260 beneficiaries of TWIN have been able to sell a from Ceprosem’s improved seeds. On average, net profit higher volume of coffee production compare to 2016 per vegetable farming cycle was equal to $68 for (4.5 tons more). In the East with COPAK, 7,898 new farmers working with local seeds vs. $107 for those cocoa producers got certified IMO. using improved seeds. NAIC is thus estimated at $39 per cycle. With vegetable famers working effectively with four cycles, the NAIC is measured at $155 for a full year. Rural-agents banking with FINCA In the South region, over 45,000 new SHFs, of which In the West and the South regions, over 2,000 poor 17,000 poor women, have demonstrated improved people, of which 680 women, opened accounts business practices through the harmonization of following the expansion of the rural agents’ network. measurement units (CAPAM expansion). Over 18,000 new SHFs have purchased and used improved seeds across the country, particularly soya in the East, maize in the North and South, and other seeds in the West with Transport access to technical assistance in the use of seeds. The advocacy campaign to reduce illegal taxes paid by boat operators and the focal points evacuating an increased quantity of agricultural products have Renewable energy benefited a total of 5,773 SHFs in the North. A total of 11,800 poor consumers changed their business practices through the effective use of cost- saving equipment. In the South, 8,659 users of solar lamps from DevSolaire and 2,535 users of ICS from HaltBank have begun using renewable energy. In the North, 595 poor consumers adopted solar lamps sold by EcoMwinda. COORDINATION WITH ESSOR

ELAN RDC and Essor continued their close collaboration in Q2 2017. Teams in , and now interact regularly across all ELAN sectors. Options are being explored for Essor to intervene on key business climate obstacles to ELAN interventions.

Key Strategic Operational Quarter 2 Achievement Engagement Progress Objectives s

Press conference presenting Regular bi-weekly meetings Workshops in access to finance and Design of joint interventions in the results of the joint between team leaders and coffee have been conducted. coffee, agricultural inputs insurance study. project managers from ELAN imports and transport. RDC and Essor. ELAN RDC and Essor agreed to share consolidated Goma office. Joint team breakfast during Negotiations ongoing on a ELAN all-team meeting. tripartite agreement (with DSU) on future collaboration). Finalise tripartite agreement.

Integrated joint knowledge management system (document sharing). QUARTER THREE PRIORITIES During the third quarter, a number of partnerships critical to scaling up the programme must be finalised, or results for 2017 and for the programme will be at significant risk. Amongst others, these interventions will mark a scale up in branchless banking. This progress must be achieved in parallel with an ongoing mid-term evaluation by the DSU.

Intervention Development: - Perennial Agriculture: Launch several new partnerships and interventions, including business climate interventions designed with Essor - Non-perennial Agriculture: Evaluate the impact of the 2017 harvest and prepare for 2017 planting, taking into account fall army worm; launch seed index through TASAI - Branchless Banking: Sign partnership agreements and launch several critical partnerships including with TMB and Zoona - SME Finance: Continue developing leasing products, consider supporting set up of leasing company, and identify operational entry points for the insurance sector following Q2 workshop - Renewable Energy: Finalise a national marketing campaign and support distribution of both solar lamps and cook stoves through recently launched partnerships - River Transport: Launch river market information system and support freight forwarders for the beginning of the 2017 evaluation season

Programme Management: - Confirm final approval of logframe targets for 2017 - Process a significant number of critical non-objections - Complete the Mid-Term Evaluation with the DSU SECTORS PERENNIAL AGRICULTURE

While pushing crowding-in and diversifying processing and production interventions (SCAK, Masasi, COPAK), ELAN RDC has supported industry players in promoting DRC’s coffee and cocoa: Saveur du Kivu expanded considerably and the mapping of coffee production in Eastern DRC was launched. ELAN RDC and ESSOR developed a common roadmap for tax and business environment advocacy.

Saveur du Kivu becomes the main platform for exporters to showcase the quality of DRC coffee: The 3-day event saw a heightened level of participation and discourse while showcasing DRC’s coffee sector for 174 local, provincial and national authorities, exporters, and buyers from around the world. The cupping competition, which included 40 samples (up from 30 last year), once again highlighted Congolese coffee’s superior quality. During the event, ELAN RDC, exporter partners, and the Eastern Congo Initiative (ECI) previewed the Coffee Atlas - an industry-centric tool designed to bring greater visibility for all actors throughout the coffee value chain. Quarter 3 Key Activities - Virunga to pilot dry stations to process coffee - Social investor Root Capital to partner with ELAN to enter DRC, increasing available financing for the sector - CoffeeLac launches shift in sourcing model, broadening extension and piloting traceability - Olam to roll out farmer information and traceability systems - Exporters push marketing and Business Enabling Environment Coffeelac (partner) and Winner of SduK 2017 Cupping Competition (RWH) PERENNIAL AGRICULTURE: ACTIVE PARTNERSHIPS

ELAN RDC has 6 active partnerships across the country

Region Partner Current Stage Budget Elan Partner

Coffee/cocoa exporter (processing and extension East Masasi $37,223 $13,111 $24,111 services)

Certification for 7,500 cocoa producers in Lume, East COPAK $130,810 $12,000 $118,810 N. Kivu

Establishing a virtual (web-based) business East ECI $52,450 $25,950 $26,500 intelligence dashboard – the Coffee Atlas Muvunga Cacao plantation and 2165 cacao ETS Kahindo East farmers certification and cacao processing units $133,763 $45,446 $88,317 Muvunga post-harvest construction Supporting Production/Processing Level Value East Virunga Addition w/ Sun Dried/Bubble Units for Specialty $112,599 $61,858 $50,741 Coffee

South SCAK Cocoa Processing Equipment/Tools + GAP $126,885 $36,388 $90,498 PERENNIAL AGRICULTURE: PIPELINE

Region Partner Current Stage

East COPAK (2) w/ Tachibana Operational Capacity Building and Cocoa Buyer/Market Linkages

Establishing Networks of Financial Literacy Facilitators to Bolster the East Root Capital Number of Creditworthy Actors

Support for Shift in Sourcing Model, Broadening Extension, Piloting East Coffeelac (2) Traceability

Pending Alignment: Cocoa Processing Equipment/Tools + GAP w/ East SCAK (2) Buyer/Market Linkages

East Olam International Market Entry and Integration of Traceability Systems

Regeneration of Petit Kwilu in Bas Congo + Integrated Expansion of West TBD Coffee Atlas Regeneration of Robusta in Equateur + Integrated Expansion of Coffee North Carioca Coffee Atlas Continuation of Cocoa Supply Chain Development and North Tachibana w/ CTM Production/Processing Level Improvements and Institutional Capacity Building

Consortium of Exporters, Mixed Marketing and Business Enabling Environment/Joint Public-Private National Regulators, TA Marketing of Perennials

National Consortium of Exporters, Public-Private Development/Validation Framework for Coffee Production Regulators, TA Best Practices (Conventional/Certified) NON-PERENNIAL AGRICULTURE Quarter 2 marks the beginning of the harvest season, and activities were focused on harvesting the seed crops for local seed producers, buying the current commercial crop from small holders and preparing next input sales season. HNI’s service targets the army worm: ELAN supported HNI in developing messages to increase the awareness of small holders regarding the army worm invasion. Messages include content on the origin and the impact of the pest, identification in the field as well as techniques to fight the invasion using both organic and chemical pesticides. The messages will be online early in Q3, in time for the next agricultural season (September around Kinshasa, Equateur and Kivu). Seedco has also agreed to sponsor HNI messages regarding generic maize crops, the use of inputs and GAP promotion.

Quarter 3 Key Activities - Based on successful first season with sales of 7.5 tones of seed, Naseco will expand distribution in order to reach targets of at least 40 tones sold this year - Initiating discussions with mining companies for the replication and expansion of the OGS model. - TASAI to conduct a study to establish a seeds access index - Proposing potential partners a supply chain model for increased procurement of local products NON-PERENNIAL AGRICULTURE: ACTIVE PARTNERSHIPS

ELAN RDC has 24 active partnerships across the country

Region Partner Current Stage Budget Elan Partner

South Mulagricom 2 Rice OGS $119,392 $23,952 $95,467

East NASECO SEEDS Seeds sales and distribution $118,361 $78,878 $39,483

East ETS Munga Local seed multiplication $31,102 $17,778 $13,314

Rice seed Post harvesting, packaging and East ETS Munga II $73,395 $33,030,25 $39,964,75 Marketing

South Agrimax Fertilizer distribution $42,448 $24,775 $17,673

South Seedco 2 Support smallholder market penetration $140,994 $ 108,214 $ 32,779

Develop Zamseed's seed distribution South Zamseed $42,390 $24,990 $17,400 network

South Bon Berger 2 Local seed multiplication $94,969 $38,792 $56,177

South Bon Berger 3 Pilot One Acre Fund model $69,550 $53,250 $16,300

South Mimosa 4 Seed multiplication OGS $175,224 $63,718 $111,506

South AgriForce One Acre Fund style inputs model $7,380 $6,390 $990 NON-PERENNIAL AGRICULTURE: ACTIVE PARTNERSHIPS

Region Partner Current Stage Budget Elan Partner

East ETS Munga Local seed multiplication $31,102 $17,788 $13,314

North CTM 2 Local seed multiplication $12,760 $9,930 $2,830

North AGROPY Local seed multiplication $12,630 $9,750 $2,880

North COPAPI Local seed multiplication $18,143 $13,490 $4,653

North PROSAVIDE Local seed multiplication $12,630 $9,750 $2,880

South SCAK Cocoa processing $126,885 $36,388 $90,498

North ANP 2 R1 seed distribution/marketing $32,775 $18,660 $14,095

GARGVU (phase North Ag input distribution/marketing $26,362 $11,676 $14,686 2) Seed multiplication - replication of West Ceprosem $56,119.90 $29,890 $26,229.90 Katanga pilots

North Gargvu 3 R1 seed distribution/marketing $34,334 $19,512 $14,882

East Job Seed Co Agri inputs distribution $62,551.50 $26,024.50 $36,527

National TASAI Evaluation of seeds market RDC $62,652 $49,675 $12,950

South Inera Local seed multiplication - - - NON-PERENNIAL AGRICULTURE: PIPELINE

Potential Region Description Partner

Test and adapt distribution channels and marketing to develop the local improved North GARGVU seeds market

Development of a wider distribution network with a technical back up - production South Seedco relocation in the South

South Leki Organise a supply chain for maize and rice in remote production zones

South Agrimax Development of a wider distribution network of seeds with a technical back up

South Mulagricom Increasing procurement capacity and developing sales network

South Zamseed Development of a wider distribution network with a technical back up in the South

Replication - commercial seeds production South Bon Berger Local seed production and distribution in the South Scale up of distribution network of local seeds South MIMOSA production and distribution in the South

South SCAK Provision of extension services to producers (AFGRI + scale up of OGS)

South GoCongo Organise supply chain for maize in remote production zones in the South

South IFS Organise supply chain for local produce for mines catering in the South RENEWABLE ENERGY

ÉLAN has taken substantial steps in its strategy to scale. It has reached advanced stages of discussions and proposals with several international partners, including solar partners Green Light Planet, Mkopa and Total, and potential cook stove partner Burn Manufacturing.

Dev Solaire partners with Green Light planet to launch Solar Kit PayGo – Dev Solaire, is the first distributor in DRC to market Solar Home Systems through a Pay-as-you-go integrated consumer credit system. DevSolaire is the largest distributor of solar products in Katanga and sees the sales of solar home systems as an adjacent offering from it's direct sales of pico solar products. The pilot will test the market with 1,000 products on the Angaza PAYGO platform which will make use of TMB's PéPéLé mobile money platform for mobile payments. Quarter 3 Key Activities - Altech to sell its first container across the DRC (12k units) - D.Light to set up and sell in Goma, Lubumbashi and Kinshasa - DevSolaire to launch PAYGO pilot with GLP - Burn enters the DRC and starts sales with Altech and tests other markets/distributors - MKOPA partners with ELAN to enter DRC and launch 1000 pcs pilot by end of 2017 towards full roll out in 2018 RENEWABLE ENERGY: ACTIVE PARTNERSHIPS

ELAN RDC has 5 active partnerships across the country.

Region Partner Current Stage Budget Elan Partner

Go Shop – East Consumer credit for solar lamps $3,500 $1,200 $2,300 Procredit

Eco Mwinda North Pico solar marketing/distribution $45,275 $16,250 $ 29,025 Energie 2

Pico solar marketing/distribution (challenge National Dlight $1,000,000 $500,000 $500,000 fund)

East Altech 4 Pico solar local ambassador model 2.0 $1,070,149 $179,474 $890,675

South Dev Solaire 3 Solar lamps marketing $73,750 $24,750 $49,000 RENEWABLE ENERGY: PIPELINE

Potential Region Description Partner

Improve the distribution strategy of PICO lamps PV through the Mwinda na biso West Eco-Mwinda campaign in Kinshasa

West Bascons Support marketing and distribution of cook stoves

Support the marketing of a specific Solar PV banking product across 8 major banks West K4A in Kinshasa

Support Total in the marketing and distribution of ‘Awango’ branded D.light West Total products

South Haltbank Expand production and distribution network for ICS

South Dev Solaire Expand distribution of PICO lamps & test pay as you go in the South

National Burn Organise distribution network for imported ICS in the South

National Pygma Design, develop and implement a national brand agnostic RE Marketing Campaign

South FLOW Expand production and distribution network for ICS in the South.

East Goma Stove Support marketing and distribution of cook stoves SME FINANCE Ahead of ARCA granting DRC’s first insurance licenses, ELAN and ESSOR presented the findings of the ELAN/ESSOR insurance study to the industry in a joint workshop. The team worked with Pro Credit Bank (PCB) to develop leasing products. A consultant was recruited to explore business development services. The team also explored access to finance in agriculture with Advans bank and PCB. ELAN facilitates Mulagricom access to 20k from PCB. Mulagricom used the loan to buy an additional 100 tons of paddy rice from the 100 small rice farmers in Bunkeya village. This is key to strengthening the relationship of Mulagricom and the farmers of its outgrower scheme and ensuring the sustainability and scalability of Mulagricom’s venture, as the company is now in a position to buy all the rice farmers produce. For PCB, it is a safe way to finance small holders through a lead company, thus showing it is possible to finance the agricultural sector

Quarter 3 Key Activities ▪ Finalise development of a leasing product with PCB and support the market entry of a dedicated leasing company ▪ Explore potential partnerships in BDS ▪ Replicate and scale up CMA with new farms and banks ▪ Develop insurance interventions with DRC’s first licensed insurers SME FINANCE: ACTIVE PARTNERSHIPS

ELAN RDC has 6 active partnerships across the country.

Region Partner Current Stage Budget Elan Partner

West, Groupement d'Interet Economique (GIE) loan Procredit Bank 4 - - - North support

West, Procredit Bank 2 Guarantee fund - - - North

East, Comexas 2 Collateral management agreement (maize) $320,000 $130,000 $190,000 South

West, Bank of Africa 2 Guarantee fund - - - North

National Rawbank Leasing study $23,616 $11,808 $11,808

North BTC Cocoa trade financing product - - - SME FINANCE: PIPELINE

Region Potential Partner Description

Development of the agriculture portfolio and expansion of the Advans West Advans Banque Banque network in the West

PCB/Comexas/ South Expansion for 3,500 tons of maize (credit of USD 1,200,000) in the South Gocongo

BCDC/Comexas/ South Nouvelle Minoterie de Replication with 3,500 tons of maize in the South Likasi

South PCB/ Mulimaj /DEM Leasing on tractor in the South

Rawbank/ Nouvelle South Minoterie de Likasi/ Leasing on truck in the South IVECO

South PCB Direct finance of producers for production in the South BRANCHLESS BANKING During the second quarter, ELAN and its partners made strides towards network development, securing partnerships to pilot different types of networks and business models – including TMB’s light branches, M-pesa rural agent network, Pepele’s supply chain integration and Zoona’s phoneless and branchless money transfer services. In addition, FINCA & M-pesa have selected a credit scoring software to develop an integrated saving & loan product.

Pépinière project shows attractiveness of mobile money saving products In the first phase of the ELAN/Periniere partnership, 300 young women have been trained in the use of mobile money and saving. Self-employed women in particular have shown a keen interest in the product. To provide them and other micro-entrepreneurs with a secure and convenient way of saving, ELAN has signed an MOU with Orange and Advans Bank to develop a mobile saving product.

Quarter 3 Key Activities • TMB Light Branches Kick off • ZOONA intervention launch • Orange Money Advans Loan Project Kick off • Exploration of financial education through radio campaigns • Study on agent networks validated BRANCHLESS BANKING: ACTIVE PARTNERSHIPS

ELAN RDC has 4 active partnerships across the country

Region Partner Current Stage Budget Elan Partner

Central, FINCA 2 Rural agents network $900,000 $180,000 $720,000 South Central, Mobile banking (e-wallet + credit FINCA 3 $1,343,896 $270,000 $ 1,073,896 South scoring) mAgri commercial partnership National HNI $155,758 $52,320 $103,528 platform Promoting locally produced goods West eMart $1,700 $1,700 - through new technology BRANCHLESS BANKING: PIPELINE

Potential Region Description Partner

Development of the innovative network of transfers with young Congolese West & South Zoona entrepreneurs in the West & South

Mpesa Distribution network development in rural areas for Mpesa & financial South (Vodacom) inclusion in the South

National TMB Light branch development in 20 rural areas

Develop distribution network for Pepele mobile & financial inclusion in the South TMB South Distribution network development for Airtel money in consumers products East Airtel (bakery) and transport in the East Advans – Saving and micro laons product development for informal micro West Orange Money entrepreneur financial inclusion GSMA & local National Mobile Money platforms Interoperability forum stakeholders Microsave & National local Mobile Money industry distribution gap analysis stakeholders TRANSPORT Ahead of the Q3 river transport peak season, ELAN has finalized partnerships with freight forwarders and an ICT company to develop a river transport Market Information System (MIS). ELAN also continues to expand beyond river transport, with lake transport studies in and the introduction of financing for three-wheeled motorcycles in Kinshasa and Lubumbashi.

Three-wheeled motorcycles have the potential to lower the cost of transport in DRC. After an assessment of the cost involved in buying and operating 3 wheelers, ELAN decided to support their distribution. With the support of insurers and a GPS location service, FINCA and PCB are interested in developing leasing for this product.

Quarter 3 Key Activities -Roll-out of the river transport MIS; -First aggregation season begun for Freight forwarders along the Congo River -Tax advocacy in the lake transport sector in Kalemie -Support to PCB in the development of adapted financial products for boat operators -Launching of interventions in the passenger transport sector in Kinshasa and Lubumbashi. TRANSPORT: ACTIVE PARTNERSHIPS

ELAN RDC has 8 active partnerships across the country

Region Partner Current Stage Budget Elan Partner

Supporting expansion of transitaires to ports North Action Plus 2 $38,850 $38,850 - in ex-Equateur Supporting expansion of transitaires to ports North Cite d’Israel - $38.850 - in ex-Equateur Alliance des North River transport tax advocacy - - - Armateurs Association de Road transport public-private dialogue North transporteurs de - - - (-Akula road) Gemena West, Baleinieres CEGs Whaleboat credits and savings groups / GIE - - - North GIEs loan support

North Focal points Aggregation (focal points) - - -

West, Congo Venture River transport logistics $4,000 $4,000 - North SARL Development of logistics allowing for the use North Pay Web Phone $28,680 $17,520 $11,160 of information systems in river transport TRANSPORT: PIPELINE

Potential Region Description Partner

South Mulykap Organise/rationalise the transport of Agri products in the South

South Classic Coach Organise/rationalise the transport of Agri products in the South REGIONS NORTH REGION During quarter two the markets of the North zone felt the increasing pressure of the economic crisis. ProCredit Bank postponed the setup of a potential bank branch in Gemena, while renewable energy partner ECO Mwinda’s solar lamp sales felt the effects of a generally decreasing purchase power and combined with salary delays.

Key progress in Q2 Seed sales targeting staple crops increased, and the sales / distribution model was replicated in Mongala and Equateur provinces. Sales levels and commitment demonstrated by partners are encouraging, however, business capacity remains a key challenge to up scaling. Quarter 3 Key Activities - Start implementation of partnerships for access to financial services through agency banking and Mobile Money expansion with Trust Merchant Bank (TMB), - Consider new loan product for boat operators and traders with ProCredit Bank. - In river transport, launch information system and expansion of freight forwarding services NORTH REGION KEY ACTIVITIES New partnership agreements and discussions in Q2 reflect a clear trend towards higher partner commitment and autonomy

Sector Update RIVER • The two collaborating transitaire services started the ELAN-initiated competition, which is TRANSPORT expected to lead to the establishment of transitaire services in 10 river ports by the end of 2017 AG NON- • ELAN supported seven local seed multipliers. Three of the four new partners were able PERENNIALS to replicate the distribution model developed in Ubangui, leading to 100+ % increase of overall seed sales. • ELAN finalized agreements with the two leading partners, which imply a diversified distribution, and a higher level of partner autonomy AG PERENNIALS • Despite difficult world market conditions ELAN made progress in the discussion with cocoa importer Tachibana on engaging in local supply chain upgrading

RENEWABLE • Altech started distribution of solar lamps with integrated pay-as-you-go technology, ENERGY selling 180 lamps in the first week • Eco Mwinda is about to start sales of low-cost lamps, with the intention to adapt to the low purchase power that determines the local market SME FINANCE • Assisted ProCredit Bank in the development and launch of a new loan product for boat operators and local traders, aiming to reduce business risks

BRANCHLESS • ELAN finalized development of a partnership with TMB that includes the setup of the BANKING first-ever bank (light) branches in Mongala (Bumba and Lisala). • Elan continued to work with partners (MPESA, TMB and Feronia) to identify a viable method to deliver salaries on plantations using mobile money South Region

During the second quarter, the South Region team aimed to expand activities both geographically in remaining provinces (Haut-Lomami) and sectorally, (transport scoping). In an effort to replicate current interventions while improving access to markets, further collateral management agreement (CMA) interventions were pursued, while special emphasis was made on expanding the renewable energy portfolio.

Through improved marketing & distribution models including embedded services targeting SHFs, Seedco and Zamseed reached 6,413 SHFs farmers. It remains challenging, however, to reach scale through market facilitation approaches. In renewable energy, a new PA with DevSolaire resulted in the scale-up of BoP sales models in additional cities (, Fungurume and Kasumbalesa) and the launch of a PayGo pilot with Green Light Planet products

Quarter 3 Key Activities • The launch of marketing for the 2017-18 season in AgNP • Finalising discussions to implement several SME finance interventions including leasing and CMA. South Region Key Activities Focus on economic actor in the agriculture and solar product supply chains to increase the scale up of the program using access to finance Sector Update • Support Halt Bank in improving the distribution network, reaching the partnership target of a minimum of 500 ICS sold per month and the launch of Orange Money as a payment RENEWABLE mechanism ENERGY • Facilitate business linkages between Greenlight planet and DevSolaire that lead to an agreement with DevSolaire for the Paygo pilot in Lubumbashi using the TMB bank platform serving as a good channel for financial inclusion. This include training for Devsolaire staff and a partnership between TMB and Angaza will be finalised to use the Pepele platform. • The Bon Berger adaptation of an input credit distribution model is now reaching the repayment phase. 210 SHFs have started harvesting and are expected to start repayment • Support a four fold production scale up and distribution of quality branded local seeds: Mimosa AG NON- and Bon Berger have together produced more than 100MT of SENASEM approved maize seeds PERENNIALS and Mimosa has embarked on a market development in the Haut Lomami province with the first 5MT already on sale • Initiate discussion for scale up activities with the aim to sign PA in Q3: OGS business model consolidated and extended to traders and processors. Tanganyika businesses have expressed interest in adopting an OGS model while SEK confirmed its willingness to pursue the next phase which will include a next generation intervention with a graduating class • Scoping on lake transport in Kalemie to prepare upcoming intervention TRANSPORT • Study done on three-wheeled motorcycle transport by in Lubumbashi and a PA to come in Q3 • Conducted a survey in partnership with Essor on crossborder trade focusing on tax constrains BEE faced by small scale traders. An intervention focusing on sensitisation and capacity building of trade associations to come in Q3-Q4 South Region Key Activities Focus on economic actor in the agriculture and solar product supply chains to increase the scale up of the program using access to finance

Sector Update SME FINANCE • Continue supporting Procredit Bank in strengthening its agro-lending activities that led to the financing of Bon Berger, Mimosa and Mulagricom; and more agriculture SMEs loan requests being studied • Based on successful CMA pilot with GoCongo that resulted in an increase in productivity (more cash flow to prepare the next production campaign, and the purchase of additional 500 tons of maize by the farm for trading) , new farms and banks expect to adopt this new financial product starting in Q3 on at least 7,000 tons of maize BRANCHLESS • Launch of the BB FINCA project in Katanga : 4 agents are now operational and 9 recruited BANKING (toward the 25 planned) in 4 months (March-June) • Finalised negotiations with TMB on Branchless Banking : 6 areas expected for Katanga expected to receive light branches during the pilot phase; • Finalised negotiations with Vodacash to accelerate the use of MM in rural areas : partnership in signature process and activities to start in Q3 East Region Security issues remain a concern in the volatile region of Eastern DRC, and active armed conflicts in Beni and Uvira area have impacted ELAN’s activities during the second quarter, including affecting the ability to evaluate the results of interventions. Nevertheless, progress continued for the programme, including the organization of the annual coffee event Saveur du Kivu.

Agriculture progress: The development of the input strategy bringing quality inputs and extension services to SHF is showing good results, with Ets Munga yielding more than 2,000 farmers with improved business practices while Naseco looks to expand its success from the first semester of 2017 by strengthening and growing its distributor network.

Quarter 3 Key Activities - Altech’s distribution of new Pay-as-you- Go model solar products will grow - New projects in cocoa certification with Ets Muvunga & coffee processing with Virunga will be launched East Region Key Activities

Quarter 2 has seen the launch of Altech distribution of Solar lamps in the Eastern region, while several major partnerships in the perennial agriculture sector have been finalised.

Sector Update PERENNIAL • “Saveur du Kivu” coffee cupping event brought together international buyers and AGRICULTURE producer groups, The coffee actors have shown great interest in the presentation of the “Coffee Atlas”. • Signature of new partnerships for coffee and cocoa processing with major exporters Virunga and Muvunga in process RENEWABLE • Launch of Altech Pay-as-you-Go in the Kivu then National, first container distribution ENERGY started • PCB has improved its credit approval process for Solar Energy system loans, allowing better access for consumers AG NON- • Ets Munga sales of quality rice seed has reached 50% of targeted volumes PERENNIALS • Naseco Seed started training of agro dealers in preparation for next season • Finalised MoU with EAX to provide regional market access to local agro dealers

BRANCHLESS • ELAN RDC continues to explore how branchless banking / mobile money can improve BANKING solutions for NGO & Humanitarian actors

in WEST REGION As in other provinces, the markets continue to react to the deepening economic crisis, as the congolese franc continues to slide against the U.S. Dollar. Despite this growing instability, ELAN RDC continues to develop a series of interventions with partners in Kinshasa. Promising developments in insurance: ELAN RDC and Essor co-presented the findings of a joint study on the insurance market, including in depth looks at both the supply and demand sides of the market. With the insurance regulator ARCA operationalising and licenses expected in the coming months, this workshop marks the shift from market analysis to pursuing specific interventions to promote insurance in DRC. Quarter 3 Key Activities - Finalise the leasing activity with Midema and PCB - Launch Mobile Money partnership with Zoona - Commence partnerships with RE partners Eco- Mwinda and Bascons - Review opportunities with local logistics actors to replicate collateral management agreement (CMA) - Launch the introduction of new transport equipment WEST REGION KEY ACTIVITIES The third quarter will focus on improving the supply and the distribution chain of agriculture inputs, locally produced agriculture goods, as well as solar products and improved cookstoves.

Sector Update ACCESS TO • Leasing partnership for bakery equipment nearly finalised in Q2 with Midema and PCB; to be FINANCE: SME finalised in Q3 FINANCE • Concepts for leasing medical equipment and supporting the set-up of a non-bank leasing company were both started in Q2 and will be further developed in Q3 ACCESS TO • With over 100,000 calls to receive information on financial education logged, an evaluation FINANCE: BB will be conducted during Q3 to determine initial impact. • Several new mobile money interventions should begin, including Zoona and Orange / Advans Bank. RENEWABLE • A series of new interventions to be launched in Kinshasa including with Eco-Mwinda, Kit for ENERGY Africa, Bascons, TOTAL, Proton, ZFJ and GARS • Finalise the marketing campaign stragegy for renewable energy sector with Kinshasa-based company AG NON- • Facilitate the acquisition of locally produced agriculture goods by various companies PERENNIALS (Strategos, Midema, Palmco) • Building on the example of the Ceprosem intervention, ELAN RDC will now develop concepts to support more local seeds producers TRANSPORT • Facilitate the improvement of product aggregation and transport cost through new type of equipment (three-wheeled motorcycle leasing). CROSS-CUTTING SECTORS OPERATIONS & MANAGEMENT GESI During this quarter, ELAN RDC has made advances in revising its measurement approach for monitoring the progression of more beneficial roles, including the mapping of women’s current roles in market systems (i.e. their ‘AS IS’ situation). The next step will be to chart their future state (ie. Their ‘TO BE’ situation) and finalise clear sector-level measurement sheets for role change. ELAN RDC has also progressed the writing of the third WEE Learning Series Case Study, which explores empowerment outcomes in the coffee sector in the Kivus. The mobile money start-up Zoona supports women entrepreneurship and employment in the DRC. As part of its partnership with ELAN, Zooma committed to hire at least 60% of women within its agents operation network. With facilitation from ELAN, Zoona pre-selected 85 girls from La Pepiniere’s entrepreneurship training and financial inclusion education programme as potential agents. Selected applicants will integrate Zoona and receive a one year business coaching, training and opex funding.

Quarter 3 Key Activities - Finalise ‘Role Change’ sector sheets setting out women’s current status and how we intend to ‘upgrade’ their role. - Finalise and publish third WEE Learning Series Case Study on coffee production in Kivus - Continued co-conceptualisation of new interventions to upgrade women’s roles within market systems