2017 Q2 Report CONTENTS

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 loans reviewed by commercial banks 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 Kinshasa, Lubumbashi and Goma 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.

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