2017 Q3 Report CONTENTS

1. Results & Overall Progress

2. Sectors

3. Regions

4. Cross-Cutting Sectors, Operations & Management

5. Business Development Services

6. Markets in Crisis

7. Women’s Economic Empowerment INTRODUCTION The third quarter was another busy one at ELAN RDC, as the programme balanced a mid-term evaluation and data verification process in addition to ongoing implementation. A number of new consultants contributed to increased activity for the technical team during the quarter, resulting in concrete workstreams on business development services (BDS), the launch of scoping to replicate existing interventions in conflict-affected Kasai Central, and a renewed focus on gender through increased support from our senior gender adviser.

A number of large partnerships were finalised thanks to agreement with DFID on an improved non-objection review process, however, several large partnerships remained delayed due to multiple factors including increasing unstable market conditions. Partnerships in the energy and agriculture sectors were finalised during the quarter, while several partnerships in the financial sector faced delays.

The programme has initiated a drive to increase and improve communications of programme results, resulting in an increase in visibility across various media. The launch of the Congo Coffee Atlas, completion of research for The Africa Seed Access Index (TASAI), meeting with mobile network operators to establish a lobbying platform and the finalisation of the contract for a renewable energy marketing campaign are all examples of activities through which ELAN RDC has made more market information available to the broader private sector.

More details about third quarter results are found in the following slides. RESULTS & OVERALL PROGRESS SUMMARY HIGHLIGHTS During the third quarter, ELAN RDC added 15 new interventions covering 15 new partners as the programme made progress towards scaling up in each of its 6 core sectors and 4 regions.

Technical Achievements: ✓ ELAN-RDC launched the first Congo Coffee Atlas, providing the industry with map-based information about coffee producers and the quality, quantity and profile of coffee they bring to market ✓ A partnership was finalised with the East Africa Exchange (EAX), representing new access to markets for Congolese producers / traders ✓ Solar lamp distributors D.Light and Altech increased sales while partnerships were signed with several new partners. ✓ In branchless banking, ELAN RDC partnered with GSMA to host a workshop on digital finance, discussing regulatory issues with the Central Bank and plans for an industry association with the private sector ✓ Finalised the preparation of a market information system in the river transport sector.

Other Achievements: ✓ A BDS strategy was developed focusing on six core intervention areas ✓ A transition plan was put in place to manage MRM effectively following the departure of the MRM Manager ✓ The first data verification process was completed with the Decision Support Unit KEY INDICATORS UPDATE

With results from 75% of ELAN RDC’s interventions available through quarter three, the programme has reached 59% of its cumulative target for impact level outreach. Market conditions have adversely affected impact. The results of additional evaluations and the inclusion of impact for several interventions previously only producing business practice change [but not income change] should allow the programme to reach within 10% of its goal.

2017 2017 2017 2018 2019 2020 INDICATOR Achieved Program- Cumul. % of Target Target Target Q3 to-date Target Target IMPACT 2: Cumulative number of poor Total 72,279 222,073 373,469 59% 608,844 748,931 1,001,118 OUTREACH people who have Productive 65,741 161,888 130,714 124% 273,980 374,466 500,559 experienced net positive activities income change Indirect - - 80,345 n/a 238,046 378,133 630,320 Women 21,678 72,934 82,163 89% 152,211 187,233 250,280

OUTCOME 1: Cumulative number of poor Total 95,217 315,254 560,204 56% 913,266 1,123,397 1,501,677 PERFORMANCE people who report a Women 26,977 104,190 140,051 74% 228,317 280,849 375,419 substantial increase in enterprise or household performance

OUTPUT Cumulative number of poor Total 230,131 546,606 746,938 73% 1,217,688 1,497,862 2,002,236 INDICATOR 2.1 people showing significant Women 59,696 169,494 186,735 91% 304,422 374,466 500,559 changes in their practices SELECT RESULTS – CHANGE IN BUSINESS PRACTICES

Significant progress has been made toward the logframe objectives despite the challenging business environment linked to both the political and economic stresses facing the country. While there remains a gap to be closed to hit 2017 targets, these targets remain within reach due to several large interventions that were finalised in 2017 but will only produce results towards the end of the year or in 2018.

Over the past nine months, an additional 230,131 new low income beneficiaries have demonstrated improved business practices of which 59,636 are poor women In Q4, measurements for HNI, 81% are poor producers vs. 19 % consumers. Nasseco, ASSECAF, etc. will be conducted

40% Ag-Perennial 47% in East 430,572 new 36% Ag-Non Perennial 32% in South beneficiaries change 15% Renewable Energy 11% in North business practices in 89 % Pico 10% in West 2017 (logframe target) 11% ICS 8% Transport 1% Access to Finance 230,131 new beneficiaries have 53% changed business achieved practices in 2017 COORDINATION WITH ESSOR

ELAN RDC and Essor continued their close collaboration in Q3 2017. Teams in Kinshasa, and interact regularly on agriculture (coffee and agricultural inputs), transport, access to finance and cross-border trade.

Key Q3 Strategic Operational Quarter 4 Achievement Engagement Progress Objectives s

Joint organisation of coffee Regular bi-weekly meetings Ongoing discussions on Design of joint interventions in focused events around between team leaders and interventions in agriculture, Access coffee, agricultural inputs International Coffee Day. project managers from ELAN to Finance and transport. imports and transport. RDC and Essor. Essor team moved into Goma office. Joint mission to on Finalised document sharing transport and cross-border protocols. trade.

Finalised tripartite agreements with DSU. QUARTER FOUR PRIORITIES The fourth quarter of 2017 will focus on finalising partnerships in existing sectors while confirming priority interventions for a growing BDS portfolio. The programme will explore coordination with the humanitarian sector in several areas including WASH and crisis response in the Kasai Central region. A renewed focus on communications will raise awareness of ELAN RDC successes, while Congolese entrepreneurs will be supported through the Seedstars pitch competition.

Intervention Development: - Perennial Agriculture: Launch the women in coffee network in Goma and promote the Congo Coffee Atlas, while planning the 2018 coffee and cocoa marketing strategy including the 2018 Saveur du Kivu - Non-perennial Agriculture: Conduct workshops in three regions to present results of The Africa Seed Access Index (TASAI) initial study; explore export markets for agriculture goods to the East Africa Exchange - Branchless Banking: Collaborate with GSMA and network operators to launch interoperability working group, while launching an evaluation of the current state of agent networks in DRC - SME Finance: Scope opportunities for Collateral Management Agreement (CMA) replication in Kinshasa, while finalising agreements to support the launch of leasing products before year-end - Renewable Energy: The national marketing renewable energy campaign will be rolled out while additional partnerships on distribution and marketing are launched - River Transport: Freight forwarders will open new sites in Northern DRC to evacuate agriculture goods, while the team conducts a review of current state of taxation on river trade

Programme Management: - Receive the final report of the mid-term evaluation and incorporate results into 2018 business plan - Complete non-objections for additional large partnerships in the 2017 pipeline - Develop measurement framework for indirect beneficiaries, while reviewing the impact on results of the political and economic climate SECTORS PERENNIAL AGRICULTURE ELAN and ESSOR supported the export association (ASSECAF) and the national coffee office (ONC) respectively to further reduce export taxes – resulting in a draft ONC protocol to cut ONC’s tax from 4.5 to 2%. While production and processing interventions were rolled out, new interventions were developed to link producers to markets (Coffee Atlas), bolster access to finance (Root Capital), and realize sourcing model shifts and traceability systems (CoffeeLac).

Congo Coffee Atlas Featured at Congo Breakfast During 72nd UN General Assembly: Having concluded first sweeps of data collection and cleaning, and with the design and development of the online business intelligence dashboard finalized, the Congo Coffee Atlas was chosen to be featured during an IFAD-sponsored Congo breakfast in September. Dashboard Architect and ELAN Advisor Sebastien Picard represented the program and provided a demonstration for major buyers, industry stakeholders, and policy makers. The event allowed ELAN to prominently showcase the Atlas’ depth, usability, and unmatched utility. Quarter 4 Key Activities

- Organisation of International Coffee Day with ESSOR (Kinshasa and Goma), with industry & consumer facing events and formal presentation of the Coffee Atlas - Production and Strategic Planning Support to IFFCA (Association des Femmes Congolaises du Café & Cacao) - Execution of Strategic Agreements w/ COPAK (Phase II), Coffeelac (Traceability Systems/Sourcing Model Shift), Root Capital (Increased Engagement/Prospecting Clients) - Launch of National Cocoa and Coffee Best Practices Campaign w/ Human Network Initiative (HNI) The Virtual Atlas on Display at the UN General Assembly PERENNIAL AGRICULTURE: ACTIVE PARTNERSHIPS

ELAN RDC has 5 active partnerships across the country

Region Partner Current Stage Budget Elan Partner

(1)PA Executed (2)Certification Training Performed East Muvunga (3)Site Location for 10 Sites Completed $133,763 $45,446 $88,317 (4)Financial Management/Grants Management Training Completed (1)PA Executed (2)Site identification for Sun Dried Units East Virunga (2) $112,599 $61,858 $50,741 (3)Construction Commenced at 1 Site (4)Tree Nurseries Established (1)Online Coffee Atlas Finalized and Embedded to ELAN RDC AGP Landing Page (2)Virtual Dashboard Launched (3)Buyer, Trader, Exporter, Producer Feedback East ECI Captured $52,450 $25,950 $26,500 (4)Ongoing Promotion and Improvement (5)Planning Representation and Exhibition at Key Events (including printed collateral, online resources, press/media) (1) PA Amendment Due to Security Constraints (2) Completion of 5 Remaining Fermentation East SCAK $126,885 $36,388 $90,498 Units — Now Maintaining 10 Active (3) Planning Intervention Evaluation Mission (1) PA Amendment Due to Security Constraints East Masasi (2) 2 GAP Trainings for 206 Producers $37,223 $13,111 $24,111 (3) Maintain 5 Active Drying Tables PERENNIAL AGRICULTURE: PIPELINE

Region Potential Partner Description

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

Expanding Social Impact Lender Reach to Bolster Networks of East Root Capital 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

Strengthening Controls and Integrating Traceability Systems — The Olam East Olam International Farmer Information System (OFIS)

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

East ESCO w/ BanQu Integrated Operational and Financial Control Systems

Consortium of Exporters, Mixed Marketing and Business Enabling Environment/Joint Public-Private National Regulators Advocacy and Marketing of Perennials NON-PERENNIAL AGRICULTURE While international hybrid seed producer NASECO’s second season has proved a success in Kivu, ELAN has reached out to Zambia’s Kamano Seed to introduce competition in Katanga’s hybrid market. Both Kamano and local OPV producer Mimosa have been inspired by Naseco to develop a more aggressive marketing strategy. ELAN has also increased access to market by linking groundnut producers in Equateur to Palmco, is adapting CMA to smallholders, and is providing incentives for the industry to improve its business environment through the TASAI index. Improving the seed industry business environment: The African Seed Access Index, TASAI, has completed an assessment of the seed sector in the DRC. The study has yielded data intended to support the GoDRC and other relevant stakeholders to create and maintain an enabling environment that will accelerate the development of a vibrant private sector-led seed sector to serve and improve the livelihoods of the millions of smallholder farmers in the DRC.

Quarter 4 Key Activities

- Local OPV seed providers Mimosa, Bon Berger, Munga, Buhendwa and Agriforce enter the 2017/18 season - Zambian hybrid provider Kamano Seeds enters DRC following Naseco, Seedco and Agrimax - Spraying services are deployed through Agro-dealers to fight the Army worm - EAX provides access to the Rwandan market for Kivu’s producers and traders - Collateral management agreement financial product is adapted in Katanga and Kinshasa - Presentation of the results of the TASAI study and eventual lobbying for the passing of the seed law NON-PERENNIAL AGRICULTURE: ACTIVE PARTNERSHIPS

ELAN RDC has 23 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

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

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

Mining company prefinancing inputs for South SEK – SeedCo SHFs 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

South CAPAM Inputs distribution and purchase counters

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

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

East 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) Procurement channel from smallholder West PALMCO farmers 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 $62,552 $26,025 $36,527

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

National HNI Dissemination of technical information NON-PERENNIAL AGRICULTURE: PIPELINE

Potential Region Description Partner

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

North CDI Bwamanda Development of a more sustainable procurement channel for local products

Development of a wider distribution network of seeds with a technical back up South Agrimax using an input loan model

South Mulagricom Increasing procurement capacity and developing sales network

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

Development of a more sustainable procurement channel for local maize (import West MIDEMA substitution)

West ZIGIDA Improve inputs distribution to smallholder farmers through traders RENEWABLE ENERGY

ÉLAN has finalised several key partnerships that were crucial for its strategy to scale. These include international players Green Light Planet in pico-solar and Burn for ICS, as well as partnerships with several local stakeholders. ELAN has finalized the agreement on a national, brand agnostic marketing campaign for both solar and ICS.

Burn Manufacturing enters the DRC – In July, Chris McKinney, BURN’s VP of Marketing, visited Kinshasa and Lubumbashi to discuss Burn’s entry to the DRC with potential distributors. These included Altech, Beltexco and Hasson Africa that each have national distribution channels and are eager to work with BURN. These distributors would qualify for 50%-50% payment terms, would import the goods and use their own networks to sell the stoves on payment plans. BURN will launch a marketing campaign to support these distributors and talked to several Kinshasa-based marketing agencies for support.

Quarter 4 Key Activities

- Altech to start selling its second container across the DRC (12k units) - D.Light to set up and sell in Goma, Lubumbashi and Kinshasa - First phase of National Marketing Campaign Launched - DevSolaire to launch PAYGO pilot with GLP (delayed due to transport issues) - Burn enters the DRC and starts sales with Altech and tests other markets/distributors - MKOPA partners with ELAN to enter DRC and launch 550 pcs pilot by mid 2018 towards full roll out in Q4 2018 RENEWABLE ENERGY: ACTIVE PARTNERSHIPS

ELAN RDC has 11 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 Bank 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 Expand production and distribution network for South Haltbank $91,148 $ 45,606 $45,542 ICS Develop a distribution strategy for PICO PV West Eco-Mwinda $125,910 $47,910 $78,000 lamps Support marketing and distribution of cook West Bascons $61,090 $27,410 $33,680 stoves National Burn Organise distribution network for imported ICS $341,459 $163,289 $178,170 Design, develop and implement a national National Pygma $200,000 $200,000 $0 brand agnostic RE Marketing Campaign Greenlight Pico solar and solar home system (incl. National $299,312 $96,000 $203,312 Planet PAYGO) marketing/distribution RENEWABLE ENERGY: PIPELINE

Potential Region Description Partner

Support the marketing of a specific Solar PV banking product across 8 major banks West Kit4Africa in Kinshasa

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

National MKOPA Pilot to test the marketing/distribution of PAYGO solar home systems.

South Dev Solaire 4 Expand distribution of PICO lamps & test pay as you go in the South

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

East Goma Stove Support marketing and distribution of cook stoves SME FINANCE

Beside supporting local banks in developing leasing products – banks’ accountants and tax specialists were trained in leasing accounting and tax implications, ELAN is now facilitating the market entry of a dedicated leasing company. While ARCA has delayed the issuance of licenses, ELAN has gathered the main candidates to discuss the cause of delays and form the embryo of an insurers’ association. Finally, the team has identified BDS opportunities.

ELAN facilitated Go Congo access to a $400,000 loan from PCB. The loan allowed Go Congo to increase its purchases by 1,800 tons. Go Congo is the first maize flour miller that tested the CMA in Katanga. In addition, the CMA was replicated by TMB with a loan amount of USD 3 million approved for the Mashamba farm for 10,000 tons of maize in Katanga.

Quarter 4 Key Activities ▪ Pursue the exploration of BDS with potential partners ▪ Housing finance market exploration (Habitat for Humanity) ▪ Replicate and scale up CMA (TMB, Finca) ▪ Accelerate MSME access finance in by supporting Vision Fund to open a branch ▪ Explore and unlock insurance market opportunities SME FINANCE : ACTIVE PARTNERSHIPS

In SME Finance, ELAN RDC has three active partnerships across the country:

Region Partener Current stage Budget Elan Partner

East, Collateral management agreement Comexas $320,000 $130,000 $190,000 South with Go Congo (maize)

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

West, Guarantee fund renewal under Procredit Bank - - - North consideration SME FINANCE : PIPELINE

Future interventions planned include:

Region Partener Description

Procredit Bank, East Access to finance for KACCO members KACCO

West Advans Banque Financing agribusiness actors in Kikwit for the next agriculture campaign

North, West Vision Fund Support the setup of a microfinance institution in Gemena

North, South Procredit bank Leasing products launched for transporters

North, West ESABI Insurance professional certification programme

East, South TMB – Comexas CMA. The loan application for la Nouvelle Minotérie is under analysis at TMB PCB-Mulimaji- Leasing product. The intervention is the standby stage. To be followed with the East, South DEM bank. TMB Classic East, South Transport Leasing Coach Habitat for Technical assistance to financial institutions ready to launch a new housing finance North, West Humanity related product Non banking North, West Leasing Support market entry Company BRANCHLESS BANKING Beside direct work with branchless banking stajeholders Finca (ELAN supported new Katanga and Bas-Congo sales drives), TMB and Vodacash, ELAN has pursued partnerships with new entrants such as Zoona. It also has supported transversal and convening activities such as a Mobile Money industry workshop with GSMA – in order to foster collaboration and common positioning within the sector.

Mobile Money Industry workshop with MNOs and GSMA ELAN and GSMA partnered to engage MNOs and banks as well as the Central Bank and the Ministry of Finances on ways to develop the Mobile money industry and improve financial inclusion in DRC. Microsave presented its latest research on mobile money distribution networks to DRC’s MNOs and banks and offered them to launch an assessment of their agent networks.

Quarter 4 Key Activities

• MNO financial inclusion agenda and interoperability working group launched • DFS Agent Network gap analysis launched • ZOONA PA finalised • HNI mobile money messages are online 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 Distribution network development for Airtel money in consumers East Airtel products (bakery) and transport in the East 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 Advans – Saving and micro loans 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

In Q3, the expansion of freight forwarders’ activities and the evacuation of agricultural products organized by the focal points have a major impact on the agricultural season in Equateur (September to December). In the same logic, the launching of the SIM in the River Transport sector and the continuing financing of boat operators and traders of agricultural products by PCBs will improve the incomes of small farmers. The expansion of freight forwarder activities from to Equateur has been effective since September 2017. Both platforms of freight forwarders have settled in Gemena. This strategic positioning will allow the development of their activities in 7 ports located in the surrounding Gemena. They are Akula, Popolo, Likimi, Businga, Dongo, Mogalu and Libenge. Quarter 4 Key Activities • Continuation of extension on the elimination of 38 taxes in the river and lake transport sector by strengthening the capacities of the entities able to continue extension in Equateur and Tanganyika provinces, • Further development of the new approach of financing of boat operators and traders by linking the various players, • Further development of loans for tricycle purchase, support for the evacuation of agricultural products in Equateur by freight forwarders and focal points. • Launching MIS in the River transport; • A scoping study on transport in the Kivus should allow the identification of new opportunities for intervention. 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 - - - (Gemena-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 Q3 the markets of the North zone felt the effects of challenging agro-climatic conditions and a worsening economic crisis. However key partnerships for the development of pro-poor financial services are shaping up.

Key progress in Q3

Local seed multipliers successfully adapted marketing, and so increased business robustness during a season affected by challenging agro- climatic conditions. However, business capacity remains a key challenge to up scaling.

Quarter 4 Key Activities - Sign a partnership agreement with Vision Fund for establishing the first bank branch in Gemena that targets SME and micro- businesses. - Support (TMB) in the launch of first-ever bank branches in Mongala. - Launch river transport information system and expand freight forwarding services NORTH REGION KEY ACTIVITIES Q3 is characterized by incremental progress, despite challenging agro-climatic and macro- economic conditions.

Sector Update RIVER • The two collaborating transitaire services have opened offices in Gemena, and started TRANSPORT operations in 4 key ports in South and North-Ubangui, and in , targeting continued operations in 10 river ports by the end of 2017 AG NON- • The partnering seed multipliers successfully piloted new marketing elements, such as PERENNIALS mini-packages and credit-sales. Despite challenging climate conditions that characterized the North’s “small” B season, the three multipliers were able to keep the level of sales.

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 successfully piloted in the pay-as–you-go technology for credit-based ENERGY sales, selling 500 lamps in the first month.

SME FINANCE • ProCredit Bank further developed its river transport and agricultural trade portfolio, incrementally increasing product marketing in the sectors.

BRANCHLESS • The partnership agreement with TMB, which includes the setup of the first-ever bank BANKING (light) branches in Mongala, is about to be signed. SOUTH REGION During the third quarter, the South Region team pursued efforts improving access to markets activities in AgNp in remote areas in Haut-Lomami and Tanganyika, while preparing marketing campaigns for the inputs sales season. Efforts were made on replicating collateral management agreement (CMA) interventions

Mimosa successfully entered the Haut-Lomami market with an ELAN RDC designed marketing plan, and has developed a distribution network in through which 5 tons of Babungo maize seeds have already been sold. In renewable energy, Halt Bank reached an average sale of 600 ICS per month exceeding PA performance targets of 500 that resulted in the signature of a new PA. Altech launched its activities to roll up a successful PICO distribution model tested in the other ELAN RDC provinces

Quarter 4 Key Activities • Finalising PAs and launch production activities for the 2017-18 season in AgNP • Finalising a crop protection strategy including a pesticide usage guide and a concerted response to fall army worm. • Launching branchless banking activities (TMB, Vodacash) • Facilitating market entry of imported ICS of Burn SOUTH REGION KEY ACTIVITIES

Focus on marketing campaigns for AgNp and RE actors

Sector Update • Halt Bank expanded its distribution network in Fungurume leveraging on Mbeko Shamba’s presence as part of the institutional marketing strategy. New PA signed with Halt Bank in RENEWABLE improving the distribution network, reaching 70 active Points of sale ENERGY • Dev Solaire expanded the distribution network into Kasumbalesa, Fungurume and , and intensified marketing with 5 public sale events in Lubumbashi and the creation of a point of sale “Bismillah” in Texaco, one of the most popular area of Lubumbashi • Altech launched activities in Katanga in August with 2947 PICO lamps sold in Q3 • Dligth shipped a container of 20000 lamps in Lubumbashi and double its efforts to establish a distribution network in the South Region • Input distribution: preparing the scale up of activities with Seedco, Zamseed and Agrimax, and facilitating the market entry of Kamano Seeds, a Zambian seeds producers. Negotiation well on track with a PAs to be launch in Q4 AG NON- • The repayment of the Bon Berger adaptation of an input credit distribution model with SHFs PERENNIALS reached 90% above the 80% targeted, and an economic analysis is being done to inform decisions for consolidation and scale up for next Agric season. • Quality branded local seeds: A more aggressive marketing strategy is developed for implementation in Q4 by Mimosa and Bon Berger to sell their production of maize seeds, while preparing for 2017/18 production campaign • Mulagricom improved rice production aspects and launch a marketing strategy to well position the brand in the market SOUTH REGION KEY ACTIVITIES

Additional sector key activities

Sector Update A2F • Training of Finca Express agents and continue Finca express roll out plan in rural areas with 5 new agents recruited • Recruitment of Mpesa end users for the project Mulimaji Mwema with Vodacash, while finalising PA signature • Replication of maize CMA achieved and adaptation of the model well on track: PCB approved a CMA loan of USD 500000 on 1800 tons of maize for Gocongo with Comexas as a third party – TMB wants to adapt the model with a SMA (stock Monitoring Agreement) where by the third party only play a role of monitoring and inspection. As a result, TMB recently approved a CMA loan of USD 3000000 for Approx. 15000 tons of maize with Mashamba - FINCA willing to pilot a SHFs CMA model – Negotiations ongoing between TMB and Africa Milling and Minoterie de Likasi.

TRANSPORT • PA signed on three-wheeled motorcycle transport and activities to be launched in Kalemie in Q4

BEE • Sensitisation and capacity building of small scale traders association ACT in Kasumbalesa end of Sept, with the creation of a sensibilisation committee and more than 100 membership cards issued within 2 weeks EAST REGION After a great success for the Coffee Event “Saveur du Kivu” featuring the Coffee Atlas, the increasing visibility of the DRC coffee sector led to a soft launch of the Atlas at UNGA. Despite reoccurring security issues still undermining partners and ELAN activities in North and South Kivu, the third quarter have seen good progress for the programme, preparation for mid-term evaluation and increasing sales and marketing activities in Agriculture.

Renewable Energy progress: The sales of Solar Lamp by Altech has reached more than 4,000 units sold only in the eastern region. Further ongoing discussions with major Renewable Energy players such as Burn, d.Light and BBoxx look promising for a strong development of the RE portfolio in the Kivus.

Quarter 4 Key Activities - Close follow-up of perennial agriculture partners, Naseco, Munga and Jobseed which are exceeding sales target to informed on successful seed distribution model for Q4. - New promising partnerships in Coffee and increasing marketing activities with the official launch of the Coffee Atlas during the International Coffee Day and the launch of IFFCA first platform for women in coffee and cocoa. EAST REGION KEY ACTIVITES Quarter 3 has seen the sales of Altech reaching more than 4,000 Solar Lamps only in the eastern region, while Non-perennial agriculture partners Naseco, Jobseed and Munga have exceeded sales targets and new major partnerships in perennial agriculture have been signed. Sector Update • Ets Muvunga has successfully completed the Certification Training PERENNIAL • Financial Management Training for COPAK cooperatives Sycodep AGRICULTURE • Launch of Virunga Coffee partnership on innovative coffee processing method • Altech “Pay-as-you-Go” sales of Solar Lamp has reached 4000+ lamps in the region. RENEWABLE • Finalising discussions with BURN, major manufacturer of clean energy product to ENERGY conduct ICS project • Naseco Seed sales of hybrid maize seed has reached 55MT [100% of target] AG NON- • Job Seed Co. sold 52 MT of OPV maize seed [115% of target] PERENNIALS • Ets Munga completed sale of 110 MT of rice seed [110% of target] • EAX partnership to be finalised to provide regional market access to local agrodealers • Finalising discussions with bakery Pain Ideal to improve distribution network model using digital money. BRANCHLESS • The programme is in discussions with BT Signaal on tax payment using mobile money BANKING • ELAN RDC to explore how mobile money can improve solutions for NGO & Humanitarian actors WEST REGION ELAN RDC has developed several key interventions in the renewable energy sector aimed at demonstrating to partners the interest of a good marketing model. Two studies were launched in the transport sector, including harassment in Kinshasa ports and road transport MIS on Kinshasa- axis. Support to the insurance sector continued with the organization, with ESSOR, of a meeting with potential insurance companies. In Agricultural sector a workshop on the seed regulation and a coffee event were organized.

Development of insurance sector: A meeting with potential insurers helped identify the constraints to the launch of the insurance sector in the DRC. Following this meeting, an action plan was prepared, which included meetings with ARCA (national insurance regulator) and other authorities concerned, in order to push the reception of the requests for agreement.

Quarter 4 Key Activities - Launch the introduction of new transport equipment with financing support from two local banks (PCB and Finca); - Finalize the leasing product with road operators and PCB; - Launch Mobile Money partnership with Zoona - Launch general campaign on the Renewable Energy; - Review opportunities with local logistics actors to replicate collateral management agreement (CMA) WEST REGION KEY ACTIVITIES During quarter four, the focus will be 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 • Launch of leasing with road transporters and with collaboration of PCB and Rawbank; FINANCE: SME • Launch of CMA with mills in Kinshasa FINANCE

ACCESS TO • With over 135,000 calls to receive information on financial education logged, an evaluation FINANCE: BB will be conducted during Q4 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 Kit for Africa, Bascons, ENERGY TOTAL and ZFJ • Finalise the marketing campaign strategy for renewable energy sector with Kinshasa-based company AG NON- • Launch of a general campaign on good agricultural practices. PERENNIALS • Development of the Farm Input Distributor Network and Seed multipliers • Facilitate the acquisition of locally produced agriculture goods by various companies (Strategos, Palmco)

TRANSPORT • Facilitate the improvement of product aggregation and transport cost through new type of equipment (three-wheeled motorcycle leasing). CROSS-CUTTING SECTORS OPERATIONS & MANAGEMENT DEFINING BUSINESS DEVELOPMENT SERVICES (BDS) ÉLAN has worked with external providers in the past, but we now want to structure and expand our activities develop / professionalise the market of Business Development Services and increase their use – in effect strengthening the business support functions for our partners as well as the BDS market in general

ÉLAN RDC Support in developing/providing services (Technical) assistance, and information to our private sector Training, Market linkages, partners and to households; financial Coaching, Financial guarantees to support financing of support to grow and External BDS providersbusinesses that can take on part of the activitiesprofessionalise of training,the businesses (direct) or their management support, specialised services, provision of toolssuppliers and /clientsinformation (indirect)

Banks / Micro Finance / Mobile operators (Technical) assistance, More accessible existing Financing, New services, Training, Financial support, services + new services Non financial support Coaching to value chain that save time and money; (training, coaching, Financial information/education information)

Businesses / associations and their value chains

Better, more sustainable incomes; Better/cheaper goods and services

Households WHICH TYPE OF BDS TO FOCUS ON?

Having impact within 12 months as well as Specialised Technical Assistance having the greatest chance of sustainability Marketing and communication HR, legal and fiscal services Match making Advanced General mgt skills training BDS Leadership coaching Supply/demand network access and optimisations

Access to Basic accounting skills & tools Advanced accounting skills & tools Finance Financial guarantees Business plan development Basic mgt skills training and TA Product and market development Basic Support in setting up a company / formalisation (legal/tax) BDS Co-working space Coaching/sounding board/inspiration Business (pre)incubation

Information National resource database/platform, showing all available resources for MSME’s (government, trade orgs, FSP, NGO, BDS providers, incubators, impact investors, donors) as well as calls to tenders/partnerships Entrepreneurship competitions High school/university Entrepreneurship entrepreneurship workshops seminars

Size innocent nascent micro small medium Requirement

ÉLAN RDC proprietary information OUR FOCUS FOR BDS Given the limited time left in the program we asked ourselves: - What can we realistically still achieve within the next 12 months? - What will have the greatest impact? - What has the greatest chance of sustainability?

1. Collect and distribute information relevant to entrepreneurs in DRC

2. Identify, distribute and stimulate the use of simple business tools

3. Expand the 155 service to include free basic business education

4. Identify and strengthen BDS providers in Kinshasa, Kivu and Katanga

5. Work with lead firms to include BDS in their efforts of improving their value chains

6. Identify and strengthen business incubators in Kinshasa, Kivu and Katanga MARKETS IN CRISIS

In September 2017, ELAN launched a scoping to replicate existing interventions in conflict- affected Kasai and strengthen ELAN’s presence in Tanganyika. Conflicts and ethnic tensions in those areas have deteriorated already struggling markets and continue to hinder economic recovery as populations struggle to rebuild their lives and assets all the whilst facing threats of famine and epidemics.

The humanitarian crises which resulted from the conflicts have led to the mass arrival of emergency humanitarian actors to those areas, generating new market dynamics on which ELAN can build to ensure the sustainable impact of emergency interventions.

Activities carried out to date:

Initial meetings have been held in Lubumbashi and Kinshasa with private sector and humanitarian actors operating in the Kasais and Tanganyika or with an interest in expanding activities to the targeted provinces.

Two scoping missions have been carried out to Kasai Central and Tanganyika to understand market dynamics and identify key market players. MARKETS IN CRISIS

Markets in Crisis: Key Opportunities for ELAN

• Support the sustainable impact of emergency interventions by getting humanitarian actors involved with the private sector early on and facilitating sustainable exit strategies. • Raise awareness on do no harm / do good approach to the market to avoid or reduce adverse effects of emergency interventions on existing market systems. • In a market with few strong economic players and low purchasing power, capitalise on the economic influence of humanitarian actors, transforming short term impact into long run growth.

Markets in Crisis: Key Challenges for ELAN

• Growing a private sector in a market where goods and services are made available for free by humanitarian actors. • Growing a private sector in a “green” market with a few strong market players and challenging trsnsport routes. Women’s Economic Empowerment During this quarter, ELAN RDC has realized a number of key WEE-related achievements, including: • Co-hosting the first general assembly of IFCCA (Initiative des Femmes dans le Cacao et le Café), kicking off the event by presenting ELAN RDC’s research into women’s roles in the coffee sector; showcasing the benefits and limitations of the café-femme model; and facilitating a lively debate with IFCCA members on the future of women roles in the coffee sector. • Publishing (in both English and French) the third case study in its WEE Learning Series, entitled ‘Exploring empowerment outcomes and the upgrading of women’s economic and social roles in South Kivu’s coffee sector’. This has been disseminated to key stakeholders (including IFCCA), is available in the SEEP Network’s WEE library here, and further consolidates ELAN RDC’s leading position in contributing to the international evidence base on how market systems approaches can be used to empower women. • ELAN RDC has developed a collaboration agreement La Pepiniere, using their drawn-down facility to engage the support of a consultant for a discreet assignment. ELAN RDC’s Senior WEE Adviser and a consultant from La Pepinere’s advisory pool will work together to ground-truth and concretise the final elements of ELAN RDC’s new methodology for measuring role change. The renewable energy consumer education campaign presents the opportunity to also promote more progressive gender roles and dynamics. ELAN RDC is ensuring that the campaign effectively targets women by communicating benefits that are particularly important for women including time-savings associated with ICS, which can help lead to a reduction in unpaid care, borne almost exclusively by women in DRC. The campaign also shows men and women performing more progressive and less traditionally gendered roles, for example a female teenager studying and a young man showing an interest in ICS and helping his mother to cook, while still ensuring that vision depicted is still convincing within the Congolese context.

Quarter 4 Key Activities

▪ Run Kinshasa-based training on ‘Identifying, pitching and adopting gender- responsive business practices’ to all technical team members present, DFID and DSU (if interested) ▪ Collaborate with La Pepiniere to finalise new measurement approach to role change. ▪ Development of a concept note for a prospective ELAN RDC-led Investing in Women symposium for Spring 2018.