Quarterly report April – June 2014

29 July 2014

Table of Contents

List of acronyms ...... i Executive Summary ...... 4 PART I: Overview of project interventions and performance tracking ...... 9 1. Introduction ...... 9 2. Progress against sector workplans...... 9 2.1 Coffee ...... 9 2.2 Micro Hydro ...... 13 2.3 Mobile Money ...... 15 2.4 Rice ...... 18 2.5 River Transport ...... 19 2.6 Seeds ...... 22 2.7 Access to Finance ...... 24 3. New sector identification and regional strategies ...... 25 3.1 Overview ...... 25 3.2 Katanga ...... 27 3.3 Equateur Province ...... 28 3.4 North and South Kivu ...... 28 3.5 Kasai Occidental ...... 28 3.6 ...... 29 4. Cross cutting issues ...... 29 4.1 Gender and social inclusion ...... 29 4.2 Political economy analysis ...... Erreur ! Signet non défini. 4.3 Environment ...... Erreur ! Signet non défini. 4.4 Communications ...... Erreur ! Signet non défini. 5. Lessons learned and the way forward ...... 30

List of acronyms ACOBA Association des Commerçants de Basankusu ANSER Agence Nationale des Services d'Electrification en milieu Rural BOA of Africa CÉLANSER Cellule de l’Agence Nationale des Services d'Electrification en milieu Rural CENCO Conférence Episcopale nationale du Congo COPROSEM Conseil Provincial des Semences CRM Centre for Maize Research CRS Catholic Relief Services CSO Civil Society Organization DRC The Democratic Republic of the Congo ECHO European Community Humanitarian aid Office EDC Electricite Du Congo FEC Federation des Entreprises du Congo IFDP Innovation et Formation pour le Développement de la Paix INERA Institut de l'Environnement et de Recherches Agricoles MHRE Ministere des Ressources Hydrauliques et de l’Energie MNO Mobile Network Operator MONUSCO United Nations Stabilization Mission in the DRC MSA Market System Analysis NGO Non Governmental Organisation OHADA Organisation pour l'Harmonisation en Afrique du Droit des Affaires ONC Office National du Cafe RTC Rwanda Trading Company SME Small and Medium Entreprise SNEL Societé Nationale d’Eléctricité SNV Stichting Nederlandse Vrijwilligers TMB UN The United Nations UNHAS United Nations Humanitarian Air Service UNILU Université de Lumumbashi VAT Value-added tax VECO Vredeseilanden Country Office, Congo WFP World Food Programme

i

Executive Summary

In its second quarter of implementation, ÉLAN RDC gathered additional momentum across the full range of its activities, including market interventions, new opportunity assessment, expansion of operations, fine-tuning of project management systems and stabilisation of the core team. By the end of the quarter, the programme had added solid achievements in at least three core sectors (coffee, rive transport and mobile money), incorporated a completely new and high potential sector in access to finance, established a significant presence in all its target provinces, explored at least two new market sectors and commenced identification of potential interventions in the Kinshasa metropolis and its extensive peri-urban areas.

During the quarter it became apparent that the immediate pro-poor impact potential of the planned country-level interventions in the seeds and micro-hydro sectors, as well as rice in Equateur, does not currently justify the anticipated level of effort, leading to adjustments in the sector intervention strategies with greater focus on site-specific opportunities rather than the sector-wide approach originally envisaged.

The quarter has thus been significant on two levels: on the one hand, solid progress in several core as well as new sectors, and on the other developing agile management systems to direct resources towards areas of higher market and pro-poor potential. The programme has also benefited from greater knowledge of the underlying conditions for successful interventions, such as the required degree of private sector organisation, threshold levels of market access, value chain governance issues that are amenable to project influence, the weight of regulatory and enabling environment factors, etc. Our enhanced ability for early recognition of these determinants of success is already allowing us to achieve results more cost-effectively and sustainably. This is becoming increasingly important as we expand geographically and sectorally, drilling down in each of the provinces to develop location- and subsector-specific solutions to the entrenched poverty affecting such a high proportion of the Republic’s population.

The overall approach that ÉLAN RDC adopted during the quarter focused on: i) deepening our understanding of the sectors and provinces through research and outreach to stakeholders and market actors; ii) consolidating the relationships with market players within the programme’s opening portfolio. This has allowed us to engage more closely with the full range of programme beneficiaries and stakeholders. Our key focus has been to optimise pro-poor impact, progress towards gender parity and ensure sustainable market system change. When working with formal sector operators, who by definition are not poor, we seek to achieve prompt and measurable impact on the livelihoods of the poor that is sustained over the project lifetime. Despite initial resistance to or incomprehension of this M4P approach, robust partnerships have now been

established with key private sector operators such as boat operators, exporter associations, Mobile Network Operators (MNOs), and financial institutions, and a series of pilot projects with these partners is due to be launched early in Quarter 3.

During the quarter, ÉLAN RDC’s geographic presence across its target provinces has also been consolidated. Following the opening of an office in in Quarter 1, a second office in is due to be opened in August. In the meantime, Regional Technical Advisors have been operational in all target geographic areas, supporting existing interventions and scoping new opportunities. In order to formalise the project’s geographic engagement and ensure coherence with the core portfolio, provincial level strategies are due to be developed in Quarter 3

Sector level highlights for the quarter are as follows:

Coffee

• In a first for the industry, ÉLAN RDC hosted a workshop that brought together thirty exporters to discuss the main constraints affecting the business climate for coffee exports. This resulted in the creation of an association of exporters and cooperatives that will be responsible for advocacy. A second forum was hosted with over 80 public and private sector coffee stakeholders who openly shared information relating to the constraints they face, including the implementation of the law on agriculture (code agricole) and issues relating to taxation and access to finance. Recommendations for revitalising the coffee export sector, through streamlining of specific taxes, were the main output of the workshop.

• To respond to a need in lack of access to finance, a new financial product is being developed backed by coffee stock.

Microhydro:

• In June 2014, a new law on electricity was signed into effect by the President of DRC, which is instrumental to the liberalisation of the sector. One particular issue mandated by this law is the creation of a new ‘Agence Nationale de Service Energétique Rural’ (ANSER) – ÉLAN RDC intends to remain very close to these developments, taking on an integral role in the next stage of this critical process.

Mobile Money

• A critical milestone is the completion of the consumer study that spanned 2000 respondents and four regions. The study found that only 2% of registered mobile money users are active, and the potential of mobile money services as a saving instrument is large.

• ÉLAN RDC organized a dissemination workshop to share the findings of the report bringing together financial institutions, Mobile Network Operators (MNO’s), utility companies (SNEL, REGIDESO, CANAL SAT, Startimes), development partners involved in the sector, and CENCO (Catholic church association).

• Based on the strong belief that a consumer education strategy is fundamental to achieving greater uptake, use and buy-in for mobile money, all three MNOs involved in the mobile money sector in DRC have expressed their support for a common consumer education campaign aimed at increasing confidence in mobile money services. Weekly joint meetings were instigated this quarter between ÉLAN RDC and the three MNOs.

River Transport

• ÉLAN RDC has developed a close working relationship with the River Transport chapter of the Federation des Enterprises Congolais (FEC), which was responsible for a successful but controversial advocacy campaign that led to the abolishment in June of 38 illegal taxes. ÉLAN RDC is now engaging directly with the FEC and other representative associations to build on this success over the long term through more structured advocacy methods that result in long term gains for all parties.

• Proposals have been developed for savings group approaches to build operators’ working relationships with the financial institutions and over time access the range of financial services they require. This is a key focus area, since river transport operators are severely constrained by their lack of experience with and access to bank finance. ÉLAN RDC is also pursuing opportunities to develop specific and equity-based products tailored to the needs of the river transport sector.

• In order to address weak capacity in the crop storage sector in Equateur a pilot project was designed to support traders to build two storage facilities in Basankusu and demonstrate the benefits of greater product aggregation and increased inventory and boat rotations. The pilot will incorporate business management training and market information system development and was designed in conjunction with SNV, which has an established intervention capacity in the area that is complementary to ÉLAN RDC’s own presence in the Province.

• ÉLAN RDC also solicited proposals for new aggregation models and has selected two from a total of nine applications. These will be included in the storage, BDS and MIS pilot intervention that is due to get off the ground early in Quarter 3.

Seeds sector

• The current legislative climate governing the sector is not conducive to rapid progress on seed legislation, which has been pending for a number of years. The absence of appropriate legislation has proven to be a significant barrier to the involvement of the private sector in the production and distribution of seeds, and to the achievement of the intended market system changes.

• Commitments at the February national seed forum organised by ÉLAN RDC by seed companies and multipliers to develop a pilot project in certified seed production have not been translated into action due to the regulatory barriers to access to foundation seed and the low profitability of national seeds in the face of high quality genetic material from international seed breeders.

• These findings led to the decision to pull back from the sector for the moment, while seeking i) sector and location specific opportunities to incorporate “improved seeds and seedlings” components into our interventions in the provinces and ii) adopting a monitoring stance on the regulatory framework position.

Access to Finance has made significant strides in the last quarter and our efforts have expanded beyond ÉLAN RDC’s original sectors. A separate results chain and work plan for activities in this field are due to be finalised in Quarter 3. Key results in the quarter include:

• Memoranda of Understanding signed with four different : Bank of Africa (BOA), Rawbank, Trust Merchant Bank (TMB) and Procredit to work with ÉLAN RDC in developing financial products in the various sectors as well as for SMEs more broadly.

• Plans to strengthen the capacity of SMEs to develop solid long-term relationships with financial institutions.

New Sectors: Given that ÉLAN RDC’s opening portfolio of coffee, micro-hydro, mobile money, rice, river transport and seeds is insufficient to generate the total results expected from the programme as a whole, the identification of new sectors of intervention has accelerated in this quarter.

• Market system analyses (MSA) were finalised for the sectors of cocoa and animal feed during this quarter.

• Since the animal feed sector was found to be dominated by industrial producers, opportunities were identified for developing outgrower schemes in crops that form part of the animal feed value chain. Specific intervention plans relating to the opportunities are in the process of being developed.

• The analysis of the cocoa sector led to the identification of two potential partners, one in Equateur and one in the Kivus. Opportunities for developing these partnerships, and for leveraging existing work in the coffee sector to include cocoa are also in the process of being finalised.

• Three additional MSA were launched: palm oil, biomass (predominantly charcoal) and urban horticultural trade. The palm oil MSA focuses on the province of Equateur, while the latter two are concentrated on Kinshasa province. The results of these analyses are due in Quarter 3.

Provincial Offices: ÉLAN RDC has strengthened its geographic presence in all its target provinces. Following the opening of an office in Bukavu in Quarter 1, a second office in Lubumbashi is due to be opened in August. Regional Technical Advisors have been operational in all target geographic areas, supporting existing interventions and scoping new opportunities. Discussions with DFID’s offices during the quarter have led to the decision to establish a presence in North Kivu, which is anticipated in Q3.

Provincial Intervention Strategies: Acknowledging the regional specificity of each of the 5 provinces where ÉLAN RDC is mandated to operate, preparatory work on provincial level intervention strategies commenced towards the end of the quarter. Based on in-depth field work and close stakeholder engagement to be conducted in Quarter 3, it is anticipated these strategy documents will be integrated into a revised Programme Intervention Plan that takes fuller account of the wide diversity of the provincial contexts.

PART I: Overview of project interventions and performance tracking

1. Introduction

This quarterly report captures the progress in the programme from March till June 2014. In its second quarter of implementation, ÉLAN RDC continued to work on the full range of its activities both in sectors identified in the design phase as well as in the identification of new sectors. This includes market interventions, new opportunity assessment, expansion of operations, fine-tuning of project management systems and stabilisation of the core team.

This report is structured as follows: Part I gives an overview of the progress against workplans and new sectors. Part II presents a brief analysis of the risks at the intervention level, and Part III captures the programme staffing and operations issues. Sector workplans for quarters 3 and 4 are attached as annex 1.

2. Progress against sector workplans

2.1 Coffee

ÉLAN RDC achieved important accomplishments in the coffee sector during the reporting period. In addition to the development of intervention plans for three pilot projects, significant progress was made towards the establishment of a loan product tailored to coffee exporters, and advocacy efforts targeting tax regime reform were initiated in the form of facilitated dialogue between public and private stakeholders.

Market System Change (A): Smallholder farmers have access to improved seedlings

During the first quarter of the project, an assessment of farmer perceptions of improved seedlings was conducted, and the results of this study became available early in the reporting period. The findings of the study are critically important as they inform the nature of our interventions in this sector. Specifically, the study found that at present farmers are unwilling to spend significant sums on improved seeds, and that there is

a perception that the resulting seedlings are more fragile and more demanding to nurture. Most growers said that they first want to see the results of these seeds demonstrated in the fields before they would be prepared to invest in improved seedlings themselves.

Also during the reporting period, discussions were initiated with CAFÉ AFRICA, VECO and the Catholic University of Bukavu regarding the feasibility of developing a plan for the multiplication and sale of improved seedlings. Concrete intervention proposals from these institutions are expected at the end of July, after which a decision will be made regarding how to proceed with regards to this market system change.

Market System Change (B): Agronomic extension services are provided by exporters/processors During the reporting period, ÉLAN RDC undertook an analysis relating to possible governance arrangements for outgrower schemes. It was concluded that any new scheme introduced should be integrated as much as possible by and with existing actors with whom farmers have expressed the interest to work. To this end, a round table with the Office National du Café (ONC) was conducted. Despite the low visibility of its actions, at the provincial level the ONC remains the key regulatory body for the coffee sector. ÉLAN RDC is in the process of evaluating the most appropriate role for this organization. In Quarter 1, ÉLAN RDC launched a call for proposals in order to solicit partners (exporters, processors, seedling companies) for the development of outgrower schemes. Proposals were received from eleven companies, and after an initial screening process, detailed intervention plans for pilot initiatives are being developed with three: SOPROCOPIV (Solidarite pour la Production et la Commercialisation des Produits Industriels et Vivriers, a Butembo based cooperative), Coffee Lac, and the Kavumu Farm. It is expected that these pilot initiatives will commence in Quarter 3.

The pilot initiatives that are being developed all include a component focused on organizing farmers to participate in outgrower schemes. In the case of SOPROCOPIV, their own agronomists will be directly involved in the process of organizing producers. In the case of Coffee Lac and the Kavumu farm, on the other hand, RTC (Rwanda Trading Company, an international organisation) and IFDP (Innovation et Formation pour le Développement et la Paix, a local NGO) will facilitate this process. Once the producer groups have been established, a training of trainers will be conducted to strengthen the capacity of participating farmers to cultivate coffee. In an effort to save time and resources, existing training modules will be procured from VECO Congo (Vredeseilanden Country Office, Congo), the ONC, and Catholic Relief Services (CRS) in July. These will then be adapted to the existing knowledge and capacities of producers in the target settlement areas as appropriate.

Market System Change (C): Exporters purchase increased quantities of locally produced parchment

During Quarter 1, a market scoping study conducted by ÉLAN RDC found a need for financial products specifically adapted to the characteristics of the coffee sector. As a result, during the current reporting period the project focused on the development of a loan product backed by coffee stock. The objective of this product is to enable coffee exporters to access working capital throughout the coffee cycle, using commercial coffee as a guarantee. Such a product will complete the range of financial products already available, which include against international contracts plus immovable collateral or a letter of transport, thus increasing liquidity in the sector and enabling coffee exporters to buy more parchment from producers.

Loan systems backed by coffee stock already exist in East Africa. In order to ensure that this type of product could be viable in DRC, however, a feasibility study was necessary, including as a pre-requisite a legal assessment. This analysis, conducted in April 2014, determined that, under the OHADA framework, such a loan product could be legally developed in DRC. As such, a concept note describing the proposed product was developed, together with preliminary process maps, and these documents were shared with potential partners.

A loan product backed by coffee stock requires the active involvement of three stakeholders: exporters, bankers and collateral (coffee stock) managers. Discussions held by ÉLAN RDC with both coffee exporters and bankers in the Kivus confirmed their support for the proposed product. ÉLAN RDC then had to identify the most adequate collateral managers. While inspection companies would have been the most appropriate candidate, the only solid international inspection company in DRC, Veritas, does not support the development of such products at this time.

As an alternative, freight and logistics companies were identified as the next most suitable partner, due to their experience in warehouse management. Four local and international companies were consulted by the project: GTM, COMEXAS, TMK and Bollore Africa Logistics. Bollore declined to be involved, due to the fact that the group does not allow the management of third party stocks in what it considers to be a conflict zone. TMK also declined, citing a focus on its transportation activities. GTM and COMEXAS agreed to study the proposition, and concrete proposals and quotations are expected from these two companies in mid-July. Quotations will include both collateral management and transportation services, as collateral management service alone would not be sufficiently profitable.

Further details about the proposed loan product are available in the aforementioned concept note. Broadly speaking, however, it has been agreed that a collateral management system will be delivered, ideally at each transformation site, but bearing in mind the need to develop a system that will enable economies of scale. Moreover, for risk mitigation reasons, only commercial coffee will be put in guarantee, not coffee

parchment. The financial product will be a line of credit guaranteed by the coffee stock plus a letter of transport, in the frame of a contract with an international purchaser. The product will therefore target coffee exporters who already collaborate with international buyers, the rationale being that those who do not will first need business management training to reinforce their competences in marketing and client relationship development. It is anticipated that the proposed product will come into effect by the end of 2014.

Market System Change (D): Export tax regime is streamlined and enforced

During the previous reporting period, an assessment of the impact of the existing tax regime found that 92% of the administrative costs involved in coffee exportation are related to taxes and customs fees. Efforts this quarter then focused on initiating advocacy for tax reform through increased dialogue between key stakeholders from both the public and private sectors. To this end, an initial workshop was held in Goma in May 2014, and a larger forum in June, also in Goma.

In a first for the industry, the May workshop brought together some thirty exporters to discuss the main constraints affecting the business climate for coffee exports (primarily taxation and access to finance). During the workshop, recommendations were made regarding the reform of state services, the implementation of the law on agriculture, and proposed actions to address illegal taxes. One output of the workshop was the creation of an association of exporters and cooperatives whose management committee is charged with leading an advocacy initiative aimed at improving the business climate in the coffee sector.

Following on from this, the June forum brought together a wider range of stakeholders, both public and private, concerned with the coffee sector business climate. A total of over 80 participants openly shared information relating to the constraints they face, including the implementation of the law on agriculture and issues relating to taxation and access to finance. The forum then produced a series of recommendations for revitalizing the coffee export sector, with specific recommendations targeting each of the actors involved (line ministries, parastatal agencies, the private sector). A key output of this forum was the establishment of an advocacy working group of coffee exporters. Importantly, this group will work in partnership with a task force composed of members of the government. This ground breaking agreement between private and public sector actors to collaborate in this manner is the first step in a long term advocacy plan, and a detailed action plan for this group is due early in Quarter 3.

2.2 Micro Hydro

ÉLAN RDC’s activities in the micro-hydro sector aim to increase the incomes of poor women and men by improving access to electricity and water for productive usage, and are structured around three key market system changes: making concessions easier to obtain, making information on investments and potential returns available, and ensuring appropriate financial products are available to potential investors.

Market System Change (A): Concessions are easier to obtain

As noted in the previous quarterly report, a review of the existing governmental structures concerned with the micro-hydro sector found none that was an obvious choice for a strategic partnership aimed at rendering concessions easier to obtain. However, at the tail end of the current reporting period (17 June 2014), a new law on electricity was signed into effect by the President of DRC. This new law will be instrumental in the liberalization of the sector and will bring about institutional change, amongst other things. One change mandated by this law is the creation of a new ‘Agence Nationale de Service Energétique Rural’ (ANSER). While the next few months will be key to determining the precise nature and function of this organ, the potential exists for ANSER to play an important role in making concessions for micro-hydro installations easier to obtain.

As such, during the reporting period ÉLAN RDC continued dialogue with those institutions responsible for the establishment of ANSER: namely CÉLANSER - the unit established within the Ministère des Ressources Hydrauliques et Electricité (MRHE) to oversee the creation of ANSER - and MARGE, a consulting firm hired with funding from the European Union to support the development of the new agency. To date, MARGE has expressed interest in the idea of developing a strategic partnership between ÉLAN RDC and ANSER. The next stage in these discussions with MARGE is planned for early in Quarter 3.

It is ÉLAN RDC’s intention to stay within the centre of the developments of ANSER and the implementation of their mandate in the coming months.

Market System Change (B): Information on investments and potential returns is available

Key interventions aimed at bringing about this market system change focus on the development of investment plans, or more precisely, feasibility studies and businesses cases for micro-hydro installations. During Quarter 1, a preliminary scoping of physical sites suitable for micro-hydro

installations was conducted, and several sites with significant microhydro potential were identified in and around , Kasai Occidental. In order to develop a credible business case for investing in these sites, three strands of feasibility study are in the process of being conducted: legal, technical, and economic.

The focus of the legal study, which commenced during the reporting period, was to understand the implications of the new law on electricity for both potential and existing investors. This includes the specific processes involved in obtaining a concession and proceeding with an investment in a micro-hydro installation. While the full report of this analysis will be available in Quarter 3, what is clear is that without the active involvement of development partners and private sector actors, the MRHE does not at the present time have the resources to adequately roll out the new law. The Government is planning a workshop in September to discuss and hopefully address key bottlenecks (legal, financial and administrative) that risk holding up the application of the new law. However, the likelihood of a prolonged disconnect between the processes as described on paper in the new law and the actual practice of investing in electricity producing initiatives is likely to be significant for some time to come. This disconnect could be a substantial deterrent for some potential investors.

The technical and economic elements of the feasibility study, meanwhile, are due to be launched in Quarter 3. In order to ascertain minimum levels of potential energy production, the technical feasibility study is best conducted at the peak of the dry season, which corresponds to the end of July. Information relating to potential energy production will then directly feed into the economic feasibility study and business case development.

Once a detailed business case has been developed, a series of workshops and training sessions is planned for the second half of the year. The aim of these interventions is to disseminate information to potential investors about the technical, economic and legal feasibility of investing in the identified micro-hydro sites. At the same time, in partnership with relevant financial institutions, a matching grant scheme will be established by the project to co-fund the development of investments plans for micro-hydro sites (ultimately at a national level, but initially in Kasai Occidental and Katanga).

Market System Change (C): Appropriate financial products are available to potential investors

This market system change will be achieved by the development of financial products, put in place by financial institutions that specifically support micro-hydro investments. To this end, the economic feasibility study described above will also explore opportunities to support banks and financial institutions to gain a better understanding of the micro-hydro sector and its potential as an industry in its own right. Following

this, a series of capacity building initiatives are planned, with the aim of increasing the understanding of select financial institutions about how micro-hydro can work as a business.

In the meantime, ÉLAN RDC has identified a specific unforeseen opportunity in , Kasai Occidental, to design a financial product that will support rural and peri-urban electrification, thereby having a significant impact on farming households, as well as on the development of rural micros enterprises by poor women and men. In Tshikapa (a town with one million inhabitants) Electicité Du Congo (EDC) has over recent years rehabilitated and modernized a 1.5 MW hydropower station, including a 212 km wide electricity grid for the distribution of power in the city. However, as of May 2014, only 2,400 end-users (households and micro-enterprises) are benefiting from access to electricity as a result of this power plant. The main constraints to uptake are the population’s low purchasing power and the significant connection fees ($760), which are due to the high material costs, including those of the required pre-paid electric meter. ÉLAN RDC is in discussions with EDC about the potential for a partnership based around a micro-financing scheme that would support 5,000 households and rural micro enterprises (or approximately 30,000 poor women and men) to access the grid. A detailed intervention plan elaborating specific modalities is due shortly.

2.3 Mobile Money

In the mobile money sector, ÉLAN RDC aims to increase confidence in mobile banking, and support the development or modification of products and services that serve the needs of poor female and male consumers, working on the assumption that income benefits for such consumers will be derived through two channels: i) direct cost-savings through reduced fees, travel costs, theft and insecurity; and, ii) growth and expansion of income generating activities by poor entrepreneurs arising from time-savings and increased transactions. Early in the quarter the project finalised a consumer financial needs and behaviours study that provided information crucial for informing the interventions.

Market System Change (A): Increased confidence in M-Banking

As the first step towards increasing confidence in mobile banking, a study of consumer financial needs and behaviours was conducted in four of ÉLAN RDC’s six target provinces, namely Kinshasa, Katanga, North and South Kivu. This study, which included a total sample of 2,000 women and men, was initiated in Quarter 1 and completed during the current reporting period.

The study initially notes that in DRC, the Central Bank of Congo is the key stakeholder involved in the regulation of the mobile money environment, and that from a regulatory point of view the existing framework in DRC is one of the most favourable in Africa. The study also

found that, in a country where the banking penetration rate is amongst the lowest in the world, there were about 32,000 mobile money agents operating in December 2013, a 100 fold increase on the number of physical bank branches that exist. However, only 2% of registered mobile money users were found to be active (defined as having used mobile money services in the 90 days prior to the survey). While person-to- person transfers were found to stimulate registration, credit purchase was found to be the key stimulant of frequent usage of mobile money services. Mobile penetration amongst women was found to be significantly lower than amongst men, and a considerable need was identified for a dedicated effort to educate women mobile users. In terms of opportunities for new products, the potential use of mobile money services as a saving instrument was mentioned frequently. A great opportunity was also seen for operators to providing mobile insurance services.

Overall, the study concluded that a key communications priority must be to address the trust and reliability deficit that Mobile Money has today in the minds of Congolese consumers. It was also recommended that specific attention be put on regional media consumption specificities, and additionally that emphasis be put on attracting female consumers, as women were found to be lagging behind men in terms of understanding and usage of mobile money.

On 27 May 2014, following the release of the full study report, ÉLAN RDC organized a dissemination workshop bringing together financial institutions, Mobile Network Operators, utility companies (SNEL, REGIDESO, CANAL SAT, Startimes), development partners involved in the sector, and CENCO (Catholic church association). This forum demonstrated to all stakeholders involved in the mobile money sector that ÉLAN RDC is a serious potential partner with valuable technical expertise, and the workshop served as an important launch pad for discussions about potential future collaborative interventions.

Based on the findings of the report, a broad strategy for a consumer education campaign was developed during the reporting period. This strategy, aligned to global best practice in consumer financial education as well as to ÉLAN RDC’s sector specific intervention plan, aims to promote user trust in mobile money as a financial product and improve knowledge of how to access and use mobile money services. It encompasses a spectrum of interventions ranging from a broad national level radio campaign to specific provincial level activities that target the different needs of consumers in each geographic area: events/road show campaigns in Katanga, street marketing in Kinshasa, and savings groups in North and South Kivu.

Importantly, all three MNOs involved in the mobile money sector in DRC have expressed their support for a common campaign aimed at increasing confidence in mobile money services across the Congolese population, and to move this initiative forward, weekly joint meetings were instigated this quarter between ÉLAN RDC and the three MNOs. At the quarter’s close, efforts were underway to identify service providers

to implement the proposed consumer education campaign in line with the strategy developed. Discussions were also initiated with several church associations (representing the Catholic church, Protestant church, and local Kimbanguist church) regarding potential collaboration on large scale consumer education activities.

Market System Change (B): MNOs use appropriate strategies to reach poor consumer

The findings of the consumer survey were also crucial for the design and implementation of appropriate strategies for reaching poor consumers, and based on this a market penetration strategy is in the process of being developed. It is expected that this will be available in early August 2014. In the interim, following the dissemination forum described above, a formal request was launched for proposals from MNOs and financial institutions relating to the development of products and services targeting poor consumers. Submissions will be evaluated early in Quarter 3. Simultaneously, ÉLAN RDC has began separate discussions with each of the three MNOs involved in the mobile money sector regarding potential partnership modalities. All three are interested in pursuing a partnership with the project, and it is expected that these partnerships will be formalized in July.

Market System Change (C): MNOs have appropriate products and services to serve poor consumer needs

At the project’s outset, ÉLAN RDC’s initial assumption was that MNOs would need to develop new products and services to meet the needs of poor consumers. The findings of the consumer survey, however, indicate that many of the existing products are in fact appropriate for poor consumers, but that awareness of and trust in such services is currently low. Further, MNOs are not directly marketing to this segment either. While ÉLAN RDC has still requested the three active MNOs to bring to the table proposals on priority activities that will positively impact poor consumers, it is likely that efforts in this area will focus on the update or tweaking of existing products rather than all out development of new products. The one exception here could be insurance related products, which the consumer survey did find to be lacking. The on-going discussions with MNOs, together with the market penetration strategy that is in the process of being developed, will bring further clarity to this area in the coming quarter.

Market System Change (D): MNOs expand agent network to service poor consumers

As with Market System Change (C), specific intervention plans relating to the expansion of agent networks will be determined by on-going discussions with MNOs and the market penetration strategy currently under development.

2.4 Rice

ÉLAN RDC’s vision in the rice sector area is to increase the incomes of small scale rice producers by increasing access to improved seed and agricultural extension services, increasing demand for domestic consumption of rice from wholesalers, and rendering the tax environment more favourable. The project’s original rice sector strategy and implementation plan focused exclusively on activities in Bumba Territory (Equateur), as the origin of 60% of all rice produced in DRC. However, high potential opportunities in the rice sector have also been identified in Katanga, and as noted below, these are now being pursued by the project as well.

Market system change (A): Smallholder farmers have access to improved seed varieties

As noted in the previous quarterly report, years of market distortions have heavily affected the demand for, distribution of, and willingness to pay for commercial seed varieties. Despite the best efforts of the project, however, there is a manifest lack of interest from existing rice processors to invest in improved seed varieties, even with project support. As such, a decision was made to postpone and revisit activities relating to this market system change until Year 2, and to focus on the implementation of outgrower schemes in the meantime.

Market system change (B): Agronomic extension services are provided by rice processors

At the beginning of the reporting period, activities related to the promotion of extension services in Bumba Territory continued at pace. In April 2014, an overarching memorandum of understanding was signed by ÉLAN DRC and SOCAM, the largest rice producer in the area, expressing the intention of the two parties to work together to transform the commercialisation of Bumba rice. An operational plan and budget was developed for a pilot intervention focused on mentoring 500 smallholder rice farmers, and modules for a training of trainers were produced. The Bumba community radio was identified as an appropriate partner for the development and implementation of a sensitisation campaign focused on raising awareness about the benefits of participating in outgrower schemes.

Ultimately, however, SOCAM has dragged its feet, and at the quarter’s end has yet to formally sign on to the operational plan and budget and confirm its willingness to assume the roles and responsibilities involved. A final decision on this partnership is due early in Quarter 3. If at this point SOCAM continues to stall, the project will not expend further resources pursuing this partnership.

In the meantime, potential alternative partnerships in Katanga province were pursued during the reporting period, and a memorandum of understanding was signed with KAWACIB, a company based out of Kasomeno. KAWACIB also works with smallholder farmers using the

outgrower model, and ÉLAN RDC is considering support for training for post-harvest activities, pending positive results from the current harvest. Plans are also being developed for related activities with rice producer associations based in the Bunkeya region of Katanga province. In addition to the conclusion of productive partnerships, the formal establishment of activities in both these areas will also be dependent on a sitespecific security analysis.

Market system change (C): Wholesalers demand more consumer-grade local rice from processors

Initially, an exploratory study of the wholesale market was due to start during the reporting period. As a result of delays to upstream activities however, this intervention has been put on hold for the time being.

Market system change (D): Tax regime for local rice is improved

An assessment of the current tax system (including most notably VAT) relating to the rice sector, and a review of the impact of existing taxes on local production, was initially due to commence during the reporting period. However, this activity was delayed until Quarter 3. However, the study on the tax regime as it relates to river transporters was prioritised as it will serve as the basis for the rice tax report thus informing ÉLAN RDC as to what else in the tax regime is worth investigating.

2.5 River Transport

Whereas in Quarter 1 ÉLAN RDC’s activities in the river transport sector were predominantly research oriented, activities in the second quarter centred on the development and implementation of concrete intervention strategies. Positive steps have been initiated in relation to each of the three market system changes that the project aims to bring about: improving the tax regime for river transport, making financial products available to boat operators, and improving smallholder agricultural product aggregation.

Market System Change (A): Tax regime for river transport is improved

As planned, a study of the impact of formal and informal taxation on stakeholders in the river transport sector was conducted during the reporting period. The original scope of the study was extended to include a mapping and capacity assessment of representative bodies of river transport stakeholders. In addition, an analysis of the fuel tax (initially planned for the fourth quarter of 2014) was brought forward and included

in this tax study. The final report is due early in Quarter 3. The report will be shared with representatives of the river transport arm of the Federation des Enterprises Congolais (FEC), amongst other key stakeholders.

As noted in the previous quarterly report, the FEC is conducting an advocacy campaign aimed at reducing the number of taxes and administrative fees levied in the river transport sector. To date this campaign has resulted in the abolishment of 38 illegal taxes, by way of an inter-ministerial decree issued in June 2014. This is a positive signal for the river transport sector, indicative of the fact that constructive engagement with government can yield results. Moving forward, ÉLAN RDC intends to support the FEC to develop a strategy to ensure compliance with the decree at the national level. In addition, ÉLAN RDC will strengthen the internal capacity of the FEC and or other representative bodies of river transporters to manage advocacy activities. This will include the contestation of a further 21 taxes and administrative fees, including fuel related taxes (which constitute 60% of all taxes).

Market System Change (B): Financial products available to boat operators

During Quarter 1, ÉLAN RDC established that river transporters struggle to access both short-term working capital to pre-finance fuel costs, wages, taxes and fees, and mid-term credit to maintain and upgrade their transportation units and invest in storage facilities. As such, during the reporting period the project focused on the development of a loan product tailored to these needs.

Initially, the possibility of developing a loan product for tugboat operators was explored. Ultimately, however, it was found that the operational costs involved in insuring, controlling and tracking goods in the case of non-possessionary pledges would be extremely high, and that there was a need first to reinforce the business management skills of tugboat operators in order to strengthen the trust of banks in this category of economic operator. As such, the project has to date focused on developing the means to improve access to finance for baleiniere1 owners, as the key actors involved in the collection of agriculture goods sold in small ports located on the tributaries.

In order to best meet the needs of the baleiniere operators, an accumulating savings and credit association (ASCA), a savings-based group product with progressive commercial linkage characteristics and justifications, is being designed for operators in Kinshasa and . The ASCA will see members accessing credit derived from the association’s accumulated savings, for instance to finance maintenance costs, agricultural cargo purchases or vessel upgrades. In parallel, members’ bankability will be improved through a series of trainings focused on

1 Literally ‘whaleboats’ - wood-hulled vessels with average capacity ranging between 60 and 150 MT.

operational and strategic management and administration. To ensure that the content of the trainings is adapted to the needs of the baleiniere owners, a technical needs assessment will be conducted early in Quarter 3.

At this stage, the more conservative option of a savings group was favoured over supporting baleiniere owners to access credit from existing financial institutions due to the lack of experience of the transporters with the banking sector. The interventions described above will provide baleiniere owners with much needed capital while at the same time enabling them to develop and practice skills that will render them suitable clients to formal lending institutions in the future. In the meantime, ÉLAN RDC will continue to investigate opportunities to develop financial products tailored to the needs of the river transport sector with formal lending institutions.

Market System Change: (C) Improved smallholder agricultural product aggregation

During the reporting period, ÉLAN RDC launched a series of activities aimed at addressing the lack of stakeholder coordination and smallholder agricultural product aggregation in the Basankusu Territory of Equateur Province. Initially Basankusu traders were invited, via radio broadcast, to submit a business case to partner with ÉLAN RDC in the construction of rural warehouses in the Territory. Applicants were required to specify the location of the proposed warehouses, together with the dimensions, estimated cost, expected outreach and other related information. A total of nine applications were received, of which the best two were selected for inclusion in a larger pilot intervention that is due to get off the ground early in Quarter 3.

It is anticipated that the two successful applicants, ETS MEDARD and the Association des Commercants de Basankusu (ACOBA, a traders association) will work in partnership with ÉLAN RDC and SNV, a Dutch development NGO with considerable experience of similar interventions in Equateur, to construct two 250 MT warehouses at strategic locations selected by the traders involved. To date, land titles for these locations have been obtained (at the cost of the partners) and preparatory work conducted. Warehouse construction will be co-financed by ÉLAN RDC (70%) and the two identified partners (30%, consisting of both in-cash and in-kind contributions), and will be supplemented by warehouse management and agricultural commodity storage training.

This intervention will be implemented in parallel with the development of a broader market information system that aims to overcome the existing information constraints between traders and river transporters. The proposed system will enable traders to better coordinate and

communicate transportation needs both amongst themselves and to river transporters, thereby overcoming the overland and river transport bottlenecks that currently constrain the functioning of the market. The system will encourage large and small traders (who account for 15% and 46% of all agricultural produce traded and transported from Basankusu, respectively) to share information on the type and the amount of produce they have purchased with a designated focal point in the region who will relay this information to a network of river transport operators, resulting in improved stakeholder coordination. The focal point, who was identified by ÉLAN RDC together with the three principal business leaders of Basankusu Territory, will receive training designed to develop his capacity to collect, manage and communicate data received from the approximately 100 traders operating in the Territory. All three business leaders have also committed to participating in and championing the system among smaller traders in Basankusu. Finally, a business support unit is envisaged that will provide assistance relating to construction, management and commodity storage to interested traders prior to the first harvest of 2015.

Overall, the intervention that has been designed is projected to improve overland transport services and reduce transport costs by up to 10 USD per 100 kg of produce, resulting in improved marketability of produce from Basankusu and increased revenue at the smallholder level. If the pilot proves successful, it will be scaled up to other strategically placed towns along the river transport routes.

2.6 Seeds

During the first quarter of implementation of ÉLAN RDC, a study of the legal and regulatory framework relating to the seed sector in DRC was conducted, with a view to examining if and how private interests would be interested in the development of sustainable sources of foundation seeds. It was found, however, that legislation pertaining to seeds and seed multiplication is pending, and has been for a number of years. The absence of such legislation is a significant barrier to the involvement of the private sector in the production and distribution of seeds, and to the achievement of the intended market system changes, as indicated below. As such, ÉLAN RDC has made a decision to pull back from this sector and adopt a ‘watch and wait’ approach. Project staff will continue to engage in advocacy activities aimed at promoting the promulgation of the seed law, and relationships that have been developed will continue to be cultivated as they relate to ÉLAN RDC’s work in other agricultural sectors, but the project will not devote significant resources to this sector at this time.

Market System Change (A): Sustainable sources of appropriate foundation seeds available

During the reporting period, a study on the origins and availability of foundation seed was conducted in Katanga province (Katanga being the province where the seed industry is most advanced and where demand for certified seed is confirmed). DRC’s agricultural law mandates a provincial level advisory service focused on seeds, COPROSEM, and COPROSEM Katanga is one of the more organized and dynamic of these

provincial level services. In addition, the provincial government of Katanga has asked mine operators (many of which are based in the province) to earmark a percentage of their revenues to agricultural production in order to help solve the difficult problem of supplying the major mining towns of the province.

The study undertaken identified three public institutions involved in the local production of improved foundation seed: INERA (the National Institute for Agronomic Study and Research), the University of Lubumbashi (UNILU) and CRM (Centre of Maize Research). All three centres produce only small amounts of seed, however, and locally produced seeds do not have a strong promotional capacity in the face of competition from imported seed. Ultimately, none of the identified institutions proved to be a viable partner for ÉLAN RDC. UNILU was not interested in a potential partnership, and there is little scope for developing a sustainable means of supporting INERA.

A decision was made to focus the efforts of the project in this sector on the legislative and regulatory framework. To this end, contact was maintained during the course of the quarter with officials from the Ministry of Agriculture and Rural Development to monitor the pending legislation on seeds and plant varieties, whose filing was announced in Parliament by the Minister of Agriculture during the reporting period. However, the process of enactment of these laws is likely to be protracted. ÉLAN RDC will be developing an advocacy strategy aimed at promoting the enactment of these laws, and will maintain contact with the key stakeholders concerned. Market System Change (B): Distribution and marketing of improved seed by private seed businesses Building on the seed sector forum that ÉLAN RDC organised in Kinshasa in Quarter 1, a follow-up mission to Lubumbashi was conducted during the current reporting period to discuss opportunities for collaboration with stakeholders who had participated in this forum and who had expressed an intention to create a pilot demonstration project promoting locally improved seed varieties. Unfortunately, however, what emerged during this mission was that the stakeholders concerned do not have the technical or financial capacity to invest in demonstration activities or the production of foundation seeds. Efforts related to this market system change will not be further pursued at this time.

Market System Change (C): Increased confidence and willingness from smallholder farmers to invest in improved seeds

In line with the findings presented above, interventions related to increasing the confidence and willingness of smallholder farmers to invest in improved seed have also been put on hold for the time being.

2.7 Access to Finance

Initial analysis on access to finance conducted during Quarter 1 highlighted the following: i) Financial institutions lack knowledge about the core sectors targeted by ÉLAN RDC and consider them to be risky investment opportunities, and as such few financial services have been adapted to the needs and characteristics of these sectors; ii) SMEs targeted by ÉLAN RDC lack sufficient management capacity to meet the requirements of financial institutions; iii) SMEs lack the capacity to provide the immovable collateral and guarantees required by banks to back a loan, thereby considerable limiting access to finance opportunities.

In response to these identified issues, ÉLAN RDC has focused on developing an access to finance strategy to identify potential strategies to solve these key critical market failures. One key element of this strategy is the development of partnerships with financial institutions, and to this end four memoranda of understandings were signed in May 2014 with four different banks: Bank of Africa (BOA), Rawbank, Trust Merchant Bank (TMB) and Procredit. Discussions are also on-going with the Banque International pour l’Afrique (BIC), a bank that specifically targets SMEs. Additional discussions with the Congolese Association of Bankers were also held in April and May, but conclusions to this discussion are still pending. ÉLAN RDC also intends to reinforce its collaboration with international social lenders supporting the sectors targeted by the project, as well as local and international private equity funds and development finance institutions.

A second feature of ÉLAN RDC’s access to finance strategy is the development of financial products and services that will overcome the absence of available collateral or insufficient collateral value, a significant issue facing most growth oriented SMEs. To this end, considerable effort has been put into the creation of a credit line for coffee exporters backed by coffee stock, and the development of a credit and savings group for baleiniere operators. A legal assessment conducted in April confirmed that the development of such products would be in line with the existing Congolese legal framework, and product development is underway (see the coffee and river transport sections of this report for more details).

The access to finance strategy also focuses on the provision of information and training about ÉLAN RDC’s core sectors of interest to financial institutions partnering with the program. Activities relating to this objective will be further developed during Quarter 3. Finally, the project also intends to strengthen the capacity of SMEs to develop solid and long term relationships with financial institutions. This component of the strategy will be outsourced to an appropriately qualified service provider, and training modules will be developed in partnership with commercial banks to make sure their needs and requirements are included.

3. New sector identification and regional strategies

3.1 Overview

The identification of new intervention sectors, which has been an integral part of the project since its inception, intensified during the quarter, creating a significant new work stream with its own resource implications.

Detailed MSA were finalised for the sectors of cocoa and animal feed. In the animal feed production sector it was found that industrial producers dominated but that viable opportunities for pro-poor interventions were identified in raw material supply (maize, soya) through outgrower schemes, on which specific intervention plans are being developed. Meanwhile the analysis of the cocoa sector led to the identification of two potential partners, one in Equateur and one in the Kivus. Opportunities for developing these partnerships, and for leveraging existing work in the coffee sector to include cocoa, are also in the process of being finalised.

A complete list of the MSAs and rapid market assessments that have been completed/initiated is provided in the table below.

Table 1: New sector identification Sector Activity Next steps Equateur

Cocoa Conducted MSA; MSA identified several potential entry points. ÉLAN soliciting proposals from RDC is currently developing an i-plan with the potential partners identified partners

Palm oil Launched MSA MSA due to be completed in Q3, I-plan under development with commercial oil palm plantations Kasai Occidental

Rice Conducted rapid market In Kasai Occidental a rapid market assessment was assessment conducted. However, with the subsequent closure of a major brewery, which could have offered promising market entry points, we will need to assess further the potential for interventions in the rice value chain in this province.

Katanga

Animal feed MSA conducted Study did not identify any immediate opportunities to upgrade value chain, however, ÉLAN RDC is looking at animal feed as an off take market for maize and soy value chains.

Bio-mass MSA launched (Q3) Complete MSA and develop concept notes. (charcoal and improved cooking stoves) Rice Conducted rapid market Rapid market assessment in Katanga identified assessment potential partners and i-plans are being developed. The assessment also revealed that a deeper understanding of market dynamics is required and a MSA will be completed in Q3 Kinshasa

Bio-mass Conducted rapid Initial assessment revealed opportunities but (charcoal assessment and demonstrated a need for a deeper understanding of and launched MSA market dynamics. An MSA was launched in the end of improved cooking Q2 and has continued to Q3 stoves)

Horticulture/urban Conducted MSA MSA completed in Q3, concept note development trade underway North and South Kivu

Cocoa Conducted MSA Few immediate entry points, have decided to explore potential i-plans through coffee work rather than developing sector specific interventions at this time

Dairy Conducted rapid market Concept note being developed assessment Onions Conducted rapid market Initial study identified potential entry points, ÉLAN assessment RDC is currently developing an i-plan and concurrently deepening our understanding of market dynamics

Sector Activity Next steps Oil palm Launched MSA Rapid market assessment identified potential entry points which continue to be explored by the team

The research and partnership identification conducted this quarter enabled ÉLAN RDC to develop a more nuanced understanding of opportunities at the provincial level.

3.2 Katanga

Katanga is one of the most agriculturally developed provinces in the DRC. Consequently, the research this quarter focused more on agro- processing (animal feed) and agricultural value chains with linkages to value adding (rice, maize and oil seeds). The animal feed MSA underlined the industrialized nature of the province and in fact showed that entry points for poor farmers are limited exclusively to supplying large commercial producers with raw materials. This avenue will continue to be explored in subsequent research into the maize and soy value chains. The MSA, however, indirectly led to the identification of the potential of using contract farming methodologies (currently being developed in our coffee work) to produce inputs for feed producers among other markets. These contract farming pilots are now being developed into an i-plan.

The MSA has also led to the identification of potential opportunities with poultry producers which are currently being evaluated as part of the provincial strategy development process. Following a lead from Bralima, a rapid market assessment for rice was conducted. The assessment revealed the high potential of Kashobwe and Kasomeno, located in flood plains that permit repeated cultivation of the same land (due to nutrient replacement during flooding) and higher yields than rain-fed rice production; two benefits that contribute significantly to farmer income and reduced environmental impact. While flood plain rice production reduces the environmental imprint, massive deforestation in these areas to support the charcoal trade still remains a significant issue. A MSA was launched in Q3 to deepen our understanding of the market dynamics.

3.3 Equateur Province

Equateur Province is historically a zone of significant tree crop production; rubber, oil palm, cocoa. This quarter, ÉLAN RDC explored opportunities in the oil palm and cocoa value chains. The cocoa MSA revealed a number of interesting findings including the cartel nature of buyers, the disorganization of producers, the absence of actual farmers (most ‘farmers’ collect pods from old plantations rather than plant and manage their own plots) and the old nature of the tree stock. With an eye to short term impact on poor farmers, ÉLAN RDC is deepening its understanding of the pricing mechanisms and farmer organization dynamics and developing intervention plans (i-plans) to contextualize pilot activities.

3.4 North and South Kivu

In the Kivus, the team was looking to broaden its agricultural portfolio by researching market dynamics in oil palm, onion, cocoa and dairy. While each sector researched has potential in terms of number of poor people and potential to increase their income, the highlevels of informality and disorganization of the market make oil palm, dairy and onions more challenging sectors with uncertain probability of success. Identifying market actors that can influence change in the absence of a robust private sector will be the focus of any subsequent work in these sectors. In cocoa, as in coffee, there is a more established private sector, however, the nature of the industry constraints (mainly a need to replant and or expand land under cultivation) make it difficult to achieve short term impact on poor people. Further, while there are a few organized private sector actors, the project risks placing the success of an intervention in the hands of a few actors.

3.5 Kasai Occidental

In Kasai Occidental, rapid assessments have been conducted by our Regional Technical Advisor on a number of high value crops and products; rice, soy, fumbwa and insects. In addition, contract farming modalities have been socialized with leading entrepreneurs. Though a number of agricultural focused ideas have been explored, the disorganization of the market, the isolation of producers and the lack of a robust private

sector has made the identification of real entry points challenging. ÉLAN RDC is prioritising opportunities linked to micro-enterprise and power generation.

3.6 Kinshasa

Lastly, in Kinshasa this quarter, ÉLAN RDC has taken a close look at the opportunities available in the vast metropolis and its extensive mosaic of peri-urban settlements and smallholdings. MSAs on bio-mass and urban trade/horticulture were launched and present real promise. For example, over five million households purchase regularly charcoal in Kinshasa. The MSA revealed opportunities to both improve efficiencies on charcoal production (reducing the amount of wood needed) and reduce demand (introduction of improved cooking stoves). These opportunities are currently being developed into concept notes. Urban trade/horticulture is another sector with massive potential to impact the lives of millions of poor people in Kinshasa. The MSA has identified opportunities to improve quality and quantity of production by linking producers to both input suppliers and commercial buyers like Kitoko foods, introducing value-addition throughout the chain by processing (drying, fermenting, etc.) and improving wholesale and retail trade. These opportunities are currently being developed into concept notes. Because both the bio- mass and horticulture/urban trade sectors are overly represented by women, they present interesting opportunities to directly address women’s economic empowerment in our project.

4. Cross cutting issues

4.1 Gender and social inclusion

Gender parity is embedded into ÉLAN RDC design, and its sectoral and provincial intervention plans. Similarly, social inclusion across ethnicities and age groups is implicit in our pro-poor, regionally diversified approach. The programme’s gender specialist conducts focused gender analysis by sector and province and works closely with the market analysis, intervention and results monitoring teams. These activities help ensure adequate representation of women and minority social groups such as the vulnerable, the elderly, youth and minority groups in our sector interventions. However, the programme’s opening portfolio sectors were not selected on their potential for contribution to gender parity or social inclusion but rather on their potential for inducing sustainable market system change and income generation among the poor. This has led ÉLAN RDC to identify potential new sectors that primarily benefit women. For example, in the male dominated coffee sector in North and South Kivus that confines women to menial tasks and excludes them from most economic decisions regarding the crop, our gender analysis this quarter identified potential pilots in non-coffee crops such as vegetables and food staples. These are areas where women can enjoy a greater degree of control over revenues than in coffee, which would also benefit the wider community through increased economic opportunities and

household food security. A similar concern to develop women-focused opportunities led to our research into peri-urban horticulture in Kinshasa, oil seed processing in Katanga and agri-food processing generally. The on-going market system analysis of the trade of local products in Kinshasa, an activity largely conducted by women, is also expected to boost the support provided to women in the target areas.

5. Lessons learned and the way forward

Using new information to inform decisions:

• Information, insights and contacts from RTA’s and Regional Offices enrich our understanding of the provincial contexts and allow the development of intervention plans that respond more closely to provincial needs, opportunities and potentials, leading the way toward a more contextualised programme in the near future.

• Information that is learnt from interaction and research conducted by ÉLAN RDC needs to be incorporated and analysed to understand how best ÉLAN RDC should proceed in any particular area. A specific example where information has been used to refine or revisit our original interventions is in the Mobile Money sector where information from the consumer survey regarding mobile money contradicted original hypotheses and in actual fact, current products and network coverage are very strong, but it is the consumers’ perception and understanding that are most critical to address if ÉLAN RDC wishes to see greater uptake of mobile money.

Working with partners

One of the greatest challenges that ÉLAN RDC has faced in the first six months of implementation is the consolidation and leverage of partner organisations. In some instances, partnerships have taken protracted lengths of time to get the partners to sign on, and in some cases, have actually seen original partners withdraw from the intervention. In other cases, new partners have demonstrated interest and greater desire to participate. Partnerships are central to our strategy and ÉLAN RDC now has the insight and systems necessary to build strong partnerships under the wide variety of conditions encountered in our range of intervention sectors and geographies.

Flexibility with respect to identifying opportunities within our existing sectors in different provinces

As noted in coffee and microhydro, ÉLAN RDC has been able to expand into other geographic regions using similar strategies. This flexibility will allow the programme to leverage on successful implementation, partnerships and knowledge to reach even more beneficiaries.

Continued exploration of new sectors and opportunities

As ÉLAN RDC gathers momentum and knowledge, new opportunities are being identified regularly. These opportunities need to be investigated so that the programme can best serve the beneficiaries while also identifying the best value for money. In some instances, there may be a dire need for support and intervention, yet the risk and or investment on behalf of the programme may outweigh the potential benefit. An example where the team identified a glaring gap is that of Access to Finance – the team continues to focus within ÉLAN RDC’s focus sectors, however; the programme can leverage knowledge and partnerships built for the particular sectors in effort to achieve a wider impact.