FINAL REPORT VOLUME I – MAIN REPORT Independent Review of the Investment Climate Facility for Africa Prepared for the Investment Climate Facility for Africa March 2013 Independent Review of the Investment Climate Facility for Africa – Final Report Table of Contents Executive Summary ................................................................................................................................... i 1. Introduction .................................................................................................................................. 1 1.1 Context and Objective of the Study ............................................................................................................... 1 1.2 Context of ICF........................................................................................................................................................ 1 1.3 Structure of the Report ...................................................................................................................................... 2 2. Methodology and Work Undertaken ............................................................................................... 3 2.1 Methodology of the Review ............................................................................................................................. 3 2.2 Work Undertaken ................................................................................................................................................. 6 3. Analysis of ICF at Project/Programme Level ..................................................................................... 7 3.1 Project Cycle - Initiation to Impact Assessment ........................................................................................ 7 3.1.1 Overview .............................................................................................................................................. 7 3.1.2 Origination .......................................................................................................................................... 8 3.1.3 Initial Screening ................................................................................................................................ 9 3.1.4 Due Diligence ..................................................................................................................................... 9 3.1.5 Board of Trustees Approval .......................................................................................................... 10 3.1.6 Project Agreement .......................................................................................................................... 10 3.1.7 Implementation ............................................................................................................................... 11 3.1.8 Completion ....................................................................................................................................... 12 3.1.9 Impact Assessment ......................................................................................................................... 12 3.1.10 Comments ......................................................................................................................................... 14 3.2 ICF Portfolio Analysis ........................................................................................................................................ 14 3.2.1 Analysis of ICF Applications Tracker ......................................................................................... 15 3.2.2 Portfolio ............................................................................................................................................. 18 3.3 Field Visits Synthesis ......................................................................................................................................... 20 4. Evaluation of ICF at Facility Level ................................................................................................. 27 4.1 Origin and History .............................................................................................................................................. 27 4.1.1 ICF’s Creation.................................................................................................................................... 27 4.1.2 ICF - a Unique Tool for IC Interventions ................................................................................. 28 4.1.3 ICF as Part of the IC Scene ........................................................................................................... 29 4.1.4 Issue of ICF’s Continued Existence ............................................................................................ 29 4.2 Governance .......................................................................................................................................................... 31 4.2.1 ICF’s Institutional Structure ........................................................................................................ 31 4.2.2 Governance of ICF .......................................................................................................................... 32 4.2.3 Institutional Relationship with Contributors ........................................................................ 34 4.2.4 Institutional Issues for ICF’s Continued Existence ............................................................... 35 4.3 Organisational Structure and Staffing ........................................................................................................ 35 4.3.1 Staffing Levels ................................................................................................................................. 37 4.3.2 Comments ......................................................................................................................................... 38 4.4 ICF Objectives and Strategy ............................................................................................................................ 39 4.4.1 Evolution of ICF’s Strategic Orientation .................................................................................. 39 Independent Review of the Investment Climate Facility for Africa – Final Report 4.4.2 ICF’s Strategic Positioning as it Impacts Project Selection ............................................... 42 4.4.3 Comments on ICF Strategy and Strategic Evolution ........................................................... 45 4.5 Efficiency and Value for Money (VfM) ........................................................................................................ 46 4.5.1 Comments On Efficiency and VfM ............................................................................................ 47 4.5.2 Benchmarking .................................................................................................................................. 50 4.5.3 Comments on and Ranking of ICF Efficiency ........................................................................ 51 4.6 Funding .................................................................................................................................................................. 51 5. Conclusions ................................................................................................................................. 53 5.1 General Conclusions .......................................................................................................................................... 53 5.2 KQ1: Have the Right Things Been Done? (DAC Relevance) .................................................................. 53 5.3 KQ2: Have Things Been Done Well? (DAC Efficiency, Effectiveness) ................................................. 55 5.4 KQ3: What Results Have Been Achieved? (DAC Effectiveness, Impact) ............................................ 56 5.5 KQ4: How do the Results Compare with an Alternative Intervention to Achieve the Same Objective? (DAC Relative Effectiveness, Impact, Cost/Effectiveness) ................................................ 58 5.6 KQ5: How Could Things be Done Better in the Future? Are the Results Sustainable? (DAC Sustainability) ...................................................................................................................................................... 58 6. Recommendations ....................................................................................................................... 60 6.1 Principal Recommendation ............................................................................................................................. 60 6.2 Independence ...................................................................................................................................................... 60 6.3 Strategic Plan post 2014 ........................................................................................................................................ 60 6.4 Board of Trustees ................................................................................................................................................ 61 6.5 Project Origination and Processing .............................................................................................................. 61 6.6 Project Implementation ..................................................................................................................................