83512 IFC Advisory Services in Sub-Saharan Africa Development impact Report 2013 Building on our Successes: Learning from Experience In partnership with: IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 1 FoReWoRD Private sector development in Africa is critical to the global effort to end extreme poverty. Africa is home to 40 of the world’s Applying lessons learned is about poorest countries, and 19 of the world’s 36 fragile and conflict IFC Advisory Services continuously affected situations as designated by the World Bank Group. Across Sub-Saharan Africa, IFC is supporting private sector growth improving, adapting and changing. in some of the world’s poorest and most fragile states. Our work Our clients, donor and finance in these emerging markets is carried out with clients in the private sector and in national governments. Together we are trying to partners in Africa and our colleagues address the continent’s enormous development needs, including infrastructure, investment climate, health, education, and access across the World Bank Group all to finance. demand this capability. In this report This second Advisory Services Development Impact Report for Sub-Saharan Africa provides a better understanding of the we seek to share the lessons we development impact and returns we are generating. After learned from our work in 2012 and publishing this report for the first time last year, a goal we set for ourselves was to pay particular attention to lessons learned and to how we try to build on our many quantify the impact of our work. successes and improve the quality and This report highlights the progress we are making in these areas, placing particular emphasis on what we have learned from impact of our work going forward. challenging projects and programs during 2012. We do this both at the request of many of our clients and donor partners, and as a way for us to accelerate learning and improve our capabilities. IFC Advisory Services, together with our Investment Services, will be critical in achieving the overall World Bank Group twin goals of ending extreme poverty and building shared prosperity. Our projects prioritize job creation which research has shown to be the surest way out of poverty for millions in developing countries. We support growth and shared prosperity through our work to strengthen businesses, improve access to finance, and deliver on sustainable development. I hope that this report will clarify how our Advisory Services programs in Africa contribute to these goals and that it provides a discussion platform for our partners on how we build on our success and improve our results in future. Jan Schwier: Regional Head, IFC Advisory Services On behalf of the IFC Advisory Services Leadership Team contentS FoReWoRD 2012 impact ReSUltS at a Glance 2 2012 oveRvieW 3 meaSURinG impact 4 continUinG oUR WoRK in tHe ReGion 5 oUR pReSence in SUB-SaHaRan aFRica 5 WHat We leaRneD FRom pRoJectS 6 cHallenGeS oF WoRKinG in FRaGile anD conFlict aFFecteD SitUationS 7 impRovinG BUSineSS enviRonmentS 8 ReDUcinG tHe inFRaStRUctURe Gap 11 incReaSinG acceSS to Finance acRoSS aFRica 13 cReatinG moRe JoBS By SUppoRtinG SmeS 15 HelpinG FaRmeRS acHieve tHeiR potential 19 2012 client SatiSFaction SURvey 21 looKinG aHeaD 22 coUntRy poRtFolio 23 DeFinition oF SelecteD inDicatoRS 24 2012 pRoJect liSt 25 2012 impact ReSUltS at a Glance This report details the results of our development activities in 2012, showing how we have leveraged our resources to support regional 105 development by focusing on: We helped African governments enact • improving the business environments through regulatory 105 laws, regulations and amendments to reforms improve investment climates • increasing private sector involvement in developing infrastructure, through public private partnerships 36 • increasing access to finance to those in need • strengthening small and medium size businesses and We supported 36 reforms in the areas of starting a business, licensing, construction support institutions permits and alternative dispute resolution • supporting agribusiness and $ $ $ $ $ • promoting climate change initiatives $ $ $ $ $181 million $ $ $ We helped save the private sector $181 oUR ReSUltS $ $ $ $ $ million through the simplification of regulatory compliance requirements Advisory Services projects completed in the region in 2012 had a Development Effectiveness rating of 72 percent. The Development Effectiveness rating is a synthesis of the strategic 27,000 relevance, efficiency, and effectiveness as measured by project We supported the creation of 27,000 jobs* outputs, outcomes, and impacts. $ $ $ $ $ The results aggregated below reflect cumulative achievements for $118 million projects active in 2012 with the exception of jobs and reforms. $ $ $ $ We helped generate sales revenues of $ $ $ $118 million 335,000 $ $ $ $1.9 Billion $ $ $ $ $ We trained 335,000 people in business $ $ $ $ $ We facilitated loans of over $1.9 billion management, loan application processes to small and medium enterprises through and procedures, as well as better farming $ $ $ $ $ financial institutions practices $ $ 15,655 $ $ $ $ 17.3 million $ $ $ $ We helped 17.3 million people receive We advised 15,655 public and access to improved services private entities on improving business environments, improving services and *Recording and measuring jobs remains a unique challenge. In response, we embarked on a jobs study with our development partners to improve our ability to consistently measure jobs. The number of jobs implementing new products we helped to create was greater in the 2012 report, as it included figures from multi-year evaluations. 2 IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 2012 oveRvieW oUR poRtFolio As of 31 December 2012, IFC Advisory Services managed a portfolio of 126 projects with a total value of over $217 million. Por tf $59.3 million Poo re s t C o untr olio a’s i es $ fric ted Situations $ $5 Total Advisory Services Program in Africa’s poorest countries A fec 18 21 Change Af limate $9 7 9. . 93.5 peRcent .2 3 C ict 6 25 gile and Confl Percentage of the Advisory Services Program channeled to $217 Africa’s poorest countries million $18.26 million Fra Total Advisory Services Program in Fragile and Conflict Affected Situations 28.8 peRcent Percentage of Advisory Services Program channeled to Fragile and Conflict Affected Situations 126 $9.25 million Total number of projects in the portfolio working with over 100 clients, (40% public and 60% private) Total Advisory Services Program in climate change related projects $217 million 14.6 peRcent Total value of projects under the portfolio Percentage of Advisory Services Program channeled to climate change projects IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 3 meaSURinG impact measuring the results of our work is critical to understanding how well our strategy is working and whether we are reaching people and markets that need our help most. Our results measurement system helps drive our strategy and monitoRinG SyStem operational decision-making. It features three mutually reinforcing Our monitoring system allows for real-time tracking of development components: the IFC Development Goals; a monitoring system to results throughout the project cycle. They track progress throughout track the performance of our projects; and an evaluation system to project supervision that allows for real time feedback into operations capture the long term impact of our interventions. until project closure. For advisory services, the overall Development Effectiveness rating is a synthesis of the overall strategic relevance, This deliberate and systematic approach allows us to track the efficiency, and effectiveness as measured by project outputs, outcomes, progress of our projects throughout their life cycle and incorporate and impacts. At project completion, intended results are compared to lessons learned into our operations, to improve future goal-setting achieved results. The Development Outcome Tracking System score and project design. It is integral to our efforts to become more is part of IFC’s corporate scorecard and cascades into department results focused and to increase transparency and accountability to scorecards and incentives for individual staff members. stakeholders. evalUation SyStem iFc Development GoalS Our evaluation strategy is focused on maximizing opportunities for The IDGs are goals for reach, access and tangible development learning. It has four main objectives that shape our evaluation work outcomes that IFC expects to deliver. The goals each have an program. Our portfolio of evaluations is selected to address knowledge annual numerical target and are designed to measure contributions gaps, learn lessons from successful and unsuccessful initiatives, assess in priority areas. They provide a framework for Investment Services, operations never before evaluated, and deliver evaluation services to Advisory Services and the Asset Management Company to interested clients. In particular, the new strategy envisions attention work towards shared goals, complementing the existing results on the poverty reduction and job creation effects of our work that measurement framework, and helping drive our strategy and typically cannot be captured by monitoring and tracking alone. decision-making. The goals enable us to link incentives to project To enhance results measurement in the region, we piloted internal results through performance awards. The IDGs measure the project validation missions. The objectives are to assess the project’s expected contribution of our projects at the time of an investment implementation progress and validate inception-to-date results, record commitment or an advisory services agreement. impact achieved and provide recommendations about what additional steps are necessary to achieve longer term results. These internal validation missions allow us to collect information on what worked and what did not, to better tell our story and feed the results into the design of the next generation of projects. 4 IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 continUinG oUR WoRK in tHe ReGion the 2012 Development impact will rise further in coming years. Our investments underscore our commitment to some of Africa’s lowest income countries and to Report highlighted a shift in how those affected by conflict. iFc advisory Services evaluates On the Advisory Services side, we worked with over 100 clients, had 126 projects, valued at $217 million, operating in 42 of Sub- projects in africa. We moved from Saharan Africa’s 49 countries. Of these projects 93.5 percent were simply looking at advisory services in low income countries and 28.8 percent were in fragile and conflict affected situations. provided and financial resources With more than 80 percent of the world’s poor projected to be allocated. We have instead sought living in fragile or conflict affected countries by 2025, the success of our efforts in these economies is increasingly important. In to determine what happened as a 2008 we launched the Conflict Affected States in Africa (CASA) result of our interventions. Initiative to support private sector growth and job creation in eight countries recovering from conflict including Burundi, Côte Between 1996 and 2012 the share of people living on less than d’Ivoire, Liberia, and South Sudan. CASA plans to expand to all $1.25 a day (at purchasing power parity) in Sub-Saharan Africa 19 conflict affected situations in Sub-Saharan Africa in its second declined from 58 percent to 49 percent according to the World phase, starting in 2013. Bank. We believe that this trend will continue thanks to increased investments that drive growth. During the past year, growth has remained robust at 5.8 percent despite oUR pReSence in a weaker global economic environment. Foreign direct investment flows to Sub-Saharan Africa held up in 2012 and are projected to hit SUB-SaHaRan aFRica record levels in the coming years, exceeding $50 billion by 2015. Much remains to be done to raise the quality of life for those who live in extreme poverty. There is significant need for greater access to energy and higher agricultural productivity in the region. Overall high economic growth rates have not yet translated into the rapidly improving living standards that other regions with similar growth performance have enjoyed. Africa’s recent robust growth was preceded by 20 years of flat and often negative growth in several countries. It is still to be seen if fast growing economies of recent years will maintain this growth and if future growth will be built on the types of productivity enhancements that are associated with rising living standards. African countries that have begun to reform their business policies have benefitted from faster GDP growth, up to three times that of non-reforming countries. Through our own assessments and external evaluations, we know that such reforms have led to a significant reduction of cost and time of doing business for private business. As such, our strategy is to encourage private sector development in the region by focusing on investment climates, entrepreneurship and transformation of key markets and industries to contribute to the dual goal of ending extreme COUNTRIES WITH ACTIVE ADVISORY PROJECTS poverty while ensuring sustainable economic growth. FRAGILE AND CONFLICT AFFECTED SITUATIONS Sub-Saharan Africa is a key strategic priority for IFC. The three areas of business: Advisory Services, Investment Services and Asset WORLD’S POOREST COUNTRIES (IDA) Management, are mutually reinforcing, delivering global expertise MIDDLE-INCOME COUNTRIES to clients in developing countries. Our ability to attract other IFC HUB OFFICE investors brings additional benefits, introducing our clients to new sources of capital and better ways of doing business sustainably. IFC LOCAL OFFICE In 2012, our investment in the region exceeded $4 billion and IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 5 WHat We leaRneD FRom pRoJectS IFC is willing to take risks to maximize development impact. This An analysis of a sample of projects demonstrates that projects means that while we might have large impact in some areas, may be affected by a combination of factors as follows: not all our projects will achieve the expected results. We strive • limited client commitment and institutional capacity to to learn from projects to better structure the next generation of implement the project interventions. • limited presence and resources on the ground • setting targets too high for the time frame selected • limited ability to adapt to constantly changing market conditions a BRieF SynopSiS oF SelecteD pRoJectS: cReDit villaGe pHone inveStment BUSineSS liGHtinG BUReaU pRoGRam ReFoRmS incUBatoR SeRviceS July 2009 – June 2012 June 2008 – October 2012 January 2007 – June 2012 June 2009 – June 2012 January 2008 – October 2012 What iFc expected: What iFc expected: What iFc expected: What iFc expected: What iFc expected: To create a viable & effective To improve access to To improve the legal framework To assist in the creation of a To increase access to private credit bureau in telephony services in Malawi & of selected countries in West fully operational ICT business affordable, cleaner and safer modern off-grid lighting Mozambique. Madagascar while promoting and Central Africa. incubator in Senegal. services in Ghana. entrepreneurship and creating What happened? jobs. What happened? What happened? What happened? The decision-making process Initially we had no local The targets were over The project targets were not of our client was centralized What happened? presence on the ground to build ambitious for the time frame achieved. Expectations were at Board level. Every decision The anchor relationships with stakeholders. selected. It is difficult to that the program would had to be endorsed by the telecommunications partner This made it difficult to move create a functioning business overcome political, economic, Board. This delayed the project experienced delays in providing the project forward. incubator in three years. social and technological from achieving key project telephone kits and technical challenges to mobilize the milestones within the agreed assistance to the program. This lessons learned: lessons learned: market for solar lanterns. time frame. impacted our ability to reach We learned that in complex We learned that the successful programs covering a number design of a sustainable lessons learned: Village Phone Operators and lessons learned: of countries, having a business incubator should We learned that it is achieve program targets. important to identify and We learned that it is important program manager to facilitate be planned for a period of provide guidelines to mitigate to assess client’s institutional lessons learned: stakeholder relationships and at least five years. This will key macro environmental capacity and decision-making We learnt that it is key to manage risk is crucial. allow for enough time to drivers and risks. This includes prior to rolling out the project. assess the anchor company’s conduct feasibility assessments, carefully assessing the rationale commitment to the project prior business model planning, and objectives when external to engagement. procurement and hiring factors could negatively affect experienced staff. the program. 6 IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 cHallenGeS oF WoRKinG in FRaGile anD conFlict aFFecteD SitUationS oUR impact in FRaGile Fragile and conflict affected situations endure disruptions to economic and social development. In Africa, there are 19 countries categorised & conFlicteD aFFecteD as FCS. Overcoming conflict is a lengthy process, subject to risks that hinder progress and require determined national leadership. Support SitUationS in 2012 from international actors can help reduce stress and contribute to restoring the development process. 9,396 Assisting FCS is a strategic priority for IFC in Africa. To promote the reform agenda, especially when political, ethnic and other We trained 9,396 people fragmentation is acute, IFC manages programs intended to create deep roots. IFC has provided a wide range of support in nearly all 1,282 African economies emerging from conflict. An initiative that manages funding for select markets is the IFC Conflict Affected States in Africa We advised 1,282 public and private entities Initiative. The CASA program contributes more than 60 percent 1,900 of our advisory spending and facilitates program activities in eight fragile and conflict affected countries where IFC is most active. IFC We supported the creation of 1,900 jobs spends almost one in three advisory services dollars in FCS. Since 2009, CASA supported programs that saw $143 million in finance $ $ $ $ $ $ $19 million facilitated for micro, small and medium sized enterprises. We have learned much from our work in states affected by conflict. We assisted in the generation of sales $ For example, significant effort is required to secure support for revenues of over $19 million investment climate reform, which involves numerous stakeholders. $ $ $ $ $ $ $ $127 million Social fragmentation endures long after conflicts and requires attention to prevent it from derailing a reform agenda. IFC often tries $ $ $ Value of loans outstanding was $127 million to act as a bridge between parties, building understanding between the public and private sectors. In many cases, this role requires intense focus on capacity building. In November of 2012, IFC held a countries affected by fragile conference with the Financial Times to discuss solutions to working in FCS with various government, private sector and private sector governments and conflict face development experts. political, security, economic and Our work in fragile and conflict affected countries often begins with environmental stresses that cannot be advisory programs to lay the foundation for investment. Working with our donor partners, we supported the adoption of 36 reforms mitigated by their weak institutions. in 2012 that were implemented in Africa. All of these reforms were in low-income countries and 20 were in conflict affected situations. IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 7 impRovinG BUSineSS enviRonmentS oUR impact on One of the most prominent examples of a fast-reforming country is Rwanda. Since 2004 the country has substantially improved inveStment climate in access to credit, streamlined procedures for starting a business, reduced the time to register property, simplified cross-border 2012 trade and made courts more accessible for resolving commercial disputes. Rwanda is becoming a hub of foreign investment and economic development that will facilitate growth in East Africa. 105 Much more can be done to enable African economies to build We helped African governments to enact a strong competitive private sector. In collaboration with 105 laws, regulations or amendments to our development partners, we are working to help African improve the investment climate governments enact reforms that foster open and competitive markets and ensure adequate protections, clearing the way for 36 the growth of a more vibrant business community. We assisted with the implementation of 36 reforms in Burkina Faso, Burundi, Comoros, Ghana, Guinea, Liberia, Sierra Case Study Leone and South Sudan centRal aFRican RepUBlic $ $ $ inveStment climate $ $ $ $ $181 million tHe cHallenGe $ $ $ We helped save the private sector $181 The Central African Republic is one of Africa’s most fragile $ $ million through recommended changes to states. Weak security, high unemployment, informal economic the investment climate activity, poor infrastructure, fragmented markets and monopolies hinder the development of the private sector. As according to the World Bank Group’s a result there is limited trust between the private and public sectors. When the program began in 2007, the Doing Business 2013 Doing Business Report, 17 of 2008 Report rated the country 177 out of 178 economies in the 50 economies making the most the ‘ease of doing business’ ranking. improvements in business regulation oUR ReSponSe since 2005 are in Sub-Saharan africa. To bridge the mutual distrust between the private and public sectors, we helped to set up a Public-Private Dialogue forum. The forum allowed the government and the private sector to better understand each other’s perspectives, and facilitated The region was recognized for having the largest number of government’s investment climate reform processes. This was reforms in the areas of property registration, access to electricity, an important milestone in the broader peace-building exercise. trade facilitation and strengthening legal rights for borrowers and lenders. Africa has the second largest number of reforms dealing Out of the forum, government implemented a series of with construction permits after Europe and Central Asia. regulatory and legal changes with our assistance. Cancelling In 2012, Sub-Saharan Africa registered almost three times the the requirements for a Professional Trader’s Card, a Criminal number of reforms of any other region in the world. Business Record Certificate and the need to pay social security taxes environment improvements were made in the areas of: business prior to registering a business, thereby allowing small registration; investments and permits; agribusiness; trade logistics; businesses to focus on competitive operations potentially property tax and health. These are all areas where IFC Advisory employing more people. Services is implementing projects across the region. 8 IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 Case Study SoUtH SUDan inveStment climate tHe oUtcome tHe cHallenGe Government implemented five reforms to improve South Sudan is a newly independent country emerging from property transfer and business registration processes. These 22 years of civil war. Since independence in 2011, South Sudan improvements reduced property transfer tax by half and has made progress in establishing peace, security and rule of law. The country has rich mineral resources such as petroleum, business registration costs by 53 percent. iron and copper. However, the economy remains one of the Much more work is still required. Once the security situation weakest, relying on oil for 98 percent of the country’s budget. improves, investment climate reforms will once again be at The weak business and investment climate continues to constrain domestic and foreign investment. The government is the fore. We have found that private sector development working with the private sector in implementing interventions can help sustain peace in fragile states. Given the ongoing to accelerate post-war recovery and build a strong foundation conflict, we will continue to evaluate our role to see how we for a private sector driven economy. can support private sector growth in the country. oUR ReSponSe leSSon leaRneD IFC has been supporting the country since 2006, providing Although we were aware of the relatively limited capacity of assistance in the areas of business registration, investment the public sector and the depth of the mistrust between the promotion, public-private dialogue and licensing. We worked public and private sectors, we did not anticipate the amount with the government and private stakeholders to develop a robust of time it would take to achieve our program objectives. Given private sector capable of driving broad based development. Our the country’s difficult history, many government officials and goals included strengthening the business registry in the capital of Juba, and creating new registration offices in three other private sector actors were not exposed to issues related to locations throughout the country and to improve the capacity private sector development and the challenges posed by a of the one-stop-shop for investment promotion. poor investment climate. The project team spent a significant amount of time training stakeholders to secure buy-in and tHe oUtcome gain traction for the reform process. Since 2010, we assisted the government in drafting, enacting, and publishing more than 15 laws, creating the Political tension led to project implementation delays. For legal foundation for commercial activities in the country. instance, parliamentary elections were held during project In addition to the already functioning business registry in implementation shifting the focus away from the reform Juba, two registries were opened in the state capital cities of agenda. We found that it was important to work with Malakal and Wau. A third is planned to be opened in Bentiu a political coalition of reform minded people. A single by December 2013. They are expected to generate significant savings to businesses by cutting travel time to Juba. government reform champion would not have been effective in bringing all key stakeholders into the reform process. The one-stop-shop for investment promotion in Juba is also expected to become fully operational and start issuing investment certificates to potential and existing investors. Thanks to the new registration processes and policies, the number of businesses registered in South Sudan since 2006 reached 28,000 by the time of publication of this report. leSSon leaRneD In South Sudan, we learned once again that fragile and post conflict countries require full time presence on the ground. Putting together a high quality team in post conflict environments is difficult but essential to the success of the project. Clients have significant capacity constraints and require more intense engagement to understand and deliver on project objectives. Sustained stakeholder relations and continuous program risk management is another key requirement. The presence of full time staff in Juba has made a material difference in achieving project milestones. Officials praised the team for providing long-term, uninterrupted support to the newly born nation, creating a foundation for business legislation activities, building capacity of government employees and introducing international best practice. IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 9 Case Study mali inveStment climate tHe cHallenGe tHe oUtcome At the time of the project Mali experienced negative outflow Between 2010 and 2012, API Mali was able to convert a of investments in agribusiness and tourism. The majority number of investor inquiries and leads into concrete projects. of investments in the country were concentrated in mining, A survey conducted by IFC in May 2012 was able to show that despite the government’s goal to diversify its economy. The $25 million in new investments were realized in agribusiness. government and private sector in Mali wanted to improve Surveyed investors confirmed that API Mali provided the investment climate to encourage entrepreneurship and significant support and helped facilitate investments. In spite increase foreign investment. of the recent political turmoil, the government has continued oUR ReSponSe to support API Mali and a new administrative division has With our support, the government of Mali was able to been created to reinforce the management of the agency. implement reforms to address the decline in investment and encourage local entrepreneurship. We assisted the In line with the government’s objective to encourage government in adopting a new investment code improving entrepreneurship, the one-stop-shop has helped to reduce the ability to attract new investment. We supported the the time to register a business from 26 days at the start of Malian investment promotion agency, API Mali [Agence pour the program to eight days by the end of the program. Mali la Promotion des Investissements au Mali], in identifying has become a regional leader and has provided institutional target sectors for investment, managing investor inquiries, support to Guinea, Comoros and Côte d’Ivoire as they set up and disseminating information to potential investors. We also their own one-stop-shops for business registration. helped the government to set up a one-stop-shop to speed up business registration. leSSon leaRneD We learned that working with government agencies and ministries early on at the project design stage was the most effective way to maintain client commitment. Engaging our counterparts early in the process helped them to claim ownership more readily. We found that working closely with deputy heads of agencies or ministries was a way to smooth the transition during periods of change at the very top: these deputies were able to act as bridges between IFC and the new ministers and agency heads when they came on board. This helped reduce delays which resulted from changes in management. 10 IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 ReDUcinG tHe inFRaStRUctURe Gap oUR impact on impRovinG A lack of modern infrastructure is a major impediment to trade and improved competitiveness in Africa. The World Bank estimates inFRaStRUctURe SeRviceS in that the region requires $93 billion in annual investment while current spending is only about $31 billion. 2012 National governments have started exploring opportunities for tapping into private financing, creating new partnerships 4 to reduce the infrastructure gap. In practice, infrastructure investments provide a range of more direct benefits to the poor Four bidding processes were conducted and underserviced people. Health services, education and skills following international best practise development provide an opportunity for people to escape from poverty and otherwise improve their lives. This often enables the 300,000 country to escape the middle income trap. We expect to improve access to services Developing infrastructure projects is one of IFC’s strategic pillars for 300,000 people in Africa. We strive to deliver landmark projects with high direct and indirect impact on the poor. We also seek to address some of the gaps and constraints in the communications infrastructure the quality of infrastructure in Sub- through policy and catalytic investments. The goal is to improve Saharan africa lags behind other the quality and delivery of services across the region, improving the daily lives of the people in Africa and helping to support regions and investment is insufficient industry and economic development. to keep pace with growing demand and rising populations. IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 11 Case Study leSotHo HealtH WaSte manaGement tHe cHallenGe tHe oUtcome The Kingdom of Lesotho has faced challenges with increasing The project prepared the groundwork for further public- pressure on its health care system because of AIDS, and private partnership arrangement in facilities management, declining resources available for health care. One of the information and communication technology, and telemedicine biggest challenges was to find a solution to Health Care at 168 health care facilities in 10 districts of Lesotho. It directly Waste Management in the country. supports the government health care reform policy, thereby conserving limited resources. When fully implemented, it will As part of the health sector reform effort, the government improve services to approximately 300,000 health care facility of Lesotho, with the support of the Millennium Challenge users at the15 pilot sites. Corporation and the Millennium Challenge Account of Lesotho, prepared a 2010 HCWM strategy to improve leSSon leaRneD national health care waste management practices. In We learned that it is important to look at two specific factors addition, the government introduced new policies, standards that improve likelihood of the project successful closing. and regulations for managing waste in the health care sector. The first factor is repeat business with the existing and past clients. We had previously completed a successful transaction The government’s next objective was to find a qualified in the same sector in Lesotho and had maintained ongoing private sector partner to develop and manage a health care relationship with the client. Our familiarity with the country’s waste management system to collect, transport, treat and political landscape and decision-making process helped dispose of hazardous medical waste at pilot facilities. This expedite the process. included infectious waste, anatomical waste, used needles and other sharp objects, and pharmaceutical, chemical and Another factor is a third party that provides capital expenditure radioactive material. The private operator would also be for the project. This pilot project was implemented in the responsible for monitoring and evaluating the system, and framework of the government’s comprehensive health sector collecting extensive data so that the ministry could make reform, supported by the Millennium Challenge Corporation/ informed decisions about the rollout of regulations and Millennium Challenge Account-Lesotho. MCC had previously standards on medical waste. refurbished the clinics, purchased HCWM transport vehicles, bins, liners and other HCWM supplies. This reduced the oUR ReSponSe financial burden on the client and made the project less We worked closely with both the ministry and MCA-Lesotho complicated and attractive to private operators. through the inception, design and implementation of the project. We prepared a financial model to estimate project costs and proposed a transaction structure. Futhermore, we assisted the government in the competitive bidding process, including the preparation of all tender documents, bid evaluation, and final selection. Participating bidders registered and participated in discussions on the tender documents. Bids were received from two suppliers; both passed the technical evaluation and both financial offers were opened and reviewed. The management agreement was signed in October 2012. 12 IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 incReaSinG acceSS to Finance acRoSS aFRica oUR impact in incReaSinG Case Study acceSS to Finance in liBeRia acceSS BanK micRoFinance pRoJect 2012 tHe cHallenGe Liberia is a post conflict country with poor basic $ $ $ $ $ $ 70,744 infrastructure, especially in transport, electricity, water, and in the financial sector. Micro and small enterprises did not have access to formal loans below $50,000. A $ $ $ Number of loans outstanding reached 70,744 combination of a weak credit culture and high default $ $ rates discourage banks from issuing loans. Global Findex $ $ $ $ $341 million reveals that only about 18 percent of adults in Liberia have an account at a formal financial institution, well below the $ $ $ Value of loans outstanding was $341 million region’s average of 24 percent. oUR ReSponSe 100,000 We are providing Access Bank Liberia with a combination of financial support and technical assistance. Access Bank is now We helped to provide index insurance one of a few commercial microfinance institutions in Liberia cover to 100,000 farmers in Ethiopia, lending to micro, small and medium enterprises. We assessed Kenya, Mozambique and Rwanda the opportunity to support Access Bank in the expansion of this new line of revenue and approved a performance based grant with a focus on training and staffing of the SME in Sub-Saharan africa less than a department, SME audit and risk management processes and IT systems customized to SME needs. quarter of the adult population has Access Bank Liberia started operations in February 2009 with access to formal financial services. the goal to improve access to finance, but faced numerous operational challenges given the weak infrastructure of the country and the difficulties in recruiting and retaining Financial inclusion is key to development as empirical evidence qualified staff. shows that improved access to finance supports broad-based tHe oUtcome growth, thereby reducing income inequality and poverty. Better As of June 2012, Access Bank Liberia serves approximately access to finance can promote new business entry, innovation and 12,000 clients, many of them women. The number of growth. Lowering financial barriers, alongside efforts to tackle deposit accounts exceeds 100,000. Most of those deposits productivity constraints, can be especially beneficial for small and consist of small balances of under $100. The SME portfolio is progressively growing, with over 130 clients borrowing medium size enterprises. between $10,000 to $20,000. IFC helps to address these challenges by providing Advisory Access Bank Liberia today employs over 400 young people, Services to microfinance institutions, commercial banks and and for the majority of them Access Bank Liberia is their first financial infrastructure agencies such as credit bureaus. We employment. While portfolio growth of the micro loans has seek to promote efficient allocation of credit, enabling access to been slower than expected, the experience of IFC in Liberia finance to support broad-based growth and inclusiveness. Private shows the importance of designing medium to long-term sector financial institutions are critical to ensure the efficient flow technical assistance in post conflict economies with extreme challenges and factoring in enough flexibility to adjust of capital. The goal is to create a financial ecosystem allowing targets to the realities of those contexts when needed. SMEs to grow and create more jobs. leSSon leaRneD We learned that it is possible to operate a commercial microfinance institution in a sustainable way. To achieve this, a long engagement with our partner is necessary in order to make this a commercially viable enterprise. We further learned that the usual time frame of three to four years for greenfield MFIs is too short in this particular market. To this effect, a follow up program to provide technical assistance to enhance their product offering is required. IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 13 Case Study WeSt & eaSt aFRica eFFicient SecURitieS maRKetS inStitUtional Development initiative tHe cHallenGe In Africa, the gap in financing infrastructure is estimated at $31 billion annually over the next 10 years according to the Public-Private Infrastructure Advisory Facility. IFC’s Efficient Securities Markets Institutional Development (ESMID) Africa initiative aims to address weaknesses of the securities market with particular focus on non-government bonds. oUR ReSponSe ESMID Africa has two projects: a regional project in East Africa covering Kenya, Rwanda, Tanzania and Uganda with a country project in Nigeria. These projects are operated in partnership with the Swedish International Development Cooperation Agency and the World Bank. We assist in simplifying regulations and procedures for issuing and trading bonds. This allows over-the-counter markets for secondary trading of bonds, clearing and settlement at national and regional level. Our objective is to improve long term local currency financing for priority sectors such as housing, microfinance and infrastructure. tHe oUtcome The program supported the establishment of a regional Securities Industry Training Institute and training of over 2000 market participants. SITI has a secretariat at the Uganda Securities Exchange and ‘campuses’ or delivery of courses done at the Nairobi Securities Exchange, Dar es Salaam Stock Exchange and Rwanda Stock Exchange. ESMID has encouraged regional economic integration and cooperation facilitating $950 million new bond issues in East Africa. The time taken to approve bond issues in Kenya and Tanzania was reduced from 270 to between 45 and 60 days respectively. leSSon leaRneD In this project we had to learn to balance our role, to lead the program with the need for stakeholder involvement in the design and construction from the start to ensure ownership. We found that greater stakeholder participation in program design ensured their support and involvement. 14 IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 cReatinG moRe JoBS By SUppoRtinG SmeS oUR impact on Small anD according to World Bank Group meDiUm SiZe BUSineSS in research, more than 200 million 2012 people are unemployed globally. the 335,000 private sector provides 90 percent of jobs in developing countries, and We trained 335,000 people in business management, banking, new business therefore plays a key role in creating laws and procedure and better farming practises new jobs. 27,000 Jobs are a key pathway out of poverty and it is therefore crucial We supported the creation of 27,000 jobs to understand the constraints that prevent business growth and the generation of jobs. Micro, small and medium enterprises are $ $ $ $ $ $ $118 million increasingly seen as playing an important role in Africa’s economic development. However, their growth is hampered by a lack of $ $ $ We helped to generate SME sales skills and access to finance and markets. revenues of $118 million IFC’s Jobs Study showed that while micro, small and medium $ $ $ $ $ $ $ $ $ $ $1.9 Billion enterprises generate the most jobs in developing countries, larger companies provide more sustainable jobs and are typically more We helped facilitate loans of over $1.9 productive, offer higher wages, more training, and support a big $ $ $ $ $ billion multiple of direct jobs through their supply chains and distribution networks. Helping to strengthen linkages to domestic suppliers and distribution networks is an effective way to reach the unskilled and reduce poverty. SMEs cannot always invest as much in training as larger companies, but training is important to help them move up the value chain to more productive activities and to grow. It is for this reason that we provided training to 335,000 people in 2012. IFC provides micro, small and medium enterprises with business management information and training to improve access to finance. We try to link small businesses to big corporations’ supply chains and help them to identify new markets for their products. We believe that this will assist them to grow and contribute to economic growth through job creation. IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 15 Case Study DemocRatic RepUBlic oF conGo Sme Development pRoGRam tHe cHallenGe tHe oUtcome Decades of war have considerably weakened the SME sector We helped 924 SMEs to access finance by training them on in DRC, which is characterized by informal trade. Asset losses how to write business plans and improving their business and years of financial distress have made access to finance skills. Over 300 loans were facilitated worth more than $8 difficult for many micro, small and medium enterprises due to million. Between 2009 and 2012, trained SMEs reported an their inability to meet banking collateral requirements. SMEs increase in sales by 44 percent and creation of 3,515 direct also face the additional challenge of limited local skills. and 5,111 indirect jobs. Business Edge training providers showed increased sales of $1.5 million. oUR ReSponSe We partnered with 19 business membership organizations to leSSon leaRneD train 2,400 micro, small and medium enterprises, enhancing We learned that getting a bank loan was a topic of interest their capacity in management, productivity, logistics and to SMEs. We therefore provided technical skills on how to ability to raise capital. Over 5,900 SME personnel (including write a business plan and other skills to assist them to meet 2,022 women) were trained using our Business Edge tools the requirements for a bank loan. This training provided and methodology. Business Edge is a World Bank Group practical value for those SMEs who were initially skeptical developed training system which strengthens management but hoped to secure loans with our partner banks to grow skills delivered by certified local trainers. their businesses. Training and capacity building was therefore The program facilitated the development of new market deemed valuable and adopted on a wider scale once we had linkages. For example, through the partnership with managed to secure their interest and illustrate value. MIDEMA - the largest flour and feed milling company in DRC, we supported more than 500 bakeries, 60 SMEs in the poultry sector and 60 distributors (mostly women). This formula proved so successful that it is being replicated in other countries. We supported SMEs to develop business plans enabling them to obtain working capital and loans for business improvements from local banks and IFC’s Private Equity Fund. An SME database has been set up to facilitate business linkages between SMEs. This web-based tool enabled progress tracking of SMEs supported by IFC and other Donor programs. 16 IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 Case Study GUinea valUe cHain linKaGeS tHe cHallenGe tHe oUtcome When the Guinea Linkages Program was developed in 2008, We assisted local SMEs in accessing financing and we small and medium size enterprises did not have the capacity teamed up with the mines and local banks to structure a to take advantage of economic opportunities created by the $100 million risk-sharing facility to further support local mining sector due to weak organizational structures, lack suppliers. of management and financial capacity, poor technical skills, difficulty in accessing funding, and lack of access to markets. The capacity of over 800 SME personnel was developed, To grow the economy, the government required assistance enabling local suppliers to receive contracts in the security, with developing an appropriate framework of policies and recruitment and construction sectors worth over $9 million incentives to encourage SME participation. from BHP Billiton, GAC and Rio Tinto. Over 700 jobs were created as a result. oUR ReSponSe Together with Rio Tinto and BHP Billiton/GAC we worked on leSSon leaRneD developing capacity of local Business Development Service We learned that finding skilled staff in conflict affected Providers and train 300 local SMEs so they could qualify for countries is difficult. The program manager was evacuated procurement opportunities within the mining sector. A database from the country three times. Nevertheless, the program of over 700 SMEs was created to facilitate procurement was able to continue as we provided support remotely with opportunities in transportation, construction, community local oversight. infrastructure, surveying, security, training and manufacturing. In fragile countries, strong consideration must be given to We also supported the development of a local procurement potential crises and contingencies should be made prior to policy for the mining sector including Rio Tinto’s “Guinea the launch of a program to ensure continuity under any Buy Local Program”, aimed at identifying potential circumstances. opportunities for local firms to win contracts in road maintenance, earthworks, transportation and supply of agricultural produce to catering firms. At the market level, the program supported the creation of a local training market in Guinea through four local consulting firms, who became Business Edge franchises in Guinea and provided training and coaching to over 100 SMEs. An enterprise center was set up to provide business services and facilitate communications between local suppliers and their clients. IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 17 Case Study cHaD, maDaGaScaR, malaWi & niGeRia villaGe pHone pRoGRam tHe cHallenGe tHe oUtcome Limited incentives such as low margins from highly dispersed In Madagascar, we partnered with a local mobile network numbers of low income customers, combined with significant to provide training to approximately 11,500 village phone infrastructure related costs are challenges faced by mobile operators on phone usage, equipment maintenance, basic accounting, selling logbooks and marketing, expanding telephone network operators in rural areas. For people living the country’s Village Phone Operator network. The project in these areas, a lack of connection is a barrier to participation inspired a similar program by another mobile network in the formal economy. In some countries with mountainous operator in the country. or otherwise challenging terrain, mobile telephone network operators are reluctant to continue expansion of networks, In Chad, the Village Phone Program trained 200 VPOs which limits interest in purchasing mobile phones, thereby to install Village Phone kits. In Malawi, the Village Phone constraining further growth of mobile telephone networks. Program trained approximately 1,350 VPOs, facilitated financing, provided business support and equipment. oUR ReSponSe In Nigeria 20,000 micro-entrepreneurs and community We supported access to telecom services to the people of phone operators received training, financing, technical, and Chad, Madagascar, Malawi and Nigeria through the Village business support. While more than 9,100 operators started Phone Program. The program provided underserviced rural their own businesses, potentially benefiting over five million communities with communications services where it was not people living in rural communities across Nigeria’s 33 States economically viable to establish network towers to extend and generating revenues of $3.9 million. full coverage to these areas. leSSon leaRneD Village Phone is a starter-kit containing a fixed wireless We learned that the program was most effective when phone with a GSM antenna and a solar charger for areas there was continual engagement with senior managers with poor network signals and unreliable electricity supply. of the mobile network operators. When top management Village Phone Operators sell phone usage on a per-call basis was fully engaged, the program worked best and expanded the most quickly. Some of the mobile phone network and villagers access communication services that can be operators experienced a change in ownership; this made turned into a business opportunity. In some countries, Village the implementation of the program more challenging. Phone Operators provided additional services including Along with managerial change, the mobile network mobile internet and mobile money. To facilitate the service, operators had to contend with a variety of new issues like village entrepreneurs obtain financing from microfinance new competition and changes in market conditions. There partners and credit terms from the program’s mobile network were also difficulties in reaching active and potential VPOs operator partners. in rural and remote locations. 18 IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 HelpinG FaRmeRS acHieve tHeiR potential Case Study ZamBia emeRGent FaRmeRS pRoGRam tHe cHallenGe The government of Zambia is focused on reducing its dependency on mineral resources by developing its agribusiness sector, thereby improving the country’s ability to handle economic shocks related to volatility in metal prices. The government has identified two key constraints to agribusiness development: low productivity and lack of access to finance for the emerging farmers. These are oUR impact in agricultural producers with revenues of between $10,000 to $100,000 per year. These farmers have the potential to aGRiBUSineSS rapidly increase agricultural exports while providing new jobs and stimulating growth in the economy. in 2012 oUR ReSponSe We worked with Zambia Emerging Farmers Program, Zambia 141,000 National Commercial Bank, Zambia National Farmers Union and Rabo International Advisory Services. Contributions of We trained 141,000 people through our partners included the provision of both working capital workshops, seminars, conferences and and investment finance by Zanaco and financing of technical other training events assistance for farmers and bank credit officers by Rabo $ $ Foundation and IFC. $ $ $ $ $5.5 million tHe oUtcome $ $ $ We helped facilitate loans of $5.5 million The project facilitated financing to participating farmers to farmers in Ethiopia and Zambia who significantly increased productivity thanks to improved skills, better fertilizers, and other services. Dairy farmers, for example, increased their productivity by an average of agribusiness in many african countries 70 percent due to a combination of access to better breeds, employs over half of the population financing received from Zanaco and technical advice from ZNFU’s Dairy Association. ZNFU negotiated an annual order and is a key contributor to the of 50,000 million metric tons of maize from the Food continent’s gross domestic product yet, Reserve Agency, providing access to a reliable market for the bulk of its membership. less than one percent of commercial lending in africa goes to agriculture. The project facilitated 61 loans to the 181 participating emerging farmers worth $4.8 million. Of these loans, 59 were to individual emerging farmers and two to cooperatives A lack of favorable regulatory policies and factors such as water of farmers. scarcity, climate change, and rising levels of soil degradation have also put pressure on resources. Africa’s agricultural productivity is leSSon leaRneD the world’s lowest, yielding one quarter of the global average. As We learned that a comprehensive approach combining more African countries realize the importance of the agribusiness access to finance, markets, inputs and advisory services sector and the need to encourage more private sector involvement, is necessary when considering interventions to support there are large-scale opportunities to implement targeted advisory farmers. When combined, these services make a significant services programs to develop the sector. impact on farmers’ productivity. Non-financial services provided to farmers also help lower the risk to financial The agribusiness sector is a strategic priority for IFC in the institutions and enable them to lend to the farmers. region. We seek to improve the regulatory framework governing agribusiness to enhance overall competitiveness of the region. We have a tailored approach to local markets focusing on: standards, resource efficiency and supply chain investment. IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 19 Case Study Kenya & RWanDa GloBal inDeX inSURance Facility tHe cHallenGe tHe oUtcome Sub-Saharan Africa is one of the most vulnerable regions in Kilimo Salama insured over 50,000 farmers in Kenya against the world to climate change. Many countries are prone to drought, flooding, and diseases with several types of index increasingly frequent droughts and floods. These events are products covering five main crops and dairy cows. In 2012, cyclical, and are thought to be linked to climate change. Kilimo Salama launched index products in Rwanda, insuring The impact of these shocks on already vulnerable smallholder nearly 40,000 farmers and targeting to reach over 300,000 agribusinesses is often severe. Insurance is therefore a critical farmers in three years. requirement for development, as uninsured losses can lock Through index insurance, the loans received from financial farmers in vicious cycles of debt and loss of productivity. Yet institutions are now protected against weather-related insurance providers in developing regions rarely offer the defaults resulting from drought or excess rain in these hazard insurance familiar to industrialized countries. countries. It is therefore expected that following the oUR ReSponSe program’s success in Kenya and through its expansion into IFC, in collaboration with the World Bank, created the Global Rwanda, the index insurance protection could lead to more Index Insurance Facility to support the development of index funding and investment for farmers. insurance markets in developing countries. In countries like Kenya and Rwanda where GIIF operates, farmers are now in leSSon leaRneD a position to protect their income, gain access to financing, We learned that for commercial sustainability insurance improved inputs like certified seeds and receive technical should cover all levels of farmers, large, medium, and small assistance to help them improve production. scale farmers. The project revealed that the value insured per farmer is equally as important as the number of farmers In 2010, GIIF provided a grant to the Syngenta Foundation for insured as this determines the commercial viability of the Sustainable Agriculture to pilot an index insurance product in Kenya called Kilimo Salama (or “safe farming” in Swahili). products. Initially it was assumed that only the total number The pilot began with 185 farmers who could insure as little of farmers insured would be the key determinant of the as one bag of maize seed. Policies and claim payments were project’s success or failure. Insurers generally prefer to have transferred over mobile phones. Kilimo Salama’s agricultural a small number of farmers with larger values insured, as insurance program was a global first to reach smallholder this generates higher premium volumes making the project farmers using mobile technologies. more commercially viable. 20 IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 2012 client SatiSFaction SURvey IFC conducts an annual global survey of its Advisory Services clients to better understand how we are performing and how we can better serve our clients’ needs. An independent survey firm contacts clients who have received at least $25,000 of advisory services for projects which have been active for at least 1.5 years. The survey is sent to both private firms and government agencies, with modifications to the questionnaire for each type of client. The survey inquires about the quality of our services, the timelines and clients’ overall experience working with IFC Advisory Services. We also want to hear from clients about our strengths and weaknesses, especially compared to other providers of technical assistance. We also seek to understand where clients’ future needs lie and how they believe IFC Advisory Services can support them. This is what they had to say about our work in 2012. iFc peRFoRmance on SpeciFic aSpectS oF SeRviceS Global experience and knowledge 51 43 Understanding the industry/sector 35 56 2 technical competence 42 47 Working effectively with all players involved in the project 38 41 8 communicating clearly and convincingly 32 42 8 effective follow-up activities after the project 20 52 3 identifying key issues, project design/planning 25 42 5 Delivering the project when it was most needed 15 51 8 Understanding local conditions 21 44 9 Delivering the service according to an agreed schedule 20 41 12 Responsiveness to your needs and concerns 27 33 11 Flexibility to adapt products, processes, and requirements to your organization 17 38 17 Building the expertise of your organization 12 42 12 excellent Good Fair SatiSFaction Rate BReaKDoWn - SUB-SaHaRan aFRica ReGion access to Finance investment climate public-private Sustainable Business total partnership advisory n* % n* % n* % n* % n* % the quality of iFc’s service 20/22 91 6/6 100 3/3 100 33/35 94 62/66 94 the timeliness and responsiveness of iFc’s service 16/22 73 6/6 100 3/3 100 27/35 77 52/66 79 the overall work completed 16/22 73 6/6 100 3/3 100 31/35 89 56/66 85 n* = number of clients Satisfied of the total number of Respondents IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 21 looKinG aHeaD IFC Advisory Services will deepen its commitment to clients in Africa In the medium-term, we also have a very specific task to help and contribute its share in achieving the overall World Bank Group deliver proper enabling environments and policies that further twin goals of ending extreme poverty and building shared prosperity. promote and accelerate job creation, especially as it addresses the growing concern in Africa around youth unemployment. With We will be placing particular emphasis on further expanding youth accounting for 60 percent of all African unemployed and a our work in fragile and conflict affected situations, where IFC growing repository of evidence that links lack of jobs to potential aims to increase both advisory and investment activities by 50 political violence and civil unrest, this will be an important focus percent. We also aim to deepen our ability to help our private area for us in the future. sector and government clients achieve large scale transformative change and development impact. Our sector focus will remain in Our impact will be expanded through: infrastructure development, agribusiness and food supply chains, as well as SME growth and work with intermediaries to encourage • Further increasing our footprint and ability to work in fragile entrepreneurship. and conflict affected situations, with an increased focus on investment generation; We will continue to work closely with our investee clients to • Sharpening our focus on working with clients to achieve promote financing, increase technical skills for small and medium large scale and transformational development impact; size enterprises and productivity along their value chains. We are seeking big solutions to big challenges, such as helping connect • Strengthening the alignment with IFC Investment Services the more than 500 million people in Africa without electricity and, to better leverage our joint services and align our client therefore, deprived of the most basic economic opportunities to offerings; build a better life. The quality of infrastructure in Sub-Saharan • Deepening the engagement with major partners, continuing Africa lags behind other regions. This is a major impediment to to build on long-term strategic partnerships and building trade and competitiveness. We will work with our clients and new ones with targeted foundations and corporate; partners to continuously reduce the infrastructure gap. • Continuing our focus on projects that have the potential to Over and above our existing programs in the agribusiness sector, we mitigate the effects of climate change and build communities will focus on efficient water usage by building agricultural productivity more resilient to climate change; through micro-irrigation, improved drainage and other technologies • Expanding our work in gender and inclusive business. to help conserve this increasingly scarce but vital resource. IFC helped 335,000 people in Sub-Saharan Africa receive business There are six IFC Development Goals: agribusiness, health and training in 2012, more than double the 189,000 we helped train education, financial services, infrastructure, climate change, and in 2011. Despite this, there are millions more seeking knowledge economic growth. In 2012, IFC introduced a seventh IDG on trade and capacity building so they can launch businesses or improve and regulatory services, which will be piloted and tested in 2013 and expand existing operations. We will, therefore, continue and 2014. The selected goals represent sectors of clear development our training efforts in in business management, banking, new need where IFC can make a difference, areas of strategic focus, and business laws and procedures as well as better farming practises. areas where IFC can meaningfully measure results. iFc in SUB-SaHaRan aFRica’S contRiBUtion to iFc’S Development GoalS (Fy13) iDG name iDG contribution target iDG progress % 1. Increase or improve sustainable farming opportunities 325,482 273,000 119% 2. Improve health and education services 426,000 - - 3a. Increase access to financial services for Micro Finance Clients 13,894,418 9,317,000 149% 3b. Increase access to financial services for SME Clients 65,768 172,300 38% 4a. Increase or improve infrastructure services - Utilities 7,926,708 4,870,000 163% 4b. Increase or improve infrastructure services - Transport - 115,000 - 4c. Increase or improve infrastructure services - Telecom - 690,000 - 5. Greenhouse Gas emissions reduced 1,135,619 270,000 421% 22 IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 coUntRy poRtFolio coUntRy nUmBeR oF pRoJectS total FUnDS % total Africa Region 13 51,576,741 24.8 percent Angola 0 0 Benin 2 2,744,640 1.3 percent Botswana 1 780,000 0.4 percent Burkina Faso 3 4,898,480 2.4 percent Burundi 2 2,772,379 1.3 percent Cameroon 2 1,397,000 0.7 percent Central African Republic 0 0 Chad 1 326,420 0.2 percent Comoros 2 2,816,475 1.4 percent Congo, Democratic Republic of 4 7,351,006 3.5 percent Côte d’Ivoire 1 1,090,000 0.5 percent Eastern Africa Region 3 14,980,296 7.2 percent Ethiopia 3 3,854,800 1.9 percent Ghana 7 8,659,675 4.2 percent Guinea 3 7,253,106 3.5 percent Guinea-Bissau 1 1,789,738 0.9 percent Kenya 15 25,562,033 12.3 percent Lesotho 3 4,340,330 2.1 percent Liberia 6 7,233,909 3.5 percent Madagascar 1 505,709 0.2 percent Malawi 2 717,000 0.3 percent Mali 2 3,728,325 1.8 percent Mauritania 1 1,665,776 0.8 percent Mauritius 1 1,239,462 0.6 percent Mozambique 3 3,405,000 1.6 percent Namibia 0 0 Niger 1 1,336,763 0.6 percent Nigeria 8 10,205,853 4.9 percent Rwanda 5 13,276,829 6.4 percent Senegal 2 1,488,000 0.7 percent Sierra Leone 3 1,767,829 0.8 percent South Africa 4 4,798,442 2.3 percent Tanzania 3 1,405,884 0.7 percent Uganda 6 6,783,533 3.3 percent Western Africa Region 1 2,400,000 1.2 percent Zambia 4 4,016,629 1.9 percent IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 23 DeFinition oF SelecteD inDicatoRS This subset of the indicator above measures the number of entities that received a tailored Number of entities receiving in-depth advisory services program of support, including one-on-one consulting and mentoring services. We track, through head counts and sign-in sheets, the number of individuals (including Number of participants in workshops, training events, trainers) that participate in these event categories. The indicator includes repeat seminars, conferences, etc. participants and those participating in events run by our clients and project partners, but excludes those run by project-trained entities. Number of workshops, training events, seminars, The number of events that have resulted from our projects, including those run by clients conferences, etc. and project partners. Represents a stock figure at a given point in time that usually measures supply of credit at Number of loans outstanding the end of the period. Value of outstanding loans ($) Represents a stock figure at a given point in time that measures the value of credit. Number of recommended laws/regulations/amendments/ Count the number of recommended laws/regulations/amendments/codes enacted by the codes enacted relevant legislative or administrative body. Tracks the estimated number of individuals who have economically benefited as a direct Number of jobs supported result of our projects, which could accrue from new employment, higher wages, and access to new markets. The number of people served by a private operator, including those benefiting from access or from improvement to the service. Measurements are made during the full operational Number of people receiving access to improved services phase. The count includes annual enrollment for the education sector, annual number of (real/non-financial sectors) patients for the health sector, and number of connections multiplied by average household size for utility distribution projects. For utilities without distribution networks, it counts the amount in consideration divided by the average consumption level. Sales revenue is calculated using the incremental difference in sales revenue ($) for project- Sales revenue ($) relevant entities and revenue streams. These include Business Edge training and SME revenues generated through our linkages projects. Measures the aggregated cost savings for businesses resulting from administrative Value of aggregate private sector savings from procedures, policies, and practices that were improved or eliminated, and resulting from recommended changes ($) legislative regulation and amendments. Results are calculated during the project period. Number of reforms as measured by Doing Business and Tracks the number of Doing Business and Investment Climate Reforms in project Investment Climate Business Line jurisdictions. 24 IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 2012 pRoJect liSt Fragile & investment Health & country project name conflict affected entrepreneurship infrastructure agriculture climate change climate education Situations Africa Region Africa Investment Climate Power Project * * Africa Region Africa Microfinance Knowledge Management * * Africa Microfinance Advisory Services Program Africa Region Management * * Africa Mobile Financial Services Knowledge Africa Region Management * Africa Mobile Financial Services Program Africa Region Management * Africa Region Africa Life Insurance & Pensions * Africa Region Conflict Affected States in Africa Initiative * * * * * * Africa Region Doing Business Reform Sub-Saharan Africa * Africa Region Lighting Africa * * * Africa Region Base of Pyramid Strategy Support in Africa * Africa Region SME Management Solutions Africa * * * Africa Region Health#2 - Knowledge Management * Africa Region Africa Leasing Facility * * Benin Health PPP * * Benin Water Sanitation Program Botswana Africa MSME Technical Assistance * Burkina Faso Primary Mortgage Market Initiative * Burkina Faso Investment Climate Reform Program * Burkina Faso Trade Logistics * Burundi Africa MSME Technical Assistance * * Burundi Credit Reference Bureau - Phase 1 * Burundi Investment Climate Reform Program * * Cameroon CommDev FEDEC Cty Invest * * Cameroon EB-Accion CMR TA * Central African Africa MSME project * * Republic IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 25 Fragile & Investment Health & Country Project Name Conflict Affected Entrepreneurship Infrastructure Agriculture Climate Change Climate Education Situations Chad Village Phone Program * * * Comoros Télécom Privatisation * * Investment Climate and Leasing Reform Comoros Program * * Congo, Democratic Advans Banque Congo * * Republic of Congo, Democratic Africa MSME Technical Assistance * * Republic of Congo, Developing a Framework for Special Economic Democratic Zones * * Republic of Congo, Democratic SME Development Program * * Republic of Cote D'Ivoire Advans CI TA * * Eastern Africa East Africa Community Investment Climate Region Reform Program * Eastern Africa East African Community Investment Climate Region Phase 2 * Eastern Africa Efficient Securities Markets Institutional Region Development - East Africa * Ethiopia Access to Finance for Producers/Farmers * * Ethiopia Ethiopia Business Forum * * Ethiopia CIC Project * Ghana Africa Credit Bureau Program 2 * Ghana Africa MSME Technical Assistance * Ghana Collateral Reform * Ghana Health in Africa Initiative Advisory Services * Ghana Health PPP * * Ghana Lighting Africa * * Round Table for Sustainable Palm Oil Ghana Certification * * * * Guinea Business Regulation * * Guinea Linkage Program * * * * Rio Tinto - TA & Local Supplier Development Guinea Project * * * * Guinea-Bissau EAGB PPP * 26 IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 Fragile & Investment Health & Country Project Name Conflict Affected Entrepreneurship Infrastructure Agriculture Climate Change Climate Education Situations Guinea-Bissau Investment Climate Reform * Africa MSME Technical Assistance Bank of Kenya Africa * Kenya Clean Cooking for Africa * Climate Change Investment Programme in Kenya Africa * Kenya ECOM * * Kenya International Livestock Research Institute * Kenya Health in Africa Program * * Kenya Investment Generation Program * Kenya Kenyatta University Student Hostel PPP * * Kenya KMIP * Kenya Lighting Africa * * Private Equity Africa Climate Change Kenya Investment Support * Kenya Sanitation & Safe Water for All * * * Syngenta Foundation for Sustainable Kenya Agriculture * * Kenya Trade Logistics * Kenya Utility Efficiency in Africa Program * Lesotho Tourism PPPs * * Lesotho Wind Power PPP * * Lesotho HealthCentres * * Liberia Access Liberia * * Liberia Africa Schools * * * Liberia Investment Climate Advisory Services Phase 3 * * Liberia Liberia Trade 2 * * Round table for Sustainable Palm Oil National Liberia Interpretation * * * Liberia Venture SME Management Solutions * * Madagascar Village Phone Program * * Malawi Secured Transactions and Collateral Registries * IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 27 Fragile & Investment Health & Country Project Name Conflict Affected Entrepreneurship Infrastructure Agriculture Climate Change Climate Education Situations Malawi Village Phone * * Mali Investment Climate Reform Program Phase 2 * * * * Mali Kenie Hydro Project * * Mauritania Concession of Nouakchott Container Terminal * Mauritius Mauritius Ports * Mozambique Africa MSME Technical Assistance * Mozambique Guy Carpenter & Company * Mozambique Investment Climate Program * Niger Niger Port * Nigeria AB Microfinance Bank * Nigeria Advans Nigeria Microfinance Bank * Nigeria Africa MSME Technical Assistance * Efficient Securities Markets Institutional Nigeria Development (ESMID) - Nigeria * * Nigeria Ekiti State Health PPP * * Nigeria MicroCred Microfinance Bank Nigeria * Nigeria Corporate Governance Program * Nigeria Cross River State Hospital PPP * * Nigeria National Health Insurance Scheme * * Rwanda Kigali Bulk H2O * Rwanda MicroEnsure LLC * Rwanda Entrepreneurship Development Program * Rwanda HF Market Study * Rwanda Investment Climate Reform Program * Senegal Fides Senegal * Senegal infoDev-SN-Incub * 28 IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 Fragile & Investment Health & Country Project Name Conflict Affected Entrepreneurship Infrastructure Agriculture Climate Change Climate Education Situations Sierra Leone Africa MSME Union Trust Bank * * Roundtable for Sustainable Palm Oil National Sierra Leone Interpretation * * * * Sierra Leone Credit Bureau Project - Phase 1 * * Venture SME Management Solutions, Sierra Sierra Leone Leone * * South Africa AREAS South Africa * Cleaner Production Advisory Services South Africa Programme for South Africa * Climate Change Investment Programme in South Africa Africa * WIZZIT Replication, Expansion and Capacity South Africa Building * South Sudan Investment Climate Reform Program Phse 2 * * Tanzania Africa Credit Bureau Program 2 * Tanzania Africa MSME Technical Assistance * Tanzania EBFP - Boundary Hill Lodge Limited Uganda Africa Schools * * Africa MSME Technical Assistance Bank of Uganda Africa * Uganda Kampala Waste Management PPP * * Uganda Nyagak III * Uganda Health in Africa Initiative Project * Uganda Investment Climate Program * Western Africa Region Planet Guarantee * * Zambia AB Bank Zambia Limited TA * Zambia Africa MSME Technical Assistance * Zambia Investment Climate Rapid Response * Emergent Farmers Finance and Support Zambia Program * * Zambia Investment Climate Program II * IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013 29 14 Fricker Road, Illovo 2196 PO Box 41283, Craighall 2024 Johannesburg, South Africa Tel: +27 11 731-3000 Rue Aime Cesaire x Impasse FN 18 PO Box 3296 Dakar, Senegal Tel: +221 33 859-7100 CBA Building, Mara/Ragati Road, Upper Hill PO Box 30577, 00100 Nairobi, Kenya Tel: +254 20 275-9000 www.ifc.org/africa Stay Connected www.facebook.com/IFCAfrica www.twitter.com/IFCAfrica 30 IFC Advisory Services in Sub-Saharan Africa Development Impact Report 2013