IFC’s Conflict Affected States in Africa Initiative Final Report for CASA’s First Cycle (2008 – 2013) ifc advisory services in Africa (PEP AFRICA) Cover photo: Vegetable stall owner Salifou Bizo, a client of IFC partner MicroCred in Cote d’Ivoire This report was produced by Jason Hopps and Gregor Pfeifer from IFC’s Communications Team with invaluable support from the following: Colin Shepherd, Michel Botzung, and Markus Scheuermaier from CASA; Eva Bakonyi from IFC’s Donor Relations Team; and CASA’s country coordinators Oulimata Sarr, Tite Demba, Fatma Hervieu-Wane, Babacar Faye, Eric Mabushi, Kobina Daniel, Mahamoud Magassouba, Frances Gadzekpo, and Zahia Lolila. Editorial support: Bill Corcoran Design and layout: ITL Communication & Design IFC is committed to transparency and business, proprietary or other non- accountability, which are fundamental public information provided to IFC by to fulfilling its development mandate. its clients or third parties without the In January 2012, IFC launched its prior consent of such clients or third new Access to Information Policy (the parties. This approach is consistent with “Policy”), which is available on IFC’s the practice of commercial banks and of web site at www.ifc.org/disclosure. It most public sector financial institutions reflects IFC’s commitment to enhance for their private sector investments. transparency about its activities. Under Disclosing such information would be the Policy, IFC makes available to contrary to the legitimate expectations the public certain information about of IFC’s clients or third parties, who IFC’s activities, such as brief project need to be able to disclose to IFC descriptions, expected development detailed information without fear of impacts and actual results. compromising the confidentiality of their Pursuant to the Policy, IFC does projects or other proprietary information not disclose to the public financial, in a highly competitive marketplace. IFC’s Conflict Affected States in Africa Initiative most commonly used acronyms CASA Conflict Affected States in Africa CCSD Center on Conflict, Security and Development Chinalco Aluminum Corporation of China FCS Fragile and conflict-affected situations GDP Gross domestic product IMF International Monetary Fund LIWEN Liberia Women Entrepreneurs Network MTR Mid Term Review Organization for the Harmonization of Business Law in Africa OHADA Treaty PPPs Public-private partnerships SEZ Special economic zone SME Small and Medium Enterprise 2 Final Report on CASA’s First Cycle (2008-2013) Contents 1. Foreword 4 2. Conflict Affected States in Africa and IFC’s Role 6 3. CASA Overview 7 4. Our Development Partners 8 5. CASA I Objectives 10 6. Program Highlights by Country 11 7. Country Overview: Liberia 19 8. Country Overview: Burundi 21 9. Project Overview: Guinea’s Simandou Mine 23 10. CASA I Mid-Term Review 24 11. Knowledge Management and Communications 26 12. Looking Ahead: Mainstreaming CASA in IFC (CASA II) 28 Final Report on CASA’s First Cycle (2008-2013) 3 Participants in a business plan competion in Cote d’Ivoire 1. Foreword Imagine a young woman in Liberia who dreams is undergoing a seismic shift, with millions of starting her own business. Perhaps she has being pulled – and pulling themselves – from some savings, a workable idea, and plenty of poverty in Brazil, China, India, Indonesia, and determination – but little else. A long civil war other countries. The World Bank Group and has devastated her country, leaving her with only other development institutions are increasing patchy access to electricity, transport, education, their activities in fragile and conflict-affected and other basic infrastructure and services. Few situations (FCS) largely because they are projected training opportunities are available to her; almost to be home to 80 percent of the world’s poor nowhere can she benefit from networking or people by 2025. Clearly, any strategy to reduce mentoring support. She is repeatedly denied global poverty must be anchored on supporting access to finance to rent a shop or to buy the countries recovering from conflict. equipment she needs to turn her dream into reality. What happens to this entrepreneur? What CASA is at the heart of IFC’s efforts in Africa’s has happened to millions more like her – men and fragile situations. With coordinators working women – in fragile countries across Africa? on the ground to build relationships with public and private sector partners, CASA has helped IFC launched the Conflict Affected States in Africa coordinate IFC’s advisory services activities in (CASA) Initiative in 2008 to support private sector places like Burundi, Côte d’Ivoire, Liberia, and growth, job creation, and stability in Liberia and South Sudan. CASA was designed to help other places that have suffered through conflict. strengthen investment climates, support smaller businesses, and improve access to finance. In Today, CASA is active in eight countries, is reality, CASA has been active in many more areas, beginning to deepen it’s focus in Mali, Somolia including hosting and organizing conferences and and Zimbabwe, and plans to expand its support other events devoted to FCS, supporting business to other places in Africa, which is home to 17 of plan competitions, and helping implement large the 33 countries and territories the World Bank public-private partnerships (PPPs). Group categorizes as fragile and conflict affected situations. This report provides an overview of CASA’s activities and progress since its inception. Why is IFC increasing its focus on countries Supporting growth in conflict-affected states is recovering from conflict? The global economy challenging. We have suffered setbacks in many 4 Final Report on CASA’s First Cycle (2008-2013) Today, CASA is active in eight countries, is beginning work in two more and expects to expand its support to other places in Africa. Jean Philippe Prosper targeted countries, including the Central African than $800 million in FY14. By putting a priority Republic and South Sudan, where political events on further advisory services and investments in have – temporarily – trumped the best efforts these markets, IFC expects to see significantly of the international development community. increased investment activity in these markets But we have also enjoyed great achievements, in the coming years. Further private investment notably in Côte d’Ivoire, which has made a increases the role successful businesses can play remarkable turnaround from recent turmoil and in development following conflicts and in fragile violence. states. What matters most is the impact this program On behalf of IFC, I would like to thank CASA’s is having on real entrepreneurs in our target donor partners Ireland, the Netherlands, and markets like Liberia. The fact is that IFC has Norway. Additional support has been offered supported a PPP that is bringing access to by Denmark (in South Sudan) and Sweden (in electricity in Liberia’s capital Monrovia. We have Liberia). Without their continued, generous supported a commercial code and court, and a financial backing and knowledge-sharing, CASA number of other investment climate reforms that could not have achieved any of the results are making it easier to start and run businesses detailed here. A further testament to our donors’ in the country. We have supported the launch of support and CASA’s success is that IFC has a women’s network, where entrepreneurs can adopted the CASA model as its standard model learn from one another. We have also launched for supporting fragile countries globally. a program that helps small business owners gain access to finance. IFC Advisory Services and CASA have been essential to creating presence and credibility which is a foundation for investment from IFC Yours sincerely and others. From a low base, IFC increased its Jean Philippe Prosper investments in FCS countries in Africa to more Vice President, IFC Final Report on CASA’s First Cycle (2008-2013) 5 Manufacturing in Liberia 2. Conflict Affected States in Africa and IFC’s Role Africa is home to 19 of the 36 countries and While these interventions are important, and territories the World Bank recognizes as fragile or though most FCS enjoy a quick upturn in their conflict-affected. basic economic activity after fighting has ceased, sustaining long-term growth often proves Poverty rates in fragile and FCS average a problematic. staggering 54 percent – meaning that hundreds of millions of men, women, and children struggle IFC recognizes that targeted private sector to survive because their economic opportunities development through special policies and are undermined by conflict. instruments has a significant role to play in tackling poverty traps and cycles of violence in FCS. This combination of poverty and violence, which operates in a cyclical manner, one reinforcing the A reformed investment climate, coupled with small other, has dire consequences for those affected business development and improved access to by it. The 2011 World Development Report on finance, helps create jobs and sustainable economic Conflict, Security, and Development notes that opportunities. A well-functioning economy helps those living in FCS are: stabilize FCS, notably by providing ex-combatants with work and a way to be positively reintegrated • More than twice as likely to be under- into mainstream society. nourished as those in developing countries IFC’s advisory services work in FCS focuses on • Only one third as likely to be able to send helping smaller businesses grow, improving the their children to school investment climate, increasing access to finance, • Twice as likely to see their children die before and supporting the reconstruction of institutional they turn five frameworks and economic infrastructure. • More than twice as likely to lack clean water. Success stories from across Africa prove that a path Until recently, most external donor assistance out of fragility and conflict is possible. Since 2004, given to FCS focused on the urgent requirements 11 countries (including Ghana, Mozambique, of disarmament, demobilization, the reintegration Rwanda, and South Africa in Africa) have of combatants, and, ultimately, on rebuilding graduated from fragile state status through steady public institutions, services, and infrastructure. progress in building institutions and strengthening policies. IFC has no doubt that many more can do the same. 6 Final Report on CASA’s First Cycle (2008-2013) The chamber of commerce in Bangui, CAR 3. CASA Overview In 2008, IFC, in partnership with Ireland, the Perhaps most importantly, CASA was designed Netherlands and Norway, established the Conflict to help strengthen smaller businesses and the Affected States in Africa Initiative to address institutions that support them. private sector development challenges affecting CASA I was designed around three components: fragile countries in Sub-Saharan Africa . Denmark the first module facilitates the implementation of has provided bilateral support to CASA in tailored and coordinated advisory services projects, Somalia, South Sudan, and Zimbabwe. Sweden the second funds these advisory services projects, has provided additional support in Liberia. and the third serves as the knowledge management CASA I was developed as a pilot to respond hub for the advisory services work. to requests from FCS for tailored economic During the pilot phase, the program developed assistance specific to their needs, which include and implemented individual country strategies rebuilding public institutions, services, and based on private sector-focused conflict analysis, infrastructure. FCS also need long-term support and positioned coordinators on the ground to put their economies on a firm footing and to help oversee implementation of specific entrench economic growth, stability, and peace. programs across IFC’s four business lines (Access Compared with countries untouched by conflict, to Finance, Investment Climate Reform, Public- FCS face numerous challenges, often including Private Partnerships, and Sustainable Business). especially weak private and public sectors, a CASA coordinators also worked closely with lack of skills, extreme levels of informality, weak other members of the World Bank Group, when infrastructure and financial infrastructure, and a appropriate. climate of corruption and mistrust. It is a volatile Because of rapidly shifting political and economic cocktail that often precipitates a swift return to landscapes found in FCS, CASA focused on making fighting. financial and expert human resources rapidly CASA’s overarching objective was to support available to address multiple – and often surprising sustainable private sector development as a or unexpected – challenges. way to promote growth, job creation, peace, CASA was designed as a five-year program with and stability. This was to be achieved by helping a $25 million budget that initially focused on implement IFC and World Bank programs that four countries: the Central African Republic, the reform the investment climate, strengthen Democratic Republic of Congo, Liberia, and Sierra financial markets, improve access to finance, Leone. CASA began supporting Burundi and Côte and increase private sector participation in the d’Ivoire in 2010, South Sudan in 2011, Guinea in provision of infrastructure. 2012, and Mali in 2013. Final Report on CASA’s First Cycle (2008-2013) 7 Nena Stoiljkoic, IFC Vice President of Business Advisory Services 4. Our Development Partners The Netherlands CASA I was launched in 2008 with support from Improving the business climate of fragile states is donor partners Ireland, the Netherlands, and a main priority of the Netherlands development Norway, countries that largely share IFC’s strategic aid agenda, which seeks to alleviate poverty and priorities and goals for African development. hunger in developing countries. Subsequently, Sweden began supporting CASA in Liberia, while Denmark provided support in South The Netherlands’ development assistance Sudan. focuses on increasing access to markets and financial services, creating good legislation, These donor partners are vital to IFC’s efforts improving infrastructure, and engaging with to deliver greater development impact, reliable official bodies and other organizations reduce poverty, and improve lives in FCS. The to achieve its goals. To date the Netherlands has financial support they provide leverages IFC’s contributed $11,000,000 to the CASA initiative. own contributions to advisory services, but The Netherlands, through its Embassy in South also enhances the impact of our investment Sudan, also contributed $4,500,000 to Small and operations through strengthened collaboration Medium Enterprise (SME) Development, Access and shared mutual priorities. Their feedback and to Finance, and Investment Climate programs in close attention to CASA’s progress have been South Sudan. invaluable in helping IFC shape its strategy in FCS. Norway Ireland About half of Norway’s developmental aid is Ireland’s policy for international development in channeled to fragile states through multilateral fragile countries is focused on reducing hunger organizations as part of its international efforts and improving resilience, supporting inclusive and to address global challenges. Norway contributed sustainable economic growth, and fostering good $7,500,000 to CASA I. governance, human rights and accountability. Ireland and the World Bank Group have a similar focus on countries in Sub-Saharan Africa and work closely together on a number of programs. Overall, Ireland contributed $3,600,000 to support CASA I. 8 Final Report on CASA’s First Cycle (2008-2013) The financial support they provide leverages IFC’s own contributions to advisory services, but also enhances the impact of our investment operations through strengthened collaboration and shared mutual priorities. Sweden Norway’s developmental strategy aims to help IFC maintains an active relationship with Sweden, recipient nations and their citizens to achieve covering business development with Swedish their own developmental and economic goals, companies investing in emerging markets, donor- including increasing their revenues by expanding funded initiatives, and cooperation with Swedish tax bases, combating corruption, and managing banks. natural resources for the benefit of the local populations. Through the Swedish International Development Agency, Sweden contributed $9,000,000 to phase three of IFC’s advisory services in Liberia, Denmark which was delivered under CASA I. The country Denmark has a strong bilateral program, run to seeks to take an innovative approach to a large extent by its embassies. In 2011, about development through partner-driven cooperation 64 percent of Danish bilateral aid went to Sub- that improves economic activity. Saharan Africa, with a large share to fragile states. Working with fragile states, Denmark Sweden’s approach focuses on improving the focuses on integrating stabilization initiatives and beneficiary countries’ private and public sectors conflict prevention. through training and capacity building, and enhancing civil society organizations through Development cooperation, stabilization support, partnerships. and civilian, military and police secondment are all integrated into a joint strategic framework in order to contribute to stabilization and long-term development. Denmark contributed $4,400,000 to CASA I. Final Report on CASA’s First Cycle (2008-2013) 9 A pharmacy in Juba, South Sudan - one of dozens of newly-registered businesses in the country 5. CASA I Objectives CASA I had three objectives 1. To design and implement country strategies and 3. To strengthen knowledge management, share and integrated country advisory services programs learn from best practices, and specifically collect that consider conflict analyses and draw upon lessons learned from private sector development all of the IFC advisory services business lines, in practitioners in conflict-affected countries, in close cooperation with the private sector, recipient close cooperation with the Donor Committee for governments, the World Bank, and other donors. Enterprise Development. 2. To provide funding for IFC advisory services projects that fit within the country strategy. CASA’s key areas of interventions were: • Improving the business environment Two primary factors contributed to the results • Strengthening the competitiveness of SMEs shown below. First, CASA took an ‘in-country’ approach and situated coordinators on the ground, 2 and their support institutions close to the public and private sectors that IFC • Rebuilding financial markets and institutions supported. Second, CASA intervened in not just • Increasing private participation in the provision one but several areas of the particular country’s and rehabilitation of infrastructure and other private sector, helping build a stronger foundation selected sectors. for future growth. Despite working in difficult environments, many of which suffered through ongoing violence. CASA helped achieve the following results from 2008 to 2013: LAUNCHED ADVISED over Facilitated 36 new multi-year advisory projects 1,280 public and private entities $127 million in loans Trained about generated 9,400 people $19 million in sales for MSMEs 10 Final Report on CASA’s First Cycle (2008-2013) Burundi furniture maker Samantha Shaza 6. Program Highlights by Country Burundi Burundi gained independence in 1962 and has enjoyed relative peace since the end of a long Building a Better Business civil war in 2009 that killed at least 300,000 people, mostly civilians. Burundian entrepreneur Samantha Shaza dreams of turning her furniture-making business During the 16-year conflict, much of the into the ‘Ikea of Africa’. Shaza, who launched landlocked country’s limited economic and her business in 2007 and now employs 33 staff, institutional infrastructure was destroyed, and its is one of about 100 entrepreneurs in Burundi economy today depends primarily on agriculture, benefiting from IFC’s Business Edge training. especially coffee and tea production. Shaza participated in the training with four of her managers, and credits it for helping her Burundi’s private sector is small, and few people increase sales and productivity. have a bank account or access to financial services. Despite immense hurdles, the economy “Business Edge taught us very practical skills, has averaged growth of about 4 percent since such as decision-making, and we were also able 2005. Although agriculture still dominates, the to network with other entrepreneurs,” Shaza country’s services and manufacturing sectors have said. been growing. “In five years we have quadrupled our turnover CASA launched in Burundi in 2011, focusing and also tripled our staff numbers.” on supporting SMEs and helping improve the investment climate. Thanks to World Bank Group support, Burundi has become a top reformer in the Bank Group’s Doing Business Reports, which measure the ease of doing business in countries around the world. In the 2014 report, Burundi ranked 140 out of 189 economies globally, a marked improvement of 17 places from the previous year. By contrast, Final Report on CASA’s First Cycle (2008-2013) 11 CASA has also helped Burundi enact reforms that are making it easier to start a business, register property, and obtain construction permits. in the 2008 report, Burundi ranked a lowly 174 however, thanks in part to extensive natural out of 178 countries, making it one of the most resources, including diamonds, gold, uranium, difficult places in the world to do business. and timber. CASA has also helped Burundi enact reforms that The Central African Republic is in active conflict are making it easier to start a business, register following a coup d’état in 2013 that ousted the property, and obtain construction permits. For country’s president, Francois Bozizé. Real gross example, starting a business in Burundi now domestic product (GDP) growth in 2012 was 3.1 involves only four procedures and takes about percent, but the country’s economic performance eight days. has significantly worsened since. IFC is also helping local Burundian businesses IFC’s work in the Central African Republic under obtain the financing they need to grow and CASA I began in 2009. CASA has primarily create employment through a long-standing focused its efforts around the capital Bangui, partnership with Banque de Crédit de Bujumbura. which is home to a fifth of the country’s 4.4 million people. CASA has supported the growth To further strengthen Burundi’s small businesses, of smaller businesses and helped the country IFC launched its Business Edge training program improve its investment climate by strengthening in the country. Business Edge is helping public-private dialogue processes, and simplifying entrepreneurs and small business owners and business regulations. managers acquire the skills they need to succeed. With IFC’s support, the Central African Republic (See the client section of this report for a more enacted investment climate reforms that reduced detailed report on IFC’s support for investment the business registration tax and transfer of climate reform in Burundi.) property tax procedures by more than half, bringing considerable savings to the private Central African Republic sector and encouraging small business creation. Since its independence from France in 1960, the Central African Republic has suffered recurrent CASA has also earmarked a grant of $200,000 instability and remains one of the least-developed to the Central African Republic’s Chamber of countries in the world. Its potential is great, Commerce to help it rebuild its capacity to offer SME development activities. 12 Final Report on CASA’s First Cycle (2008-2013) As part of IFC’s SME Ventures Program, the around 50 percent of its GDP, while agriculture Central Africa SME Fund is providing risk capital and manufacturing contribute a further 41 and advisory services to small businesses in percent. the country. The program provides capital to fast-growing businesses with an investment CASA began supporting Côte d’Ivoire in 2011, size ranging from $100,000 to $500,000 per focusing on SME development, supporting company. As of December 2013, the fund had growth in agriculture, and improving the local invested in three SMEs in the Central African business environment. Republic. Despite the unstable situation, the SME CASA helped IFC establish its Leasing Program Ventures Program continues to operate, and fund in Côte d’Ivoire to help smaller businesses – managers are providing support to the portfolio especially those in the agriculture sector – acquire clients. the equipment or vehicles they need to grow. IFC launched its Business Edge training To further help small businesses, IFC launched its program in the Central African Republic to help Business Edge training program in Côte d’Ivoire businessmen and women gain the management and also supported the creation of a ‘one-stop skills they need to run their businesses more shop’ for business registration in 2012. The one- efficiently. stop shop has drastically cut the time and cost However, due to ongoing conflict, IFC’s involved in registering a business. activities in the Central African Republic are IFC also helped Côte d’Ivoire establish a now effectively on hold. The CASA coordinator commercial court, which has brought the average has been relocated outside the country. IFC is time needed to settle many cases down from a continually assessing the situation on the ground frustrating two years to only two months.  for possible future re-engagement. CASA is working with the World Bank to improve Côte d’Ivoire Côte d’Ivoire’s investment climate, helping update Côte d’Ivoire suffered through disputed elections and modernize tax, licensing and inspection in 2010 and ensuing, short-lived political regulations to make it easier for businesses to do violence. Since then, economic activity has picked business. up significantly, as have confidence and investor interest. Following the restoration of peace, GDP Thanks to World Bank Group support, Côte grew by 9.8 percent in 2012. d’Ivoire has already made improvements in areas including starting a business, registering property, The West African country, famous for its cocoa, and enforcing contracts. Côte d’Ivoire became a is one of the largest in the region, and boasts a top-10 reformer in the World Bank Group’s 2014 relatively well-developed economic infrastructure. Doing Business Report, climbing six places to Côte d’Ivoire’s service industry accounts for reach 167 out of 189 economies globally. Final Report on CASA’s First Cycle (2008-2013) 13 Minerals account for the vast majority of the country’s exports and are its single largest source of foreign direct investment. The Democratic Republic of Congo Special Economic Zone The Democratic Republic of Congo has the potential to grow into a regional economic giant. IFC and the World Bank are helping the Democratic Republic of Congo establish its first Slowly recovering from decades of decline, the special economic zone (SEZ). The zone, near country has recently instituted a number of Kinshasa, is designed to attract investment, investment climate reforms, though it remains create jobs, and help diversify the country’s vulnerable to violence that continues to this day. economy. IFC helped draft the Democratic Republic of Congo’s SEZ law, and completed the The Democratic Republic of Congo’s private sector feasibility studies for the site. The deliverables is weak and millions work informally, or engage in have been incorporated into a $110 million subsistence farming. However, pockets of private World Bank Growth Poles Project. IFC estimates enterprise are thriving. that the SEZ, once operational, will attract significant private investment and create a Minerals account for the vast majority of the substantial number of jobs. country’s exports and are its single largest source of foreign direct investment. Agriculture is also a large contributor to the economy. economic zone in the country that will encourage The Democratic Republic of Congo is benefitting investment and create jobs, especially in light from $12 billion in debt relief backed by the World industries and agribusiness. Bank and International Monetary Fund (IMF) IFC has also helped the Democratic Republic in 2010, but weak infrastructure, including an of Congo implement legal and regulatory unreliable power supply and a difficult business improvements. CASA’s support was instrumental environment, is still a major obstacle holding back in helping the country adopt and implement the economic growth in the vast country. Organization for the Harmonization of Business CASA began supporting the Democratic Republic Law in Africa (OHADA) Treaty. Specifically, CASA of Congo in 2009 and fully re-engaged in July has helped facilitate a comprehensive training 2013 following a suspension of most activities program for hundreds of magistrates and owing to a dispute between IFC and the government officials. government over the expropriation of a mining investment. CASA’s focus in the country is on Guinea improving the investment climate, strengthening Guinea held its first democratic presidential smaller businesses, and improving access to elections in 2010, and is seeking to tap its plentiful finance. natural resources and vast tracts of arable land to build a strong economy and stable future. IFC has worked with the World Bank and the Democratic Republic of Congo’s public and private A country of 10 million people, Guinea has sectors to help establish a framework for a special considerable potential for growth, especially in 14 Final Report on CASA’s First Cycle (2008-2013) A vibrant market in The Democratic Republic of Congo. This photo won a 2012 CASA photo competition. its mining sector, which boasts large reserves of investment framework that will move Simandou bauxite and iron ore. Diamonds and gold also are forward by providing the legal and commercial mined and exported on a large scale. foundation for the project. Despite immense natural resource potential, poorly Rio Tinto’s Simandou investment calls for the developed infrastructure and a difficult business construction of a world-class iron ore mine, a environment have hindered economic growth. 700 km railway, and a port. IFC is a 5 percent shareholder in the project, which has the potential CASA has been active in Guinea since 2012, to transform Guinea’s economy. helping improve the investment climate and supporting the growth of smaller businesses IFC and the World Bank have also helped Guinea with training and linkages programs through a introduce a number of reforms that are making partnership with mining giant Rio Tinto, which it easier for businesses to operate in the country. is developing the Simandou iron ore project in These have resulted in faster and easier procedures Guinea’s mountainous southern region. to get electricity, register property, and obtain construction permits. As part of that collaboration, IFC, leveraging its Business Edge training program, helped smaller Supported by IFC and the World Bank, Guinea also local companies build their capacity so they could opened a one-stop shop for business registration, take on contracts with Rio Tinto. which cut the time of registration from 40 to three days, and the number of steps from 12 to two. During the project’s first phase, which ran through 2012, more than $7.7 million in Overall, Guinea’s World Bank Group Doing contracts were awarded to local businesses, and Business Report ranking for 2014 improved on the 800 new jobs created. In May 2014, IFC, Rio previous year, rising four places to 175 out of 189 Tinto, Guinea’s government, and the Aluminum economies. Corporation of China (Chinalco) signed an Final Report on CASA’s First Cycle (2008-2013) 15 CASA launched in Liberia in 2009, focusing its efforts on supporting the growth of SMEs and on helping the country improve its investment climate. Liberia Since Liberia’s second civil war ended in 2003, it takes to register a business in Liberia, from 99 the country has made steady progress recovering days to only about four days. from decades of fighting that destroyed infrastructure and effectively paralyzed the IFC’s support for smaller businesses also includes economy. capacity-building programs Business Edge and SME Toolkit, backing for a women’s network of Increased stability has recently helped drive entrepreneurs, and the SME Ventures Program, growth and entrench democracy. Strategic which is helping Liberia’s SMEs access the interventions by the government and its partners financing they need to grow. have helped reduce poverty, with natural resources, including iron ore, rubber, and timber, Liberia has made steady progress up the Doing playing a major role in creating jobs and exports. Business rankings, climbing from 170 out of 178 countries in 2008 to 144 out of 189 countries in Despite good progress, however, Liberia remains 2014. an extremely poor country, with the majority of the population of about 4.2 million people either (IFC’s country-level work in Liberia is discussed in unemployed or underemployed. more detail in the following chapter.) CASA launched in Liberia in 2009, focusing its efforts on supporting the growth of SMEs and Sierra Leone on helping the country improve its investment Sierra Leone, a small West African country of climate. around 5.7 million people, is recovering from a destructive 11-year civil war that ended in 2001. To provide a framework for small business development, IFC advised on Liberia’s national The country is rich in minerals and has largely MSME policy, which was launched in 2011. The relied on the mining sector (diamonds) for policy aims to help businesses gain better access growth, but more recently has begun to tap its to markets, finance and knowledge, and to iron ore and oil reserves. improve the legal and regulatory framework. About two thirds of the population engages in IFC and the World Bank have also advised Liberia subsistence farming for their livelihoods, and the on investment climate reforms. Since 2008, government has tried to increase food and cash Liberia has enacted about 60 reforms to promote crop production and upgrade small farmer skills. growth, including in the areas of obtaining credit, accessing electricity, and starting a business. CASA launched in Sierra Leone in 2009, working closely with the government to support private For example, the establishment of a modern sector development, improve the local investment business registry has drastically reduced the time climate, strengthen the domestic financial sector, 16 Final Report on CASA’s First Cycle (2008-2013) CASA launched in South Sudan in 2011 to help the country formalize and diversify its economy, increase business competitiveness, attract investment, and support small business growth. South Sudan and encourage private participation in rebuilding South Sudan gained independence from its infrastructure. northern neighbor in July 2011. These efforts have led to a number of important Although the final separation was largely legal changes that are boosting business growth, peaceful, decades of fighting killed millions and including tax simplification, the reduction of fees inflicted poverty on millions more. for exporters and importers, and greater ease in obtaining credit information and construction Oil is the mainstay of South Sudan’s economy permits. and its main export, but there is also demand for Sudanese timber, especially teak. The country CASA also helped Sierra Leone create an investor has largely untapped reserves of iron ore, copper, guide that details the priority areas of investment, zinc, silver, and gold. as well as incentives offered to investors by the government. Despite immense potential, most of South Sudan’s roughly 8.3 million people survive by Fostering dialogue between the government and practicing subsistence farming, and it is estimated private sector has been another key aspect of that 80 percent of the country’s cereal production CASA’s engagement. As part of this work, IFC comes from smallholder farmers. helped establish the Sierra Leone Business Forum, which is providing a platform for the private CASA launched in South Sudan in 2011 to help sector to promote investment-friendly policies. the country formalize and diversify its economy, increase business competitiveness, attract Thanks to World Bank Group support, Sierra investment, and support small business growth. Leone has climbed from 160 of 178 countries on the 2008 Doing Business Report ranking to 142 CASA is supporting IFC’s extensive advisory of 189 countries on the 2014 report ranking. services program in South Sudan, which has made good progress on investment climate reform, and SME and financial sector Rewarding Entrepreneurs development, with 22 laws passed and a public- private dialogue forum in place to support continued reform efforts. IFC supported a ‘Bomba’ business plan competition in Sierra Leone in 2012 that helped IFC has completed market assessments and is nurture entrepreneurial talent. More than training the Central Bank and local banks in 800 people entered the competition, with the credit risk management. IFC is also helping design winners receiving training through IFC’s Business agriculture and trade finance products to support Edge management training program. smaller business, and is helping the South Sudan Final Report on CASA’s First Cycle (2008-2013) 17 Workers surveying the DRC special economic zone Chamber of Commerce and Agriculture better capital Juba. The 12-story structure will provide serve SMEs and establish a women’s chamber of much-needed office and retail space in the commerce. country. More than 12,500 businesses in South Sudan Ongoing disputes with Sudan over the sharing have been formally registered as part of the of oil revenues have badly hurt South Sudan’s World Bank Group’s investment climate program economy, which was again also damaged by the in the country. A number of these businesses outbreak of political violence at the end of 2013. are also benefitting from IFC’s Business Edge The country has since suffered instability, with program, which offers managerial and other rebels and the government failing to come to training. terms. In May 2012, IFC made its first significant Owing to the unpredictable situation, CASA’s investment in South Sudan, signing a $5 million coordinator for South Sudan has been relocated loan agreement with UAP Properties Ltd. to help to Nairobi, Kenya. the company build the “Equatoria Tower” in the 18 Final Report on CASA’s First Cycle (2008-2013) Ellen Johnson Sirleaf at a small business conference supported by IFC 7. Country Overview: Liberia Recovering after years of civil war, Liberia has national MSME policy, which was launched recently made steady economic and social in 2011. The policy aimed to help businesses progress, voting in President Ellen Johnson-Sirleaf gain better access to markets, finance, and as Africa’s first democratically elected female knowledge, and to improve the legal and head of state in 2005. regulatory framework. Although the war ended more than a decade A major focus of the World Bank Group’s work ago, its effects are still widespread in the country has been on advising Liberia on reforms that today, notably in the form of high unemployment make it easier to do business. Thanks to IFC among its 4.4 million citizens, and ruined and World Bank support, Liberia has enacted an infrastructure and institutions, which have impressive 60 investment climate reforms since stymied job creation. 2008 in the areas of obtaining credit, accessing electricity, and starting a business Despite facing immense challenges, Liberia’s public and private sectors are taking positive Liberia has made steady progress up the Doing steps to put the country on a more solid Business Report rankings, climbing from 170 economic footing. Johnson-Sirleaf, a former out of 178 countries in 2008 to 144 out of 189 World Bank economist, and her team are countries in 2014. implementing a strategy to strengthen the private sector and encourage foreign investment. Commercial Code and Court The crowning achievement of IFC’s support IFC’s Strategy for reform in Liberia was the creation of a Liberia was one of CASA’s original four focus commercial code and court. The code, a countries and IFC’s strategy there was to landmark piece of legislation that is strengthening encourage private sector growth, job creation, the country’s business environment, sets out and stability by supporting small business growth provisions for sales, leases, mortgages, secured and investment climate reforms. transactions, and commercial arbitration, bringing consistency to Liberia’s business environment To provide an overarching framework for small by replacing sometimes confusing legal business development, IFC advised on Liberia’s arrangements. Final Report on CASA’s First Cycle (2008-2013) 19 Liberia has made steady progress up the Doing Business Report rankings, climbing from 170 out of 178 countries in 2008 to 144 out of 189 countries in 2014. Drafted after extensive consultations involving To help turn the lights back on in Liberia’s representatives from Liberia’s public and private capital, IFC worked with the Liberia Electricity sectors, and representatives from IFC and the Corporation to design and tender a management World Bank, the new laws should go a long way contract with Canada’s Manitoba Hydro to boosting investor confidence. International. The 2010 agreement has helped restore power to parts of Monrovia, benefitting Supporting Women in Business tens of thousands of homes and businesses, Recognizing that women face particularly and is strengthening the Corporation’s ability to daunting obstacles in conflict-affected manage its operations and deliver power. environments, CASA has made gender a central IFC helped coordinate the various stakeholders, part of its Liberia strategy. which included the government, the private CASA’s Esther Dassanou, who was based in sector, and a number of donors. Monrovia for a year, says, “Although 30 percent of registered businesses are owned and run by women, these businesses mostly remain very Electricians working on the liberia electricity project small. Women struggle to obtain the training needed to run sustainable and profitable business… Women are also heavily represented in the informal sector. These factors make it difficult for them to work with commercial banks, which are cautious about investing in Liberian small and medium enterprises”. To help, IFC supported the establishment of the Liberia Women Entrepreneurs Network (LIWEN), which was launched in March 2013 as a platform where dozens of women can share ideas and gain skills and encouragement. LIWEN is also playing an advocacy role for women entrepreneurs, helping them have their voices heard. Access to Power Monrovia is notorious for its unreliable power supply. A lack of electricity constrains businesses, but also makes life more difficult for students and other people and establishments dependent on its availability , and can contribute to security concerns. 20 Final Report on CASA’s First Cycle (2008-2013) The outskirts of Bujumbura 8. Country Overview: burundi Improving Burundi’s Investment Climate Burundi’s road to economic recovery following Climbing the Doing a long civil war is being made smoother with Business Rankings: support from the Investment Climate Advisory Services of the World Bank Group. 2014 IFC, IFC’s CASA, and the World Bank have worked closely with public and private sector partners in Burundi since 2010 to help design and implement 140th reforms that are strengthening the private sector, supporting small business growth, attracting 2013 159th investment, and increasing trade. The results have been dramatic. Numerous reforms have been passed, thousands of businesses have formalized, and Burundi has shot up the rankings of the World Bank Group’s Doing 2012 Business Reports, encouraging politicians and business leaders in the country to call for even 169th more improvements. Among the most impactful reforms, the World 2011 181st Bank Group has helped Burundi establish a one-stop-shop for business registration, cutting business start-up time to only five days and reducing the cost from $300 to about $30. Burundi now ranks an impressive 27th in the world in starting a business – five places ahead of Portugal and even one ahead of the business- friendly United Kingdom. Final Report on CASA’s First Cycle (2008-2013) 21 Other reforms supported by the World Bank speeding up the movement of goods to and from Group include reducing the time and costs the port of Dar Es-Salaam. involved in paying business taxes and obtaining construction permits (which includes lowering These and other reforms are helping Burundi the costs for geotechnical studies); simplifying more easily integrate in the East Africa taxes for smaller businesses; and strengthening Community (which it joined in 2007) and have the regulatory framework for insolvency and helped the country become a top-10 reformer on restructuring, crucial in post-war contexts where the Doing Business Report for two years running. many businesses have collapsed. Most importantly, of course, an improved regulatory climate is spurring business growth Protecting Investors and creating jobs. Burundi has also taken important steps to protect investors. Reforms in this area include “ the institution of new requirements for approval I was highly impressed by the service at the API of transactions between interested parties, (one-stop-shop). ... The assistance from the staff mandating corporate disclosure to boards of was very professional and all was done with directors and in annual reports, and making it a smile. This is something the whole country “ easier for directors to be sued in the event of should get inspired by. mismanagement. Small business owner Lydia Mutekano. Finally, the World Bank Group has helped land- locked Burundi make it substantially faster to trade across borders, in particular with Tanzania, 22 Final Report on CASA’s First Cycle (2008-2013) Exploration at the Pic-de-Fon iron ore site, part of the IFC-supported Simandou mine in Guinea 9. Project Overview: Guinea’s Simandou Mine Large reserves of iron ore buried in Guinea’s and better understand Rio Tinto’s requirements for mountainous southern region have the potential health, safety, and environmental responsibility. to transform the country’s economy. Thanks to the program, more than $7.7 million in The Simandou project to mine this ore calls for contracts were awarded to local businesses in the the construction of a world-class mine, a 650 km construction, transport, agriculture, and catering railway, and a deep-water port on Guinea’s coast. sectors, creating 800 new jobs. At full production, Simandou would easily become Guinea’s largest mining and commercial project, New Investment Framework creating tens of thousands of direct and indirect In May 2014, IFC, Rio Tinto, Guinea’s government, jobs and making a significant contribution to GDP and Chinalco signed an investment framework growth, tax revenues, and skills transfer to local that will move Simandou forward by providing the firms. legal and commercial foundation for the project. IFC has already partnered with mining giant Rio Tinto, which is developing Simandou, to IFC plans to launch a linkages program to implement a local supplier development program support local firms, helping them gain access to that ran from September 2011 to August 2012. training and finance, and ultimately, access to contracts associated with the Simandou mine. An The program leveraged IFC’s Business Edge agreement has already been reached with local training program to help smaller businesses commercial bank BICIGUI to provide business plan improve their technical and management skills, and other development training to 80 smaller businesses in Guinea. “ With massive infrastructure investment, this Project is of critical importance for the people of Guinea. It’s a IFC will also work with private and public sector nationwide priority that goes beyond the mines and far partners in Guinea to help improve the country’s beyond our generations. With transparent and fair deals, investment climate by simplifying tax, customs our mining sector has the potential to be a game changer and other regulations to benefit local businesses, for Guinea. This Project also represents a symbol of our including those connected with the large continent’s tremendous efforts to meet its infrastructure Simandou project. “ challenges and build inclusive growth. President of the Republic of Guinea, Alpha Condé Final Report on CASA’s First Cycle (2008-2013) 23 CASA I Mid-Term Review 10. In June 2012, Dalberg Global Development percent of donor agencies interviewed rated Advisors independently assessed the relevance, CASA’s relevance ‘high’ or ‘very high’. additionality, effectiveness, efficiency, and accountability of CASA’s first phase. Effectiveness/Impact The MTR found that CASA’s project support and This Mid Term Review (MTR) concluded that funding components help generate more advisory CASA successfully enhanced the impact of services projects and sustain the quality of IFC’s advisory services in selected countries. existing projects. Feedback from IFC Business Line According to stakeholder feedback published in staff provided evidence that CASA significantly the report, no other agency is addressing private impacted portfolio performance: 80 percent sector development in conflict-affected states as of Business Line staff rated the effectiveness comprehensively as IFC through CASA. of CASA’s project support function ‘high’ or ‘very high’. CASA’s effectiveness varies across The report’s authors spoke to CASA coordinators, countries, however. Country-specific factors other IFC staff, and a number of CASA’s public include political stability, private sector viability, and private sector partners. The MTR’s headline and donor support. Coordinator-specific factors, findings were that: based on stakeholder feedback, include the quality of the coordinators’ relationships with • CASA is highly relevant based on industry best local stakeholders (usually influenced by their practices for private sector development in length of stay in a particular country) and their fragile and conflict-affected states. ability to navigate IFC’s internal systems. • All of IFC’s Business Line staff rated CASA’s relevance and additionality ‘high’ or ‘very The MTR also made a number of strategic high’, affirming CASA’s unique value to the recommendations that are helping CASA improve existing IFC advisory services work in FCS in its reach and impact. The recommendations, Africa. alongside regional strategic priorities, are also • Over 80 percent of local stakeholders (for helping inform CASA’s future growth. example, government and private sector counterparts in CASA countries) and over 70 24 Final Report on CASA’s First Cycle (2008-2013) Business Model Recommendation Knowledge Management CASA has achieved significant results to date, Recommendation but more may have been possible if the program CASA needs to invest significantly to enhance the had engaged with the Business Lines more knowledge management component and hire a effectively. To improve CASA’s collaboration with full-time knowledge management coordinator the Business Lines, the current “country-level” who works to provide key stakeholders with business model should be expanded to include CASA expertise and insights. CASA champions within each Business Line. Cross-cutting Recommendations Project Support Recommendations • Scale up the Initiative’s footprint by • Establish a dedicated budget for hiring short- establishing CASA programs in new countries. term consultants and support staff when • Advocate for wider adoption of the CASA needed, to alleviate the capacity constraints model within the World Bank Group and lend on CASA coordinators. support for the institutional flexibility required • Regularly update and ensure consistent to render the model effective. development of country engagement • Improve monitoring and evaluation, and strategies that detail the processes for finance support functions to increase identifying, designing, and implementing accountability and enable fact-based strategic projects. planning. A billboard for the one-stop shop in Guinea Final Report on CASA’s First Cycle (2008-2013) 25 Speakers at the Business after Conflict Conference, Nairobi, 2012 Knowledge Management and 11. Communications Knowledge Management CASA has organized or participated in a number of knowledge-sharing events: Communicating results, successes, and lessons learned is an important part of CASA’s mandate. CASA regularly shares its experiences with the Business after Conflict Conference wider World Bank Group, donors, other partners CASA and the Financial Times gathered and stakeholders, and the media, actively more than 150 business leaders, government engaging in discussion and debate about the officials, and civil society delegates in Nairobi best ways to support stability and development on November 28, 2012 for the ‘Business after in fragile countries. Regular knowledge sharing Conflict’ conference, which sought to dispel and feedback from our partners also helps inform myths about the dangers of investing in conflict- CASA’s future interventions. affected countries and address the very real and serious challenges these countries face. CASA maintains a dedicated external website Lively discussions focused on ‘risk perception (www.ifc.org/casa) that features background and reality’, ‘investment climate reform’, and information, country updates, and contact ‘sustainable business and the bottom line’. Côte details. CASA has produced a video and d’Ivoire, Guinea, Liberia, Sierra Leone, and South distributes newsletters (roughly every quarter Sudan featured in individual country sessions. To since 2013) that include updates from all CASA coincide with the conference, IFC ran a photo countries and provide an in-depth focus on competition that sought pictures of private sector specific issues or projects. CASA also engages development in conflict affected countries in with the media in the countries where it Africa. A Kenyan photographer based in the operates. Accounts about CASA’s development Democratic Republic of Congo took the top prize. activities have been printed in newspapers and posted online in Burundi, Côte d’Ivoire, the Some 80 percent of participants rated the Democratic Republic of Congo, Guinea, Liberia, conference as ‘very good’ or ‘excellent’. The Sierra Leone, and South Sudan. Media interest conference was viewed as highly successful, with has also been generated in Kenya and South 98 percent of delegates stating that they would Africa. CASA’s coordinators have produced a attend a similar future event. The conference number of ‘Smart Lessons’, a World Bank Group garnered broad local and international media program that allows practitioners to share lessons coverage, including in the Financial Times, Mining learned in development operations. Weekly and Reuters. The conference helped to 26 Final Report on CASA’s First Cycle (2008-2013) focus World Bank Group efforts in FCS to a broad Liberia SME Conference base of internal and external stakeholders, with Co-hosted by IFC, the conference turned outputs of the conference helping shape our the spotlight on the needs of Liberia’s SMEs, efforts to improve these markets. gathering dozens of small business owners, bankers, investors, and government decision- Fragility Forum makers to discuss progress made by Liberia’s CASA participated in the World Bank Group’s private sector, and to tackle ongoing challenges. ‘Fragility Forum 2013’, a three-day event held in During the three-day conference, IFC announced May 2013 in Washington D.C. that explored ways that it would help establish a collateral registry to help end conflict and poverty in the world’s system in Liberia, which will allow SMEs to obtain FCS. CASA hosted an IFC booth at the event and loans using movable assets, such as equipment fielded questions on its activities from delegates or vehicles, for collateral. Liberia’s President Ellen across the World Bank Group. World Bank Group Johnson Sirleaf announced the establishment President Jim Yong Kim called for more resources of a $1 million Liberia Innovation Fund for and regional solutions to be deployed in countries Entrepreneurship that will boost access to finance affected by conflict. for smaller businesses.  A gas fired power plant in Cote d’Ivoire Final Report on CASA’s First Cycle (2008-2013) 27 Kone Gninlnagnon, Côte d’Ivoire’s Emerging Young Entrepreneurs, Third place winner in the Start-up-Competitionm, 2014 12. Looking Ahead: Mainstreaming CASA in IFC (CASA II) By 2025, it is estimated that roughly 80 percent to ensure that all interventions will have an of the world’s poor people will live in FCS, embedded focus on gender and are in line with prompting IFC to set the goal of doubling its IFC’s 2020 Vision for Gender. advisory services and investment activities in fragile states by the 2016 financial year. To deepen CASA’s knowledge management efforts, the program plans to appoint a dedicated Already in 2014, nearly one in every three dollars monitoring and evaluation and knowledge of IFC’s advisory services activities in Africa will be management professional. This recruit will take spent in FCS, putting CASA firmly at the center the lead in developing a strategy to ensure that of IFC’s work in FCS in Africa. CASA II is actively supporting its stakeholders in applying CASA’s expertise (and the expertise of Building on CASA’s successful first phase, and others) to enhance their delivery in conflict states. based on recommendations and input from the MTR and CASA’s donor partners, IFC launched CASA II will pursue its main objective of CASA II in the 2014 financial year, with a supporting development to contribute to state- projected five-year budget of $100 million (of building through a combination of presence, which 92 percent will be allocated directly to patience, and partnership, through: country programs). CASA II’s overall objective will • Physical presence in the form of in-country be to develop and strengthen the private sector program resources, wherever possible and in FCS in a way that contributes to peace and appropriate in light of impact potential, cost/ state-building. benefit and security on the ground. While CASA I used country conflict analyses to • The patience of a long-term horizon: a define country strategies, CASA II will take this commitment to a long-term engagement, a step further by integrating the analysis into recognizing that achieving impact in FCS the individual project life cycle, from design to requires many years of dedicated work. completion, including monitoring and evaluation. • Partnering with the Center on Conflict, Security and Development (CCSD) in Nairobi: CASA II will – apart from a ‘conflict lens’ – also the CASA II manager will be located in Nairobi have a ‘gender lens’. CASA II will work with IFC’s and will work closely with counterparts from newly appointed Gender Secretariat (responsible the World Bank Group’s CCSD. The new for streamlining gender into IFC’s operations) conflict analyses, country strategies, and 28 Final Report on CASA’s First Cycle (2008-2013) Today, CASA is active in nine countries, is beginning work in two more and expects to expand its support to other places in Africa. monitoring and evaluation approaches will channels to map lessons learned, share them be developed in close cooperation with the with stakeholders, and learn from others. CCSD. • Closer cooperation with CASA donor CASA II will be strengthened in a number of partners: As appropriate, regular meetings ways: will be held between IFC, World Bank, and local or regional embassies of CASA • Conflict sensitivity: Country conflict donor countries acting in an advisory analyses will not only serve to inform the capacity to CASA II, and we will reach out CASA country strategy, but also to inform the to organizations and companies in donor design and life cycle of individual projects. countries to make use of their knowledge and CASA II will base its conflict lens mainly on experience where possible. the ‘Do No Harm’ approach to designing and Specifically, CASA II aims to achieve the following implementing its projects, but will also use development impact results: elements of the peace-building approach where feasible within the IFC mandate. • Improve the investment climate in FCS • Gender mainstreaming: All interventions through 200 private sector-oriented reforms, will have an embedded focus on gender as measured by the Doing Business Report. and will be in line with IFC’s 2020 Vision for • Have a catalytic impact on the SME sector Gender, through interaction of private sector- in FCS through training and building the oriented reform, access to finance, SME capacity of 100,000 entities. development, and training activities. • Support investment generation of $300 • Increasing inclusiveness: CASA II will million. intensify its focus on inclusive business, • Support job creation for 300,000 people specifically by integrating ‘base of the (including 120,000 jobs for women and 100 pyramid’, gender, and youth targets in project jobs for youth). design. • Improve access to services for one million • Increasing integration across IFC Advisory people (including marginalized groups). Services business lines: While CASA I • Facilitate access to finance in the form of introduced the concept of the integrated outstanding loan amounts of at least $250 approach, CASA II will implement it more million. systematically. • Increasing investment activity: Supporting By achieving these results, CASA II will contribute upstream private sector investment will receive significantly to both job creation and private more emphasis under CASA II. sector investment in FCS (in line with IFC’s aspiration for increasing advisory and investment • Knowledge management: Relevance FCS activity by 50%) as well as equal access and quality of work will be strengthened to improved services for different groups (e.g. by enhancing existing and identifying new marginalized groups). Final Report on CASA’s First Cycle (2008-2013) 29 ‘One-stop shop’ business registration in Mali CASA II foresees eventual expansion to all FCS in CASA is helping Mali design an investment Sub-Saharan Africa. Three countries have already climate reform program that will help attract been added and are briefly described below. investment and foster private sector growth. Mali CASA is also supporting a $50 million World Bank project that aims to help Mali’s young In 2012, a military coup d’état ousted Mali’s people develop their entrepreneurial skills and democratically elected government. Islamist rebel strengthen their businesses. groups subsequently took control of the north, but were beaten back by French and government troops in early 2013. Tuareg separatists have Somalia accepted a cease-fire agreement, but sporadic Somalia has long been one of the world’s trouble fighting continues and the situation remains spots, and civil war has raged there for over two tense. decades. The country has, however, taken steps towards recovery and Somaliland to the north is Mali’s economy is based to a large extent on largely peaceful. agriculture. Most of its roughly 15 million citizens are rural and many of them are engaged in Somalia maintains an informal economy that is subsistence farming. Mali’s main exports are gold, predominately based on livestock, remittance cotton, and livestock; combined they represent money transfers, and telecommunications. 85 percent of Mali’s total exports. Agriculture is the country’s most important sector. CASA launched in Mali in 2013 with a focus Somaliland, which declared itself independent on encouraging entrepreneurship, building the from the rest of Somalia to the south in 1991, capacity of smaller businesses, improving the has a functioning political system, although investment climate, and providing support to is not officially recognized internationally as projects in strategic sectors such as infrastructure an independent country. Livestock is also the and agribusiness. backbone of its economy, with mining showing some potential. 30 Final Report on CASA’s First Cycle (2008-2013) CASA has recently engaged with Somalia Dollarization of the local currency has helped where it is supporting the World Bank’s Somalia stabilize the economy, but poverty and Private Sector Re-engagement Phase II project. unemployment remain widespread. Zimbabwe’s In this regard, several CASA missions have been main exports come from the mining sector and undertaken to Hargeisa and Mogadishu since include platinum and diamonds. 2013. CASA will help design and implement reforms IFC’s Investment Climate Program for Somalia that aim to make it easier for businesses to received internal approval in April 2014 to operate in the country. In this regard, several engage in Somaliland by initiating a series CASA missions have been undertaken to Harare of public-private dialogues involving the since 2013. business community. Public-private dialogue and knowledge generation can help identify IFC’s Investment Climate Program for Zimbabwe constraints to private sector investment and build received internal approval in December 2013 support for reforms. to re-engage in Zimbabwe. In addition, an SME program has been proposed, for which tentative Zimbabwe agreements have been secured with major agribusiness companies. Zimbabwe’s economy has long been in decline. Robert Mugabe has ruled largely unopposed as President since 1980 and won a general election in 2013 that ended a power-sharing arrangement with the opposition. Final Report on CASA’s First Cycle (2008-2013) 31 Alfred Duwor (right) a client of IFC partner Access Bank in Liberia 32 Final Report on CASA’s First Cycle (2008-2013) Contact details gpfeifer@ifc.org www.ifc.org/casa stay connected www.facebook.com/IFCAfrica www.twitter.com/IFCAfrica 34 Final Report on CASA’s First Cycle (2008-2013)