Feed the Future Democratic Republic of the Congo

FEED THE FUTURE DEMOCRATIC REPUBLIC OF THE CONGO

STRENGTHENING VALUE CHAINS ACTIVITY

THIRD QUARTER REPORT (Q3)

FISCAL YEAR (FY) 2020

1 April–30 June 2020

July 2020

This publication was produced for review by the United States Agency for International Development. It was prepared by Tetra Tech.

FEED THE FUTURE

DEMOCRATIC REPUBLIC OF THE CONGO

STRENGTHENING VALUE CHAINS ACTIVITY

THIRD QUARTER (Q3) REPORT FISCAL YEAR (FY) 2020

1 April –30 June 2020

Photo Caption: SVC lost one of its most fervent supporters this quarter with the passing of Mme

Consolata Mwa Zambali, a member of the Rugwasanye Coffee Farm College in Bushushu/Kalehe.

June 2020 Prepared for the United States Agency for International Development, USAID Contract Number AID-660-C-17-00003, Feed the Future Democratic Republic of the Congo Strengthening Value Chains Activity.

Implemented by:

Tetra Tech ARD 159 Bank Street, Suite 300 PO Box 1397

Burlington, VT 05401

DISCLAIMER: This report is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of Tetra Tech, and do not necessarily reflect the views of USAID or the United States Government.

Feed the Future DRC Strengthening Value Chains Activity – Q3 FY20 Quarterly Report (April-June 2020) - i

TABLE OF CONTENTS

ACRONYMS AND ABBREVIATIONS ........................................................................................................ ii

EXECUTIVE SUMMARY ................................................................................................................................ vi

1.0 INTRODUCTION ............................................................................................................................... 1

2.0 SVC PERFORMANCE TO DATE .................................................................................................... 2

3.0 COLLABORATION ............................................................................................................................ 7

3.1 USAID IMPLEMENTING PARTNERS (IP) ............................................................................ 7

3.2 OTHER DEVELOPMENT PARTNERS .................................................................................. 8

3.3 GOVERNMENT.......................................................................................................................... 8

3.4 PRIVATE SECTOR ACTORS .................................................................................................. 9

4.0 TECHNICAL ACTIVITIES BY PROJECT COMPONENT ....................................................... 11

4.1 COMPONENT 1: Build capacity of vertical and horizontal actors ............................. 11

4.2 COMPONENT 2: Enhance coffee production ................................................................. 30

4.3 COMPONENT 3: Develop Public Private Partnerships (PPP) ...................................... 61

4.4 COMPONENT 4: Access to Finance (A2F) ...................................................................... 62

4.5 CROSS-CUTTING PRIORITIES .......................................................................................... 68

4.6 ENVIRONMENTAL MONITORING AND MITIGATION............................................. 74

5.0. CONTRAINTS AND SOLUTIONS ............................................................................................ 78

6.0 KEY FINDINGS AND LESSONS LEARNED .............................................................................. 81

7.0 RECOMMENDATIONS .................................................................................................................. 83

8.0 CONCLUSION ................................................................................................................................. 85

Feed the Future DRC Strengthening Value Chains Activity – Q3 FY20 Quarterly Report (April-June 2020) - ii

ACRONYMS AND ABBREVIATIONS A2F Access to Finance ACOSYF Association Coopérative pour la Synergie Féminine ACT Association of small cross-border traders ADIJ Activité de Développement Intégré des Jeunes AJDMU Association des Jeunes pour le Développement de Mushinga AMELP Activity Monitoring, Evaluation and Learning Plan AMKA Amka Mulimaji wa Kahawa AMSA Association des Multiplicateurs de Semences Améliorées ARD Associates in Rural Development ASSALAK Association des Armateurs de Lac Kivu ASSECCAF Association des Exportateurs de Cacao et Café ASBL Association Sans But Lucratif ASOP Action Sociale et d’Organisation Paysanne AVPA Agence pour la Valorisation des Produits Agricoles AWP Annual Work Plan B2B Business-to-Business BDS Business Development Services BIC Bureau de l’Information Commerciale BYA Bukavu Youth Agri-preneurs CAPACADE Coopérative Agricole pour la Promotion des Actions café et de Développement CAPCKI Coopérative Agricole de Producteurs de Café du Kivu CARG Conseil Agricole Rural de Gestion CARPE Central Africa Regional Program for the Environment CBRMT Capacity Building for Responsible Minerals Trade CCPA Conseil Consultatif Provinciale sur l’Agriculture CEE Communauté Economique de l’Europe CFC Coffee Farm College CLD Communauté Locale de Développement COCASKA Coopérative de Café Sélectionné de Kalehe COMESA Common Market for East and Southern Africa CONAPAC Confédération Nationale des Producteurs Agricoles du Congo COOPAKAB Coopérative Agricole de Kabare COOPANYA Coopérative Agricole de Nyamarhale COP Chief of Party COPROSEM Conseil Provinciale de Semences CPCK La Coopérative des Producteurs du Café de Kabamba CSP Coffee Service Provider CYED Center for Youth Emancipation and Development DCA Development Credit Authority DCOP Deputy Chief of Party

Feed the Future DRC Strengthening Value Chains Activity – Q3 FY20 Quarterly Report (April-June 2020) - iii

DFC U.S. International Development Finance Corporation, formerly USAID’s Development Credit Authority (DCA)

DGDA Direction Générale des Douanes et Assises DFAP Development Food Aid Program DFID Department for International Development DFSA Development Food Security Activity DPM Deputy Project Manager DPMER Direction Provinciale de Mobilisation et d’Encadrement des Recettes DQA Data Quality Assessment DRC Democratic Republic of the Congo DUBR Dynamique Umoja Bonde la Rusizi EAGC East African Grain Council ECI Eastern Congo Initiative EDC Education Development Center Inc. EG Economic Growth EMMP Environmental Mitigation and Monitoring Plan FAM Fondation Amani Maendeleo FAO United Nations Food and Agriculture Organization FBG Farmer Business Group FEC Fédération des Entreprises du Congo FFG Focal Farmer Group FFP Food for Peace FH Food for the Hungry FNM Fonds Nationale de Micro-Finance FOPAC La Fédération des Organisations des Producteurs Agricoles du Congo FONADA Fond Nationale de Développement Agricole FODDR Fondation Djuma Dominique Rwesi FPM Fund for the Promotion of Financial Inclusion in DRC FSP Food Security Program FY Fiscal Year GALS Gender Action Learning System GDRC Government of the Democratic Republic of the Congo GFSS Global Food Security Strategy GSICM Gender, Social Inclusion and Conflict Mitigation GYSI Gender, Youth and Social Inclusion IFCCA Initiative des femmes dans café et cacao IGA Integrated Governance Activity IHP Integrated Health Project IITA International Institute for Tropical Agriculture IKYA IITA Kalambo Youth Agripreneurs IMC International Medical Corps INERA Institut National pour l'Etude et la Recherche Agronomiques IPAPEL Inspecteur Provincial de l’Agriculture, la Pèche et l’Elevage IPs Implementing Partners IYDA Integrated Youth Development Activity ISP Institut Supérieur de la Pédagogie JAA J. E. Austin Associates, Inc. KAB Kivu Agro Business

Feed the Future DRC Strengthening Value Chains Activity – Q3 FY20 Quarterly Report (April-June 2020) - iv

Kg Kilogram KYBK Kahawa Bora Ya Kivu LC Listening Club M&E Monitoring and Evaluation MC Mercy Corps MFI Microfinance Institution MIS Market Information System MLAT Multi-Location Agronomy Trial MONUSCO Mission de l'Organisation des Nations Unies pour la stabilisation du Congo MOU Memorandum of Understanding MT Metric Ton (1000 kg) NASECO Nalweyo Seed Company NDSCi Nouvelle Dynamique de la Société Civile NGO Non-Governmental Organization OGEFREM Office de Gestion de Fret Multimodal OFTT On-Farm Field Trial ONAPAC Office National des Produits Agricoles au Congo (the new name for ONC) ONC Office National du Café (now called ONAPAC) ONEM Office National de l'Emploi Q Quarter PAD Programme d’Appui au Développement Durable PAM Programme Alimentaire Mondiale (World Food Program) PAV Programme d’Appui aux Vulnérables PGE Partnership for Gender Equity PHH Post Harvest Handling PIAD Programmes des Initiatives d’Appui au Développement PICAGL Integrated Project for Agricultural Growth in the Great Lakes (World Bank) PICS Purdue Improved Crop Storage PM Project Manager PO Producer Organization POSA Producer Organization Strengthening Assessment tool PPE Personal Protective Equipment PPP Public, Private Partnership RAEK Rassemblement des Agriculteurs et Eleveurs du Territoire de Kabare RATIN Regional Agricultural Trade Intelligence Network RIAF Robinson International Afrique RCPCA Réseau des Coopératives des Producteurs de Café Cacao en RDC RDC République Démocratique du Congo ROI Règlement d’Ordre Intérieure RISD Research Initiatives for Social Development RTNC Radio Télévision Nationale Congolaise RWH Rebuild Women Hope Cooperative R&D Research & Development RUJCAF Ruhunde Jeunes Caféiculteurs SBCC Social Behavior Change Communication SENAFIC Service National des Fertilisants et Intrants Connexes SdK Saveur de Kivu (Specialty Coffee Event) SENASEM National Seed Service (Service National des Semences)

Feed the Future DRC Strengthening Value Chains Activity – Q3 FY20 Quarterly Report (April-June 2020) - v

SFCG Search for Common Ground SIL Soybean Innovation Lab SOLFAP Synergie des Organisations Paysannes dans la Lutte contre la Faim et la Pauvreté SOPADE Solidarité de Paix et Développement SOW Statement of Work SUAP Safer Use Action Plan SPR Solutions for Peace and Recovery SVC Strengthening Value Chains (Activity) TA Technical Assistance TCC Tumaini Coffee Cooperative TCN Third Country National TEP Tribunes d’Expressions Populaires TNS Techno Serve UCB Université Catholique de Bukavu UNDP United Nations Development Program UCOAKA Union des Coopératives Agricoles de Kalehe UPSKI Union of Soybean Producers of Kivu USAID United States Agency for International Development VC Value Chain VCM Value Chain Manager VSLA Village Savings and Loan Association WCR World Coffee Research WFP World Food Program WV World Vision YALI Young African Leaders Initiative ZOI Zone of Intervention

Feed the Future DRC Strengthening Value Chains Activity – Q3 FY20 Quarterly Report (April-June 2020) - vi

EXECUTIVE SUMMARY Despite the COVID-19 outbreak which severely limited travel and contact with beneficiaries, clients and stakeholders, the USAID DRC Feed the Future Strengthening Value Chains Activity (SVC) team continued to implement the Fiscal Year (FY) 2020 workplan, with health and sanitation precautions in place. During this reporting period:

• 13,342 people (50% women) participated in SVC programming • 12,306 individuals (49% women) participated in short-term agricultural training • 1,029 seasonal jobs were created (56% women), principally at coffee washing stations • 117.6 MT (76.4 MT of dried beans and 41.2 MT of soybean) were treated and stored at

aggregation centers and warehouses. During the quarter 53.5 MT of beans and 30.78 MT of soybeans were sold, yielding a total gross revenue of $91,110 for client farmers.

• A total of 19 rural borrowers received a total of $1,189,000 in funding through the DCA facility and through private sector coffee actors, including NESPRESSO funding in collaboration with Virunga Coffee and SUCAFINA.

• The CARG Market Information System kicked off with sensitization meetings at six major markets, and initial price and quantity data collected for 10 crops.

• Market Women’s Association members in three SVC territories successfully lobbied local authorities for reductions in chiefdom taxes and vendor taxes

• 431 new land use contracts were signed with sharecroppers. Since January 2020, 733 new contracts have been signed in collaboration with the Federation of Congolese Entrepreneurs (FEC), increasing sharecroppers’ access to land, services and markets.

• 38 SVC client washing stations processed 2,019 MT of coffee cherry resulting in the production of 295.2 MT of fully washed coffee parchment.

• 4 Coffee Washing Stations began the process of organic certification, registering 1,343 smallholder farmers who are able to supply organically produced coffee.

• A yield study on harvested demonstration plots in Kabare showed that plots where all best agronomic practices were applied yielded an average of 3.2 kg coffee cherries/tree, a 78% increase in production compared to local farmer plots (1.8kg cherry/tree) after nearly two years of training at coffee farm colleges (CFC) . Average yields were 1.1 kg of cherry per tree before the CFC.

• 468 AMKA and SOPACDI farmers received a sustainability payment of $0.5 per kg of green coffee purchased (a total of $19,200 in premium payments) paid pro rata to each farmer, based on the volume of each farmer’s coffee purchased by NESPRESSO in 2019.

Feed the Future DRC Strengthening Value Chains Activity – Q3 FY20 Quarterly Report (April-June 2020) - 1

1.0 INTRODUCTION In May 2017, the United States Agency for International Development (USAID) awarded Tetra Tech/ARD the Feed the Future Democratic Republic of the Congo (DRC) Strengthening Value Chains (SVC) Activity (Contract no. AID-660-C-17-00003). Tetra Tech implements the activity in collaboration with five international subcontractors: Banyan Global, J.E. Austin Associates, Inc. (JAA), Search for Common Ground (SFCG), TechnoServe (TNS) and World Coffee Research (WCR). The purpose of the activity is to increase household incomes and improve access to nutrient rich crops by linking small-holder farmers to strengthened and inclusive value chains and supportive market services. The SVC Activity is designed to complement other USAID investments in food security, governance, environment, health, and youth, strengthening the foundation for durable peace in eastern DRC. SVC applies a nutrition-sensitive value chain and market systems development approach combining technical assistance and capacity building for value chain actors, credit facilitation, assistance with market linkages, public-private partnership development, social behavior change communication, and advocacy to support soy, dried bean and specialty coffee value chain development in South Kivu. The Activity targets three territories in South Kivu – Kabare, Kalehe and Walungu – over a period of five years (May 2017 – May 2022). In FY20, the Activity added Idjwi as a target territory.

The SVC Activity includes the following components:

• Component 1: Build capacity of vertical and horizontal actors in targeted value chains; • Component 2: Enhance coffee production; • Component 3 (Cross Cutting): Develop and implement public private partnerships; • Component 4 (Cross Cutting): Enhance access to commercial finance, including through

technical assistance to implement Development Credit Authority (DCA) agreements

And the following cross cutting priorities:

• Conflict sensitivity and resilience, • Gender • Feed the Future goals • Sustainability and local systems strengthening • Climate-smart agriculture, and • Value chain and market systems development

This report summarizes SVC activities and results achieved during the third quarter (1 April -31 June 2020) of Fiscal Year 2020.


2.0 SVC PERFORMANCE TO DATE

No Performance Indicator Target 2020

FY2020 FY2020 FY2020

Q1 Q2 Q3

Target Achieved Achieved Achieved

PURPOSE LEVEL: Increase household incomes and access to nutrient rich crops by linking smallholder farmers to strengthened and inclusive value chains and supportive market services.

4 Number of individuals participating in USG food security programs [IM-level (GFSS # 49)] (Quarterly) 20 000 12 371 15 403 13 342

Breakdown of participants by age, sex

Male 6 590 7 598 6 716

Female 5 781 7 805 6626 (49%)

Child 12 13 14

Youth 2 229 2 902 2687 (20%) Adult 9 258 11 593 10 061 Age not given 872 895 580

IR1: Improved agriculture livelihoods among targeted households

5 At least 2,000 additional seasonal worker positions created compared to the baseline year) (Contractual) (Seasonal)

750 3 099 1 046 1029

New 250 1 372 844 524 Continuing 500 1 727 202 505

Sub-IR 1.1: Increased use of improved agriculture practices and inputs

7 Number of individuals who have received USG-supported short-term agricultural sector productivity or food security training (EG 3.2.1) (*) (Quarterly)

10 000 11 823 13 734 12 306

Male 6 208 6 825 6 320

Female 5 615 6 909 5 986

IR2: Expanded markets and trade

10 Number of containers of specialty coffee exported per year (Contractual) (Seasonal) 35

11 Value of annual sales of farms and firms receiving USG assistance [IM-level] (GFSS #15 )(USD) (Seasonal) $ 3,150,000

SVC supported wet mills

None-SVC

Sub-IR 2.1: Improved market linkages and information systems



FY2020 FY2020 FY2020

Q1 Q2 Q3


12

Number of for-profit private enterprises, producer organizations, water user associations, women’s groups, trade and business associations, and community-based organizations receiving USG food security-related organizational development assistance (EG.3.2-4); FFP12*(Quarterly)

180 117 64 16

New 24 69 29 0

Continuing 48 35 16

13 Self-sustaining market information system established (Custom, contractual) 1 0 1 1

Sub-IR 2.2: Improved post-harvest storage and processing

14 Volume of targeted crops processed by food processors and wet mills (Custom) (Seasonal) 1 286 295.3

15 Volume of targeted crops treated or stored at aggregation centers (sorting, grading, drying, bagging, storage); % increase over baseline (Custom) (Seasonal)

10% 0 6.7% of target

reached

13.6% of target

reached

MT 1 699

114,3 MT (34.485 MT

of soya beans and 79.862 MT of beans)

117,6 MT (41,2 MT

soybean and 76,4 MT of

beans)

16 Number of Agricultural Borrowers receiving credit as a result of USG assistance (Custom) (Quarterly) 60 9 10

19 (10 new clients, 9 repeat clients)

17 Total agriculture-related financing accessed as a result of USG assistance [IM-level] (GFSS 12)(USD) (Quarterly) $ 1 200 000 $ 237 400 $ 902 500 $ 1 189 000

18 Number of public-private partnerships formed as a result of USG assistance (EG.3.2-5). (Quarterly) (cumulative) 10 (3 new) 0 1 0

Sub-IR 2.5: Improved governmental services, regulations, and taxation for agricultural inputs and trade in targeted value chains

22 Number of civil society organizations receiving USG assistance engaged in advocacy interventions (DR.4.2-2) (Quarterly)

30 7

Sub-IR 3.2: Increased awareness of and commitment to essential nutrition-promoting practices

25

Number of farmer or value chain associations, organizations, and/or businesses that implement gender and nutrition behavior change communication interventions (Custom; contractual) (Quarterly)

10 0

26

Number of communities reached with nutrition messages disseminated (FH/DFSA) (*) (contractual indicator is 15,000 households reached with messaging on nutrition, gender equality, and women’s empowerment.) (Quarterly)

60 12 16 0

Sub-IR 3.4: Improved access to diverse and nutritious foods

27

Number of actors including farmers, farmer associations, organizations, cooperatives, and businesses engaged in the production and/or marketing of nutritional products [6] (Custom) (Quarterly)

15 0 0 0



FY2020 FY2020 FY2020

Q1 Q2 Q3


Cross Cutting IR: Increased gender equality and increased women’s socio-economic empowerment in target communities

28 Percentage of female participants in USG-assisted programs designed to increase access to productive economic resources [IM-level] (GFSS #44) (Quarterly)

20% 80% 66% 56%

Numerator: Number of female program participants 695 580

Denominator: Total number of male and female participants 1 056 1029

Cross-Cutting IR: Conflict Prevention and Mitigation

30 Number of participatory conflict analyses conducted. (custom) (Quarterly) 3 0 0 3


Indicator No Narratives

1 Prevalence of stunted (HAZ < -2) children under five years of age [ZOI-level] GFSS #3 (Impact level indicator, reported only at baseline and endline by FFP programs); external baseline and endline only.

2 Prevalence of poverty: Percent of people living on less than $1.90/day 2011 PPP [ZOI-level] GFSS #5 (Impact level indicator, reported only at baseline and endline by FFP programs) ; external baseline and endline only.

3 Number households with an average increase of at least $125 in annual income from agricultural export commodities (Contractual); baseline and endline only,

4

A total of 13,342 individuals participated in the SVC program this quarter, including 6,626 woman (49.7 %) and 6,716 men. Participants include 11,959 small holder farmers/ coffee producers from the coffee college, and 444 wet mill staff who received sustainability, coffee quality control and book-keeping training for their enterprises; 123 people participated in activities to promote local coffee consumption and the legalization of the statutes of women's associations selling soya and beans; 646 participated in gender action learning system activities, and 134 individuals participated in market systems information data collection; 36 bank staff were trained on the DCA guarantee.

5 During this quarter, a total of 1029 seasonal jobs were created by SVC clients. 579 seasonal workers are female (56%) and 450 are male. Among these seasonal workers, 524 are new (51%) and 505 are continuing. All 1029 seasonal jobs were created in coffee wet mills.

6 Number of households with an average estimated 30% increase in agricultural productivity of export crops (baseline and endline only)

7

This quarter, a total of 12,306 individuals received short term agriculture training, including 6320 are men and 5986 are women (49%). Among trainees, 2333 are youth (19%). All 12,306 individuals are from the coffee sector (11,959 from the coffee college and 347 SME staff trained in coffee processing, coffee quality and book-keeping)

8a This target is annual, and will be reported in the FY20 annual report.

8b This target is annual, and will be reported in the FY20 annual report.

9 This target is annual, and will be reported in the FY20 annual report.

10 This target is seasonal, and will be reported in the FY20 annual report.

11 This target is seasonal, and will be reported in the FY20 annual report.

12 This quarter, 16 clients from the coffee sector received training on business management and governance, accounting and financial management and access to finance and markets.

13

For the pilot MIS, prices of 10 agricultural products are tracked at six pilot markets including Mudaka and Katana in Kabare territory, Kandjuki/Ihusi and Minova in Kalehe territory, and Mugogo and Kamanyola in Walungu territory. Prices for beans, maize, rice, sweet potato, tomato, soybean, cassava, Irish potato, onion and palm oil are tracked.

14 This indicator refers to the volume of targeted crops processed by food processors and wet mills. During this quarter, 295.3 MT of coffee was processed at coffee wet mills.

15

This indicator presents the volume of targeted crops treated or stored at aggregation centers (sorting, grading, drying, bagging, storage). During this quarter, 117,6 MT of crops were treated and stored. this volume represents 41,2 MT of soybeans and 76.4 MT of beans. 532.225 MT of soya beans were sold with a value of $1,780 and 63513 MT of beans were sold with the value of $55,073.


Indicator No Narratives

16

During this quarter, a total of 19 agriculture borrowers received credit with USG. Per lender disaggregation, 12 organizations received credit from Equity bank, 1 from FINCA, 5 from value chain companies and 1 from a non-DCA Micro-Finance Institution (MFI). Among these organizations, 8 are SVC clients from the coffee sector (AMKA, CAPECKI, CHANGWE, COCASKA, NICOLAS, SOPADE, MUUNGANO, and CPCK) and 11 are non-SVC Clients. 8 are located in Kalehe, 1 in Bukavu, 9 in Goma and 1 in another Kivu territory. Per recipient type, 10 are new and 9 are repeat. Per sex disaggregation, 10 borrowers are male, 1 female and 8 others are organizations jointly led by men and women.

17

A total of $1,189,000 US in agriculture-related funding was disbursed as a result of US government assistance. $12,000 was lent by FINCA, $850,000 by Equity bank, $127,000 by MFIs and $200,000 by other institutions. $787,000 was disbursed to 8 organizations supported by SVC and $402,000 disbursed to non-SVC client. $564,000 is under the DCA guarantee and $625,000 is non-DCA guarantee.

18 2 exchange sessions on finalization of the COPROSEM (Provincial Seed Committee) platform statutes and the proposal for the decree to be submitted to the Provincial Governor which would create official recognition of the platform

19 This indicator is reported annually (POSA assessment)



22 7 Bean and Soybean Women's Associations are involved in advocacy actions this quarter; 2 are located in Walungu, 2 in Kalehe and 3 in Kabare. They are advocating for a reduction in the cost of chiefdom taxes required per person, per market day, and fees paid.

23 Prevalence of children 6-23 months receiving a minimum acceptable diet [ZOI-level] (context) (External USAID Baseline/endline only)

24 Prevalence of women of reproductive age consuming a diet of minimum diversity [ZOI-level] (context) (External, USAID baseline and endline only)

25 No activities this quarter, due to COVID-19 travel restrictions.



28

This indicator is related to the percentage of female participants in USG-assisted programs designed to increase access to productive economic resources. Per the PIRS, this percentage is based on the results of indicator #5 (number of additional seasonal workers created) and Indicator #16 (number of agricultural borrowers receiving credit with USG assistance). During this quarter the total number of female program participants was 1 women borrower and 579 seasonal workers in wet mills supported by SVC. The percentage of women is a ratio of 580 women (numerator) and 1029 the total number of male and female seasonal works (the indicator with the most participants, to avoid double counting). The ratio is 56%.


30 Three conflict analyses were carried out this quarter (one per territory – Kalehe, Kabare and Walungu).


3.0 COLLABORATION 3.1 USAID IMPLEMENTING PARTNERS (IP)

• The SVC Cooperative Development Specialist met with the World Vision Agriculture and Value Chain Manager (partners in Mercy Corps’ DFSA) in June to discuss training 27 producer organizations and 4 farmer business groups jointly supported by World Vision and SVC in the territory of Kalehe. SVC and World Vision will organize a joint training in commercially oriented agriculture and basic accounting.

• Four meetings were held with the USAID funded Integrated Governance Activity (IGA) to develop a common approach to support the Conseil Consultatif Provinciale sur l’Agriculture (CCPA) at the provincial level and Conseil Agricole Rural de Gestion (CARG) at the local level. SVC shared the POSA (Producer Organization Sustainability Assessment) manual and modules on financial management with IGA.

• The Integrated Governance Activity (IGA) team requested a meeting which SVC organized to present the project’s BDS capacity building activity, including methodologies, training modules, and targets.

• Mercy Corps asked SVC to support COOPAKAB/SOPDE, connecting them with financial institutions to request loans for next season’s bean crop. SVC staff assessed the cooperative as having poor governance with low levels of transparency with its members, so the project will not support the cooperative’s loan requests at this time.

• The Gender, Youth and Social Inclusion (GYSI) team led virtual meetings with USAID’s Integrated Youth Development Activity (IYAD/ADIJ) on April 24, May 7, and June 17, 2020, to improve collaboration between SVC and ADIJ to increase youth employment. These meetings were especially important because ADIJ has already completed a series of trainings with youth and would like to direct them to employment opportunities (internships, seasonal jobs, etc.) in workplaces including cooperatives, coffee washing stations, and bean and soybean warehouses. However, ADIJ’s training topics do not correspond well to the needs of cooperatives and the rural market, so SVC discussed collaborating with ADIJ to train small groups of five to ten young people in rural areas in priority topics.

Additionally, ADJI and SVC discussed opportunities for collaboration to:

Carry out joint studies to identify needs of rural youth and expectations of potential employers of young people in rural areas, including the agricultural sector.

Hold joint trainings for young people through a cost-sharing mechanism; and Facilitate learning, collaboration, mentoring and coaching of young people.

• Research Initiatives for Social Development (RISD) and International Medical Corps (IMC) are conducting an assessment to inform the design of a project, VENTURE 37, to be financed by USAID, focusing on the management of fall army worm in maize. The RISD and IMC team spoke with the SVC GYSI team on May 20, to discuss gender and youth dynamics in South Kivu to inform project implementation.


• SVC collaborated with the Food for the Hungry’s (FH) TUENDELEE PAMOJA II Development Food Security Activity (DFSA) in Walungu to roll out sensitization and information campaigns related to COVID-19. The Ciherano listening club supported by SVC worked with the Food for the Hungry DFSA to hold events and activities to increase communities’ knowledge about COVID-19 protection measures.

3.2 OTHER DEVELOPMENT PARTNERS

• The SVC Deputy Chief of Party (DCOP) participated at a presentation of the Integrated Project for Agricultural Growth in the Great Lakes (PICAGL, funded by the World Bank) and Harvest Plus.

• SVC is working in partnership with CCPA and CARG to implement a Market Information System (MIS) approach in six markets across three territories, to support SVC activities in the field.

• The SVC Access to Finance (A2F) specialist, Component 1 team, Gender, Youth, and Social Inclusion (GYSI) team, Monitoring, Evaluation and Learning (MEL) team and the SVC DCOP participated in a training with The Canopy Lab on Market Systems Development. Canopy Lab also partners with the DFID-funded ELAN project in North and South Kivu.

• The Fund for the Promotion of Financial Inclusion in DRC (FPM) agreed to co-sponsor a second forum on agricultural access to finance in South Kivu with SVC in August 2020. However, due to the COVID-19 pandemic, the forum has been postponed.

• Since April 2020, SVC and ÉLAN have been coordinating to pilot the Partnership for Gender Equity (PGE) Virtual Learning Series (VLS) to promote gender equity in coffee producer organizations in South Kivu. The gender and social inclusion teams have also been collaborating on a shared approach for a women and youth-focused mentoring program in South Kivu. Data has been collected on potential youth groups, already targeted by the Gender Action Learning System (GALS) activity, who might be interested in this new opportunity. SVC and ÉLAN hold monthly calls to share learning on adapting activities during the pandemic, collaboration and learning on the PGE activity, and other opportunities for shared learning and collaboration such as the mentorship activity.

3.3 GOVERNMENT

• The DCOP met in June with the Provincial Minister of Agriculture. The Provincial Minister of

Caption: The South Kivu Provincial Minister of Agriculture visited SVC clients in June 2020 (Photo credit: Tetra Tech)


Agriculture and his team visited SVC activities in Kabare. • SVC held several meetings with CCPA and CARG about their support to the Association of

Cross Border Traders (ACT) and territorial level bean and soybean market women’s associations. CARG has supported those associations in their advocacy process with local authorities to reduce taxes.

• The GYSI team met with the Mwami of the Chiefdom of Kabaré and the SVC Chief of Party (COP) at the SVC office in Bukavu on June 26. The exchange focused on the needs of the Kabaré Chiefdom as a Decentralized Territorial Entity (ETD) during COVID-19 to implement their Local Development Plan. The Mwami would like to strengthen his relationship with SVC as a major partner in the revival of the coffee sector.

3.4 PRIVATE SECTOR ACTORS

• SVC staff continued to strengthen relationships with Nespresso, SUCAFINA and seven SVC processing clients to meet market and contractual demands related to specialty coffee quality, certification and sustainability. SVC provided bookkeeping and quality control training to partner washing stations. Control systems implemented by SVC-supported washing stations ensured private sector partners that coffee quality, cherry purchasing, and parchment stock information was accurate, which allowed working capital payments to be made. Nespresso and Virunga Under the Reviving Origins Initiative, Nespresso buys organically

certified coffee from DRC. This reporting period SVC provided support for organic certification at four coffee washing stations, as well as monitoring the use of working capital provided by NESPRESSO to client washing stations. Virunga Coffee facilitated the payout of 2019 AAA premium payments with the Amka Mulimaji wa Kahawa (AMKA) cooperative. SVC selected and dispatched samples of coffee from NESPRESSO partner washing stations to Virunga Coffee, and supported external cupping for quality control and appreciation of parchment. SVC also provided support to NESPRESSO’s marketing department for material to support their reviving origins campaign. Finally, the coffee team monitored coffee quality, transparency, traceability, and sustainability metrics at client washing stations and provided updated reports on progress throughout the season to NESPRESSO and Virunga.

SUCAFINA began the 2020 campaign by signing contracts with two SVC client stations to purchase approximately 1 container of green coffee. Contractual quality requirements were cupping at scores above 82. Activities with SUCAFINA included coordination on cherry purchases and parchment stock for working capital payments. SVC also collected 11 samples from 6 partner stations for cupping at the SUCAFINA lab in Kigali. By the end of the quarter SUCAFINA worked with three SVC clients to move approximately 12 MT of coffee parchment from South Kivu to the Jambo Safari wet mill in Goma.

• The COP, Coffee Component Lead and Access to Finance Specialist held separate calls with Verdant Capital, a social investment group who are interested in supporting financing on agribusiness opportunities in Eastern Congo. In the coffee sector they could leverage SVC’s


work with a Coffee Service Provider like SUCAFINA to address working capital needs through commercial banks. Verdant was interested in the possibility of investing in the pre-cooked bean processing venture, and also connected with Alpha New concerning potential support in the development of their financial database application.

• Multiple meetings and partnership discussions were held with Orange and the Coopérative des Producteurs du Café de Kabamba (CPCK) to finalize a partnership with SVC to pilot test using mobile money for coffee payments. Unfortunately, after an accumulation of delays due to COVID-19 and Orange’s slow administrative processes, as well as continued reluctance by the cooperative to invest in the technology needed for the test, CPCK finally requested that the pilot be postponed for this season.


4.0 TECHNICAL ACTIVITIES BY PROJECT COMPONENT

4.1 COMPONENT 1: BUILD CAPACITY OF VERTICAL AND HORIZONTAL ACTORS IN TARGETED VALUE CHAINS

4.1.1 Introduction

During the third quarter (Q3) of Fiscal Year 2020 (FY20), activities undertaken by the Component 1 team focused on following up activities implemented during the first two quarters of this fiscal year. Trips to the field trips were reduced following restrictive measures taken by the DRC government to reduce the spread of the COVID 19 virus. Follow-up activities were carried out in part by partners in five of the six economic poles identified in South Kivu - Kamanyola and Nyalugana (Mogogo) in Walungu territory; Mudaka and Katana in Kabare, and Ihusi and Minova in Kalehe territory. Component 1 activities focus principally on the nutritive value chains of dry beans and soybeans; however, there are many cross-cutting synergies with coffee that have developed progressively and concessionnaires are actors in all three of SVC’s targeted value chains. It is important to note that the agricultural season was negatively affected by heavy late rains at harvest. SVC staff have also determined that soybean seed is quite degraded and new sources of foundation seed are required to increase yields. Grain size is small, and local varieties are inappropriate for soybean oil production. We will work with regional institutions as well as USAID’s soybean innovation lab to improve soybean value chain performance in Year 4.

The following results were achieved this quarter:

• Four new bean varieties out of five sown last quarter in demonstration plots were selected by farmers for seed multiplication.

• CLD Birava produced 915kg of bean seed this quarter from the 80 kg of bean seed sown in Quarter 2.

• FODDR harvested 801 kg of soybean seed from 500 kg sown last quarter • 10 agricultural products including beans, maize, rice, sweet potato, tomato, soybean,

cassava, Irish potato, onion and palm oil have prices and saleable quantities per market day tracked via the Market Information System (MIS) in six key markets.


Data collected on soybean and beans stored and sold by value chain client producer organization (PO) platforms that received SVC technical assistance since FY 2018 yielded the following results:

• 76.43 MT of dry beans were well dried, winnowed, sorted, cleaned and packed for storage; 53.50 MT (70%) were sold for $1.30/kg, yielding $ 69,550 US in gross revenue for producers.

• 41.21 MT of soybean were dried, winnowed, cleaned, sorted and well packed in ordinary plastic bags without organic or inorganic pesticides for storage; 30.78 MT (74.7 %) were sold @$0.70 /kg yielding $ 21,546 USD.

431 contracts were signed between concessionaires and sharecroppers as a result of the promotion of SVC’s concessionaire model, providing sharecroppers from vulnerable households (including many women-headed households) with access to land, seed, storage and market linkages.

4.1.2 Key activities undertaken in Q3

Activity 1: Increase supply and demand of inputs

The following activities were carried out this quarter:

• Follow up demonstration plots with bean varieties • Follow up on the agricultural 1and input supply calendar

1 Activity numbers refer to the FY 2020 Annual Work Plan, to facilitate tracking results vs. plans.

• Develop training modules in cost management, pricing, marketing and distribution models for agro-dealers

Sub Activity I.I. Promote the use of agricultural inputs (demand)

Monitoring bean variety demonstration plots: During Q2 FY20 eight demonstration plots were set up with six clients, in collaboration with the Institut National pour l'Etude et la Recherche Agronomiques (INERA). The objective of the demonstration plots was to help farmers select varieties that interest them, and to access improved varieties adapted to their environment. After farmer selection, seed multiplication will be discussed between interested clients and INERA. INERA provides technical advice on varieties selected by farmers for multiplication.

• The bean varietal demonstration plots installed last quarter in eight sites received monitoring visits this quarter. The aim was to discuss farmers visual observations during the growth stages of the different bean varieties, and to ensure demonstration protocols were respected.

• Seven of eight demonstration plot sites were visited, including sites in Kakono, Kashusa, Muganzo, Birava, Kayandja, Minova and Buzi. Site visits did not take place in Bitesi (Walungu) because the demonstration plots were damaged by hail.

• Visual observations and interviews with farmers at the demonstrations plots revealed that: All the demonstration plots were at the pod filling phase during site monitoring


The Kashusha demonstration plots were attacked by cutworms. Farmers collected the cutworms by hand.

No pest or disease attack was noted on any other demonstration plots.

Restrictions on fertilizer and pesticide applications were respected at all demonstration sites.

Yields of demonstration and local control bean varieties are presented in Table 1.

• In Mugano, Birava, Kayandja and Buzi, bean varieties selected for seed multiplication had a higher yield than local varieties used as controls.

• In Minova, the varieties preferred by farmers have either equal or higher yield compared to local control,

• in Kashusa, farmers preferred a lower producing variety compared to the local control. The demonstration plots were attacked by a gray worm infestation. The biofortified bean variety HM21-7 proved resistant to the attack and produced enough leaves which were sold in the market as a local vegetable. The sale of leaves added to the harvest of beans resulted in a higher revenue stream than the local control variety.

Demonstration plots in the Kakono plantation were not harvested because the mature beans were stolen2

2 Theft is fairly frequent at harvest time, especially on larger landholdings where no guards may be present. It is surprising the entire harvest was taken. Also, militia’s historically have attacked at harvest either displacing the population to take their harvest or requiring a heavy tithe from farmers under threat of violence.

a few days before the planned harvest. The Bitesi plantation site had no yield as the beans were destroyed by hail.

It should be noted that economics and risk aversion dominate farmers choice of preferred bean varieties. Higher yield and shorter cycle (number of days between planting and harvest) characterisits were the most important factors considered by farmers. Additional selection criteria such as resistance to pests and diseases and organoleptic characteristics of both leaves and grains were not as impotant to men or women surveyed. INERA’s legume research program will pursue discussions with farmers to better understand their varietal choice and preferred characteristics when choosing the varieties they plant.

Of the five varieties that INERA provided for demonstration plots, only RWR 2245 was not selected by farmers at all six harvested demonstration sites.

Table 1: Bean yields and bean varieties selected by farmers from SVC demonstration plots

Partners Territory Demo sites

Demonstration plot area (m² ) (per variety) Variety

Extrapolated yield of demonstration (Kg/ ha)

Farmer preferred varieties (***)

PAV Kabare Kashusha

20 m²

MORE 88002 557 RWR 1668 234,5 MARUNGI 202201

291,5

HM 21-7 339 (***) Local variety 739 RWR 2245 252,5

Kabare Muganzo MORE 88002 1242,6 (***)


Partners Territory Demo sites

Demonstration plot area (m² ) (per variety) Variety

Extrapolated yield of demonstration (Kg/ ha)

Farmer preferred varieties (***)

15 m²

RWR 1668 1098,6 (***) MARUNGI 202201

682,6

HM 21-7 506 Local variety 239,3 RWR 2245 93,3

CLD Birava Kabare Birava

8 m²

MORE 88002 625 RWR 1668 1750 (***) MARUNGI 202201

1250 (***)


Ets Bishweka Kabare Kayandja

15 m²

MORE 88002 1666,6 (***) RWR 1668 2000 (***) MARUNGI 202201

1933,3 (***)

HM 21-7 2066,6 (***) Local variety 1333,3 RWR 2245 1066,6

SOLFAP Kalehe Minova

8 m²

MORE 88002 1375 (***) RWR 1668 2187,5 (***) MARUNGI 202201

1750 (***)


Ets Bwema Kalehe Buzi

12 m²

MORE 88002 416,6 RWR 1668 750 MARUNGI 202201 833,3 (***) HM 21-7 833,3 (***) Local variety 750 RWR 2245 416,6

Sub-Activity 1.2: Increase the supply of agricultural inputs

4.1.2.2 Train agro-dealers in management, marketing and input distribution models

A training module was prepared this quarter. It includes models for cost management, pricing, marketing and distribution.

Sub Activity 1.3. Link actors to facilitate access to inputs

Linking actors to facilitate access to biofortified bean seeds: CLD Birava received 80 kg of bio fortified bean seed from HarvestPlus in season A, 2020. The 80 kg produced 915 kg of bean seed. From its harvest CLD Birava allocated 120 kg as reimbursement to HarvestPlus, 100 kg


was sold to Ets Bishweka for $ 0.9/kg, 615 kg were sold to CLD Birava members at $ 1.5 / kg3, and CLD Birava planted 80 kg in cropping season B 2020.

CLD Birava planted the 80 kg in four sites (Kashimbi, Bidabanga-Murama, Ngara-Mushweshwe and Birava Center-Mweya) in Kabare at the rate of 20 kg per 0.25 hectare at each of the four sites in cropping season B, 2020. The production is presented in Table 2.

Table 2: Bean yields and bean varieties from four seed multiplication sites, CLD Birava

Site Variety Production (Kg) (0,25 ha)

Yield (Kg/ha) Observations

Kashimbi HM 21-7 215 860 Bidabanga-Murama HM 21-7 75 300 Production impacted by heavy rains and

poor soil fertility Ngara-Mushweshwe HM 21-7 42 168 Birava Ctr-Mweya HM 21-7 10 40 Total 342 Mean = 342

The 215 kg produced at Kashimbi will be sold to CLD Birava members for $1.5/kg. The 75 kg produced at Bidabanga-Murama was sold to CLD Birava member farmers for $1 kg. The 42 kg from Ngara-Mushweshwe is still available and stored. The 10 kg from Birava Center-Mweya will be sown in cropping season A, 2021 by CLD Birava.

Ets Bishweka and UCOAKA / N, received 80 kg of bean seed from Harvest Plus in cropping season A, 2020. They promised to reimburse 1.5 times the quantity received at the end of cropping season B, 2020. The harvest is in progress. Reimbursement will be made at the end of the harvest.

The SVC project facilitated commercial relations between CLD Birava and FODDR for the purchase of 500 kg of soybean seed by FODDR. The 500 kg of soybean seed were sown in association with coffee in cropping season B, 2020. After harvesting, production was 801 kg. Production was low because the soybeans were damaged by heavy rains. FODDR plans to replant the 801 kg in cropping season A.

PAV, Ets Bishweka and UCOAK /N also received bio fortified maize seed (variety SAM-VITA) from Harvest Plus in cropping season A, 2020. PAV, Ets Bishweka and UCOAKA / N received 60 kg, 40 kg and 60 kg respectively. The maize has reached maturity and is currently drying in the field. Yield data will be taken once the crop has been dehulled and cleaned. Data will be reported during Q4 FY20.

Sub-Activity 1.6: Support Seed Sector Platform4

As part of support for Public Private Partnership (PPP) initiatives in agricultural value chains, SVC staff facilitated two exchange sessions to finalize Conseil Provincial des Semences (COPROSEM) platform statutes and a draft proposal for a decree to submit to the Provincial

3 According to the SVC Inputs Specialist, CLD members paid more for their seed than Ets Bishweka because member seed was of higher

quality. 4 No activities were undertaken for Sub-Activity 1.4 (Leverage VSLAs to finance agricultural inputs), or 1.5 (Co-Organize B2B events)

because of the season and COVID-19, respectively.


Governor to create a legal standing for the platform5. These two exchange sessions were held May 8th and May 12th, 2020 at the SVC office. They were attended by the Provincial Inspector of Agriculture, the AGRIFORCE Coordinator, the Coordinator of SENASEM (the National Seed Service), and all members of the COPROSEM coordination committee. Participants reviewed and amended the statutes in accordance with the guidelines of the COPROSEM General Assembly. The statutes have been filed with the Provincial Minister of Agriculture, who will submit them to the Provincial Governor for signature. This public private structure was created with the support of SVC during Q2 FY20. It is anticipated that the decree granting legal status to the platform will be signed during Q4 FY20.

Activity 2: Develop business-oriented cooperatives and producer/farmer associations

The following activities were carried out this quarter to develop and strengthen business-oriented cooperatives and Producer Organizations (POs):

• Revised Producer Organization Strengthening Assessment Tools (POSA) • Collected data from POs that received technical assistance from SVC

Sub-Activity 2.1: Analyze the capaity of farmers’ cooperatives and associations

• Revised POSA tool

The POSA tool was revised to incorporate conflict mitigation/resolution and gender specific information. The GYSI team collaborated to identify entry points for integrating gender and youth issues into the POSA tool. The purpose of this activity was to reinforce the principles of the Gender Action Learning System (GALS) and hold leaders accountable to promote and sustain changes in increasing gender equality and youth engagement. The GYSI team revised the POSA to include key elements for measuring gender equity, youth, and social inclusion related to participation, leadership, equitable access to benefits, and safety. A working session was organized with the Component 1 team to discuss improvements to the POSA tool.

Gender and youth indicators were integrated into the POSA on:

• Women, men, and youth representation as members, leadership candidates, and leaders • Inclusive policy and regulations • Inclusive and accountable budget development • Safe and hygienic working environments for women and men

The POSA was revised and the final version shared with SVC staff. The new version of the POSA will be used next quarter by the MEL team to assess producer organization sustainability.

5 The conceptual framework for COPROSEM was initiated in collaboration with TASAI and ELAN I. SVC has assisted interested actors into

transitioning theory to operational reality. Given the geographic position of Eastern Congo and, particularly South Kivu, COPROSEM will definitely consider issues related to cross border trade. Already connections are being made with the East African Grain Council so tie-ins with PolicyLINK or other similar initiatives would be fortuitous.


Sub-Activity 2.2: Conduct training on the “paradigm of change” : A commercial orientation

The Cooperative Development Specialist and other members of the Component 1 team identified and characterized sub-organization members of 11 APEX level producer platforms with whom SVC signed MOUs in 2019, as well as those organizations jointly receiving assistance from the DFSAs and SVC, who are active in the bean and soybean value chains. The purpose of the evaluation/assessment was to deepen SVC knowledge of partner structure, functioning, legal status, membership and economic activities, in order to proceed with negotiations and signature of formal MOUs. Data was collected from 58 organizations (3 cooperatives, 6 platforms, 21 Producer Organizations, 21 Community Based Associations, 1 Concession, 1 Private Enterprise and 5 Input Supply shops) in Walungu and Kabare from 14 to 28 May 2020.6 Data is currently being analyzed.

Activity 3: Improved post-harvest handling and decreased post-harvest losses

Sub-activity 3.1: Improve post-harvest crop conditioning

4.3.1.1 Monitoring training in post-harvest techniques and management

Three site visits were carried out in Walungu, Kabare and Kalehe territories at the warehouses and collections centers of 14 value chain actors including six concessions (GAP, Olive, Ets Bishweka, Kivu Coffee, Bwema Nicolas and Plantation Cishebeyi), six producer organizations ( Nyalugana farmers, PAV, AMSA, CLD Birava, IA Zuki and SOLFAP) and 2 cooperatives (COOACLWA, UCOAKA / N). The aim of these visits was to follow up the adoption of post harvest processing techniques and management practices, to explore the diversification of income generating activites at the warehouses, and to review commercial transactions undertaken by the warehouses and collection centers. Observations made during site visits confirmed the application of post-harvest techniques learned during training. Bean and soybean stored in the warehouses and collection centers were well cleaned, winnowed and well sorted. Bags were raised on bricks, stones or on pallets. No chemical pesticide had been applied to protect beans and soybeans from pests. Instead, warehouse managers used of a mixture of tobacco leaves, tephrosia and small fresh fish (a sort of sardine, locally called sambaza; Limnothrissa miodon) mixed with beans to protect them from pests.

A review of warehouse records and visual observations found that:

76,429 kgs of beans were stored from the end of March 2020 to June 2020. 53,495 kgs of beans were sold out (of the 76,429 kgs; 70%). 22,934 kgs of bean are still in stock, and are well

6 These evaluations are the first step for a new training cycle planned to commence during Q1FY21. Beginning with a first contact and

evaluation to identify gaps and opportunities, the PO develop individualized action plans which includes targeted capacity reinforcement instead of a standardized set of modules. SVC anticipates organizing individual coaching sessions with PO having signed MOU with the program, as well as strengthening the capacity of the APEX organizations to facilitate sessions on cooperative principles and values, member rights, roles and responsibilities, services to members, cash flow, financial management and financial projections, mobilizing capital resources for investment in economic activities, commercial relationships and negotiations etc..


threshed, winnowed, sorted and stored. The 22,934 kg are treated with a mix of cypress leaves, tobacco, tephrosia and fresh cichlid fish to protect the beans from pests.

41,209 kgs of soybean were stored from the end of March 2020 up to June 2020. 30,780 kgs of soybean were sold out of the 41,209 kgs (75%). 10,429 kgs are still in stock, and are well threshed, winnowed, sorted and stored without organic or chemical pesticides.

4.3.1.2. Follow up of the diversification of activities and service at warehouse level after the last quarter technical backstopping

During technical backstopping visits organized this quarter, Kivu Agro Business (KAB) encouraged warehouse managers interested in selling agricultural inputs to address an expression of interest to KAB. Synergie des Organisations Paysannes dans la Lutte contre la Faim et la Pauvreté (SOLFAP) transmitted an expression of interest, and KAB communicated the following conditions to SOLFAP:

• SOLFAP should provide KAB a list of inputs they would like to sell at their warehouse, • SOLFAP should provide a survey of current input prices in Minova to KAB for

comparison and for cost/benefit analysis • Signature of a contract is contingent on the cost/benefit analysis demonstrating that

both SOLFAP and KAB can turn a profit from the sale of the requested agricultural inputs.

• After contact signature, SOLFAP will advance 50% of the value of the inputs they wish to stock to KAB, prior to delivery by KAB to SOLFAP.

As of the date of this report, SOLFAP has yet to respond to KAB’s conditions for business to move forward. The MOU to be signed between KAB and SOLFAP is individualized for the circumstance as SOLFAP as an APEX organization is itself acting as a middleman agro-dealer to service its members through it’s agricultural input distribution point. There is room for negotiation but as this is KAB’s first experience negotiating a subsidiary agreement, they are counting on SVC’s moral guarantee to facilitate signature of a win-win agreement with SOLFAP. As yet, no other organizations have come forward seeking a similar sub-distribution agreement with KAB. Many have expressed interest but are waiting to see the results of this pilot operation.

Sub-activity 3.2: Support improved warehouse management

4.3.2.1. Monitoring of training and backstopping in the use the management documents at the warehouses and collection centers

During follow up visit with 14 value chain actors (GAP, Olive, Bishweka, Kivu Coffee, Bwema Nicolas and Plantation Cishebeyi, Agricoles du Marais Nyalugana, PAV, AMSA, CLD Birava, IA Zuki, SOLFAP and COOACLWA, UCOAKA / N) SVC staff noted improvements in record keeping at warehouses and collection centers following last quarter’s training and technical backstopping on the use of enterprise management documents. The quantities of bean and soybean stored and sold were well documented in the stock book. The Access to Finance


Specialist advised participants that banks require proof of these transactions when reviewing credit applications. Apart from bank requirements, participants were encouraged to document all transactions to increase transparency and trust for any income generating activity, including warehouse management.

Activity 4: Development of a model Market Information System (MIS)

This reporting period SVC staff worked with the Provincial Coordination of Rural Agricultural Councils (CCPA-CARG) to implement a locally driven, sustainable market information system (MIS) in six key local markets. Activities included:

• Identification of agricultural products to be included within the MIS • Sensitization of actors involved in the MIS (ongoing) • Restitution of results from a data collection exercise identifying key agricultural

products whose price and volume data will be collected, analyzed and disseminated (ongoing)

• Production of the MIS market price display boards (ongoing) and • Development of training modules for MIS data collectors and their supervisors.

Data Collection to identify the agricultural products MIS will document was completed at the six-pilot markets: Mudaka and Katana in Kabare territory, Kandjuki / Ihusi and Minova in Kalehe territory and Mugogo and Kamanyola in Walungu territory.

Methodology for data collection

A random sample of 360 agricultural product sellers were surveyed at the six selected markets for the MIS. Sixty agricultural product sellers were interviewed at each of the six selected pilot markets. Two enumerators were assigned at two selected markets in each of the three project territories (Walungu, Kabare and Kalehe). Data was collected on the day when the market was held at each of the six markets. The prices of key agricultural products in the six pilot markets were surveyed. These products include dry beans, soybean, maize, cassava, rice, sorghum, palm oil, onion, tomato, Irish potato, taro, banana, peanut, peas, coffee, amaranth, cabbage, yam and sweet potato. The objective of the survey was to identify local units used in the sale of agricultural products, the ten agricultural products most frequently and consistently found in the market, and the means of communication currently used for the dissemination of market price and available quantity information.

Results of the survey

The survey revealed that:

• The 10 agricultural products most frequently found in the six pilot markets are: beans, maize, rice, sweet potato, tomato, soybean, cassava, irish potato, onion and palm oil.

• Each market has its own traditional selling unit • Market actors share information through cell phone (SMS, social network) and

community radio


• Women are more involved in the marketing of agricultural products than men. Men are more likely to be involved in artisanal mining activities or ambulatory trade in artisanal mining sites.

a. Sensitization of the actors involved in the MIS

The sensitization on MIS actors is ongoing. It is combined with the restitution of survey results for the 10 agricultural products selected for the MIS by CCPA-CARG to traditional chiefs and value chain and market actors in the three territories at the six selected markets. Sustainability of the MIS will require developing a budgetary line item or a payment scheme to cover operational costs so the system can continue without project support. To date, Territorial actors involved in the start-up phase of the MIS system have proposed dedicating the market tax receipts recovered, one day per month7, to support the operational expenses of the MIS system. CCPA is exploring manners in which the information generated, and the analyses undertaken, can be provided to actors on a fee-based system to defray the provincial level, rather than ETD level operating costs of the system.

b. Manufacturing (production) of MIS display boards

Manufacturing six boards displaying price and volume data for posting real-time market information is in progress. The six boards will be ready for placement in Q4 FY20.

c. Training of Market Enumerators, Enumerator Supervisors and Data Aggregators

The development of training modules is underway. A training syllabus developed by CCPA-CARG was reviewed by SVC. SVC recommended CCPA-CARG incorporate the methodology for data collection, data verification and data analysis in the syllabus.

Activity 5: Increased market access by key stakeholders in target value chains

Sub activity 5.2. Support the development of innovative marketing models for soybeans and biofortified beans

SVC’s technical assistance (training, technical advice, facilitation of commercial relations, monitoring, etc.) has enabled value chain actors to acquire skills and knowledge in price negotiation and market norms (quality requirements, product availability, market segment, etc.). This quarter, SVC staff focused on monitoring commercial transactions carried out by value chain actors in Kabare, Kalehe and Walungu territories. Monitoring occurred at warehouses and collection centers of 14 clients visited by SVC staff. The 14 actors included Bishweka, Kivu Coffee, PAV, AMSA, CLD Birava, and IA ZUKI in Kabare territory; COOACLWA, UCOAKA/N, SOLFAP and Nicolas Bwema in Kalehe territory; and GAP/Kivu, Societe Olive and the Comité du Marais de Nyalugana in Walungu territory.

7 In order to include MIS costs as a line item in the ETD budget, first the ETD must accept to open the line item within the budget, then the

Minister of Agriculture will need to approve the line item as part of the ETD annual budget package for submission to the Provincial Assembly who will need to approve the ETD budget with the line item during their budgetary session which occurs August/September of each year.


a. Monitoring bean sales

Chart 1 indicates the quantities of bean stored and sold from April to June 2020 in Walungu, Kabare and Kalehe territories at warehouses and collection centers managed by 14 SVC clients. Records at warehouses and collection centers indicated that 53.5 MT of beans of 76.5 MT stocked (70%) were sold at an average price of $ 1.2/kg. Gross earnings from sales totaled $ 64,200. Clients in Kabare sold and stored significantly more beans than those in other territories.

Chart 2 includes data on bean price variations across the three territories. The mean price of beans is higher in Kabare than Walungu or Kalehe. Beans were damaged by heavy late season rains in Kabare from flowering to harvest. Apart from the damage due to heavy rainfall, demand for beans outstripped supply because households stockpiled beans due to COVID - 19 restrictions (closure of borders, prohibition of lake transport, etc.). The discovery of new gold veins near Luhihi led to increased artisanal mining and diverted labor away from agricultural activities. Mining contributed to decreased supply and a higher demand for beans in Q3 FY20 in Kabare.

Chart 1 Quantity of bean stored/sold in Q3 FY 20 Chart 2 Variation in bean prices in Q 3 FY 20

Chart 3 graphs the quantities of bean sold from cropping season B 2018 to cropping season B 2020 in Walungu, Kabare and Kalehe territories. Kabare has consistently higher quantities of beans sold than the two other territories due to the Bukavu market and better evacuation routes for agricultural products from Kabare by road and lake.

Chart 4 illustrates variations in bean prices in the three SVC target territories between Season A 2019 and Season B 2020. In general, prices are trending slightly upwards across the three territories. This trend is likely due to a combination of factors including high household demand due to stockpiling of staples as a buffer against COVID 19 restrictions, increased artisanal mining activities across the three territories, and low supply compared to demand. Late season rains negatively impacted production; the closure of the Rwandan border due to the state of

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Qté. Haricot

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Qté. Haricot Qté. Vendu Qté. StockTotal 76429 53495 22934Kalehe 13312 5772 7540Walungu 4925 2285 2640Kabare 58192 45438 12754

Kilograms of common beans Stocked/Sold Q3FY20

Kabare Walungu Kalehe Prix Moyen

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emergency declared by both Rwanda and DRC on 21 March 2020, as well as the progressive devaluation of the Congolese Franc against the dollar in the first 6 months of this calendar year have all impacted prices.

Prices are higher in Kalehe followed by Walungu and Kabare in cropping Season A 2020, unlike the situation initially observed during Season A 2019, because more beans are produced in Kabare during the A season than in the other two territories.

Chart 3. Quantity of beans sold in SVC territories from Season B 2018 – Season B 2020

Chart 4. Variation in bean prices in SVC territories from Season A 2019 – Season B 2020

b. Monitoring soybean sales

Chart 5 illustrates the quantity of soybean stored, sold and in stock from April to June 2020 at warehouses and collection centers of SVC 14 clients cited above. During site visits,

Chart 5. Quantity of soybeans stored/sold in Q3, by Territory

Chart 6. Variation in average soybean prices in Q3, by Territory

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Qté. Soja stockée (kg)

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Qté. Soja stockée(kg) Qté. Vendue (kg) Qté. Stock (kg)

Total 41209 30780 10429

Kalehe 850 600 250

Walungu 605 105 500

Kabare 39754 30075 9679Kg of soybeans stocked/sold by territory in Q3 FY20

Kabare Walungu Kalehe Prix Moyen

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Bean Sales in Kg by Territory, SB 2018 - SB 2020

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Bean Price Variability in USD by Territory, Season A 2019 - Season B 2020

Kabare Prix vente moyen Kalehe Prix vente moyen

Walungu Prix vente moyen


records indicated that 30.8 MT of soybeans were sold out of 42.2MT stored. The quantity of soybean sold represents 73% of soybeans stored by the 14 clients from April to June 2020. The average selling price was $ 0.7/kg resulting in a gross sale of $ 21,560.

Kabare territory had 39.7 TM (88.9%) of the total quantity of soybeans in stock (42.2MT), while Kalehe and Walungu had 0.8 MT and 0.6 MT in stock, respectively. The quantity of soybean stocked in Kalehe and Walungu territories represents only 11.1% of the total soybean in stock from April to June 2020. CLD / Birava, IA Zuki, PAV and AMSA stored and sold the greatest quantities of soybeans. These four clients are in Kabare territory.

Chart 6 presents soybean price variations by territory between April and June 2020. Kabare territory had the lowest soybean price, at 0.65 $ / kg; Walungu and Kalehe territory soybean prices were 0.8 $ / kg (23% higher). Based on the quantities of soybean sold and the price variation (Chart 1 and Chart 2), Market actors in surplus soybean production zones should be linked through the women’s market associations affiliated with ACT to market women with demand for soybeans in deficit production zones. Move surplus from Mudaka market in Kabare where supply is high and prices are low to Ihusi Market in Southern Kalehe where there is demand, price points are higher, but soybean is not grown.

Chart 7: Trends in Soybeans Sales by Territory and Season

Chart 8: Variation in Soybean Prices by Territory and Season

Chart 7 illustrates soybean sales from Season B 2018 to date by SVC clients active in soybeans in SVC target zones. Kabare territory recorded the largest marketable quantities of soybeans sold. There were limited marketable quantities sold during Season A 2020 because the season started late, and late rains at harvest damaged crops across all three territories.

Chart 8 illustrates price trends in Kabare and Walungu from Season A 2019 – Season B 2020. Prices in Kabare and Walungu follow very similar trends between $0.8 and $1/kg through Season A 2020, but dropping post-harvest for Season B 2020 to between $0.6 and $0.8 USD/kg. Soybean is grown in North Kalehe, mainly around Minova and its adjacent Presque isle. Most of this soybean drains north towards Goma and is not sold in South Kivu.

0

20000

40000

60000

80000

Qtés.Vendues

Qtés.Vendues

Qtés.Vendues

Qtés.Vendues

Qté.Vendues

SB2018 SA2019 SB2019 SA2020 SB2020

Kg of soybean marketed from Season B 2018 -Season B 2020 in Kalehe, Kabare and Walungu

Kabare Walungu Kalehe Total

00.20.40.60.8

11.2

SA2019 SB2019 SA2020 B2020

Soybean price variability from Season A 2019 -Season B 2020 in Kabare and Walungu

Kabare Prix moyen Walungu Prix moyen


Activity 6: Develop the Concessionaire Model for Inclusive, Innovative and Profitable Agribusiness

Sub activity 6.1 Facilitate market linkages between actors (Producers and Buyers)

a. Follow up market linkages made between soybean actors

As part of the analysis and facilitation of the market opportunity for soybean value chain actors, a visit was made at the Enterprise Société Agro-Industriel du Congo (SAICO) This visit’s aim was to understand the commercial relationship between the Catholic Parish of Birava, CLD / Birava and SAICO in the operation and management of soybean processing and storage units in Birava. Several years ago Birava parish handed over the management of a storage and processing unit to CLD Birava. Early in 2020, the Birava Catholic Parish handed over the same storage and processing units to SAICO to manage. SAICO requested technical assistance from SVC on post-harvest handling and management, market linkages, contract farming, etc. CLD Birava is one of SVC’s technical clients, therefore SVC staff considered it useful to analyze how the three parties can enter into a win-win sustainable commercial relationship, before providing technical assistance to SAICO. It would be ideal if SAICO operates and manages the soybean storage and processing unit, and CLD Birava supplies soybean to SAICO, and the Catholic Parish receives a rental payment for the infrastructure from SAICO.

b. Following up market linkage sessions between bean sector actors

Ets Bishweka expressed an interest in purchasing of 4 MT of beans per month. Last quarter, Ets Bishweka participated in a market linkage session organized by SVC in the territory of Kabare with bean producers including IA Zuki, PAV, CLD / Birava, and AMSA, and the Market Women’s Association of Mudaka. This quarter, Ets Bishweka bought 1 MT of beans from AMSA at $ 0.9/kg or $900. SVC’s role in this process was to serve as an “honest broker”. SVC offered capacity strengthening to value chain clients, improving their negotiation skills and knowledge, encouraging them to consider production costs, product quality, and consumer demand. Following SVC training sessions, participants negotiated commercial transactions with ETS Bishweka.

c. Formal cross-border trade is increased for target value chains.

The SVC project supported exchange sessions with women's bean and soybean sales associations in Kamanyola, Walungu Centre, Mudaka, Kavumu, Katana, Ihusi, and Minova markets from 17 to 26 June 2020. The objectives of the exchange sessions were to formalize the statutes of market women’s associations with decentralized territorial entities in SVC target territories; and to formalize agreements with ACT for the purchase and sale of their products at the cross-border level, particularly in Rwanda. We anticipate these agreements will be negotiated and signed by the end of Q1FY21.

At the end of these exchanges, the collaboration between ACT and the different associations of women sellers in the three territories was formalized by signature of a


memorandum of agreement. The statutes of the market women’s associations in the three territories have been transmitted to local authorities for legalization. The formalization of their status will provide these organizations with opportunities including access to bank finance and micro credit, and formalized contracts with partners. During Q4 FY20, SVC will facilitate a capacity building workshop on advocacy with the women's bean and soybean sales associations from Minova, and meetings between ACT North and South Kivu.

d. Building advocacy skills within co-ops and their ability to represent their members

The SVC project supported exchange sessions with women's bean and soybean sales associations in Kamanyola, Walungu Centre, Mudaka, Kavumu, Katana, Ihusi, and Minova from June 18 to 26, 2020. The objective was to follow up on advocacy actions these associations carried out with local authorities following capacity building on advocacy that the SVC project facilitated during Q2 FY20.

Exchanges facilitated by SVC involved 105 women members of the bean and soybean women's associations, a representative of the foreign trade division, the CARGs, and a delegate from the CCPA. They discussed the advocacy action they have taken after receiving capacity building support from SVC. The main focus of their advocacy was to reduce taxes including those collected by the Traditional chiefdom and the patent tax collected by local authorities.

In Kabare, advocacy by women's associations successfully reduced the cost of the chiefdom tax from FC 500 to FC 300 per person, per market day, and reduced vendor license fees paid from $10 to $3 per person, per year. With this reduction in chiefdom fees and taxes and patent taxes, the women's associations will realize significant savings. The Mudaka Bean and Soybean Women's Association has 161 members. Annually, this association will be able to see its income increase by $793 -- $5 per member on the chiefdom tax, and $7 per member for the patent.

In Walungu, advocacy to address tax issues is ongoing. The associations have requested the reduction of vendor license fees from $11 to $5, and the problem is being addressed at the local authority level. Follow-up advocacy is being done in collaboration with the CARG.

In Kalehe, the two associations engaged in a dialogue with the chiefdom with the support of the CARG. They obtained the agriculture tax guide from local authorities which documented that the official chiefdom tax was FC 300 instead of the FC 500 being charged by market collectors. As a result, the market women of Kalehe now pay a chiefdom tax of only FC 300, a cost saving of FC 200 per market day.. The Minova patent has been reduced to $5 per person instead of

Photo Caption: Kalehe Bean and Soybean Women's Associations at an advocacy meeting (Photo Credit: Tetra Tech)


$10 previously charged. In Kabare the Market Women’s Association lobbied the traditional authorities and also received a reduction from FC 500 to the legally mandated FC 300 per market day.

Sub activity 6.4. Provide technical support in market-oriented farm management

In Q3 activities focused on the signature of collaboration agreements between concessionaires and SVC, and the signature of land use contracts between concessionaires and sharecroppers. Five MOUs were signed between four concessionaires and SVC: Ets Bishweka, FODDR, Nicolas Bwema, and Ste Olive. An additional MOU is expected to be signed with Kivu Coffee next quarter.

Table 3. Signature signed between SVC and Concessionaires

# Concessionaire Sites

# of sharecroppers

in the concession

Territory Signature of the contract with SVC

1 Kivu Coffee (Cifende) Katana 400 Kabare Not yet signed 2 Ets. BISHWEKA Kayandja 120 Kabare Signed

Nyangoma 45 Kalehe 3 FODDR Minova 2000 Kalehe Signed 4 Nicolas Bwema Minova 40 Kalehe Signed 5 Sté. Olive Lwangoma Kalehe Signed

Ibanda 500 Walungu 6 GAP/ Kivu Bitesi 404 Walungu Signed

Kakono Walungu Cishi Walungu

In Q2FY20 12 concessionaires and sharecroppers signed 302 land use contracts in collaboration with FEC Agricole. This quarter 431 new contracts were signed for a total of 733 contracts executed by the 12 concessionaires and sharecroppers in the past six months.

Table 4. Number of new land use contracts signed between concessionaires and sharecroppers from Q 2 to Q 3 FY 20 with facilitation by FEC Agricole in collaboration with SVC.

N° CONCESSIONS TERRITORY CONTRACTS Anticipated to

be signed

Contracts signed in Q2

FY2020


FY2020

Total contracts actually signed

H F Total H F Total 1 MWIRUNGA

(BISENGIMANA) Kabare 50 19 6 25 0 0 0 25

2 MUSHUVA (MUSEGE) Kabare 50 26 15 41 31 22 53 94 3 LUSHESHA (CIFENDE)

Kabare 50 0 0 0 0 0 0 0

4 BUSHANGANYA NFUNDIKO LUGAMBA

Kabare 50 2 0 2 46 28 74 76

4 SHANYUNGU Kalehe 50 24 14 38 38 22 60 98 5 LWANJOVU/ OLIVE Kalehe 50 17 23 40 18 14 32 72 6 KAZO Kalehe 50 17 29 46 23 28 51 97 7 IRAMBO II Kalehe 50 20 14 34 6 5 11 45 9 NDUBA/BIKORO Walungu 50 1 15 16 0 0 0 16


N° CONCESSIONS TERRITORY CONTRACTS Anticipated to

be signed


FY2020


FY2020

Total contracts actually signed

H F Total H F Total 10 NYANJA/LUSHULI Walungu 50 7 7 14 16 18 34 48 11 KALWA/MIHIGO Walungu 50 23 13 36 30 12 42 78 12 KAKONO/MAPATANO Walungu 50 4 6 10 46 28 74 84 TOTAL 600 160 141 302 254 177 431 733

As part of the collaboration between GAP/Kivu, Ets Bishweka, FODDR, Kivu Coffee Concessionaires and SVC, the latter provides technical assistance on post-harvest techniques and management, contract farming, market linkages, access to improved seeds, composting techniques, integrated pest management for coffee, etc. SVC deploys agronomist interns at GAP and Ets Bishweka concessions. The results of the SVC technical assistance to the four concessionaires is presented in the table below.

Table 5. Technical assistance provided to GAP/Kivu, Bishweka, FODDR and Kivu Coffee

N° Concessionaires Activities Results

1 GAP/Kivu Training in the use of quality agricultural inputs: quality seed and compost

60 sharecroppers trained

Training on post-harvest techniques

60 sharecroppers and 4 staffs trained

Follow up of sharecropper’s bean fields and follow up of demonstration plots (Kakono and Bitese)

60 sharecroppers bean fields in Kakono, 70 sharecroppers bean fields in Bitesi. Monitored one demonstration plot at Kakono and one at Bitese

Sensitization of sharecroppers on the concessionaire approach

78 sharecroppers in Kakono and 33 in Bitesi sensitized on the concessionaire approach

2 Ets. Bishweka Sensitization of Nyangoma sharecroppers on contract farming

45 sharecroppers sensitized

Mapping of Nyangoma concession: division into blocs and measurement of land area per bloc

Nyangoma concession divided in two blocs : Bloc 1 measuring 7ha and bloc 2 measuring 7.8ha 45 sharecroppers’ fields measure 0.2 ha each

Market linkages Ongoing commercial transaction: 1000 kgs bought, 500 kg from AMSA and 500 kg from the association of Market Women of Mudaka Source : Staff Ets. Bishweka and OP AMSA

Maintenance of crops in the Nyangoma concession

Weeded and pruned 7 ha of coffee at the Nyangoma concession Source : SVC Intern Agronomist

Harvesting coffee crops in the Nyangoma concession

4 MT of coffee cherries harvested from Nyangoma concession and sold to Muungano and SOPACDI at $0.3/kg Source : SVC Intern Agronomist

3 FODDR Harvest monitoring 3,850 Kg of bean and 850 Kg of soybean harvested Source : FODDR staff


N° Concessionaires Activities Results

4 Kivu Coffee Harvest and post-harvest treatment

4,000 kg of coffee beans cherries harvested, dried, sorted, cleaned and stocked in the warehouse Source : Kivu Coffee

Gender, Youth, and Social Inclusion (GYSI )meetings with concessionaires GAP/K, Olive, Ets. Bishweka and Kivu Coffee to identify entry points for collaboration

In May 2020 the GYSI team visited representatives from concessionaires (plantations) including two in Walungu on May 19 and two in Kabaré on May 27. Eleven men and 16 women participated in the meetings in Walungu, including six youth (22%). In Kabare, nine men and 20 women participated, including two youth (6%) (See Table 6). The objective of these meetings was to identify entry points for promoting women, youth, and socially excluded groups involvement. This includes exploring options to apply the GALS approach to promote the expansion of opportunities and the inclusion of women and youth within the concessions. GALS champions were invited and participated in these meetings to make connections with leaders and share experiences about the GALS approach.

Table 6: Participants in Concessionaire Meetings, Walungu and Kabare, May 2020

Location Organization Men Women TOTAL Youth Adults

Walungu GAP 7 6 13 4 9 OLIVE 4 10 14 2 12

Kabaré BISHWEKA 4 10 14 2 12 CIFENDE 5 10 15 0 15

TOTAL 20 36 56 8 48 Results of these discussions:

• Identified organizational constraints of concessionaires. Sharecroppers are not organized in committees to advocate for or respond to workers’ needs. There is limited data on the number of women, men, and youth sharecroppers.

• Identified criteria for selecting participants for GALS training. Decided to select people to participate who have a contract with the concessionaire and are actively trying to reduce poverty, and include people who are often socially excluded e.g., widows, abandoned women, pygmies.

• Raised awareness of and measures to prevent COVID-19. Shared information about ways to prevent exposure and spread of COVID-19.

• Identified cross-cutting barriers to women’s and youth’s active participation within the concession. Across the concessionaires, structural barriers were identified as the greatest constraint to women’s and youth’s participation and opportunities for leadership. This analysis will be used to inform the design of SVC-led GALS trainings.


4.1.3 Key Component 1 Activities Planned Next Quarter (Q4 FY20)

Access to Inputs

• Link actors to facilitate access to inputs • Training of agricultural input managers • Organize B2B Events (with Access to Markets and Access to Finance Specialists) • Institutional support to COPROSEM

Producer Organization Development

• POSA Analysis of Producer Organizations (cooperatives and associations) • Facilitate training on the “paradigm of change”: a commercial orientation for 27

organizations • Engage a local business development service provider (BDS) to train 27 POs clients and

4 FBGs in agribusiness and basic financial management in Kalehe • Strengthen 12 farmer leader cooperatives’ capacity in good governance and

organizational structuring

Post Harvest Handling

• Conduct training in improved post-harvest techniques with coffee cooperatives • Support actors to diversify activities and services at warehouses: inputs, MIS, warehouse

receipts, market linkages • Facilitate links with suppliers of post-harvest tools and equipment: PICS bags, pallets,

scales, moisture meters, jute bags • Support actors to develop management and governance documents and to navigate the

process of legal registration • Support actors on group sales for soybean and bean • Support actors in the development of business plans to access credit

Access to Markets

• Implement MIS at six markets • Increase market access by key stakeholders in target value chains and facilitate market

linkages • Develop the concessionaire model for inclusive, innovative, and profitable agribusiness

development


4.2 COMPONENT 2: ENHANCE COFFEE PRODUCTION

4.2.1 Introduction

SVC’s coffee component focuses on the development of the high-altitude heirloom Arabica specialty coffee sector in the Kabare, Kalehe and Idjwi territories, with special emphasis on improving specialty coffee production and productivity. This quarter SVC supported 15 clients managing 38 coffee washing stations to complete the 2020 harvest by providing bookkeeping support, monitoring purchased cherry and dried parchment, and in some cases, monitoring payments of working capital provided by investors. Business advisory staff worked with wet mill staff to provide daily monitoring of processing quality using the Coffee Quality Processing Index (CQPI; see Annex 6 CPQI template). SVC also facilitated sustainability training for 13 coffee washing stations, introducing the following international standards:

• Social, ethics and responsibility, • Occupational health and safety, • Environmental responsibility, and • Economic transparency.

All 13 stations have already started to adopt best practices to become compliant with these standards.

By the end of the quarter, the 38 SVC coffee washing stations had processed 2,019 MT of cherry, resulting in 295,196 Kg8

8 Only dried parchment is counted. Parchment has not completely finished drying as of June 30, 2020.

of parchment (94% Grade A and 6% Grade B and C). SVC staff predict that approximately 15 containers of specialty coffee grown and processed in South Kivu from SVC client washing stations will be exported between July and December 2020. SVC staff also supported four coffee washing stations that are working with Nespresso to obtain organic certification, registering 1,343 producers for organic certification audits that will take place in July 2020.

During the reporting period, slight modifications were made to SVC’s Coffee Farm College (CFC) trainings for the 2018 and 2019 Cohorts, to comply with the Democratic Republic of Congo government’s measures to prevent the spread of COVID-19. The government began limiting meeting sizes in March 2020 and the project was able to comply by splitting trainings into smaller sized groups to ensure each training had less than 20 attendees. Despite having to reduce training size, both the 2018 and 2019 Cohorts were each able to receive two trainings. The 2018 Cohort reviewed integrated pest and disease management (IPM), as well as erosion control techniques. The 2019 Cohort underwent trainings on sustainability practices and mulching.

The coffee component also started conducting a comparative assessment of yields between demonstration plots and the 2018 Cohort coffee farmers’ plots of coffee in March 2020. The objective of the assessment was to understand potential yield increases that can be achieved in


the short time period since the program started, by the adoption of best practices taught during the Coffee Farm College (CFC). During CFC trainings, demo plots have been used to apply all best practices such as pruning, rejuvenation, mulching, plant nutrition and IPM. The 19 harvested demonstration plots produced an average yield of 3.2 kg of coffee cherry per tree, a 78% increase in production compared to focal farmer plots (1.8 kg cherry/tree).

The SVC applied coffee research subcomponent made progress towards the installation of 30 on farm field trials (OFTTs) and 6 multi-location agronomy trials (MLATs). 15 OFTTs and 3 MLATs were installed this quarter, and data has been collected and analyzed.

4.2.2 Detailed Descriptions of Key Activities Undertaken in Q1

4.2.2.1 Increasing Coffee Production (Agronomy)

a. 2018 Cohort Farm College

The 2018 Cohort of the Coffee Farm College (coffee farmer training) launched in August 2018. Between August 2018 to May 2020, 19 monthly training sessions were held, covering 13 training topics - rejuvenation, pruning, integrated pest & disease management, weeding, composting, record keeping, harvesting, plant and soil nutrition, mulching, sustainable farm management, coffee planting, shade management and soil erosion control. As of the end of May 2020, 5,572 farmers from 4,587 households have attended at least seven out of 13 topics, and can therefore be considered 'trained' (attended at least half the topics); 43% of 'trained' farmers are women. The target for the 2018 Cohort was 4,500 households 'trained' at the end of the two-year Coffee Farm College; therefore, SVC achieved 101.9% of the 2018 Cohort target.

Between April and June 2020, two training sessions were held. Topics covered included integrated pest and disease management (IPM) and soil erosion control. In total, 4,210 farmers (47.5% female) attended the April/May 2020 session on integrated pest management. However, reported cases of COVID-19 in the Miti-Murhesa Health Zone on June 10th impacted the June training on soil erosion control for the 2018 Cohort. Project leadership placed group trainings on hold to ensure the safety and security of project staff, farmer trainers and producers. Before trainings were paused, 114 of the 234 Focal Farmer Groups (FFGs) and 2,163 producers received soil erosion control training. Individual household trainings will be provided to the approximately 2,500 members of the remaining 120 groups through July 2020.


Figure 1. 2018 Cohort Farmer Attendance by Month

Figure 2. 2018 Cohort Farmer Attendance by Topic

As of May 2020, seven topics - rejuvenation and pruning (delivered together in the same months), composting, weeding, integrated pest & disease management, record keeping, harvesting, and nutrition - had been reviewed. Across those seven topics, on average, 37% of farmers only attended the original training session, 27% of farmers attended only the second review training, and 36% of farmers attended both the first and review training session. The high level of attendance for the integrated pest and disease management training topics is due to the delivery of two separate modules, one on pests and one on diseases.

Figure 3. Farmer Attendance at Review Topics


Demographic data for the 2018 Cohort (Kabare Territory) shows that the average (self-reported) age for female farmers is 45, while the average age for male farmers is 49. Of the registered farmers that provided their age, 14% of men are considered youth and 19% of women farmers are considered youth9

9 Youth is defined as those farmers that are younger than 30 years old.

. The majority (87%) of farmers attending training are 30 years or older. There are no farmers below the age of 15 years attending training sessions.

SVC plans to conduct an endline evaluation of the 2018 Cohort to measure adoption of agronomy best practices after the training program ends, and to collect information on changes in household dynamics.

The full 2018 Cohort attendance scorecard can be found in Annex 2.

2018 Cohort Demonstration Plot and Farmer Plot Yield Study

During the harvest period between March and July 2020, the Agronomy team conducted a demonstration plot yield assessment with the 2018 cohort (just under two years since training started). The objective of the assessment was to understand the potential yield increase that can be achieved in the short time period since the program started, if farmers adopt best practices taught during the Coffee Farm College (CFC). Farms were not randomly sampled. Demonstration plots were selected by agronomy advisors and farmer trainers, based on the cooperation of focal farmers and proximity to farmer trainers, given that they needed to be present every time the field was harvested.

The SVC team harvested, weighed, and recorded cherry volumes produced by 18 out of 40 trees located in each of 19 selected demonstration plots, then repeated the exercise among 18 trees on each focal farmer’s field outside of the demonstration plot. The same trees were harvested every seven to 14 days throughout the course of the harvest season and yields were weighed and recorded using a tablet-based form. Using the tablet-based form enabled the harvested weight to be photo-checked.

The yield study was not designed to be statistically significant from a research perspective but was destined to gauge gross differences between farmer’s fields at baseline, focal farmer’s fields where partial adoption of best practices occurred and the demonstration plots where all the best practices were applied. There was no research protocol developed to assess the contribution of each practice to the overall yield achieved and thus no attempt

Photo Caption: Coffee Producer Speciose M’Luganda weighing coffee cherry from the Tujenge Kwetu demo plot in Mabingu (Photo Credit: TechnoServe)


at multi-variate analysis. The Kabare CFC, Cohort 1, endline survey taking place in Q4FY20 will indicate the percentage of farmers adopting the different best practice technologies, the mix of technologies being adopted, and may give us a indication of why these were the farmer’s choice for adoption, but it would require an annual yield study with the same endline participants to detail how adoption of different practices solely and in combination with others affects yield and this is not currently within the purview of SVC.

During CFC trainings, demo plots have been used to practice and apply the taught best practices such as pruning, rejuvenation, mulching, plant nutrition and IPM. The 19 harvested demonstration plots produced an average yield of 3.2kg cherry/tree, a 78% increase in production compared to the focal farmer plots (1.8kg cherry/tree) after nearly two years of training. Of the observations made during harvest, the demonstration plots had higher rates of mulching and weeding than the remainder of the focal farmers field, but most importantly the number of main stems10 was consistently lower in the demonstration plots, which had

10 Every coffee tree has a main trunk with vertical (or orthotropic) branches, which produce horizontal (or plagiotropic) stems, also known as

primary, secondary, and tertiary branches. The nodes on primary branches produce the highest amount of quality cherries and they cannot be replaced once cut off. With time, the fruits will grow farther from the trunk. This is because each node produces cherries only once. Pruning to reduce the number of stems, leaving obly the most vigorous and productive ones allows the coffee plant to focus its energy on fruit production leading to increased yields. This is why, in the case of SVC’s coffee demonstration plots, fewer stems are “better” or favored when seeking to maximize productivity.

Figure 4: The average yield per coffee tree at baseline, on SVC focal farmer fields, and on demonstration plots in Q3 FY20

http://www.cafedecolombia.com/particulares/es/sobre_el_cafe/el_cafe/el_arbol_y_el_entorno/

http://www.cafedecolombia.com/particulares/es/sobre_el_cafe/el_cafe/el_arbol_y_el_entorno/

https://www.cenicafe.org/es/publications/C10.pdf

https://www.cenicafe.org/es/publications/C10.pdf


all been reduced to two or three, compared to up to five in the focal farmers field. Some focal farmers had also adopted the key agronomy best practices, so even the focal farmer plots produced yields that are well above the average DRC coffee farmer yield of approximately 1.1Kg of cherry per tree.

b. 2019 Cohort Farm College

The 2019 Cohort of Farm College launched in July 2019. From July 2019 to May 2020, a total of nine monthly training sessions were held, delivering ten training topics - rejuvenation, pruning, integrated pest & disease management, composting, weeding, soil erosion control, record keeping, harvesting, nutrition, and sustainable farm management. In total, 8,386 farmers from 7,178 households have attended at least five out of ten topics to date and can therefore be considered 'trained', 48% of the trained farmers are women. The target for the 2019 cohort is 5,000 households 'trained' (attended at least half the topics) at the end of the two years of coffee farm college. A registered farmer is a farmer who has attended at least one monthly training session. A registered household is a household where at least one farmer is registered.

Between April and June 2020, a total of two training sessions were held on sustainable coffee production and mulching. On average, 7,641 farmers attended training each month, 49% of the farmers attending were women. Attendance over the first eight months was relatively stable. The April and May training sessions were combined, with Covid-19 restrictions limiting group size, many focal farmer groups had to be trained more than once. The June training in mulching will be reported in the upcoming quarter.

Figure 5. 2019 Cohort Attendance by Month

Figure 6. 2019 Cohort Attendance by Topic



Demographic data for the 2019 Cohort (Southern Kalehe Territory) shows that the self-reported age of 12,633 CFC farmers indicates that female farmers are slightly younger than male farmers; the average age of women is 40 years compared to 42 years for men. 25% of male farmers and 27% of women farmers are considered youth (younger than 30 years of age). The majority (74%) of farmers attending trainings are 30 years or older. Gender-disaggregated attendance analysis shows that the number of topics attended is relatively stable for both female and male farmers. A relatively small number of men and women have only attended one topic. The full 2019 Cohort scorecard can be found in Annex 3.

2020 Cohort Farm College

While significant preparatory efforts were made during Q2 FY 20 for the launch of the 2020 Cohort of the Coffee Farm College and the expansion of agronomy activities in the territory of Idjwi, all planned expansion activities for Q3 were significantly delayed due to COVID-19. For example, the government’s travel and meeting size restrictions forced the program to postpone scheduled missions to Idjwi, as well as key activities related to organizing farmer awareness campaigns and registering new farmers into the Coffee Farm College. SVC leadership is working with local authorities to identify solutions to current travel restrictions; however, the delays will likely continue over the next few months and will limit training participants’ access to pruned and rejuvenated demo plots during the initial months of training.

c. Capacity Building for Agronomy Staff

While COVID-19 has impacted how farmer trainings are organized, it has also impacted the trainings we provide our agronomy staff. For example, the monthly modelling training lessons the coffee component conducts for agronomy staff have shifted towards remote or decentralized trainings to adapt to restrictions on travel and over-night lodging. The trainings usually bring the entire cohort of agronomy advisors and farmer trainers to a centralized location for three days to review and practice the Coffee Farm College module they will be conducting the following month. However, since COVID-19, the sessions have been conducted at decentralized locations within small intervention zones for 1-2 agronomy advisors and the 6-12 farmer trainers they oversee. Despite this change in approach, project leadership has not noticed a decrease in participation or training quality.

4.2.2.2 Improving Coffee Quality (Coffee Business Support)

The SVC program continued to offer technical advisory services to 16 clients with 38 wet mills. SVC staff provide business advisory support on 1) wet mill construction and machine operations, 2) business management and governance, 3) accounting and financial management, 4) processing techniques and quality management, and 5) access to finance and markets. The coffee harvest season started in mid-March.

a. Construction and Machine Operation


During Q3 FY20, SVC business advisors provided technical support (Table 7) to wet mills to finalize the installation of new wet mills and improve established stations. A wet mill maintenance expert was scheduled to conduct a technical visit in early May 2020, but the visit was cancelled due to COVID-19 related travel restrictions. To ensure wet mills were still able to receive support, SVC business advisors were trained on wet mill maintenance by the SVC senior business advisor. At the onset of the quarter business advisory staff provided support to several new coffee stations to prepare for the 2020 campaign. Technical assistance provided is described in the table below.

Table 7: Construction and Machine Operations Support offered to clients in Quarter 3

2020 Cooperative Technical Support Provided by SVC Business Advisors

Alpha new - Advise the client on the layout of the wet mill site and construction storage rooms; - Guide the client on machine installation, drying table construction, coffee storage and office set up,

waste management, toilet installation. AMKA (Nobu) - Advise on the layout and installation of wastewater management pits, according to EMMP

standards (30 m away from Lake Kivu); - Advise on how to store coffee and equipment to be used to protect coffee stock (pallets and other

equipment). CAPCKI - Guide the client on machine installation, constructing drying tables, coffee storage and office set up,

waste management, and toilet installation.

CPCK - Provided guidance to increase drying space by 30 tables; - Advise on drying table layout and construction; - Advise the Lugendo site on adhering to EMMP standards by improving waste management,

installing a toilet, etc. COCASKA - Advise the client on the layout of the wet mill site and construction;

- Guide the client on machine installation, drying table construction, and office set up, waste management, toilet installation.

COOPAPP - Wet mill installation; - Advise the client on the layout of the wet mill site and construction; - Guide the client on machine installation, drying tables construction, coffee storage and office set

up, waste management, toilet installation. Justin KARAYI

- Provided guidance to increase the number of drying tables; - Advise on the drying table layout and construction.

Plantation NICOLAS

- Provided guidance to increase drying tables; - Advise on the drying tables layout and construction; - Helped obtain construction materials with the advice of the SVC business advisor; - Advise on the layout of site waste management, to respect EMMP standards.

SVC staff also continued providing support to Mpozi Cooperative in the Kahuzi Biega zone of Kabare Territory, for a new wet mill planned for the 2021 campaign. Mpozi is working with COOPERA, who are currently supporting 343 producers with newly planted coffee on approximately 70 ha of land that will be harvested and ready to process in 2021. An initial questionnaire was sent to assess and scale wet mill operations for their market zone; the questionnaire will be completed in the upcoming quarter.

b. Business Management and Governance

During Q3, capacity strengthening sessions were conducted by business advisory staff in conjunction with training on cherry selection, coffee washing station management, and bookkeeping at coffee washing stations. Training sessions were organized with wet mill leadership, including staff, owners and board members. In total, 397 participants (270 male


and 127 female) from 18 wet mills attended the training. Support provided by SVC staff included:

1. Defining the legal status (cooperative, business group or private company) of each producer organization and explaining requirements for business registration in DRC, with regards to relevant laws and regulations.

2. Team building activities to encourage wet mill leadership to work together to successfully achieve a common goal through voluntary adhesion and commitment.

3. Empowering cooperative members and leaders with an emphasis on gender by promoting the adoption of gender policies that promote female representation and leadership and providing templates for the development of such policies.

4. Developing strategic leadership skills, helping staff to articulate the management structure and purpose of the cooperative/washing station, and supporting them to develop business plans, clear objectives and to respect cooperative or enterprise commitments to members/staff.

5. Strengthening democratic principles and successfully supporting a culture in which staff and members choose ways to participate in their joint enterprise to meet both individual and common goals.

In addition, the Access to Finance (A2F) specialist met with the new Bukavu office of the Guichet Unique de Création d’Entreprise (a one-stop shop for business creation) to request detailed information about the business creation process. This information was collected on behalf of the RUJICAF and AMANI coffee cooperatives, who still do not have legal documents. A list detailing the required documents, deadlines and costs of the formalization process was shared with the coffee team, so that they can guide and assist these partners. This list was also shared with the nutritional value chains component for assistance to associations and private operators in soybeans and beans.

Photo: Composting and liming coffee pulp during sustainability training at Nicolas Bwema’s washing station (Photo Credit: SVC/TechnoServe).


Wet Mill Sustainability Training

New coffee washing stations must understand and make every effort to comply with industry sustainability standards. To introduce and encourage wet mills to meet these standards, SVC had organized a regional consultant to conduct trainings in late March, but it was delayed due to COVID-19 travel restrictions. Instead, the SVC senior business advisor and assistant business advisors began training 11 producer organizations (ALPAHA NEW, AMANI, AMKA, CAPCKI, CHANGWE, COCASKA, COOPAPP, JUSTIN KARIYI, LADDY BAHATI, LWABOSHI, and NICOLAS) in May on industry sustainability standards. These mills were selected as they were either new to coffee processing or had not previously received training on sustainability from SVC in 2019. Sustainability standards cover four main themes:

• Social responsibility and ethics ; • Occupational health and safety; • Environmental responsibility; and • Economic transparency.

Training consisted of two days of theoretical training and one day of practical activities at 13 washing stations. Ninety-seven people participated in the training, including 71 men and 26 women (33 youth and 64 adults over 30 years old). Participants included permanent washing station staff (the washing station manager, coffee quality manager, accountant, machine operator, and storekeepers), owners (for private stations), and board members (in the case of cooperatives).

Accounting and Financial Management

At the beginning of the coffee cherry harvest season in April 2020, SVC trained washing stations on accounting and financial management. In total, 397 participants (270 male and 127 female) from 18 wet mills attended training. Training focused on bookkeeping and maintaining traceable and transparent business operations with cherry purchasers, producer clients and at washing stations. Business advisory staff followed up with each station during the quarter to provide technical assistance, providing weekly reports on each washing stations’ performance to the SVC senior business advisor. Once the season is finalized, business advisors will work with station managers to develop transparency sheets that can inform management on season progress, and to develop business plans for the 2021 campaign. Transparency sheets allow management to determine the efficiency of processing, cost of production and net profit margin. Historical data over multiple years provide an evidence base for key business decisions and facilitate business planning and expansion, as well as the pursuit of working capital and the organization of grower certification initiatives.

Table 8 outlines bookkeeping materials distributed to 15 institutions in 18 coffee washing stations. These figures show that approximately 17,000 coffee producers benefited from


improved financial and production traceability. The number of producer cards distributed will be used to develop the final 2020 producer cherry delivery list for each station.

Table 8: Distribution and Stock of Bookkeeping Documents

# Type Category/ Utility Ordered Total Distributed to Clients

Remaining in the stock

1 Producer Card Producer's card - RECTO_VERSO 18,420 14,580 3,840

2 Receipt book Producer's payment voucher 1,535 835 700

3 Receipt book Producer's credit bill 614 334 280

4 Receipt book Depot Certificate 307 162 145

5 Book Cherry register 614 406 208

6 Receipt book Expedition report 307 162 145

7 Receipt book Received in advance 175 112 63

8 Receipt book Received back in advance 25 17 8

9 Book Delivery report 50 34 16

10 Receipt book Received general expenses Records 50 34 16

11 Receipt book Received general revenue records 25 17 8

12 Book Files of Casual labourer records 27 17 10

13 Book Weekly parchment stock book records 27 17 10

14 Book Cherry Collection site records 616 616 0

22,792 17,343 5,449

c. Processing Techniques and Quality

A coffee processing quality control training was conducted in April at 18 washing stations immediately following the bookkeeping trainings with the same participants (397 participants; 270 male and 127 female). Training was delivered by SVC business advisors that passed CQI’s 2019 Q2 Processing Level 2: Professional course. After training, business advisors monitored stations’ implementation of coffee processing best practices using the Coffee Processing Quality Index (CPQI)11. The CPQI was used by wet mill staff on a daily basis and the completed sheets were posted by the station manager at the station’s office. The washing station manager monitors the CPQI daily for non-compliance, to stop bad practices leading to issues with quality. The daily CPQI scores can be referenced again at the marketing stage when cupping day lot samples to find the cause behind undesirable flavors found in a sample. Scores of 11 out of 15 are considered acceptable and the average score across all SVC supported station during the quarter was 11.6/15. The seasonal CPQI

11 The CPQI uses a grading system with scores of -1, 0 or +1 for to evaluate coffee processing quality using 15 indicators, such as cherry

selection, cleanliness of machines, drying conditions, processing practices, and conditions of storage areas.


averages by station can be found in Figure 7 and an example of the CPQI tool can be found in Annex 6.

Figure 7: Average Seasonal CPQI Score by Station

Cupping

SVC’s Quality Control Advisor (QCA) is a certified Q grader and is in charge of selecting and cupping day lot samples from SVC supported coffee washing stations. During the quarter, the QCA selected 156 samples from 18 washing stations. The QCA worked with Nespresso/Virunga and SUCAFINA to submit 18 samples for cupping. Virunga had contractual requirements to cup and send at least one sample from each of their five SVC partner stations to Nespresso for cupping and analysis. SUCAFINA requested samples from all wet mills they were funding, as well stations that expressed interest in parchment purchase. A summary of those cupping scores can be found in Table 9 below.

While the QCA has been able to cup two samples throughout the quarter, cupping has been limited because COVID-19 travel restrictions prevented the QCA from conducting cuppings at the Virunga and ONAPAC labs. The QCA will begin using his remote cupping lab in collaboration with AMKA to cup over 200 samples starting in July. Based on sampling results, SVC will work each coffee washing station to use the scores to attract potential buyers.

Table 9: Cupping scores and flavors for the 18 samples sent to Nespresso

No ORIGIN Grade Cupping Location

Cupping Score out of 100

Comments

1 Justin Karayi A1 SUCAFINA 85.25 Medium acidity/Medium Body/ Consistent/ Sweet/ Well balanced

2 Justin Karayi A2 SUCAFINA 84.5 Medium acidity/Medium Body/ Equilibrium balance/sl. astringent in aftertaste

12.0

10.411.2 11.1

11.6 11.611.0

12.7

11.012.0

11.211.9 12.3

11.0 11.210.4

13.112.5

11.0 11.011.8

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0


No ORIGIN Grade Cupping Location

Cupping Score out of 100

Comments

3 RUJICAF A1 SUCAFINA 85.75 Med/good acidity/Round Body/ Well consistent/ Sweet/ Good complexity

4 RUJICAF A2 SUCAFINA 84.5 Medium acidity/Medium Body/ Equilibrium balance/sl. astringent in aftertaste

5 AMANI A1 SUCAFINA 84.75 Medium acidity/Medium Body/ Structure balance/Sweet/Sl. dry aftertaste

6 AMANI A2 SUCAFINA 84.5 Medium acidity/Medium Body/ Equilibrium balance/sl. astringent in aftertaste/1Potato

7 ALPHA NEW A1 SUCAFINA 84.5 Medium acidity/Medium Body/ Equilibrium balance/Sl. dry aftertaste

8 ALPHA NEW A2 SUCAFINA 84 Medium acidity/Medium Body/ Equilibrium balance/sl. Astringent & sl. Dry

9 ALPHA NEW A3 SUCAFINA 83 Med/light acidity/ Medium Body/ lacking consistent / light cups & dry aftertaste

10 CHANGWE A1 SUCAFINA 85.25 Medium acidity/Round Body/Well consistent/Sweet/Fruit/ Pleasantly aftertaste

11 COOPAPP A1 SUCAFINA 84.5 Medium acidity/Medium Body/ Equilibrium balance/Sl. astringent & sl. dry aftertaste

12 AMKA A Virunga / Liverpool

84 Lemon, clover, blackberry, clean, High acidity, heavy ,body, non-consistent

13 NICOLAS A Virunga / Liverpool

83 Berry, banana, caramel, astringent, acidity and body medium

14 SOPADE DUTU

A Virunga / Liverpool

84.5 Lemon, apple, raisin, juice, clean, heavy body, high acidity non consistent

15 LWABOSHI A Virunga / Liverpool

86.75 Jasmine, rose, lemon, very clean, high acidity, heavy body consistent

16 CAPCKI lot 1 A Virunga / Liverpool

85 Acid citric, lemon, apple, sweet, clean, high acidity and medium body


86 Acid citric, lemon, berry, lime, sweet, juice, very clean, high acidity and heavy body


83.5 Fruity lemon, apple, sweet, clean, acidity and medium body



d. Gender, Youth and Social Inclusion in the Coffee Sector

Gender Action Learning System (GALS) Training follow up with Kabare Coffee Producers' Cooperative (CPCK) and washing stations in Lugendo and Mabingu, Kabare Territory

On May 12 and 13, three months after the first phase of the Gender Action Learning System (GALS) training with CPCK, SVC's GYSI team held two meetings at Lugendo and Mbinga coffee washing stations with 20 GALS participants including 11 men (55%) and 9 women (45%) members of the Kabare Coffee Producers' Cooperative (CPCK); 45 % of participants were youth. Follow up included discussing the implementation of their GALS visions.12

12 In January 2020, 21 men and 21 women from CPCK developed individual and household visions and a shared vision for the future of the cooperative and coffee washing stations. Participants also explored strategies for increasing productivity, and opportunities to generate or increase income in line with the principles of gender equality and women’s empowerment.

Key objectives of the GALS meeting included:

• Document application of visions in member households, within the CPCK cooperative, and at washing stations

• Learn how best to support GALS champions to scale GALS and monitor changes • Identify young women and men starting entrepreneurial and leadership initiatives for

future engagement with SVC • Raise awareness among members about measures to prevent and treat COVID-19 in

their household and the coffee wash stations

Results of the activity: CPCK members identified the aspects of their visions they are implementing, and changes they have begun to see in their cooperative, washing stations, and in their household. These changes were reported by men and women during a mixed focus group discussion. Changes at the cooperative and washing stations included:

• In Lugendo and Mabingu, men and women reported that since the GALS training more members are bringing their coffee cherries to the CPCK cooperative to store for sale in bulk. Income is then distributed among members. Members said they would like to use the money to purchase fishing nets, goats, or invest in building their homes at the end of the season.

• In Lugendo, members pledged to deliver at least 30 kgs of cherries each to the station. • CPCK leadership at both stations are documenting conflicts that could discourage

member participation.

Photo Caption: CPCK Members trained in GALS. Photo Credit: Bertin Bisimwa


Half of the six men and two out of five women reported making more joint decisions with their spouses about income and agricultural decisions. For example, men and women reported reducing spending to invest in coffee farming or increasing storage of nutritive crops like beans.

The team also raised awareness among members about how COVID-19 spreads and how to prevent it through hand washing, social distancing and wearing masks.

Virtual Learning Series Pilot: Gender Equity in the Coffee Supply Chain with the Partnership for Gender Equity (PGE)

In April, SVC in collaboration with the UKAID-funded ÉLAN RDC project began collaboration with the Partnership for Gender Equity (PGE) to pilot a Virtual Learning Series (VLS) on gender equity with five coffee producer organizations in South Kivu13

13 The selected POs already collaborating with SVC include: AMANI (Buciro and Kahanga), AMKA (Lutumba-Nobo), CAPEKI (Kalungu), COCASKA (Bukanyi), and SOPADE (Dutu).

to advance gender equity in their organizations. The aim of this activity is two-fold:

• To improve producer organizations’ understanding and awareness of gender equity and the core elements that underpin a gender equitable organization, and

• To build producer organization capacity to assess gender equity within the organization using five criteria in the Gender Equity Scorecard.

Training is delivered through five modules which align with PGE’s Gender Equity Criteria for Producer Organizations in Kalehé territory.14

14 The five criteria include gender equity in: strategies and policies, internal organization, leadership and decision-making, equitable gender attitudes and behaviors, and equitable and inclusive services (or benefits).

The first four modules focus on key concepts and how to integrate gender equity into producer organizations. In the final module the focal points will complete the online self-assessment of their organization. This will serve as a foundation for the action planning process to address gender equity gaps identified through self-assessment. Each week a module will be delivered virtually to focal points followed by virtual feedback sessions led by the SVC GYSI team. The action planning process will take place after the five modules are delivered. It is anticipated that processes will be facilitated in person once COVID-19 restrictions are lifted.

Results of the activity: Through weekly coordination calls with PGE and ÉLAN, SVC has contributed significantly to tailoring the curriculum content and pilot process to the South Kivu context. These efforts have been necessary to maximize learning among producer organization focal points and to improve the action planning process with targeted producer organizations.

Tailoring the Content. SVC in collaboration with ÉLAN provided critical inputs to adapt PGE’s curriculum to the context, for example, by providing local images, adapting learning module transcripts into Swahili, and integrating context specific examples that will resonate with targeted producer organizations. This process is critical to ensuring the modules are user-friendly, inclusive, and equitably benefit both women and men focal points. Using the


recording function in Zoom, the GYSI specialist tested recording videos with key learning messages to accompany the images.

Adapting the Process: Based on the results of a mini-survey of producer organization focal points administered by the team in April, WhatsApp was determined to be the easiest way to share the videos with selected focal points. SVC staff have begun testing the delivery of recorded videos to focal points via WhatsApp. SVC also contributed to the development and review of a facilitators guide for the VLS activity which defines SVC’s role facilitating the learning process and implementation approach.

e. Enabling Environment, Access to Finance and Markets

Enabling Environment

Supporting the development and implementation of the new five-year strategic plan for the specialty coffee sector in South Kivu. SVC continued to support the completion of the South Kivu high altitude Arabica coffee sector strategy this quarter. Using a local consultant, Professor David Bugeme, as part of this process, SVC conducted interviews with stakeholders to gather feedback on the first draft of the strategy document. A final review and online comments were provided by coffee value chain stakeholders. These included ONAPAC, INERA, UCB, RCPCA, UEA, CCPA, CARG, IITA, and the Provincial Agriculture Ministry. To validate the South Kivu coffee strategy, the consultant held six individual meetings with different stakeholders. Consensus was achieved and these key stakeholders approved the final version of the strategy. ONAPAC has taken leadership of the strategy and will be responsible for its implementation. SVC plans to support ONAPAC, RCPCA, buyers, researchers, and other stakeholders to implement the strategy and strengthen communication of the strategy to all stakeholders next quarter through the following activities:

• Supporting ONAPAC to present the strategy to the National Minister of Agriculture; • Facilitating ONAPAC’s presentation of the strategy to all stakeholders: Buyers,

cooperatives, university and research institutions (UCB, UEA, INERA, ITTA), agriculture development projects (PICAGEL, PARSSA), agriculture NGOs, investment institutions and organizations, the Ministry of Trade, the Ministry of Industry, the Promotion Fund for Industry (FPI), and ANAPI (Agence Nationale pour la Promotion des Investissements).

• Preparing online presentations of the strategy to various value chain stakeholders and to buyers and other interested parties to generate action in response to the opportunity presented by the coffee strategy.

• Coordinating public-private meetings to develop priorities for implementation of the strategy in Kinshasa and Bukavu.

Introducing coffee pricing mechanisms and incentives for formal trade: During the quarter, SVC staff facilitated discussions on cherry price standardization during the coffee season to develop a common understanding of market-based pricing among key coffee sector actors. Although the coffee value chain in DRC has been liberalized since 1973


and subject to free market competition, there has been a tendency on the part of larger, more influent cooperatives to buy coffee from producers at very low prices (500 Congolese francs/kg of cherry). Cooperatives have opted for a common price that runs counter to the principles of free market competition, and limits opportunities for international buyers to buy coffee from producers at attractive prices. Cooperatives are paying low prices for all coffee, effectively discouraging producers from making investments that increase quality and result in price differentiation SVC has been involved in discussions with ONAPAC and the RCPCA to find a solution for the benefit of coffee producers. ONAPAC, which regulates the coffee value chain, has opted for a competitive market, and encourages buyers and cooperatives to offer better prices to producers. Free market pricing benefits the producers because it gives them choice and an empowered negotiating position to shop for the best terms and conditions offered by buyers. A free market pricing system15

15 ` A disaggregated system of payment for cherry is possible based on maturity and defects at the point of purchase but quality degrades if the time from harvest to depulping surpasses 6 hours. Quality of the coffee is judged through cupping which occurs more or less one month following harvest. Tiered pricing based on quality would be possible at this stage if farmers would hold off being paid for their harvests and full day lot traceability back to the farmers was instituted and trusted and there was farmer and buyer confidence in the cupping scores and notes. The value of the coffee often depends on the negotiated terms and conditions of the sales contract. This is why it is often better to pay an initial price for cherry based on typical conversion ratios and then to make a second premium payment based upon the value of the final sales contract and to have this payment to be tiered based on quality.

allows producers to sell their coffee under more competitive and discerning conditions, while providing a good profit margin and motivating them to invest more to improve coffee production and per tree productivity. A ceiling price for coffee cherry purchases was initially set by cooperative leaders at FC 500 per kg. It rose to FC 550 per kg during the 2020 coffee harvest season. This was dictated by competition among buyers at cherry collection sites. The industry standard conversion ratios of cherry to parchment is 5kg to 1 kg/net dry weight. The conversion ratio of net weight parchment to green coffee is 0.8.

Access to Markets

Local Markets: Promotion of Local Consumption. With support from SVC, RCPCA hosted sessions with the network's cooperatives to discuss the promotion of local coffee consumption. These meetings occurred May 21, 2020 in Bukavu and May 22, 2020 in Katana (Kabare). RCPCA and its members focused on the development of a database that registers the quality of coffee produced by cooperatives and the quantity of coffee roasted and ground for local consumption. A separate database contains information on the various hotels, restaurants, and supermarkets in the city of Bukavu. These databases will assist in tracking the quantity and the quality of coffee that was produced by cooperatives that is sold locally, and to provide accessible data on hotels, restaurants, and supermarkets for members interested in penetrating the local market. The two databases will be managed by RCPCA’s executive secretary. The exchange sessions involved 27 people from the following cooperatives: RWH, RAFEKI, ONAPAC, IFFCA, Kivu coffee, COOPAEKI, RAEK, CPCK, TCC, Procafé bio, and Global Coffee Services, as a coffee supply business.

Participants attested that South Kivu coffee sold locally in restaurants and supermarket is of good quality despite artisanal processing methods. The quantity of locally produced coffee is


insufficient to meet the demand of local and national consumers. It is important to develop effective marketing strategies to penetrate the local market, which has been largely ignored.

Packaging was identified by participants as a challenge. Current packaging is not attractive to consumers compared to other imported products. This harms the competitiveness of local coffee because consumers think that unattractive packaging reflects a lower standard of quality, leading them to choose more attractively packaged imports. There is currently no packaging factory in Eastern DRC. Packaging is ordered in bulk from either Uganda or Dubai. Some packaging is now being produced in Kenya, but the plastic air ventilation ports must all be imported from Europe.

Coffee sold locally is marketed under different labels. Cooperatives have proposed developing a single label to market coffee locally, with credit given both to the producing cooperative, the coffee producer cooperative’s network (RCPCA) and, in the case of women produced coffee (IFFCA) and are considering adopting quality standards aligned with international standards. Local cooperatives do not have a modern commercial roaster to process coffee in South Kivu. There are commercial roasters in Goma at ONAPAC, Jambo Safari and le Petit Chalet. ONAPAC Bukavu has a small scale outdated artisanal commercial roaster for small batch roasting. The roasting is uneven as it lacks control mechanisms to adjust heat transfer, airflow, and speed. This remains a challenge in promoting local coffee consumption.

Next steps include awareness raising and promotional sessions held with all actors identified using the RCPCA database, and the creation of market linkages between cooperatives and hotels, restaurants, and supermarkets in Bukavu.

International Markets: Unfortunately, COVID-19 impacted planned activities throughout Q3 FY20. For example, various team members were supposed to travel to the Specialty Coffee Association’s Annual event in Portland, Oregon between April 22nd -26th , with RCPCA. Plans were made to present samples and washing station profiles to specialty coffee buyers and raise the overall profile of DRC specialty coffee, but the SCA event was canceled due to COVID-19. In addition, the Saveur de Kivu event scheduled for June 10-12 has been delayed until further notice. Cupping trainings leading up to the event with Paul Songer were also delayed. To overcome these issues, after sampling day lots next quarter, SVC will support RCPCA members to send samples to a number of specialty coffee buyers.

Nespresso: Under the Reviving Origins Initiative, Nespresso buys organically certified coffee from DRC. To help ensure coffee in DRC meets organic certification standards, Nespresso has begun working with SVC to support wet mills to obtain organic certification, as well as providing working capital to four selected clients using a local service provider. SVC is working with EcoCert – an organic certification organization – with organic certification auditors in DRC to prepare for the technical and administrative aspects of an organic certification audit with four Nespresso washing stations. The audit was originally scheduled for April but was postponed due to COVID-19.


To prepare for the audit, SVC supported the four Nespresso clients (SOPADE, LWABOSHI, CAPCKI and NICOLAS) selected by Virunga and Nespresso under the Reviving Origins campaign last quarter, to establish an internal quality management and control system. Over the last 4 months, SVC staff helped 1) identify farmers and form groups, 2) plan with the internal control systems (ICS) team, focal farmers and wet mill staff, 3) train the ICS team and focal farmers as trainers (using a Training of Trainers or TOT approach), 4) contract and register producers to implement the correct standards and supply cherry to the wet mill, 5) conduct internal inspections 6) implement correction plans, and 7) conduct external audits. Steps 1-6 have been completed and the external audit with EcoCert is planned for next quarter. Nespresso is covering the cost of the audits as part of their DRC Reviving Origins Initiative. 1,343 SVC coffee producers (352 female) on approximately 626 hectares of land have been supported under this initiative this quarter.

Table 10: Wet Mill Progress for Organic Certification with Nespresso

Name Number of internal inspectors

Number of Focal Farmer Groups (FFGs)

Number of organic agriculture advisors/ Focal Farmers

Number of farmers internally inspected

CAPCKI 4 10 10 407 (141 women)

LWABOSHI 1 1 1 1

NICOLAS 2 4 4 117 (23 women)

SOPADE 6 26 26 818 (188 women)

Total 13 41 41 1343 (352 women; 26%)

Nespresso plans to promote organically produced coffee under their DRC Reviving Origins Campaign and could purchase up to seven containers this year. SVC has also supported the launch and promotion of the 2020 DRC Reviving Origins in the US by planning events with Nespresso, providing 13 producer profiles for promotional materials, and helped Nespresso plan a visit to finalize the faces of the DRC Reviving Origins Campaign. Unfortunately, the visit was postponed due to COVID, but SVC staff provided contacts for several photographers in South Kivu to develop promotional materials.

Nespresso Premium Payments: In 2019, Nespresso through its commercial representative, Virunga Coffee, bought two 19,200 kg containers of specialty coffee from two 2019 SVC clients, AMKA and SOPACDI. Each wet mill sold green coffee at a price of $5.20/kg (more than five times the local market price for green coffee). As part of the Nespresso AAA program16

16 The AAA Program is a coffee sourcing program designed to ensure the continued supply of high-quality coffee while improving the livelihoods of farmers and their communities and protecting the environment.

, Nespresso provides a sustainability premium payment of $0.50/kg directly to producers who conform to quality and sustainability standards. Since March 2020, Nespresso and Virunga planned to pay AMKA and SOPACDI farmers their premium payments at an event, as part of their Reviving Origins Campaign in DRC. However, COVID-19 delayed the planned events and, in May, Nespresso and Virunga made the decision to proceed with the payments without an event. AMKA, SOPACDI, SVC and


Virunga worked together to plan the staggered payments between June 22 to June 26 to ensure that no more than 20 people were at the cooperatives to receive payment at any given time. A total of 468 members (199 AMKA, 269 SOPACDI) benefited from a total of $19,200 in premium payments (an average payment of $41 /farmer). AMKA producers were satisfied with the organization of the event and promoted the event to create community awareness, in collaboration with local radio stations. Producers said they would use payments for household food consumption and payment of school fees.

Photo Caption: A group of AMKA producers after receiving payment from Nespresso and Virunga Coffee.

SUCAFINA: SUCAFINA provided $32,000 in OPEX financing to two of the three coffee washing stations with whom they are partnering. Washing Station Managers, Business Advisors and SVC senior staff initiated communications and coordinated activities through a Whats App group linked to key SUCAFINA staff outside the country, allowing them to monitor the evolution of the coffee campaign remotely. Support included updates on use of working capital and communications concerning quality, transparency, traceability, and sustainability metrics at client washing stations. The SVC coffee team selected cupping samples and arranged for these to be sent to external labs for independent verification of quality and profiling the coffees.

Access to Finance

Finance for purchasing coffee cherry is critical for coffee washing stations to maintain optimal performance and profitability during the season. The banking and financial sector in DRC is inexperienced in lending to rural agribusinesses and will take several years to recognize the opportunity that wet mill businesses offer. Despite this constraint, seven dossiers for OPEX financing were submitted by coffee sector actors and SVC clients to Equity Bank for consideration. Four of these were approved, one dossier was rejected, and two clients redirected their funding requests to an alternative lender. The four dossiers which were approved are all returning borrowers. The total ceiling amount approved was $965,000, for an average loan size of $241,250. Loans are disbursed in stages, like a line of credit. Actual disbursements against the ceiling approved at the end of Q3 was $875,000


(90.7%). Of this, $460,000 (52.6%) was disbursed during Q3 FY20 for the purchase of coffee cherry and coffee wet mill operating costs.

Table 11. Loan Disbursements from Equity Bank for the 2020 Coffee Season to Coffee Clients Supported by SVC

Client Name Status of Loan Request

Amount Approved

Amount of Disbursed during Q3

Cumulative Amount

Disbursed as of 6/30/2020

Comments

AMKA Redirected to another lender

- -

-

CAPCKI Redirected to another lender

COOPERATIVE MUUNGANO

Approved $ 300,000 $ 120,000

$ 240,000 2nd year of borrowing from Equity Bank

CPCK Approved $ 215,000 $ 70,000

$ 215,000 2nd year of borrowing from Equity Bank

KACCO Approved $ 300.,000 $270,000

$ 270,000 3rd year of borrowing from Equity Bank

KIVU COFFEE Rejected

Rejected due to lack of a sales contract and security issues in the area around the washing station

Rebuild Women’s Hope (RWH)

Approved $ 150,000 $0

$ 150,000 3rd year of borrowing from Equity Bank

TOTAL $ 965,000

$ 460,000 $875,000

There are limited financing opportunities for start-ups who do not qualify for traditional commercial lending, even with the presence of USAID’s Development Credit Authority (DCA). A coffee service provider (CSP) model has worked in similar East African contexts to facilitate partnerships between private export companies and farmer cooperatives for the provision of working capital and access to fee-based processing and export services. This model creates a commercially symbiotic relationship with private exporters providing ongoing support to low-cost rural coffee washing stations.

The Coffee Service Provider Model

To introduce the Coffee Service Provider (CSP) model to DRC, SVC supported coffee washing stations to develop and present business plans to attract investors. In total, three coffee service providers invested in seven coffee washing stations supported by SVC during the 2020 campaign.


Processed Parchment Coffee Processed Green Coffee

Working Capital & Quality Premiums

Quality Premiums

Figure 8: Current Coffee Service Provider Model in South Kivu

In exchange for these services, the CSP takes a percentage of the sales of cooperative negotiated prices as agreed in the CSP contract, typically between 5% and 7%, and deducts costs paid on behalf of the cooperative. In South Kivu, the CSP model offers several advantages to washing stations beyond working capital to purchase cherry, including an assured buyer for a transparent and often better price, services such as transport and processing (milling and grading), close monitoring of working capital to prevent diversion of funds, marketing of coffee with buyers, and bonus and premium payments based upon agreed conditions. During the 2020 campaign, almost all of the funding for washing stations was used for operating capital for the purchase of coffee cherries. Table 11 indicates the amount of capital received by each station and the CSP/source of finance. SVC supported trust building in the new relationships between CSPs and stations for providers, such as SUCAFINA and Virunga, by supporting coffee washings stations to track, monitor, and report the purchase of cherry and stocked parchment.

Table 12: Working Capital Amounts by Washing Station and Coffee Service Provider

Name Source of Finance Amount of Working Capital

AMKA SMICO (Congolese Microfinance Company) and Virunga (CSP)

$220,000 (SMICO $200,000 and Virunga $20,000)

CAPCKI Virunga (CSP) $20,000

CHANGWE SUCAFINA (CSP) $18,000

COCASKA SUCAFINA (CSP) $14,000

Nicolas Virunga (CSP) $10,000

SOPADE Virunga (CSP) $45,000

Total $327,000

Mobile Money

International buyers from Nespresso and OLAME requested that SVC work with Virunga Coffee to develop a test using mobile money to pay 2020 coffee bonuses to the AMKA cooperative. The SVC Access to Finance (A2F) specialist worked with the coffee team to prepare a questionnaire for coffee growers and to help Virunga put together a checklist to select a mobile network operator for the mobile money payment test. Virunga and Nespresso

Coffee Washing Stations

Process fully washed coffee, provide

services for farmers and distribute

Coffee Service Provider

Provides working capital, financial management,

processing and marketing/export services

Trader / International Buyer

Markets and Sells to Roasters / buyers


are interested in mobile money not only because it should allow more secure and transparent transactions with buyers, but also to be able to document the payments made to each individual producer. AMKA cooperative members did not want to use the solution this season, primarily because many members are uncomfortable using mobile money technology17

17 AMKA leadership expressed the following reservations to full-scale adoption of mobile money for payments- difficulty with network access within their draw zone; many farmer members do not have mobile phones or mobile money accounts; older farmers, unfamiliar with the technology need to be assisted by their children; the database of members does not contain all pertinent contact information and the farmers who have mobile money accounts and/or access to mobile services do not want to pay the fees associated with the cash-out from their accounts at service points.

. The questionnaire prepared by SVC for the cooperative identified coffee growers who are willing to be paid with mobile money and solutions to constraints/concerns raised by members are being considered. These include providing separate SIM cards for mobile money transactions, paying for withdrawal fees by the transaction initiator, offering training in the use of the mobile money technology and a potential credit scheme to facilitate purchase of a cell phone and SIM card.. At the end of the 2020 season in June, the identification process will be extended to SOPADE and CAPCKI cooperatives which partner with Nespresso and Virunga coffee.

2020 Client Performance

At the onset of the season, SVC was scheduled to partner with 20 wet mill clients at 42 coffee washing stations. Five wet mill clients were unable to process coffee during the 2020 campaign.18

18 Of the 5, IHUSI has purchased but not yet installed their depulper which is sitting in storage in Goma. CAPACADE, FODDR and BOSCO will likely survive and operate next season, depending on the availability of OPEX financing. CADOBU’s collaboration with SVC has been suspended. SVC expects to collaborate with a new private operator, Mpozi, next season. We hope too that a stabilized security situation will enable us to collaborate with Kivu Coffee. Both Mpozi and Kivu Coffee operate in Kabare Territory.

COVID-19 affected some partners ability to move equipment and complete construction before the season, while others had internal management disputes between family members, insufficient working capital, or they prioritized other commercial activities.

By the end of the quarter, a total of 15 businesses/cooperatives remained in operation and were processing coffee across 38 stations. A list of the wet mills that are active partners with SVC can be found in Annex 4, along with current amount of coffee cherry processed and parchment stocked. The following coffee processors were continuing to process coffee as of June 30th, 2020: CPCK, AMANI, AMKA, CAPCKI, CHANGWE, CPCK, LWABOSHI, Nicolas and SOPADE. Finalized numbers will be reported in the FY20 Annual Report.

4.2.2.3 Amplifying Sector Knowledge

Coffee Research Subcomponent

COVID-19 affected monitoring and implementation of coffee trials. However, with some adaptation to comply with government decrees and travel restrictions, establishment of the third cohort of On Farm Technology Trials (OFTTs) is underway. In addition, staff used the COVID-19 period to refine data collection, data cleaning, and perform preliminary analysis of OFTT and Multi-Location Agronomy Trial (MLAT) data.


4.2.2 The status of Agronomy trials

a) OFTT (On Farm Technology Trials)

This quarter, 30 OFTTs were maintained, including weeding, fertilization, and pest and disease control. Vegetative growth data was collected. Trials are well managed by farmers, but staff observed a significant leaf rust attack in one OFTT and a strong insect (Helopeltis spp) attack in two other OFTTs. Pest and disease data were collected in affected OFTTs and biological pest and disease management was undertaken by farmers under the supervision of the INERA and UCB research teams. Leaves of tree marigold (Tithonia diversifolia)19

19 A study done in Indonesia on Helopelthis management shows that Tithonia diversifolia reduce the number of lesions due to Helopelthis on cocoa leaves, and it induces a mortality rate of 63,8% of Helopelthis (Sulistyowati, E., Ghorir, M., Wardani, S., & Purwoko, S. (2014). The Effectiveness of Lemongrass, Garlic, and Tree Marigold as Botanical Insecticides in Controlling of Cocoa Mirid, Helopeltis antonii. Pelita Perkebunan (a Coffee and Cocoa Research Journal), 30(1). In the OFTTs 1 kg of powder from dry tithonia diversifolia leaves put in 15 litters of water was pulverized every two weeks on attacked coffee trees.

are used to combat the development of Helopelthis spp. For leaf rust control, liquid from coffee cherry vermicompost was used20.

Figure 9: OFTT locations, highlighting those with pest and disease attacks

Table 13: GPS data for OFTTs attacked by disease

Banana harvesting began in some OFTTs, which is interesting for farmers because they gain immediate income that helps them manage their coffee fields. Data on banana harvesting and costs of maintenance of new coffee plots by farmers will be presented in the FY20 annual report.

20 This practice was suggested by the farmer owner of the affected OFTT. He used 1 liter of liquid from vermicomposting in 20 liters of water and pulverized this solution onto the affected coffee tree every two weeks.

OFTT code Latitude Longitude Altitude (m) Pest and disease attack

DRC-1-005 -2,070211 28,897554 1593 Helopelthis Spp DRC-1-006 -2,087248 28,896925 1683 Leaf Rust

DRC-1-011 -2,2767 28,8010333 1684 Helopelthis Spp


Baseline data for 30 OFTTs was collected and analyzed. Economic data continues to be collected by farmers in their field books. Analysis of economic data for OFTTs established in FY 2018 is in progress and some results will be presented in the annual report. The graphs below illustrate the major socio-economic characteristics of farmers participating in SVC OFTTs.

i. General characteristics

Figure 10: Gender, Age and Membership of SVC OFTT Farmers

Most farmers participating in the trials are male (57%). Only four participating farmers are female and nine are male and female teams (the man works closely with his wife in the trial). SVC staff and sub-contracting partners will make a greater effort to involve more female farmers in future coffee trials. In 2019 only one of 15 (7%) farmers involved in the OFTTs was female. In 2020 43% are either male-female teams (30%) or woman-led (13%). The target in 2021 is to have 44% male, 36% male-female teams and 20% female farmers participating. On average, farmers participating in OFTTs are 48.17 (±13.27) years old. Most farmers are members of a coffee grower cooperative (50%).

OFTT coffee farms are in three farming categories:

• Small-Holder Farmers: Family members provide labor without wages, and sometimes hire temporary day-laborers. Decisions are made by the head of household.

On average, small-holders have 1.99 ha (±1.98ha) of farmland and only 0.22 ha (±0.3 ha; 11%) in coffee. • Family Businesses: A mix of family labor and permanent, employed labor, with decisions made by both family and hired workers. On average, family businesses have 18 ha (±9.9ha) of farmland and 10.25 ha (±13.79) of this land (55%) is dedicated to coffee. • Corporate Farms: 100% employed labor, with most decisions made by hired

Male and Female (team)

30%

Female13%

Male57%

Cooperatives50%

Individual farms23%

Farmers groups

27%

Photo Caption: An OFTT plot in Kalehe IHUSI


workers. Corporate agriculture enterprises have, on average, 77.83 ha (±20.25 ha) of farmland and 20.25 ha (±24.97ha) of coffee (26%).

Corporate farms and family businesses have more land than smallholder farmers participating in OFTTs. The larger farms are mainly located in north Kalehe, around Minova. Participating smallholders are located in Kabare and Southern Kalehe. To increase coffee production in South Kivu, the Minova region is best suited for increasing land area under coffee production. For Kabare and Southern Kalehe, it is necessary to increase per tree productivity, because producers do not have land to plant more coffee.

Participating farmers also have livestock on their farms. On average, small-holders own 1 (±0.69) animal21, Family Business own 6 (±7.84) and corporate farms own 10 (±15.95) Tropical Livestock Units.

Other Crops

Apart from coffee plots, farmers have other plots where they grow crops such as common beans (90%), cassava (83%), bananas (sweet bananas and plantains), maize, soybeans, and other fruits and vegetables. Farmers intercrop coffee with other food crops, mainly banana, common beans and soybeans. Coffee and bean intercropping is the main intercropping system used and it is mainly used in Kabare territory; monocropping coffee is mainly done in Kalehe.

Figure 11: Percent of OFTT Farmer Income from Coffee

On average, coffee represents 48.33% of corporate farm annual income, and 18.35% of the income of family business income. Coffee represents only 15.85% of smallholder farmer annual revenue. Corporate farming enterprises may be more likely to invest in best agronomic practices and improved coffee varieties, since coffee makes up more of their annual revenue.

21 Tropical livestock unit (TLU) are the number of livestock converted to a common unit using FAO conversion factor. TLU ranges from 0 to

41. Conversion factors are cattle = 0.7, sheep = 0.1, goats = 0.1, pigs = 0.2, chicken = 0.01

48.3318.35 15.85

51.6781.65 84.15

C O R P O R A T E A G R I C U L T U R E F A M I L Y B U S I N E S S S M A L L - H O L D E R

Percent (%) of income from coffee Other activities


b) MLAT (Multi-Location Agronomic Trial)

The first coffee harvest for SVC MLATs occurred this quarter. Harvest data is currently being cleaned and all information on the coffee harvest will be submitted in the FY20 annual report.

INERA is doing a good job maintaining the trial. Mulching was done for the dry season (June to September), and banana density was reduced in the plots where banana is intercropped with coffee. On plots where coffee is intercropped with banana, there has been an early production of cherries and a dieback on coffee trees.

Photo Caption: A weeded and mulched MLAT plot at INERA

This may be due to coffee and banana competition for nutrients. Research done on coffee and banana intercropping in Uganda shows that the downside of coffee and banana intercropping is that it increases competition among plants for water, nutrients, and light. This needs to be managed by using good agronomic practices such as integrating fertilizers and organic nutrient inputs, managing plant density and canopy cover appropriately, and practicing good soil and water conservation22.

Table 14: Soil analysis results for MLAT 1 at INERA

Like coffee, banana has a shallow root system. Most of the banana’s nourishing roots are located within 20 cm of the soil surface and need more nitrogen and potassium respectively for growth and production. For optimum production coffee needs at least 150 mg/L of potassium (K) and bananas need 200mg/L. The soil analysis (Table 14) demonstrates that, at current fertility levels, it is difficult for both of these crops to meet their needs for potassium (K). SVC and INERA reduced the density of banana from 500 to 300 banana trees/ha.

22 Piet van Asten. International Institute of Tropical Agriculture (IITA) in Kampala, Uganda. The Power of Intercropping Banana and Coffee.


c) Preparation for the establishment of FY 20 Trials

i. Nursery establishment

A nursery for all trials has been established. Direct seeding occurred during the week of 20 January 2020, requiring nine months before transplanting in September, depending on the beginning of the Season A 2021 rainy season. The nursery is well managed, and plantlets are vigorous and healthy, 15 cm high with 3 pairs of leaves at the end of June. The nursery mortality rate per variety will be evaluated one month prior to planting. Table 15

Table 15: The number of coffee trees planted by variety, and the number needed for each trial (OFTT and MLAT)

Activities Variety Number of plantlets in the Nursery Real need

OFTTs

BATIAN 4208 3000

BM 139 1650 1500

Jackson 1650 1500

H. Mulungu 3300 3000

IMLAT CATIGA MG2 5000 5000

CATUAI V IAC 144 2000 2500

Seed plot

K7 2500 2500

H1 2500 2500

Sln6 2500 2500 TOTAL 25308 24000

UCB will plant 3 ha for OFTT and INERA will manage 3 ha of MLAT, and 3 ha will be managed for sale to local producers. 24,000 seedlings are sufficient to plant 9 ha, so there should not be any shortfalls.

Photo Caption: The nursery for 2020 trials and seed lot plot establishment at INERA


ii. New Partnership Outreach

SVC will partner with SCPNCK on Idjwi Island for the establishment of five OFTTs. Idjwi Island has the second highest production of coffee in South Kivu, following Kalehe territory. SCPNCK is a dynamic, well-structured cooperative with a long term vision of coffee production and export. SVC has an MOU with SCPCNK for the promotion of new coffee varieties and profitable cropping systems. COOPERA has also agreed to implement five new OFTTs this year.

d) Seed lots

Four seed lots with four different varieties are growing well. DNA results for genetic purity are under analysis. Seed lots require only basic field maintenance. SVC had planned to organize a nursery training event this quarter; however, this was cancelled due to COVID-19 travel restrictions.

Table 15: Seed lot plot GPS locations by variety, and the number of coffee trees per lot

Varieties Latitude Longitude Number of coffee trees

Mulungu -2.33305° 28.78305° 2650 BM139 -2.32317° 28.78577° 2200 BM71 -2.32645° 028.785233° 3240 Jackson -2.32643° 28.78769° 2100

TOTAL 10,190

e) The annual trials

1. Bio Pesticide Trials

The biopesticide trial with UCB started in February 2020. Data has been collected and biopesticides are applied according to the protocol. UCB is testing different products that are either very cheap or readily available at the farm level to see if they have positive or negative effects on coffee diseases. UCB will test four biological pesticides and one chemical pesticide. Treatments are listed below:

• T1: control (zero treatment) • T2: 100 g chili; 500 g tobacco and 100 g garlic in 20 liters of water • T3: 1 kg tobacco and 400 g of chili in 20 liters of water • T4: 4 liters of tithonia manure in 20 liters of water • T5: 300 g of bicarbonate in 20 liters of soapy water • T6: Copper fungicide in 20 liters of water

Data collection is ongoing and final results will be available at the end of July 2020.

2. Die back trial


The die back trial with INERA started in September 2019. It has been managed according to the protocol. Data collection was done on time and harvest data collection concluded the 22nd of June. Preliminary results after data cleaning and analysis will be available at the end of July 2020.

Key Coffee Component activities planned for the next quarter

• Cohort 1 (2018): Kabare Coffee Farm College closeout; transmission of training certificates to over 5,500 producers; final endline study

• Cohort 2 (2019): Continue Coffee Farm College training with trainings on pruning and rejuvenation, hole preparation and backfilling, and shade management.

• Preparation of Cohort 3 (2020), Idjwi: Finalize identification of training groups, awareness/enrollment campaign, recruiting of farmer trainers

• End of season reporting, finalization of transparency sheets for washing stations • Organic Certification Audits • Prepare Story Map documents for world coffee day (History of Coffee in DRC;

Sustainable Coffee; Private Sector Support to Coffee Producers; Access to Finance and Coffee).

• Annual work plan and annual reporting

4.3 COMPONENT 3: DEVELOP AND IMPLEMENT PUBLIC PRIVATE PARTNERSHIPS (PPP)

4.3.1 Introduction

The trade, regulatory and PPP component of the SVC project continued to carry out activities this quarter, despite the COVID-19 context. Focus group exchange sessions were organized (while respecting social distancing guidelines and wearing face coverings). The PPP specialist focused on the following activities to support the coffee, bean, and soybean value chains and improve market systems functions:

• Supported the finalization and implementation of the new five-year strategic plan for the specialty coffee sector.

• Introduced coffee pricing mechanisms and incentives for formal coffee trading. • Facilitated increased formal cross-border trade for target value chains. • Built advocacy skills within cooperatives and strengthened their ability to represent their

members. • Developed stakeholder knowledge about trade regulations, taxation, and ways to report

illegal taxes. • Developed PPPs and identified opportunities for new PPPs.

4.3.2 Key Activities Undertaken in Q3

Key PPPs receiving technical assistance during the current reporting period included COPROSEM - the Seed Trade Association Platform; ACT- the Association of Cross Border Traders and their affiliated Market Women’s Associations; and RCPCA - the Network of Coffee and Cacao Producer Cooperatives of DRC. Activities undertaken with each network


were presented under Components 1 (COPROSEM under Access to Inputs and ACT for Market Linkages) and Component 2 (RCPCA, for the coffee sector) above.

4.3.4 Key activities planned for the next quarter

Next quarter the SVC PPP specialist will engage in the following activities:

• Support ONAPAC and other stakeholders on the dissemination and implementation of the coffee sector strategy.

• Build capacity of new coffee cooperative partners in advocacy. • Pursue support for the promotion of local coffee consumption initiated by RCPCA. • Distribute tools on agricultural taxes in three SVC territories (Walungu, Kabare and

Kalehe). • Facilitate quarterly meetings of the anti-fraud and harassment alert committee. • Support dialogue between ACT Bukavu and ACT Rwanda to increase formal cross-

border trade for target bean and soybean value chains.

4.4 COMPONENT 4: ACCESS TO FINANCE (A2F)

4.4.1 Introduction

The goal of the Access to Finance (A2F) component is to improve target value chain actors’ access to commercial finance by helping stakeholders mobilize investments in their activities to increase productivity and profitability. The A2F Specialist provides technical assistance both to partner financial institutions to develop and adapt their financial offers, leveraging the loan guarantee from the U.S. Development Finance Corporation (DFC)23

23 This guarantee was originally established by the Swedish International Development Agency and USAID’s Development Credit Authority (DCA) for Equity Bank and FINCA. In October 2019, DCA merged with OPIC to become the U.S. Development Finance Corporation (DFC). The loan guarantee which was referred to as the DCA guarantee in previous SVC reports, will now be referred as “the guarantee”.

, as well as to value chain stakeholders to help them develop their businesses.

4.4.2 Key Activities Undertaken in Q3

Activity 1: Support to increase the supply of financial services

Memoranda of Understanding (MOUs) were drafted with Equity Bank and FINCA, establishing the framework for SVC’s technical assistance activities with the banks for the next two years. The MOUs, currently with the banks for signature, may be amended each fiscal year as needed.

In Q3, the SVC A2F specialist provided refresher training to partner bank staff at their branch offices in Bukavu on how to use the loan guarantee. Training sessions were organized to respect social distancing, limiting meetings to a maximum of 20 people. Staff from FINCA’s two Bukavu branches were divided into three groups, with trainings held on June 17 and 18, 2020. Equity Bank’s Bukavu branch was trained in a single group on June 25, 2020.

Each bank branch named a focal point person for the DCA guarantee, and those focal points led the training courses and will be an information reference point for their colleagues’ questions


about the guarantee. This refresher training will be held for banks’ branch offices in Goma in Q4, depending on travel restrictions due to COVID-19.

Table 16. DCA Partner Bank Staff Trained in June 2020 on How to Use the DCA Guarantee

Men Women TOTAL

Equity Bank Bukavu 7 2 9 FINCA Bukavu 24 3 27 TOTAL 31 5 36

In Q3, the A2F team also began discussing potential themes and methodologies for an upcoming training for partner banks on gender and social inclusion.

Technical Assistance to Equity Bank and FINCA

Sub-Activity 1.1. Provide Technical Assistance to Equity Bank

A total of nine staff from Equity Bank’s Bukavu branch, including two women, participated in SVC’s June training on the DCA guarantee. Four of the staff received the training for the first time, while it served as a refresher course for the other five team members. The Branch Director also attended. Reagan Dikoma was designated as the focal point for Equity Bank in Bukavu and helped lead the training session. The whole team participated actively in the training, offering examples and clarifying points.

During the training, Equity Bank staff indicated that claims have been made against the guarantee for two or three past-due loans, but that the claims have not yet been paid by DFC. Staff expressed concerns that delays in the guarantee claim process could be slowing down loan approvals by the credit committee, because the bank is starting to question the effective value of the guarantee. SVC had not been notified that Equity Bank had submitted any claims against the guarantee but contacted DFC to check on the status of these past due loans. The project subsequently learned that Equity is still preparing the claim requests internally and has not yet submitted any claims to DFC. The project has offered to provide support to the bank in preparing these claim requests, if needed, and will also clarify with the Equity team in Bukavu that delays in guarantee requests have been internal to the bank and not at the level of DFC.

SVC accompanied Equity Bank in loan monitoring visits to project partners Programme d’Appui aux Vulnérables (PAV) and to the CPCK cooperative. For PAV, a field visit was made to its soybean, bean, and corn fields, which were being harvested. The yield looked good. The field visit to CPCK included viewing the new drying racks which were built with loan funds and seeing the two washing stations in high season and the stock of parchment coffee in the washing station warehouses. The bank also verified that almost two containers of parchment coffee was sent to the Coffee Lac factory in Goma for hulling. This allowed the bank to disburse remaining loan funds so the cooperative can continue to process coffee for export. CPCK members and managers were pleased with Equity's visit, which was seen as a demonstration of the bank’s support. The cooperative estimates it has already achieved 95% of its production objectives for


the year and expects to meet its target of exporting three containers, as projected in its loan request at the beginning of the season.

The A2F specialist also continued to support Equity Bank’s efforts to recover the past-due loan to MAITEA. SVC helped obtain new contact information for the borrower, who was no longer going to the bank. Equity issued a legal summons to pressure MAITEA, who subsequently made some small payments of about $100, but even those have now stopped. MAITEA’s loan has been past-due since January 2020, and Equity is preparing a claim against the guarantee to be submitted to DFC.

The A2F specialist also accompanied the SVC Cooperative Development Specialist to meet with AMSA’s24

24 Association des Multiplicateurs des Semences Agricoles

board of directors. In November 2019, SVC arranged for AMSA to meet with Equity Bank about a potential loan for the 2020 dried bean and soybean season, but the bank determined that AMSA was not eligible for credit because the association has no formal legal status. SVC trained AMSA on the steps required to become legally established, and the meeting in Q3 was to follow up on the association’s progress and to determine what support is needed for them to be formalized. AMSA’s provisional management committee reassured the SVC team that the association has already drafted the statutes, which were shared with SVC. SVC staff will review the statutes and guide the cooperative on the rest of the legal registration process, starting in July 2020.

Table 17. Equity Bank Agricultural Loans under the DCA Guarantee, Reported as of June 30, 2020

Loans Disbursed under Guarantee FY 2020 Q3 Cumulative FY2020

Cumulative Life of Project

Number of Guaranteed Agricultural Loans25 4 14 35 Value of Guaranteed Agricultural Loans $552,000 $1,120,500 $2,459,000 Number of Guaranteed Agricultural Loans to Women 0 0 2 Value of Guaranteed Agricultural Loans to Women 0 0 $57,000 Number of Guaranteed Agricultural Loans to New Borrowers 0 3 13

Value of Guaranteed Agricultural Loans to New Borrowers 0 $38,500 $816,900

Source: DFC’s Credit Management System (CMS) and Equity Bank

Table 18. Equity Bank Non-Guaranteed Agricultural Loans, Reported as of June 30, 2020

Non-Guaranteed Agricultural Loans Disbursed FY 2020 Q3 Cumulative FY2020

Cumulative Life of Project

Number of Agricultural Non-Guaranteed Loans 8 14 43

Value of Agricultural Non-Guaranteed Loans $298,000 $765,500 $1,907,550 Number of Agricultural Non-Guaranteed Loans to Women 0 0 0

Value of Agricultural Non-Guaranteed Loans to Women 0 0 0

Source: Equity Bank

25 Only counts one loan per borrower per fiscal year.


Sub-Activity 1.2. Provide Technical Assistance to FINCA

27 FINCA staff in Bukavu, including three women, participated in the SVC training on the loan guarantee. Twelve team members received the guarantee training for the first time, and it was a refresher course for the others. Gaspard Ilunga was designated as the focal point for the guarantee at the FINCA Mulamba branch, and Rufin Kulondwa is the focal point for the FINCA Independence branch.

Training participants noted that there has been confusion among bank staff regarding the guarantee’s end date. This confusion has reportedly slowed approvals of new loans under the guarantee because some managers believed that the guarantee is expiring next summer. The A2F specialist clarified that the bank may place new loans under the guarantee until June 29, 2021, but that the guarantee coverage will continue through June 29, 2022 (the guarantee expiration date), and that the bank will then have an additional six months, until December 26, 2022, to submit any claims against the guarantee. After the training, the A2F specialist shared the training modules with the branch manager and spoke to him to clarify the point about guarantee end dates.

The FINCA Regional Director reviewed the content of the training modules and was reminded that the guarantee agreement requires the banks to request prior approval from DFC before restructuring loans. He called the SVC A2F specialist to explain that following the government’s request for banks to give forbearance on loan payments during the COVID-19 pandemic, FINCA has restructured some loans without requesting prior approval from DFC. The A2F specialist instructed the bank to include the request in its June 30 loan report to DFC to correct this oversight.26

26 DFC has informally told SVC consortium member Banyan Global that DFC is automatically approving all loan restructurings which are being done based on government instructions due to the COVID-19 pandemic. This information has not been made public, and banks are still required to notify DFC of all loans being restructured.

FINCA training participants would like to see their bank accept the development of new, more flexible loan products, to allow the bank to serve agricultural borrowers. Staff asked if it would be possible for USAID to encourage the bank’s management at headquarters to consider this request. Training participants also requested that local branch managers attend the SVC training courses, to ensure that the entire branch team fully understands how the guarantee functions.

Table 19. FINCA Agricultural Loans under Guarantee, Reported as of June 30, 2020

Loans Disbursed under Guarantee FY 2020 Q3 Cumulative FY2020 Cumulative Life of Project

Number of Guaranteed Agricultural Loans 1 4 23

Value of Guaranteed Agricultural Loans $12,000 $35,900 $161,100

Number of Guaranteed Agricultural Loans to Women 1 3 18

Value of Guaranteed Agricultural Loans to Women $12,000 $28,900 $136,600


Loans Disbursed under Guarantee FY 2020 Q3 Cumulative FY2020 Cumulative Life of Project

Number of Guaranteed Agricultural Loans to New Borrowers 0 0 9

Value of Guaranteed Agricultural Loans to New Borrowers $0 $0 $55,500

- Source: DFC’s Credit Management System (CMS) and FINCA

Sub-Activity 1.3. Support for the Development and Testing of New Financial Products for Targeted Value Chains

Warehouse Receipts

The A2F Specialist has begun analyzing data collected from a survey of SVC partners in project territories about opportunities and constraints in the development of warehouse receipt products. The questionnaire was administered to 21 stakeholders, including six producer organizations, two cooperatives, seven producer organization networks, and six private concessionaires, who own warehouses for agricultural products. They are all partners of the SVC project, located in the Kabare, Walungu and Kalehe territories. The results of the survey will be shared with the two DCA partner banks and MFIs during a small workshop in Q4.

The head of Equity Bank’s agricultural department is very interested in the study and shared with the SVC project a series of key points defined by the bank for the implementation of warehouse receipt loans. These points will be used to create a scoring system for partner associations and to provide them with results showing what improvements they would need to make if they want to access a warehouse receipt loan from Equity Bank.To date, no client cooperative in South Kivu has accessed a warehouse receipts loan from Equity Bank.

Alpha New

Alpha New is a youth led start-up enterprise. This year they have diversified from supplying roasted coffee to the hospitality industry to purchasing cherry and wet milling their own coffee. They are developing a digital application to link producers to information to help them gain access to credit, and the incubator Ensemble pour la Différence (EPD) was helping Alpha New develop a business proposal to seek grant funding, with a potential three-way partnership between Alpha New, EPD, and SVC. The business proposal for the digital application was not yet sufficiently well-developed and did not show clear linkages to EPD objectives, in Q3, Alpha New and SVC signed a two-way MOU to allow Alpha New to benefit from SVC's mentoring and coaching to grow their business. SVC continues to facilitate connections with potential investors like the Verdant Capital investment fund. Although Verdant Capital does not finance start-ups, they promised to recommend Alpha New to other investors.

Sub-Activity 1.4. Encourage Meetings and Exchanges among Financial Institutions Working in the Agricultural Sector and Value Chain Actors

SVC developed an MOU with the Groupe d’Acteurs de Microfinance du Kivu (GAMF), and the MOU is now under final review and is expected to be signed early in Q4. In the past, GAMF operated with grants from international organizations, and it now hopes to evolve to become


an information and training center for microfinance institutions in the Kivus. It is requesting SVC support for this transformation and is also exploring providing technical assistance to specific to MFIs such as PAIDEK and KITUMAINI which focus on agricultural financing.

Activity 2: Support to the demand side of financial inclusion

Sub-Activity 2.1. Provide Business Development Services for Selected Clients and

SVC has selected the training firm ASOP to provide Business Development Services (BDS) for selected clients, including financial education and basic management training for producer organizations (POs) and cooperatives. ASOP’s subcontract was approved by USAID, and BDS activities are ready to be launched. However, SVC received several requests for changes to anticipated training program:

• The COVID-19 pandemic is forcing the project to change the training format to ensure that there will be no more than 20 people present during any training.

• Mercy Corps requested that training be provided to all members of selected VSLAs, rather than just representatives of some VSLAs using the planned training of trainers format. SVC agreed to this request in principle, but the projected number of Mercy Corps trainees increased from an original target of 97 participants to more than 500.

• World Vision requested that additional POs be trained in Kalehe territory. • SVC staff prepared lists of structures to be prioritized for these trainings, in particular

with GALS champions, SVC partner OPs and FSP partners who were not at the first ASOP training sessions.

Together, all of these requests will require significant revisions to ASOP’s budget and scope of work, and the firm is currently preparing a revised budget.

The A2F Specialist and the Component 1 team held meetings with Mercy Corps, Food for the Hungry and World Vision to obtain all the details necessary to revise the contract with ASOP, setting new objectives for financial literacy and accounting training for SVC PO partners and the VSLA and PO partners of the DFSA programs. The DFSA projects also promised to share costs for these trainings.

4.4.3 Key activities planned for the next quarter

• Conduct refresher training on the use of the guarantee for partner bank branches in Goma

• Facilitate a session on loan monitoring with FINCA and with Equity Bank on coffee loans • Provide training on GYSI to partner banks • Finish the study on warehouse receipts and disseminate key findings in small workshops

with Equity Bank and other financial institutions • Develop business plans for two loan requests with DUBR and UCOCELWA

(warehouse stakeholders and SVC partners) • Connect ACT network members (cross-border traders) with financial institutions


• Launch and monitor training on accounting, finance, taxation and financial literacy for VSLAs with ASOP

4.5 CROSS-CUTTING PRIORITIES

4.5.1 Gender, Youth and Social Inclusion (GYSI)

4.5.1.1 Introduction

The cross-cutting Gender, Youth, and Social Inclusion (GYSI) component focuses on gender and youth capacity building and social inclusion activities. Despite COVID-19 related challenges the GYSI team has continued to work to advance gender equity, youth, and social inclusion in collaboration with SVC team members, GALS champions, and project participants. This quarter the team led activities which promoted the sustainability of gender equity and inclusion in targeted organizations and communities. This was done in collaboration with all SVC staff and component teams. With Component 1, the GYSI team integrated principles of gender equity and youth inclusion into the Producer Organization Sustainability Assessment (POSA) questionnaire. In collaboration with Component 2, the GYSI team is working with the Partnership for Gender Equity (PGE) through a virtual training to increase gender equity in select coffee organizations to support them achieving their business objectives. The team has also begun planning a training for financial institutions to increase women’s and youth’s access to finance for their enterprises. The GYSI team played a critical role in shaping an SBCC campaign on the benefits of women’s and youth’s active participation in targeted value chains, to challenge social norms around women’s and youth’s participation and access to benefits. Finally, the team conducted follow-up meetings with GALS Champions to identify strategies for leveraging their trusted relationships with community members to scale GALS and monitor changes, which are critical to ensure that gains made through GALS are sustained.

4.5.1.2 Key Activities undertaken in Q2 FY20

Follow-up meetings with GALS Champions in Walungu, Kabare and Kalehe

The GYSI team led one-day follow up sessions with 29 GALS champions in Walungu on May 14 and 19, in Kabare on June 28, and in Kalehe on June 23. Fourteen (48%) champions were women and 12 (41%) were youth. The purpose of these sessions was to identify ways champions can stay connected with communities and SVC during COVID-19, identify new ways to engage GALS champions to promote and monitor changes related to gender equity and youth inclusion, and encourage and support champions to continue to deliver quality voluntary support to GALS participants and their communities.

Table 19. Participation of GALS Champions in Follow-up Sessions

Territory

Adult Youth Men Women Men Women Total

Kabare 3 3 3 1 10 Kalehe 1 1 1 4 7 Walungu 5 4 2 1 12 TOTAL 9 8 6 6 29


Results of the activity:

• Strategies to stay connected with communities while mitigating exposure to COVID-19 were identified. At the 13 sites, 29 GALS champions and 132 interested community members (53, 40% men; 79, 60% women) were sensitized on how to reduce exposure to COVID-19. Additionally,180 masks were distributed and worn by participants. Participants discussed developing a GALS Champion Coordination Committee to organize sharing stories, documents, and experiences via social networks, messages, and phone calls across champions.

• Approaches for promoting and monitoring gender equity through GALS were identified. Champions reported continuing to train couples and individuals interested in the GALS approach. It was agreed that champions could continue to use this approach while implementing measures to reduce exposure and spread of COVID-19. The champions will also start collecting data on people they train, disaggregated by sex, age, and roles within their organizations.

• GALS champions shared experiences about the benefits of different GALS tools. Across targeted territories, champions stressed that participants especially appreciate the Road to Vision tool, because it enables them to identify ways to promote rapid change, plan for their future, and identify opportunities and challenges to be avoided. As shown in Table 20, some groups prefer tools focused on reducing conflict in the home to strengthen social cohesion. Others appreciate tools focused more on pathways to strengthen economic opportunities, like the road to vision or the leadership and empowerment map.

Table 20. Participants' preferred GALS Tools by territory

Territory Group Road to Vision Leadership and Empowerment

Map Dream Diamond Tree of Balance

Kabare Tupendane VSLA X X Kalehe I.A Zuki X X Walungu Rhuzusanye VSLA X X X

Design of gender and youth integration messages for two SBCC campaigns

In late April, the SVC team designed messages for a Social Behavior Change Communication (SBCC) campaign focused on gender, youth, and social inclusion.

Photo caption: GALS Champions in Luhihi, Kabare territory of the I.A SUKI Producer Organization gather on May 26 to discuss their challenges and opportunities to promote the principles of GALS in their communities. Photo credit: Lyliane Bahati, Tetra Tech/SVC


Results of the activity: Messages were prepared to be disseminated through radio shows, participatory theatre, and other popular community centers. Four messages were developed, focusing on several topics to promote women, youth, and other underrepresented groups participation in SVC target value chain activities. Episode topics include:

• Women's access to leadership positions in agricultural cooperatives and farmers' associations.

• Encouraging women to participate in bean, soy, and coffee production, processing and storage

• Why it is important for young people to get involved in the bean, soy, and coffee value chains

• How agricultural cooperatives can encourage women and youth to join cooperatives

Travel restrictions related to COVID-19 interrupted the official launch of the campaign this quarter. The GYSI team worked with SBCC staff to consider how restrictions would prevent people from gathering in groups to listen to messages. The GYSI team also discussed the option of working with GALS Champions to record and disseminate messages within their communities, building on their knowledge of gender and youth issues and trusted relationships with community members.

4.5.1.3 Key Activities planned for the next quarter

• Conduct GALS trainings in territories accessible for daytrips, with a focus on integrating vulnerable and socially excluded groups into producer organizations and concessionaire partnerships;

• Provide GALS Champions with in-person and virtual support to reinforce and further develop their capacities as change agents in their communities:

• Complete implementation of the Virtual Learning Series (VLS) Activity in collaboration with PGE, ELAN and the coffee team:

• Finalize the design of the Gender Training for partner banks • Continue to provide technical assistance for gender integration and sensitivity, youth

engagement and social inclusion during the SBCC Gender, Youth and Social Inclusion Campaign



4.5.2 Political Economy, Conflict Mitigation and Resilience

4.5.2.1 Introduction

The onset of the COVID-19 pandemic in the Democratic Republic of Congo (DRC) constituted a major disruption during this quarter, requiring the temporary suspension of certain activities and sparking reflection about how to adapt interventions to the new context. Additionally, national-level political dynamics have led to risks related to demonstrations and political polarization; however, it has not yet had a major impact on project implementation.

Project Context Events since March 2020 have plunged the Democratic Republic of the Congo (DRC) into political and economic uncertainty. A number of political dynamics starting with the arrest and conviction in April 2020 of Vital Kamerhe, President Félix Tshisekedi’si’s Chief-of-Staff, fractured the ruling coalition between the Union National Congolaise (UNC) and Union pour la Démocratie et Progrès Social (UPDS). Additionally, the advent of COVID-19 and its associated restrictions led to a deterioration of the economic situation throughout DRC. Other geopolitical dynamics within the sub-region, such as the death in June 2020 of the longtime President of Burundi, Pierre Nkrunziza, threatens to reignite intra-regional power struggles which have resulted in increased uncertainty and instability. These wide-ranging changes in dynamics at the provincial, national, and regional level could have a profound - if not predictable - impacts on dynamics at the local level, particularly in Walungu.

Political Dynamics

The arrest of Vital Kamerhe on April 8, 2020, and his subsequent conviction on charges of embezzlement and fraud on June 20, have rocked the Congolese political landscape. As a native of Walungu territory in South Kivu where he has a strong base of support, tensions and frustrations within the population have risen to the surface as they perceive Kivutians as being marginalized within the ruling coalition. This has led to instances of hate speech against Kasaiens as well as renewed calls by certain political actors, such as the former leader of the Mudundu 40 and current member of the South Kivu Provincial Parliament, to call for an insurgency aimed at establishing the independence of the Kivus (South Kivu, North Kivu, Maniema, and Tanganyika). In terms of impacts on the current security situation, armed group leaders have stated that they are not ready to join any action to support Kamerhe. However, there are rumors of attempts to recruit youth in the province including the Ruzizi Plain to form or join an armed group.

Other notable political developments include:

• In response to Kamerhe’s conviction, legislators loyal to him have introduced a bill to weaken the judiciary by increasing legislative oversight over high-court proceedings.

• Prime Minister Sylvestre Ilunga, a member of the PPRD (former President Joseph Kabila’s party), threatened to resign following the detention of his Justice Minister, Celestin Tunda.


• The situation surrounding the Speaker of Parliament, Jean-Marc Kabund-a-Kabund, has further placed a wedge between the UPDS and its coalition partners.

In summary, these dynamics highlight the fragility of the political situation.

Economic Dynamics

The growing threat of COVID-19 has had profound effects on the economy of DRC. On March 24, 2020, Félix Tshisekedi announced a state of emergency which among other things, closed national borders, restricted travel between different parts of the country, and established bans on gatherings of more than 20 people. This limitation on internal and external travel has greatly disrupted trade and, as a result, the economy of the DRC, increasing commodity prices, accelerating inflation which some analysts believe could reach 10% on the year, and a projected contraction of 2% of the economy.

These economic dynamics are particularly salient in South Kivu given the importance of cross border trade and the movement of people and goods across the lake between Bukavu and Goma. The closure of the borders between Burundi, DRC, and Rwanda has led to major disruptions in cross-border trade. While formal trade is still permitted, the role of informal traders as both an important means of livelihood for many on either side of the border, as well as to increase availability of market items, exacerbates the economic situation. Additionally, disruptions in the transport linkages across Lake Kivu has hindered the movement of people and goods between Bukavu and Goma.

Regional Dynamics

The dual impact of elections in Burundi and the sudden death of President Pierre Nkrunziza on June 8 constitutes both a risk and an opportunity. First, it is unclear how the incoming President, Evariste Ndayishimiye, will direct his power: will he aim to “reset” relations with Burundi’s neighbor - notably Rwanda, or will he pursue a more hardline approach in the pursuit of the government's enemies. An attack by armed individuals, purportedly supported by Burundian armed forces, on a Rwandan army position on June 28, suggests greater tensions are in store. This would have reverberations in the Ruzizi Plain and the Hauts-Plateaux where proxies of Burundi and Rwanda play a complicated role in a foreign-local armed group game of chess.

Local Dynamics

At the local level in the territories targeted by the project, the political and regional dynamics cited above have had a relatively limited impact to date. Other than isolated demonstrations regarding the conviction of Kamerhe in Bukavu and Walungu (where he is from), no major disruptions have occurred. Other important dynamics at the territorial level include:

● Conflict between local civil society in Kalehe and the mwami, the provincial deputy, and a colonel in the FARDC. This is an ongoing conflict over the last year. In the most recent quarter, the youth coordinator of the Coopérative GEV, trained by SVC staff in conflict transformation, held a sit-down with the various parties to try to find a way forward from the impasse. They are


currently planning follow-up meetings with the three aforementioned individuals to collect their perspectives on ways forward.

● Armed groups in Walungu and Kabare. In April and May, there were major developments in relation to Mai-Mai Maheshe (Walungu) and Chance (the nom de geurre of an armed group leader in Kabare, operating in Kahuzi Biega National Park). MM-Maheshe surrendered to authorities in South Kivu in April while military operations were able to root out and eventually led to the arrest of the leader of the Chance armed group. The latter should help to open up parts of Kabare which had previously been part of the SVC Activity but had become inaccessible due to the activities of the Chance armed group.

4.6 ENVIRONMENTAL MONITORING AND MITIGATION

4.6.1 Introduction

Activities carried out this quarter were adapted to reduce the spread of COVID 19 in SVC project sites. Training of value chain actors coupled with technical advice during monitoring visits progressively contributed to a better understanding of the EMMP by value chain actors. Follow-up recommendations and technical advice made during site visits made it possible to observe progress in the implementation of mitigation practices, identify challenges and to orient technical assistance to support EMMP implementation. Continuous monitoring, particularly at agricultural input shops, is needed.

Four activities were carried out this quarter; (1) training SVC coffee partners on integrated pest and disease management, (2) training SVC coffee partners on sustainable farming practices (3) training SVC coffee partners on sustainability of wet mills and washing stations and (4) proximity monitoring.

This quarter SVC collaborated with the following organizations to monitor the implementation of the EMMP:

Kabare Kalehe Walungu • Kivu Agro Business Shop

(Input shop) • Kavumu Agricultural Input

Shop • Coopérative Agricole de

Nyamarhale (input shop) • Ets Bishweka • CLD Birava • Programme d’Assistance aux

Vulnérables

• AMANI (coffee Cooperative • CAPCKI (coffee Cooperative) • CAPACADE (coffee

Cooperative) • COCASKA (coffee Cooperative) • CHANGWE (coffee

Cooperative) • COOPAPP (coffee Cooperative) • AMKA (coffee Cooperative) • LWABOSHI (Coffee plantation), • COCASKA (coffee cooperative) • NICOLAS (coffee plantation), • JUSTIN KARIYI (coffee

plantation) • LADDY BAHATI (coffee

plantation).

• GAP/Kivu


Kabare Kalehe Walungu • Alpha NEW (private company

involved in selling of ground coffee)

• Concession Bwema (concession with coffee)

• Concession SOLFAP

Collaboration with these partners focused on technical assistance, advice and training. Collaboration took place in Kabare and Kalehe, because planned activities in Walungu territory were affected by COVID-19 restrictions.

Activities undertaken in Q 3

Proximity monitoring visits

Two proximity monitoring visits were carried out throughout this quarter:

● 7 demonstration plots were visited on 20 April in Walungu territory, 21 April in Kabare territory and on 29 April 2020 in Kalehe territory;

● Three agricultural input shops were visited on 20 May 2020 at Kivu Agro Business Shop, 22 May at COOPANYA and on 27 May at Kavumu Input Shop.

Proximity monitoring visits at demonstration plots

Seven demonstration plots of bean varieties (RWR 22-45, HM 21-7, RWR 16-68, MARUNGI, MORE 88002 and the local variety) out of eight installed last quarter were visited by the Access to Inputs Specialist. Visits were carried out at Kakono, Kashusha, Munganzo, Birava, Kayanja, Minova and in Buzi. Visits to the demonstration plots occurred one month after sowing. The objectives of the visit were to discuss with farmers the growth of bean varieties, the presence of invasive species and treatments that farmers could apply. It was agreed that no other treatment (fertilizer or pesticide) should be applied in the demonstration plots.

Observations by the Access to Inputs Specialist and farmers in the seven demonstration plots noted:

● No invasive plant had been observed or identified. ● No other treatments were applied in the demonstration plots, including pesticides (bio-

pesticide or chemical pesticide) or fertilizers (organic or inorganic).

Table 21. Sites with demonstration plots

Partner organization

Territory Sites for demonstration

plots

Number of plots per site

Soil texture

Type of land

Stream/water point within 30 meters of

the site GAP Walungu Bitesi 1 Clay Flat None

Walungu Kakono 1 Clay Flat None PAV Kabare Kashusha 1 Clay Flat None

Kabare Muganzo 1 Clay Flat None CLD Birava Kabare Birava 1 Clay Flat None Concession Bishweka

Kabare Kayanja 1 Clay Flat

None


Partner organization

Territory Sites for demonstration

plots

Number of plots per site

Soil texture

Type of land

Stream/water point within 30 meters of

the site Concession SOLFAP

Kalehe Minova 1 Clay-sandy

Flat None

Concession Nicolas Bwema

Kalehe Buzi 1 Clay-sandy

slight slope

None

Total demonstration plots

8

Proximity monitoring visit at three agricultural input shops

Visits were undertaken at three agricultural input shops including Kavumu Agricultural Inputs Shop, COOPANYA and Kivu Agro Business Shop, respectively, on 20,22 and 27 May by SVC’s Access to Inputs Specialist. The objective was to understand why Kavumu Agricultural Inputs Shop and COOPANYA do not apply recommendations on pesticide labeling when pesticides are not in original packaging, and to suggest a mechanism to motivate them to label repacked pesticides.

All three agricultural input shops received training on the management of an agricultural input shop and on the EMMP / SUAP. They have also benefitted from technical advice during proximity monitoring visits. Training topics on input shop management included an overview of management roles and functions, and documents necessary for proper management of an agricultural input shop. Subsequent training topics on basic accounting, calculations and guidance to follow in pricing agricultural inputs, benefit/loss analysis, operating account management, inventory, marketing and agricultural inputs distribution models are planned for Q4 FY20.

From the meeting with managers of the two agricultural input shops, Kavumu Agricultural Inputs Shop and COOPANYA, they understand the importance of labeling repackaged pesticides. However, they think that labeling carries an additional cost that could increase the sales prices of repackaged pesticides. In addition, they do not have the financial resources for labeling. Labels can be printed in local cyber cafes for around $ 0.15 for 5 to 10 labels. Despite the ability to print labels, they believe that they do not have the financial resources needed for labeling. Paradoxically, Kivu Agro Business Shop, which is within 10 kilometers from Kavumu Agricultural Inputs Shop and COOPANYA, labels repackaged pesticides without adding a margin to the price of their products. SVC anticipates organizing an exchange visit between agricultural input shop managers that do not apply environmental compliance recommendations with a model input shop like the Kivu Agro Business that does apply environmental recommendations. An exchange visit will contribute to behavior change while exploring current market demand (repackaging according to the quantities requested by farmers). This will contribute to improving farmers' knowledge on the use of pesticides, acting as a draw for farmers. SVC plans the exchange visit during Q4 FY20 after the training on entrepreneurial management of an agricultural input shop.

It was observed last quarter and this quarter that:


● All three agricultural input shops promote personal protective equipment to farmers who source from their shops. They recommend that farmers use personal protective equipment when applying pesticides.

● All three agricultural input shops keep a list of approved pesticides (PERSUAP 2017).

4.6.1.4 EMMP Results

(see the EMMR, submitted as an annex to this report)

4.6.1.5 Key activities planned for the next quarter

● Train new SVC partners (Kamanyola/Walungu territory) on EMMP/SUAP ● Follow up after implementation of the training ● Organize exchange visit for agricultural input managers ● Regularly report on environmental compliance and mitigation actions ● Develop bulletins and technical sheets on mitigation measures and downside effects of

environmental degradation


5.0. CONSTRAINTS AND POTENTIAL SOLUTIONS

Implementation of activities slowed due to COVID-19. Coronavirus-related travel restrictions delayed numerous important consultancies, participation at events to promote the Congolese coffee sector, planned project activities, and even field visits and monitoring activities between Bukavu and the field. To compensate, SVC staff petitioned the provincial government, and received approval for a derogation permitting day trips to the field while respecting the wearing of masks, social distancing, limiting the number of people in grouped sessions to 20, and providing hand sterilizer or hand washing facilities at grouped meeting sites. The team switched to more one on one sessions, remote monitoring of activities by cell phone, and the use of third-party proxy monitoring by SVC technical partners for activities already underway when the crisis hit. In addition:

● Business Advisory Support to Idjwi and Cohort 2020 agronomic training was delayed due to overnight travel restrictions to the territories and restricted travel on Lake Kivu during most of the quarter. SVC was unable to provide on the ground support to SCPNCK wet mills during the 2020 campaign. This is an especially sensitive issue as Idjwi currently has zero COVID-19 cases and SVC wants to be especially careful not to be the vector of introduction. Once authorized travel resumes, SVC staff will begin activities to launch the 2020 agronomy cohort. Business and Quality Control advisory staff will move to Idjwi in August to support establishment of the cupping lab and begin working with wet mills to analyse the 2020 campaign and develop business plans for the 2021 campaign.

● COVID-19 caused initial delays in the roll out of working capital, as many stations received funds in mid-April. The setup of guaranties and disbursements took longer due to shutdowns and reductions in banking hours. SVC will work with service providers and stations to prepare guarantees and a schedule for timely disbursement starting in January 2021 as relationships have already been established.

● Coffee Agronomy Trainings for Cohort 1 (2018; Kabare) and Cohort 2 (2019; Kalehe) had to be modified and then paused due to COVID-19 restrictions. The April training for Cohort 1 and Cohort 2 had to be modified by splitting all groups over 20 into smaller groups, to ensure that COVID restrictions on meeting size were respected. The one-month training was conducted over a period of two months (April and May). In Kabare, due to a number of confirmed COVID-19 cases in the Miti-Murhesa health zone, June trainings were paused and an individual household training approach is being used to train producers while waiting for cases of new infection to taper off.

● Due to restrictions on overnight travel it was difficult to support and monitor coffee research activities and field staff in Northern Kalehe during this reporting period. The


project field staff living in-situ in rural communities continued proximity support to farmers and coffee washing stations. The project facilitated fund transfers and payments using mobile money.

The agricultural access to finance forum which was being planned with FPM has been postponed at least until 2021.

● Implementation of OFTTs was challenging because farmers do not fully respect scientific protocols. Most farmers change their understory intercrops each season. The OFFT is designed to study the profitability of a particular set of coffee growing systems in a farmer’s plot. If farmers change intercrops each season it is difficult to identify the most sustainable and profitable farming systems for wider dissemination.

● It has been difficult to access two OFTTs located in the Kabushwa village in Kabare Territory because of an armed group operating in this area. Persistent and continued insecurity along the flanks of the Kahuzi Biega National Park required the project to suspend activities with Kivu Coffee for the third season in a row, and forced the relocation of several coffee farm colleges to areas in closer proximity to major roads and population centers.

● Poor road conditions, including mudslides and bridge outages required remote monitoring by cell phone. The coffee team held roadside monitoring sessions with staff and partners who travelled by moto to where the road washed out to meet with Bukavu based staff on the other side of the washout to exchange technical information and material/logistical support.

● Heavy rainfall coupled with the COVID-19 pandemic had a negative impact on activities planned with bean and soybean market women. Supply has fallen short of demand from small traders and consumers, leading to rising prices. Closing borders and a lack of access to beans and soybeans within the province in productive areas is also putting a strain on women sellers. Prior to this quarter, the cost of 1.5 kg of beans was 1700 Congolese Francs (approximately $1), but today costs about 3000 francs (approximately $1.50).

● The absence of national seed legislation and the absence of a public private seed platform for consultation on seed issues are a challenge for the seed sector in DRC. COPROSEM as a trade association will be part of the solution for the development of the seed sector, as it will serve both as a forum and a focal point for dialog and advocacy for creating an enabling environment for the development and regulation of the seed sector. The process of signing a decree for COPROSEM is taking a long time because it must pass three levels of validation (the COPROSEM team, the Provincial Agriculture Ministry and the office of the Provincial Governor). The fact that the Provincial Minister of Agriculture must review the documents and put the submission packet together for transmittal to the governor has added to the administrative burden within the provincial agriculture ministry. The governor’s staff, once in possession of the dossier, will have responsibility for legal review of the dossier and presentation of the decree to the governor for review, potential amendment, and eventual signature. Since March, to limit the contact spread of COVID-19 and to set an example for the population, the


provincial administration has shifted largely to tele-working with only limited staff for essential services available on a rotating basis. Coupled with public service staff demotivation due to delays in the payment of provincial public service salaries (now extending to almost eight months) has slowed processing of requisite paperwork.

● Some GALS champions have experienced conflict with community members who are jealous of their role, partly due to their access to stipends for transport costs. SVC should continue to support GALS champions to train and follow up with trainees but equip them with the skills to mitigate and/or soften these tensions. Training GALS champions on conflict mitigation in collaboration with the Conflict Sensitivity and Resilience team would enhance their capacity to address these challenges.


6.0 KEY FINDINGS AND LESSONS LEARNED

1. During quarantine some target partners implemented the technical advice and recommendations developed during capacity building sessions with SVC staff, even with minimum proximity monitoring by SVC. The adoption of recommendations depends on the benefit, advantage and opportunity these technical recommendations accrue to each technical partner.

2. Facing COVID-19 and climate change, stakeholder partners (namely bean and soybean market women’s associations) demonstrated resilience and adaptivity. Advocacy conducted with local officials resulted in cost savings through reduced tax burdens, and because of this success, they recognized that cooperation and collaboration provide tangible benefits.

3. Equity Bank continues to apply more and more of the concepts learned during SVC’s training on agricultural financing, such as making phased loan disbursements based on verification of inventory levels and monitoring of progress on loan objectives.

4. Coffee cooperatives and entrepreneurs continue to find it difficult to reinvest money or profits into business improvements. They still believe that development partners should fund innovations proposed, even when that innovation has clear benefits for their business. However, when a proposal is made by their customers, cooperatives seem to evaluate their inherent business interest more carefully. For example, the request from Nespresso and Olame for Virunga Coffee to use mobile money to make coffee payments to the cooperatives could finally be a key factor in convincing more cooperatives to adopt this technology.

5. Community-based SVC partners still need a great deal of support to formalize and obtain legal documents, because they are not familiar with the process and do not have a clear idea of the costs and time involved.

6. There are opportunities to work with concessionaires to promote gender equity. In soy and bean production, there are opportunities to better integrate women, youth, and socially excluded groups as sharecroppers. Similar opportunities are present in coffee concessions.

7. To remain active during the COVID 19 emergency, it was necessary to ensure that contacts were maintained with the various groups trained and supported by the GYSI team (Producer Organizations, VSLAs, youth and women groups) as well as the GALS Champions. The SVC team did this using a combination of short messages, WhatsApp, and regularly scheduled catch up calls. GALS champions continued to perform outreach activities with creativity. The GALS champions in Walungu (Ciherano), Kabare (Luhihi, Mabingu, Mudaka, Kabushwa, Kadjucu); and Kalehe (Muhongoza, Munanira and Bushushu) trained interested couples in GALS. Other champions organized training activities with smaller groups.


8. GALS champions demonstrated their capacity and enthusiasm for training community members on the GALS methodology. However, additional capacity building is needed to ensure they can use all the tools available to them to promote positive change, collect data on trainees, and monitor and report changes.

9. Additional financial or in-kind support may be required to support and incentivize GALS champions, who continue to use transportation stipends from GALS trainings to fund their work related to GALS in their communities.

10. The team continues to learn about the positive changes of GALS to reduce gender inequalities but needs to find avenues for sharing these stories with the communities. While the GYSI team has been able to document these stories for reporting purposes, the team could be doing more to showcase stories of change through media, short videos, or radio episodes. This would raise awareness of changes and encourage shifts in community members’ perception of men’s and women’s roles and responsibilities and women’s and youth’s ability to make strategic decisions.

11. Adapting in-person training to virtual training on gender issues is an iterative and time intensive process. Under the PGE Virtual Learning Series activity, the SVC team, in collaboration with ELAN and PGE, has modified an approach previously envisioned as an in-person training to one that will be delivered remotely. To ensure that the materials are user-friendly required revising training materials and identifying appropriate mechanisms for disseminating the materials and facilitating a learning exchange with focal points. These learnings could be drawn upon if more trainings should need to be delivered virtually due to COVID-19 travel restrictions or to mitigate the risk of spread of and exposure to the virus.

12. Listening Clubs require ongoing coaching and knowledge/skill development to ensure that they are able to effectively and accurately receive and disseminate communication campaign messages. In certain cases, the information that they are expected to disseminate involves technical guidance related to agronomy. In such cases, it would be helpful for the listening clubs to have access to printed and/or other materials to facilitate their activities.

13. Implementation of mitigation measures for the reduction of negative environmental impacts depends on technical assistance by project staff and the tangible benefit value chain actors derive from the adoption of these measures. Access to credit is one of the motivations for agricultural input shops to improve services and implement measures to mitigate negative environmental impacts.


7.0 RECOMMENDATIONS 1. Conduct awareness-raising to increase coffee cooperatives’ understanding of all the costs

and risks involved with cash transactions, compared to the potential advantages of mobile money, considering the investments needed to make the transition to this technology.

2. Strengthen the knowledge of SVC partners about the processes required to formalize (legally register) their organizations and the options for type of organizations. Increase their familiarity with the one-stop shop for business creation, which has faster and less costly processes.

3. Continue to offer regular refresher training for the partner bank branches in Goma and Bukavu on how to use the guarantee, including branch managers in the training.

4. Ask USAID to encourage FINCA headquarters management to consider developing loan products appropriate for agricultural producers.

5. The GYSI team should work in close collaboration with Component 1 to address structural challenges among targeted concessionaires. Their leadership requires assistance to review and revise protocols for supporting sharecroppers, organizing access to inputs, storage, and market linkages. Integrating gender, youth, and social inclusion components into the assessment of concessionaires will sensitize leadership and sharecroppers to the benefits of an inclusive structure. This process can be initiated by a short-survey related to gender-sensitive and inclusive policies, regulations, and the enabling environment. This should be followed by GALS trainings which will reinforce how integrating the principles of gender equality, youth and social inclusion contributes to the achievement of their vision. The revised gender-sensitive POSA tool could also be used to reinforce leadership accountability to include more women, youth, and socially excluded groups.

6. Expand the role of GALS Champions to facilitate sustainable and scaled change around gender equality and social inclusion in targeted communities. GALS champions are perceived as trusted resource persons in their communities on gender issues. Their rapport with the community should be leveraged to support integration of gender, youth, and social inclusion in SVC activities. SVC will provide additional technical support and incentives for GALS Champions to promote and support individuals, households, and producer organizations to achieve their visions. As travel restrictions are anticipated to continue, this will also fill gaps in the team’s ability to travel to targeted locations due to COVID-19 restrictions. This can be achieved by increasing the participation of GALS champions in activities led by other SVC components: • Component 1 – Invite GALS champions to participate in Producer Organization

Sustainability Assessment (POSA) Data Collection and Review and serve as resource persons on Gender Equality, Youth Integration, and Social Inclusion.

• Access to Finance – Identification of GALS participants requiring access to financial resources to start or expand their agricultural enterprises through follow-up with GALS participants. Share names with potential financial institutions.


• Conflict Sensitivity and Resilience – Train GALS champions on conflict mitigation in collaboration to enhance their capacity to address conflict among GALS participants.

• SBCC: train GALS champions to identify and document compelling stories from women, men, and youth who have benefited from the GALS training. Identify and share these stories with SVC staff to record and disseminate a select number of stories of change to influence social norms around gender equality, youth, and social inclusion in targeted communities.

7. Listening clubs should be provided with additional coaching, capacity development, and resources to enable them to work more effectively. SVC should facilitate interactions between relevant technical experts and the listening club to ensure comprehension. Where possible and relevant, listening clubs should be provided with SVC training materials.


8.0 CONCLUSION Despite a slowdown in activities due to the COVID-19 pandemic and associated travel restrictions, SVC and its value chain clients posted impressive results during this reporting period. The first cohort of farmers from the Kabare coffee farm colleges are ready to graduate, and demonstration farms show impressive gains in coffee production and productivity are possible. New private sector investors including NESPRESSO and SUCAFINA have entered the market, and are providing Congolese farmers with much needed capital and quality incentives. SVC trained washing station managers are using their new skills to continuously improve the quality of Congolese coffee, demonstrated through seasonal small lot cupping scores.

SVC’s Trade and Policy advisor collaborated with the Associations of Women Cross border Traders, the Network of Coffee and Cacao Producer Cooperatives, government technical services, and private sector operators in SVC targeted value chains to successfully advocate for reductions in market taxes, and SVC’s Access to Finance Specialist assisted clients to access over $1 million in loans for OPEX financing.

The GYSI team is increasingly integrating their work with and through other SVC project components, including training banking partners in women’s empowerment, youth engagement and social inclusion principles, and reaching out to concessionaires to improve women, youth and social inclusion in SVC-supported sharecropper schemes. SBCC modules were developed focusing on GYSI messages, and the cooperative capacity building POSA tool was revised to increase the emphasis on GYSI capacities and skills. Adapting to COVID-19 restrictions, the team is looking for new ways to add value to GALS champions and expand their roles and responsibilities in the project. The SVC activity successfully pivoted to adapt to many COVID-19 challenges.

However, there are still many challenges facing coffee, soy and bean market systems. Efforts to increase farmers’ access to improved seed are on-going, but higher quality foundation seed is needed in order for these efforts to succeed. Some input supply shops and warehouses are adapting new management techniques and approaches and applying recommended environmental mitigation measures, but other actors fail to see the economic incentives needed to promote and sustain behavior change. Markets to Goma, Kinshasa, Rwanda, Uganda and Burundi were severely disrupted by border closings and transportation restrictions, which challenged producers and aggregators in all supply chains. Some areas have enough land planted to coffee to facilitate adoption of improved practices, whereas farmers in other areas have small plots and few coffee trees, requiring different production models and systems to incentivize adoption. Collaboration with USAID implementing partners remains a priority for the SVC team, but communication takes time and commitment, as well as trust and mutual understanding – commodities sometimes in short supply during a global pandemic.


ANNEX A: FY 20 Q3 FINANCIAL REPORT Redacted


ANNEX B: AMKA COOPERATIVE’S TRANSPARENCY SHEET


Amka Coopérative (RDC) Feuille de transparence 2019Location Lutumba en Kalehe, Sud KivuFournisseur de Virunga/Olam

Total des paiements aux agriculteurs Localisation

GPS: -1.844433333, 28.99508333Altitude: 1550mFournisseurs: 2099 agriculteurs

Total des paiements aux agriculteurs : RWF 495/KG CherryPart des agriculteurs aux bénéfices: 38%

Tableau de bord de Performance

Utilisation SL Cerise à l'écran 15+ Ratio Coûts totaux de production Ecran 15+ Prix de vente91.2% $ 1.63/KG Café vert $ 4.9/KG Green (FOT)6.88

477 FC 538 FC

15% 100% 8.9 6.88 $1.89 $1.06 $3.50 $5.63

$0.10 $0.24

$0.17

$0.09 $0.00

$0.19 $0.32

$0.24 $0.09

$0.08

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

Amka (2019) Moyenne Client '19

Couts d'expeditation

Autres dépenses

Travail (occasionnel)

Travail (plein temps)

Transport cérises

Dépenses de la station de lavage de café (US $ / KG café vert)

75% 76%

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8


Ratio Café parche au vert

4.83 5.32

0.0

1.0

2.0

3.0

4.0

5.0

6.0


Ratio Cérise au café parche

93%87%

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0


Proportion de l'ecran 15+


United States Agency for International Development Democratic Republic of the Congo

Economic Growth Office 198 Isiro Avenue Kinshasa/Gombe

Democratic Republic of the Congo