FEED THE FUTURE DEMOCRATIC REPUBLIC OF THE CONGO

FEED THE FUTURE DEMOCRATIC REPUBLIC OF THE CONGO STRENGTHENING VALUE CHAINS ACTIVITY QUARTERLY REPORT Q3 FISCAL YEAR 2018 April 1–June 30, 2018

July 2018 This publication was produced for review by the United States Agency for International Development. It was prepared by Tetra Tech.

Photo Caption: Muyisa Sivasingana Shakes, Director General of Coopérative Kawa Kabuyaya, which won top prize at this year’s Saveur de Kivu 2018 event. The cooperative submitted three of the best ten coffee samples at this year’s event. Photo Credit: Rodriguez Katsuva, Feed the Future DRC SVC Communications Specialist Prepared for the United States Agency for International Development, USAID Contract Number AID-660-C-17-00003, Feed the Future Democratic of the Congo Strengthening Value Chains Activity. Implemented by: Tetra Tech ARD 159 Bank Street, Suite 300 P.O. Box 1397 Burlington, VT 05402

FEED THE FUTURE DEMOCRATIC REPUBLIC OF THE CONGO STENGTHENING VALUE CHAINS ACTIVITY QUARTERLY REPORT Q3 FISCAL YEAR 2018 April 1–June 30, 2018 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 – FY2018 Q3 Quarterly Report (April–June 2018) Page | i

TABLE OF CONTENTS

ACRONYMS AND ABBREVIATIONS ........................................................................... II

EXECUTIVE SUMMARY................................................................................................ VI

1. INTRODUCTION ...................................................................................................... 1

2. COLLABORATION WITH DEVELOPMENT PARTNERS .................................. 3

2.1 CONSULTATION WITH USAID IMPLEMENTING PARTNERS........................................ 3 2.2 CONSULTATION WITH LOCAL GDRC OFFICIALS .......................................................... 4 2.3 CONSULTATION WITH OTHER DEVELOPMENT ACTORS .......................................... 4

3. PROGRESS TO DATE .............................................................................................. 6

3.1 COMPONENT I: BUILD CAPACITY OF VERTICAL AND HORIZONTAL ACTORS IN TARGETED VALUE CHAINS (VC) .................................................................... 6

3.2 COMPONENT 2: ENHANCE COFFEE PRODUCTION .................................................... 12 3.3 COMPONENT 3 (CROSSCUTTING): DEVELOP AND IMPLEMENT PUBLIC

PRIVATE PARTNERSHIPS (PPP) ................................................................................................ 14 3.4 COMPONENT 4 (CROSSCUTTING): ENHANCE ACCESS TO COMMERCIAL

FINANCE INCLUDING THROUGH TECHNICAL ASSISTANCE TO IMPLEMENT DEVELOPMENT CREDIT AUTHORITY (DCA) AGREEMENTS ...................................... 16

3.5 CROSSCUTTING PRIORITIES ................................................................................................... 18 3.5.1 CONFLICT SENSITIVITY AND RESILIENCY ............................................................ 18 3.5.2 GENDER AND SOCIAL INCLUSION ......................................................................... 20

3.6 MONITORING, EVALUATION, LEARNING AND ADAPTING ..................................... 21 3.7 TRAINING AND CAPACITY BUILDING ............................................................................... 21 3.8 ENVIRONMENTAL MANAGEMENT AND MONITORING............................................. 21

4. CHALLENGES AND CONSTRAINTS .................................................................. 22

5. LESSONS LEARNED .............................................................................................. 24

6. BEST PRACTICES AND RECOMMENDATIONS ............................................... 25

7. CONCLUSIONS ...................................................................................................... 27

8. ANNEXES ................................................................................................................ 28

8.1: SUMMARY OF AGRICULTURAL INPUTS WORKSHOP RECOMMENDATIONS ..... 29 8.2: SVC CAPACITY BUILDING AND TRAINING ....................................................................... 32 8.3: PROGRESS TOWARD PERFORMANCE INDICATORS ..................................................... 35 8.4: PROGRESS TOWARDS FY 18 ANNUAL WORKPLAN ACTIVITIES .............................. 40 8.5: FINANCIAL STATUS ..................................................................................................................... 47

FEED THE FUTURE DRC Strengthening Value Chains Activity – FY2018 Q3 Quarterly Report (April–June 2018) Page | ii

ACRONYMS AND ABBREVIATIONS A2F Access to Finance

ACOSYF Association Coopérative pour la Synergie Féminine

ACT Action of Churches Together

AMELP Activity Monitoring, Evaluation and Learning Plan

ARD Associates in Rural Development

ASBL Association Sans But Lucratif

ASSALAK Association des Armateurs de Lac Kivu

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

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

COMESA Common Market for East and Southern Africa

COP Chief of Party

CPCK La Coopérative des Producteurs du Café de Kabamba

CSP Coffee Service Provider

DCA Development Credit Authority

DCOP Deputy Chief of Party

DFAP Development Food Aid Program (now DFSA, see below)

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

FEED THE FUTURE DRC Strengthening Value Chains Activity – FY2018 Q3 Quarterly Report (April–June 2018) Page | iii

DRC Democratic Republic of the Congo

EAC East African Community

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

FARDC Armed Forces of the Democratic Republic of Congo

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

FSP Food Security Program (Mercy Corps/World Vision DFSA)

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

IFCCA Initiative des Femmes Congolais dans le Cafe et Cacao

IGA Integrated Governance Activity

IHP Integrated Health Project

IITA International Institute for Tropical Agriculture

IKYA IITA Kalambo Youth Agripreneurs

INERA Institut National pour l’Etude et la Recherche Agronomiques

IPAPEL Inspecteur Provincial de l’Agriculture, la Pèche et l’Elevage

IPs Implementing Partners

ISP Institut Supérieur de la Pédagogie

IYD Integrated Youth Development

FEED THE FUTURE DRC Strengthening Value Chains Activity – FY2018 Q3 Quarterly Report (April–June 2018) Page | iv

IYDA Integrated Youth Development Activity

JAA J. E. Austin and Associates, Inc.

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)

NGO Nongovernmental Organization

OFTT On-Farm Field Trial

ONC Office National du Café

ONEM Office National de l’Emploi

P4P Purchase for Progress

PAD Programme d’Appui au Développement Durable

PAM Programme Alimentaire Mondiale (World Food Program)

PHH Post Harvest Handling

PIAD Programmes des Initiatives d’Appui au Développement

PICS Purdue Improved Crop Storage

PM Project Manager

PO Producer Organization

POSA Producer Organization Strengthening Assessment tool

PPP Public-Private Partnership

Q Quarter

R&D Research & Development

RAEK Rassemblement des Agriculteurs et Eleveurs du Territoire de Kabare

RATIN Regional Agricultural Trade Intelligence Network

RIAF Robinson International Afrique

FEED THE FUTURE DRC Strengthening Value Chains Activity – FY2018 Q3 Quarterly Report (April–June 2018) Page | v

SADC Southern Africa Development Community

SBCC Social Behavior Change Communication

SdK Saveur de Kivu (Specialty Coffee Event)

SENAFIC Service National des Fertilisants et Intrants Connexes

SENASEM National Seed Service (Service National des Semences)

SFCG Search for Common Ground

SOW Statement of Work

SPR Solutions for Peace and Recovery

SUAP Safer Use Action Plan

SVC Strengthening Value Chains (Activity)

TA Technical Assistance

TCC Tumaini Coffee Cooperative

TCN Third Country National

TEP Tribune d’Expression Populaire

TNS Techno Serve

UCB Université Catholique de Bukavu

UNDP United Nations Development Programme

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

ZOI Zone of Intervention

FEED THE FUTURE DRC Strengthening Value Chains Activity – FY2018 Q3 Quarterly Report (April–June 2018) Page | vi

EXECUTIVE SUMMARY Quarter 3 (Q3) in Fiscal Year18 (FY18) saw a major increase in SVC field activities. By the end of the reporting period 74% of activities planned were either fully or partially accomplished. This is a significant accomplishment given that several activities planned for Q2 were pushed to Q3, and given the logistical challenges during the rainy season. The quarter began with an all-staff conflict mitigation workshop facilitated by Search for Common Ground, an all-staff orientation to the project, and a quarterly technical review. It ended with an all-staff gender sensitization training and third quarter technical review. These activities helped build team spirit and inter-component collaboration, assisted building a common vision, and provided an open forum to discuss constraints encountered during field implementation.

During this reporting period the SVC team pushed collaboration front and center. Joint field visits were undertaken with both Mercy Corps in Kabare and Food for the Hungry (FH) in Walungu. SVC staff cross-trained Mercy Corps and FH beneficiaries in producer organization governance, planning and post-harvest handling and improved storage techniques. SVC invited FINCA’s regional representative for Eastern Congo on a field visit to client agribusinesses in Kabare Territory. SVC held initial conversations with the new Integrated Youth activity as well as with the FAO/WFP Purchase for Progress (P4P) program to identify areas of positive synergy. SVC provided technical assistance and logistical support to the National Coffee Office (ONC) in Bukavu to develop a competition sampling protocol for Saveur de Kivu, and to collect samples from 43 washing stations in South Kivu. The SVC team also trained eight ONC agronomists in coffee agronomic best practices, and signed collaborative protocols with the Provincial Consultative Council on Agriculture (CCPA) and the CARG (Rural Agriculture Advisory Committee) of Kabare to assist the SVC team in planning and monitoring project activities. SVC worked closely with other development partners, notably ELAN RDC, Eastern Congo Initiative (ECI) and Higher Grounds Trading, as well as with provincial authorities to plan, organize and implement the Saveur de Kivu specialty coffee conference. SVC maintained close collaboration with the agricultural arm of the Fédération Economique Congolais (FEC-Agricole) in South Kivu, the Congolese Women in Coffee and Cocoa Initiative (IFCCA), and Café Lac in the execution of technical activities, capitalizing on their expertise, reinforcing their capacity, promoting their visibility and facilitating financing and technical advising linkages for SVC partner coffee cooperatives.

Q3 was the height of the coffee harvest and processing season. SVC staff were regularly in contact with authorities and leaders throughout the project zone building rapport, explaining the project, assessing market potential for beans and soy, evaluating demand for inputs and capacity to meet demand, while also identifying warehouse and aggregation space. Capacity building, networking and partnership negotiation intensified. Advisory services and adoption of traceability measures and improved bookkeeping resulted in greater business efficiencies for SVC clients.

Major events and results from this reporting period include:

FEED THE FUTURE DRC Strengthening Value Chains Activity – FY2018 Q3 Quarterly Report (April–June 2018) Page | vii

• Recruitment and fielding of a new Deputy Chief of Party (DCOP) and a new Trade and Policy Specialist;

• 72 Producer Organization Sustainability Assessments (POSA) successfully completed;

• 82 actors, including 34 women, trained in post-harvest handling and storage techniques;

• 243 new seasonal jobs created at newly built washing stations receiving SVC assistance;

• 420 individuals adopted new coffee technologies such as coffee processing and washing techniques, improved bookkeeping, and daily lot separation,

• To date, 25 borrowers have received agricultural/agribusiness loans through SVC interventions (four of these were obtained during Q3);

• To date, a total of $1,075,000 in loans have been disbursed due to facilitation and interventions by SVC. Of this, $211,000 was disbursed in Q3;

• This quarter, two public-private partnership (PPP) agreements were signed with concessionnaires to develop medium term land-use contracts with vulnerable households and surrounding farmers, to develop feasibility studies and marketing plans, and to strengthen market linkages for new value chain product lines;

• Two MOUs were signed with Equity Bank and FINCA for technical support;

• Two workshops were facilitated to identify tax barriers for agricultural inputs and the marketing of beans and soybeans;

• SVC contributed to the Saveur de Kivu (SdK) Specialty Coffee Event as follows:

- Developed sampling protocols, ensuring representativity and traceability of samples for the competition;

- Facilitated selection and training of national jurors for the cupping competition. The national jury selected the top 30 from a total of 73 samples;

- An International jury, composed primarily of American cuppers serving markets in Africa, Europe and Asia, determined the 10 best coffees from samples presented. Forty percent of the top 10 samples were from South Kivu. A new self- constructed mini-washing station, TCC/Biravu, an SVC client, took the top position of South Kivu washing stations with a sixth place finish overall. Their cupping score was 86.9 on a scale of 100.

- SVC supported the Saveur de Kivu communications strategy and organized two press conferences with national, regional and international media.

- SVC provided the Master of Ceremonies for the entire event

- SVC staff facilitated three panel discussions- one on coffee sector financing, a second on the inclusion of women and youth in the sector and a third on improved traceability systems.

FEED THE FUTURE DRC Strengthening Value Chains Activity – FY2018 Q3 Quarterly Report (April–June 2018) Page | viii

• Two SVC-supported cooperatives, Tumaini Coffee Cooperative (TCC) and Umoja invested $10,481 and $55,000 respectively to build three new coffee washing stations;

• SVC business advisory services provided to partner washing stations resulted in improved operating efficiencies. SVC clients are processing cherry to green coffee at an average cost of $0.74 US/kg, while the historical average price for washing stations in South Kivu is $1.92/kg. This represents a two-thirds reduction in processing costs.

Despite multiple difficulties accessing parts of the SVC target zone, particularly in Kalehe, staff persevered and produced results. Major accomplishments, observations, lessons learned and recommendations from April–June 2018 are detailed in this report.

FEED THE FUTURE DRC Strengthening Value Chains Activity – FY2018 Q3 Quarterly Report (April–June 2018) Page | 1

1. INTRODUCTION In May 2017, The United States Agency for International Development (USAID) awarded to 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 including Banyan Global, J.E. Austin and 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 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 USAID investments in governance, food security, health, and environment, strengthening the foundation for durable peace in eastern DRC. SVC applies a nutrition-sensitive value chain and market systems development approach that combines 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).

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 (and productivity);

• Component 3 (Crosscutting): Develop and implement public private partnerships;

• Component 4 (Crosscutting): Enhance access to commercial finance, including through technical assistance to implement Development Credit Authority (DCA) agreements

And the following cross cutting priorities:

1. Conflict sensitivity and resiliency, 4.Climate-smart agriculture, 2. Gender 5. Value chain and market systems development 3. Feed the Future goals, 6. Sustainability and local systems strengthening

This report summarizes SVC results during the third quarter (April 1–June 30) of Fiscal Year 2018. As required in the SVC contract, the report includes a brief update on progress, including collaborative actions (Sections 2 and 3) and challenges (Section 4) for the activity, status of Year 1 workplan completion (Annex 8.4), and status of SVC performance indicators (Annex 8.3). A list of training and capacity building events and private sector partners is provided in Annex 8.2, as well as a list of interns from DRC universities, and the Budget to Actual Summary (8.7). Although gender, social inclusion and conflict mitigation are integrated throughout the report, a special section discussing highlights and lessons learned from the implementation of the Gender,


Social Inclusion and Conflict Mitigation Strategy is included in Section 3.5.2, and Environmental Management and Monitoring is discussed in Section 3.8.


2. COLLABORATION WITH DEVELOPMENT PARTNERS

Since its inception, partnerships with other USAID-funded programs as well as private and international institutions have been central to SVC’s implementation approach. Q3 included significant partnership discussions, and nascent operationalization of planned partnerships. Below is a summary of collaborative actions undertaken this quarter.

2.1 CONSULTATION WITH USAID IMPLEMENTING PARTNERS

• A technical session was organized with Mercy Corps’ Agriculture and Value Chain Manager to refine strategies for mutual intervention with farmer groups and cooperatives1.

• The Market Linkages Specialist held a working session with Harvest Plus, Mercy Corps, FH, World Vision, FAO and WFP to discuss the feasibility of a market segments study for bean and soy value chains.

• To support collaboration between SVC and the Development Food Security Activities (DFSAs) funded by USAID/Food for Peace, the participatory theater groups trained by Search for Common Ground in Walungu territory will be used by both FH and SVC for their Social Behavior Change Communication (SBCC) messaging.

• The SVC Chief of Party (COP), Deputy Chief of Party (DCOP) and the Post-Harvest Handling (PHH) specialist organized a joint scoping visit with FH to Nyalugana in Walungu. During the visit, the SVC and FH teams discussed potential synergies and the possibility of leveraging SVC partner relationships with Société Olive, and use of a 500 MT warehouse operated by Mudwanga GAP, a private sector actor in the Kivus.

• SVC staff trained seven FH partners from Nyalugana and four Mercy Corps partners (ADC and Majirane) in Kabare in PHH techniques and PICS bag usage.

• SVC A2F Specialist and the FINCA Regional Director visited partner sites in Kabare to discuss the potential financing for rural agribusinesses.

• The Gender and Social Inclusion Specialist met the FH Gender focal point to discuss FH’s gender and youth approach, and to identify collaborative opportunities.

• An initial introductory meeting was held with EDC’s Integrated Youth Development (IYD) project to identify areas of potential collaboration.

1 At the end of this meeting, a calendar of activities and budget were developed. SVC paid for all expenses related to visits

to Producer Organization (PO) Action Congo pour le Développement (ACD) and Mercy Corps/ Food Security Program (FSP) covered expenses related to visits with MAJIRANE PO.


• The SVC COP organized the first monthly luncheon with DFSA COPs.

2.2 CONSULTATION WITH LOCAL GDRC OFFICIALS • The SVC Coffee team collaborated with ONC/Bukavu to collect coffee samples from 43

coffee washing stations in South Kivu for the 2018 specialty coffee event, Saveur de Kivu.

• Multiple meetings were held with ONC and the Provincial Ministry of Agriculture for the organization and execution of the Saveur de Kivu event.

• SVC staff trained 8 ONC/Bukavu agronomists in Good Agronomic Practices for coffee.

• SVC will work with the Provincial Agricultural Advisory Council (CCPA) in Bukavu and with the Rural Agricultural Management Councils (CARG) in Kabare, Kalehe and Walungu. During Q3, two MOUs were signed with the CCPA (at the provincial level) and the Kabare CARG (at the territory level). Next quarter MOUs will be developed with CARG in Kalehe and Walungu.

2.3 CONSULTATION WITH OTHER DEVELOPMENT ACTORS

• The SVC team collaborated with the DFID-funded project ELAN RDC, and Department of State funded partners ECI and Higher Ground Trading on Saveur de Kivu;

• SVC supported Café Lac, a Congolese exporter, to provide better business coaching and financing services to former Kawa Bora cooperatives. SVC facilitated an agreement between ECI and Café Lac that permitted Café Lac’s technical advisor to use ECI’s vehicle for coaching, mentoring and monitoring visits to cooperatives. SVC agreed to provide a secure location for parking the ECI vehicle at SVC offices in Bukavu. Due to this facilitation and increased logistical mobility, the three cooperatives received more intensive coaching and more frequent follow-up visits than in the past. This assisted them to double their production this year, to an estimated total of 10 containers.

• SVC demonstrated new technical assistance and bookkeeping tools to Café Lac to reduce their financial risk lending to new cooperatives. SVC renegotiated an exporter service agreement to the benefit of partner cooperative clients TCC and Umodja. Café Lac accepted to remove technical assistance fees, to reduce dry milling fees from $180 to $130/ MT and to reduce their service charge for facilitating the sale and export of green coffee from 6.25% to 5.5% of the transactional value of the sale. The net effect of these changes is a reduction in cooperative production costs, which should translate into more money for cooperative members.

• SVC team met with Twin Trading to discuss the possibility of adopting the Coffee Service Provider (CSP) model, where Twin Trading would provide fee-based credit and marketing services to coffee washing stations.

• The SVC COP and technical staff met with the FAO/WFP Purchase for Progress (P4P) team to discuss collaboration and potential synergies in Kalehe Territory.


• Two meetings were held with representatives from the Program of Support for Sustainable Development (PAD) and the Federation of Agricultural Producers’ Organizations of Congo in South Kivu (FOPAC-SK) in June 2018.

• SVC staff met with ELAN RDC and the East African Grain Council (EAGC)’s Regional Agricultural Trade Intelligence Network (RATIN) to discuss agricultural market information systems.

• In May, the Gender and Social Inclusion Specialist met with Vice President of the Women Entrepreneurs Commission of the Chamber of Entrepreneurs (FEC) in Bukavu Ms. Astride to establish links between FEC’s Women’s Commission and SVC.

• SVC staff met with Mr. Célestin Shamavu, a consultant to TWIN and a trainer in the Gender Action Learning System (GALS), to discuss GALS training modules and experiences.


3. PROGRESS TO DATE In Q3 FY18, major progress was made in all SVC technical areas. 74% of activities planned in Q3 were realized or in progress by the end of the quarter. A catch-up plan was put in place to implement remaining activities in Q4. The level of completion of Q3 activities, as described in the FY18 work plan, is as follows:

Figure 1: Percentage of SVC Activities Implemented from the FY18 Q3 Work Plan, by Technical Component, including Key Cross Cutting Elements (Gender and Conflict)

55%

87%

64% 58%45% 48%

COMPONENT 1: BUILD CAPACITY

OF VERTICAL AND HORIZONTAL ACTORS OF

TARGETED VC

COMPONENT 2: ENHANCE COFFEE

PRODUCTION

COMPONENT 3: DEVELOP AND

IMPLEMENT PPPS

COMPONENT 4: ENHANCE ACCESS

TO FINANCE

COMPONENT 5: GENDER, YOUTH

AND SOCIAL INCLUSION

COMPONENT 6: CONFLICT

MITIGATION AND SBCC

Activities realized by SVC technical component, this quarter

Below is a summary of activities implemented this quarter, by technical component and intermediate result (IR).

3.1 COMPONENT I: BUILD CAPACITY OF VERTICAL AND HORIZONTAL ACTORS IN TARGETED VALUE CHAINS (VC)

IR 1.1 Increased use of improved agriculture practices and inputs

Activities undertaken during this reporting period:

• A workshop was organized to validate data collected from last quarter’s mapping of agricultural input suppliers in the project zone with different agricultural inputs stakeholders including FAO, Harvest Plus, INERA, SENASEM, and AGRIFORCE, among others. The study revealed deficits of soy and bean seed in the project zone, including 8,906 MT of soybean seed and 17,327 MT of fertilizer, for production to reach potential. Workshop participants proposed five priority actions to improve the availability, accessibility, and adoption of agricultural inputs in Kabare, Kalehe and Walungu. These are outlined in Annex 8.1:

• Training stakeholders in post-harvest management, storage and use of PICS bags. Eighty-two (82) actors, including 34 women working in soybean, bean and coffee value chains were trained on post-harvest management and packaging practices, storage of coffee, soybeans


and beans and the use of PICS bags in Kabare, Kalehe and Walungu. Training increased demand for inputs including moisture meters, thermometers, weighing scales, and PICS bags from participating actors.

Key activities planned for next quarter:

• Disseminate two calendars for target value chains (VCs) through agrodealers, one on the agricultural season and one for planning agricultural input supply and distribution.

• Conduct one socio-economic study on current agro-input use.

• Link nine local agro-dealers to PICS bag suppliers, ensuring that bags are appropriate in weight for women and youth to carry.

• Support nine local agro-dealers to develop input supply distribution models.

• Train SVC Staff and clients on the Environmental Mitigation and Monitoring Plan (EMMP) and the Safe Use Action Plan (SUAP).

IR 2.1 Improved market linkages and information systems

Activities undertaken this reporting period include identifying soy and bean market segments, analysing value chain actor capacity and willingness to pay for technologies and products.

• A study of institutional market segments and analysis of consumer willingness to pay for input products and services was undertaken from June 16-26 by a consortium including PIAD, RIAF and Société OLIVE. The survey included 80 market actors composed of 5,490 households. The study identified a monthly demand for 137.25 MT of beans in Bukavu, or 25 kg per household. Additionally, Société OLIVE reported having an approximate monthly demand of 20 MT tons of beans from the Ministry of Defense. Currently they can only meet half of this demand with products meeting contract quality standards. Of 80 structures surveyed, 27.5% are ready to sign bean delivery contracts with the consortium.

This information will provide a basis for planning dried bean and soybean aggregation for the 2018 “B” season. The results of the study will be shared with soybean and bean producers / collectors who constitute an entry point for SVC activities in target value chains.

Development of soy and dried bean distribution models: Institutional sales models or a model of walking (itinerant) ambassadors.

• During Q3, the team focused on building a distribution model for institutional segments.

“We now know that there is a potential bean market here in Bukavu. Consumers are ready to sign delivery contracts with us. We need to prepare the logistics and financing to meet delivery commitments we will make. The demand for soy is still limited. To boost demand, it will require quality products and a large marketing and promotional campaign.” PIAD-RIAF-SOCIETE OLIVE focus group during the monitoring visit made by SVC Market Linkages Specialist in Bukavu, June 21, 2018.


SVC staff also explored a model of itinerant (walking) ambassadors as a mobile sales force2. After market analysis, it was decided that the focus of the PIAD-RIAF-SOCIETE OLIVE consortium would be institutional segments including FARDC (through Societé OLIVE), BRALIMA, PHARMAKINA, schools and health centers. This model will be tested during the “B” season, as a pilot, before diversifying and bringing the model to scale during the FY19 A crop production season.

Identification of market information systems (MIS)

• The Market Linkages Specialist identified three opportunities to capitalize on existing market information systems in SVC target zones: (1) existing national market information systems (INFOTRADE, MKENGELA, CAID) supported by the UN in partnership with the Congolese government; (2) the market information system developed by local actors (the ACTION D’ESPOIR market data collection system) and (3) regional systems developed and piloted from East Africa (RATIN/EAGC).

- The first system (INFOTRADE, MKENGELA, CAID) is oriented towards structures, organizations and institutions. It presents general (and sometimes unclear) information, since data presented are generated from estimates or projections.

- The second system is limited to the needs of a specific actor. It was set up by a poultry farm owned by ACTION D’ESPOIR, and includes a network of monitors and community groups in villages that collect information on quantities and current local market prices of soybeans and corn. The system is designed to facilitate procurement of these products by ACTION D’ESPOIR.

- The third system is more elaborate. It provides general data and some practical specificities to value chain actors. It generates trends in flow and prices of agricultural products on a regional (EAC, COMESA or SADC) level.


• Develop one profitable business model assuring consistent soy and bean supply to different market segments (i.e., households, institutions, WFP/P4P, mining, PRONANUT, FARDC and police and supermarkets);

• Support one market information system to be piloted in the three SVC target territories;

• Conduct one marketing campaign on soy/bean processed products for health institutions and households.

2 Walking Ambassadors will be volunteers trained to lead walks that inspire, connect, and inform the community about

soybean and bean products. They will provide community members a hands-on opportunity to understand the market and their potential connections to place in a different manner than before.


IR 2.2 Improved post-harvest storage and processing


• Service Provider Identification. This quarter the SVC team identified three business development service providers (BDS) with which SVC intends to work. In Q4 these BDS will benefit from digital warehouse management training and the market information system: BYA (Bukavu Youth Agripreneurs), M-FUNDING HOLDFING LTD and PHOENIX Network Ets.

• Mapping of collection and storage centers in Kabare, Kalehe and Walungu. The goal of this activity was to map collection centers and storage warehouses for agricultural products to produce a digital map. In total, 99 active actors have been identified in storage activities and post-harvest operations, including 22 in Kabare, 13 in Kalehe, 29 in Walungu and 16 in Uvira. Bukavu and Goma, considered as “consumption zone”, have registered, respectively, 9 and 10 actors.

• Training on collection centers and warehouses management. Three training sessions were for 82 people (34 women), mainly from DFSA-supported cooperatives, on good post-harvest handling (PHH) practices, storage techniques (warehousing, equipment, inventory management and documentation) and conservation technology.


• Embed support by young lead BDS to agro-dealers for digital and inter active warehouse management (Market Information System).

• Develop short soy value chains at the community level.

• Conduct three awareness meetings and planning sessions with health institution managers to integrate soy in nutritional packages and health education.

• Create and provide technical support for the management of depots 10 kilometers (or less) from major market areas for women and youth traders to store products and safely sleep overnight.

IR 2.4 Increased capacity of producer groups, organizations and enterprises

Activities undertaken during this reporting period

• Analysis of the cooperative capacity (POSA) and collaborative training on Cooperative Governance with FSP-Mercy Corps (MC)

- Three missions were carried out in Kabare, Kalehe and Walungu. POSA evaluations were conducted with 72 producers’ organizations. Of these, 28 were identified for support by FSP (15 by Mercy Corps in Kabare and 13 by World Vision in Kalehe).

- Based on POSA results which indicated constraints in PO governance, a joint effort by SVC and FSP-MC was undertaken in Muresha. Two POs—Action Congo for


Development (ACD) and MAJIRANE —were trained on good governance. In total, 51 people attended the training; of these 44 (86.3%) were women.

• Business advisory support provided to coffee washing stations.

$1.92

$0.74

0

0.5

1

1.5

2

2.5

Average wet mill S Kivu SVC supported wet mill

opea

tiona

l exp

ense

s $/

kg g

reen

Figure 2: Operational cost of washing stations, disaggregated by SVC-supported and others

Average wet mill S Kivu Average SVC client

Best cooperative SVC client Best private SVC client

Preliminary data collected by SVC, using estimates for dry milling conversion rates of parchment to green coffee, cooperatives in South Kivu spend, on average, $1.923 to process a kilogram of green coffee (excluding the cherry price). Their counterparts in Rwanda spend less than one-third of this amount.4 One factor accounting for this inefficiency is the widespread misconception that donor funding is required to

run a washing station. This misconception means management teams for donor-funded washing stations often do not pay attention to operational cost controls because they expect donor intervention when things go awry. Two of SVC’s new clients—Umoja and Tumaini—are the first cooperatives in South Kivu to build their washing stations without donor funding. The operational costs of these SVC clients are estimated at $0.74/kg of green coffee, well below the estimated average for the province.

• This season, the SVC team distributed accounting books tailored to the South Kivu context to six clients, three of whom have started using the new system.

• Five of the nine (55.6%) washing stations assisted by SVC have begun daily lot separation.

• SVC business advisors supported Umoja and Tumaini washing stations during mill construction. TCC had minimal funds to invest in construction of their Birava washing station. SVC advised TCC to adopt a low-cost design using mobile plastic fermentation tanks. The TCC/Birava washing station was constructed at a cost of US$4,885. Historically, the average initial washing station construction cost in South Kivu has been $78,250.5

• Mungaano Cooperative is collaborating with SVC, granting access to its Kiniezire laboratory to cup other washing stations’ coffee to provide in-season quality feedback. Collaboration between the SVC cupper and his Mungaano counterpart is mutually beneficial. It serves as

3 This is a conservative estimate made during the project design scooping missions to DRC in November 2016. Data relates

to the 2016 season from SOPACDI, Women Rebuild Hope, CPCK, KACCO, CCKA, Mungaano, and AMKA.

4 Wet mill clients in Rwanda spend, on average, $0.55 to make one kilogram of exportable green coffee (2015 TechnoServe client data). Cost data from the region show a similar picture, making the Congolese washing sector abnormally inefficient, limiting the value these wet mills are able to return to coffee farmers.

5 Based on scooping mission by Janno van der Laan during project design phase in November 2016. Construction cost data from RAEK, CPCK, KACCO, Mungaano, AMKA, SOCPACDI and CADOBU were taken into account.


an opportunity for learning and cupping calibration. They are now extending their knowledge to three local youth, including one woman, from three different associations: Mungaano, SOPAD and SOPACDI.


• Develop capacity building plans for Pos0 • Support six POs to develop bankable business plans and link them to buyers, microfinance

institutions (MFIs) or DCA partners. • Train POs on business orientation. • Launch a pilot model with PO “champions.”

IR 2.5 Improved governmental services, regulation and taxation for agricultural inputs and trade in targeted value chains


• SVC organized a two-day workshop to identify tax barriers in the input sector and soy/bean trade, and to develop a roadmap for dialogue and advocacy. The first session gathered agrodealers and public services responsible for regulatory compliance of inputs (IPAPEL, SNV, SENAFIC, OLAME Center, OLIVE Company, NASECO seeds, CIAT-Harvest Plus, CARG, CEE, PAV, FOPAC, AGRIFORCE, IGA, SVC). The second united small cross-border trading platforms operating in soybeans and beans (Foreign Trade Division, COMESA, LICOSKI, Bukavu Youth Agripreneurs, ASSALAK, AVPA, ACT, Ets BISHWEKA, FAM, OLIVE Corporation, FEC, Broadcasting Future Channel, IGA, SVC). By the end of two days, participants highlighted the following major constraints in the input sector and soy/bean trade:

- Lack of information by taxpayers and tax collectors on tax nomenclature and exemptions;

- Difficulty obtaining seed import exemptions at the provincial level, and time needed to obtain exemptions;

- Exemptions, when obtained, are only good for one export transaction. - Non-diffusion of information on the tax nomenclature for agrodealers and small traders

of beans and soybeans.

• Participants established a roadmap with the following activities: - Regarding importing inputs: (a) Capacity building of stakeholders on advocacy and (b)

Advocacy at the provincial and national level to obtain input import exemptions; - Regarding the trade of soy and beans: organize sensitization sessions on provincial

nomenclature and agricultural laws in Walungu, Kabare, and Kalehe.

• Discussions held with the State stakeholders involved in SVC’s three targeted value chains. SVC’s policy/advocacy specialist met with the provincial trade department, the trade division, the DPMER, the BIC “commercial information bureau”, and the provincial ministry of agriculture, for better understanding of the South Kivu context in relation to trade regulation in coffee, soybeans and beans. SVC received the nomenclature


of taxes and this will be disseminated to traders and producers operating in the project ZOA and in the three value chains, because producers and traders are mostly unaware of the nomenclature of taxes, and therefore they are subject to harassment.


• Quantify regional trade in coffee, bean and soy through South-Kivu export corridors.

3.2 COMPONENT 2: ENHANCE COFFEE PRODUCTION Activities undertaken during this reporting period:

IR 1.1 Increased use of improved agriculture practices and inputs

• The coffee agronomy team held a series of sensitization meetings in each of the 24 coffee-producing villages in Kabare Territory, as well as consultations with local administration (groupement, village, sub-village), and with coffee cooperatives (TCC, CPCK, RAEK) in the area to create buy-in for the program’s Coffee Farm College approach.

• With buy-in from local authorities, the SVC team held sub-village-level meetings with farmers to explain the goals and methodology of the Coffee Farm College agronomy training program to concerned communities. Reception from farmers was very positive. A total of 6,670 households expressed interest in participating in the SVC Farm College. Two hundred twenty-five training groups—known was Focal Farmer Groups (FFGs)—each composed of approximately 30 households, were established in Kabare. This exceeds the target of 200 FFGs. Together, these groups constitute Cohort 1 of the agronomy program. Training will begin late July.

• 51% of farmers registered for the Farmer Colleges are female.6 This is partly due to the strong emphasis placed on equal gender participation throughout the sensitization and mobilization periods. Specifically, the team used the following techniques to increase gender registration:

1) during registration, farmers were asked to include spouses on the registration sheet and to invite them to training;

2) during Focal Farmer selection, either the Focal Farmer or Deputy Focal Farmer was required to be female.

• In April and May, the SVC team recruited local Farmer Trainer candidates. More than 400 people applied for 24 positions.

• The Regional Agronomy Advisor conducted a 5-day intensive course on coffee agronomy best practices for the top 40 candidates. Eight agronomists from ONC joined the session.

• In June, the SVC team delivered a three-day rural adult learning methods course to Farmer Trainer candidates. Training included teach-backs to assess the facilitative capabilities of

6 Note that these are sign-up rates that are always substantially higher; attendance rates are likely to be closer to the targeted

30%.


candidates. Representatives from all eight administrative groupements were included in the evaluation. Top performers from each area were selected to facilitate sessions for the first farmer cohort.

• Two of three one-hectare sites have been selected for Multi Location Agronomy Trials (MLAT). MLAT experimental designs were developed; the variety used will be Kabare 16 and one of the treatments will include the application of NPK fertilizer.

IR 2.1 Improved market linkages and information systems

• In collaboration with ONC, ELAN RDC, ECI, and Twin Trading, the SVC team coordinated the 4th annual Saveur du Kivu event. The event attracted over 250 participants, including seven international buyers7 invited by SVC partners World Coffee Research and TechnoServe. SVC was uniquely responsible for leading the cupping component of the event. This consisted of two cupping trainings conducted by Paul Songer for local host country cuppers, held at the ONC laboratory. One cupper from the national jury was selected to cup with the international jurors.

• SVC supported ONC, the coffee sector’s regulatory agency, to collect representative samples from 43 coffee washing stations in South Kivu as mandated by the government, through a newly developed, third-party sampling protocol, which relied on an independent and standardized process for sample collection.

IR 2.2 Improved post-harvest storage and processing

• SVC Business Advisors monitored eight wet mills to boost adoption of processing best practices, using a Coffee Processing and Quality Index to evaluate and monitor adoption levels.8

• SVC introduced partner wet mills to a shortened fermentation protocol. The SVC team is recommending an –15-hour dry fermentation process, monitored by the station’s quality manager. This alternative approach will be piloted at Mungaano Cooperative, one of the clients with existing washing stations and buyer linkages.9

• SVC Quality Advisors collected and cupped 105-day lot samples from all nine SVC clients, providing useful in-season feedback to wet mill staff on the quality of their product. The

7 La Boheme, Peet’s Coffee, Counter Culture Coffee, African Coffee Roasters, Stumptown Coffee, Green Mountain/Keurig,

and Songer & Associates

8 The Coffee Processing and Quality index assigns a score between -15 and 15 based on a checklist of questions to assess the adoption of best processing practices taught. The CPQI is performed together with the wet mill staff and used as a coaching tool.

9 SVC consulted Mungaano’s buyers - Higher Grounds, TWIN, and Counter Culture - all of whom approved the proposed alternative fermentation method, indicating that they had provided similar advice in the past which had not been adopted at the cooperative level. Next season, SVC will experiment three fermentation protocols on separated mini-lots to maximize efficiency and cupping quality: (a) Dry fermentation for 12 hours, wet fermentation for 12-15 hours, and soaking for 24 hours (status quo); (b) Dry fermentation for 12-15 hours, wet fermentation for 15 hours (suggested by Counter Culture); or (c) Dry fermentation for 8-12 hours with close monitoring (recommended by SVC).


average cupping score, on a scale out of 100, was 83, and the highest score was 90 from a sample produced by the Mungaano Buchiro Cooperative on April 9.

Key activities planned for next quarter

• Launch monthly FT agronomy training for Cohort 1. • Develop eight wet mill dashboards to increase transparency. • Conduct the Best Practices Adoption Baseline. • Facilitate sales contracts for six containers of coffee. • Develop analysis sheets for 20 client samples cupped and 27 varietal samples cupped. • Identify two potential farmer business groups to develop innovative farmer business group

(pre-coop) model. • Identify a potential CAPEX financer. • Establish three International Multi Location Agronomic Trials (MLATs).

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


Identification of opportunities for collaboration between large land holders (concessionaires) and smallholder farmers

• “Concessionaire” mapping. A mapping of “concessionaires” in Kabare, Kalehe and Walungu occurred this quarter. Conducted by the agricultural department of the Chamber of Private Sector Agriculture and Agri-business Operators (FEC Agricole), initial results of the mapping identified 63 large concessionaires with more than 30 hectares per concession (20 in Kabare, 10 in Kalehe and 33 in Walungu). These 63 concessions together represent 8,494 hectares of agricultural land, of which only 2,709 hectares (HA) (31.9%) is currently developed, with 5,784 HA (68.1%) unexploited.

• Stakeholder consultations. SVC continued consultations with concessionaires to analyze their willingness to participate in the implementation of PPPs. Five concessionaires were contacted during Q3: (1) Ets BISHWEKA with three concessions (one in Kabare and 2 in Kalehe); (2) Société OLIVE with a total of 11 concessions in Kabare, Kalehe and Walungu, (3) Fondation Amani Maendeleo (FAM) with a concession around the Kahuzi Biega Park and which makes social inclusion of pygmies a priority, (4) ETS CHIRIBAGULA which is piloted by young people from the diaspora who are concerned about investing in their villages, and (5) RISING STARS. From these consultations, two partnerships were effectively developed, and MOU’s signed with SVC (Ets BISHWEKA and Société OLIVE). A third partnership opportunity has been identified for this year - RISING STARS has 500 hectares in Birava (Kabare) where 100 sharecroppers are already growing beans, soybeans and corn. The company has a modern flour mill with a processing capacity of 40 MT of grain per day (maize, sorghum and soy). RISING STARS is already processing potatoes into chips and has just set up a bakery that will be operational in July 2018.


Identification of other PPPs in the bean and soybean value chains. Consultations with stakeholders to identify additional PPPs are ongoing.

Development of a PPP between FEC Agricole - CCPA/CARG – FOPAC. In June, SVC organized a working session with representatives of FEC Agricole, CCPA/CARG, and FOPAC to present the concessionaire approach so that partners have a mutual understanding of the approach. The meeting served to constitute a joint committee for facilitation of contractualization between concessionaires and share-croppers/outgrowers.

Development of a PPP between RIAF-PIAD-SOCIETE OLIVE with (1) the Ministry of Defense, (2) the Ministry of Education (EPSP), (3) the Health Inspectorate, (4) SENASEM and (5) Harvest Plus. A consortium between RIAF-PIAD-SOCIETE OLIVE was established to conduct a study of dried bean and soy market segments in and around Bukavu. This first exercise in collaboration prompted these three players to conclude agreements among themselves to launch a contracting campaign for delivery of beans and soy to institutional consumers. Under their agreement, PIAD will focus on collecting dried beans and soy from Kabare; RIAF will collect from Kalehe; and Société OLIVE will negotiate the increase of bean delivery contracts with the Ministry of Defense. Société OLIVE will delegate some of its bean aggregation tasks to RIAF and PIAD, who are active on the ground with producers. This consortium has already contacted private companies as well as public institutions to develop bean and soy delivery partnerships.

BANRO / ATS-IPALEL / SENASEM - Producers Organizations. Consultations with BANRO to support seed multipliers in its concessions demonstrated that BANRO would prefer to concentrate its activities close to its mines in MANIEMA, far from SVC intervention zone. During the last speech of BANRO’s Chairman and Chief Executive Officer in Bukavu on June 28 he stated that BANRO was entering a restructuring and recession phase, which will eventually lead to renewed investments in social or community actions. However, because of this restructuring, the PPP initially identified with BANRO has been redesigned to focus on the delivery of beans and soy to ATS (the company that manages BANRO’s food supplies).

P4P-IPAPEL - Producer Organizations. SVC continued consultations with WFP-FAO to launch local purchases from producers in South Kivu, to support agricultural seed multipliers. P4P will identify target groups in Kalehe and Uvira, and will communicate their findings to SVC to determine potential support required.


• Harmonize views on the concessionaire approach between FEC, FOPAC (representing small producers) and CARG.

• Produce and sign MOUs with stakeholders (FEC, FOPAC, CARG,) on the approach for a win-win contract.


3.4 COMPONENT 4 (CROSSCUTTING): ENHANCE ACCESS TO COMMERCIAL FINANCE INCLUDING THROUGH TECHNICAL ASSISTANCE TO IMPLEMENT DEVELOPMENT CREDIT AUTHORITY (DCA) AGREEMENTS

This quarter activities under the Access to Finance (A2F) component focused on two major areas: (a) implementation of two MOUs with two DCA banks (Procredit/Equity Bank and FINCA), and (b) support to agricultural sector actors to prepare requests for financing.

Establishment of MOUs between SVC and DCA partner banks (Procredit/Equity Bank and FINCA) in May 2018. After the signature of MOUs, which clarified the roles and responsibilities of SVC and DCA partner banks, the following activities were undertaken:

• Training of staff from the two partner banks on DCA rules and use. Training included five Equity Bank agents (two from Bukavu and three from Goma) and 14 FINCA staff (from FINCA Bukavu I, FINCA Bukavu II and FINCA Goma agencies). 50% of staff trained came from management and 50% were agents involved in the credit process. Women accounted for 20% of participants from Equity Bank and 7% of those from FINCA. A checklist on DCA eligibility criteria was provided to participants. The training evaluation revealed 80% of participants described the training as very important, and participants felt the training helped clarify eligibility criteria for potential DCA loans.

• Production and sharing of fact sheets on soy and bean value chains for use by bank staff. The A2F Specialist, supported by the Market Linkages Specialist, is producing two fact sheets that explain what SVC does in the soy and bean value chains, with an emphasis on the needs of women and youth. These sheets will provide bank staff with information to increase their understanding of the two value chains, but also to assist them in analyzing credit applications from PO’s and cooperatives working in target value chains. Unlike coffee, whose industry needs are well known, soy and dried beans are new value chains for target financial institutions.

• Support to Equity Bank and FINCA participation in workshops to inform value chain actors about bank products and to meet potential clients. Space was given to the two DCA banks during “Saveur du Kivu” to present their products and services. Discussions occurred between banks, buyers, and cooperatives about issues, constraints and opportunities that exist in financing the coffee sector. The SVC A2F Specialist facilitated a working session between FINCA and one big coffee buyer.

• Financing Forum on DRC’s Financial Inclusion Fund (FPM) in Kinshasa. The A2F Specialist facilitated involvement of the two DCA bank partners and one coffee cooperative (Muungano Cooperative) in an annual financial forum in Kinshasa. The A2F Specialist used the opportunity to discuss with Equity Bank managers activities included in the SVC MOU. Together, they defined common strategies for financing startups, and discussed the needs of women and young entrepreneurs. The A2F Specialist met the National Microfinance Fund (FNM) to explain opportunities for refinancing MFIs in South Kivu and financing agricultural sector activities. Discussions focused on opportunities for the fund to replicate its funding


model for projects for young people in South Kivu, particularly in SVC target value chains. The FNM is interested, and would like more information and details on how to partner with SVC on matters related to rural finance. Mungaano contributed $600 US to participate in the event.

Support to agricultural sector actors preparing requests for funding.

• Twelve POs and entrepreneurs were connected with Equity Bank, of which five will be funded: ACOSYF, SALAMA, Global Coffee, CYED, ACOSYF and AGRIFORCE. Equity Bank has already financed Global Coffee in the amount of $2000 US, and four dossiers are under review. The remaining seven businesses did not have immediate financing needs. A connection was also made between FINCA and TUMAINI COFFEE Women’s Cooperative and the Women’s Soy and Bean Producers’ Association of Luhihi.

• Two newly established cooperatives, TCC and UMODJA, secured working capital financing from an improved Coffee Service Provider (CSP) model piloted with Café Lac.

- Umoja received a $59,000 line of credit; they disbursed $25,000 this season. - TCC secured a $50,000 line of credit, and used $34,000, based on cherry volumes

procured. - As a sign of good faith, and since both are farmer-financed cooperatives with capacity

issues, Café Lac donated $400 to each cooperative. Cooperatives used these funds to build four additional drying tables each. Café Lac also loaned a McKinnon pulper to the Umoja wet mill after its pulping machine broke down.

• To provide lenders the ability to monitor their working capital loans to SVC clients, the SVC team developed a bookkeeping system linked to a performance dashboard (Figure 3). The dashboard monitors stock levels, prices paid, operational efficiency, and working capital availability so lenders know when disbursements need to be made. SVC presented this performance dashboard during the Saveur du Kivu event, eliciting positive responses and interest from buyers like Counter Culture, Higher Grounds, and Equal Exchange. These buyers will have access to the dashboard and electronic books of SVC client Mungaano, from whom they already purchase coffee.

Figure 3: Snapshot of Umoja’s dashboard as of 30/06/18


3.5 CROSSCUTTING PRIORITIES 3.5.1 CONFLICT SENSITIVITY AND RESILIENCY

SVC’s conflict sensitivity and resilience approach has three major axes. The first concerns the empowerment of women by building their decision making, planning and leadership capabilities using the GALS approach, which will kick off in Q4. Using that approach, the SVC team will identify clusters of dynamic women who are already organized in community based organizations (Producer Organizations, Care Groups, etc.), already engaged in income generating activities, literacy and community savings and loan programs in conjunction with assistance received from DFSAs (FH, or FSP-Mercy Corps/World Vision) and use these “hot spots” as entry points, creating synergies and providing the third foundational stone for women to take on greater economic, decisional and leadership roles in their communities. Coupled with this, SVC will promote development of new economic income generation and service opportunities for youth in their rural communities, through seasonal labor at coffee washing stations, the development of service enterprises.

The second axe concerns diversification of income streams and capital investment. SVC staff are already witnessing the buildup of reserves among members of coffee cooperatives like TCC and Umoja, where members are integrating vertically, growing and processing their coffee in their own, home-built washing stations. Women seasonal workers at washing stations are requesting that money owed to them be paid partially, with part held back and paid in a lump sum to assist them with investing in income generating activities, the payment of school fees or investing in goats and poultry for domestic production, consumption and marketing.

The third axe concerns conflict mitigation. SVC, through partner Search for Common Ground, has established public fora (TEP) for community members to discuss issues and determine action plans and mitigation measures. Coupled with the TEP, community action committees plan and monitor execution of mitigation measures decided at the TEP. The establishment of Listening Groups who listen and discuss broadcast programs developed specifically to invoke social behavior change, is underway. When fully active, these clubs will be tasked with the dissemination of information, development and monitoring of behavior change, and conflict mitigation action plans with community members. Key conflict areas in SVC’s ZOI revolve around land, access to land for youth and women, inheritance of land, conflicts arising between herders and farmers, devastation from wild animals leaving the borders of the National Park, etc. SVC has signed MOUs with larger land holders (“concessionaires”) to enter into medium term leasing agreements with smallholder farmers in proximity to their landholdings for periods of 3 to 5 years at a time. These smallholders must be willing to enter into contract farming or sharecropping arrangements in return for labor, inputs, extension services or an assured market for their production. These larger landholders are exploiting less than 30% of their productive holdings, and releasing some of their land in a planned productive fashion will assist farmers and release yet another community pressure valve, reducing local conflict.

The main activities carried out under the conflict sensitivity and resilience component this quarter are as follows:


• Elaboration of SBCC messages. The SVC Conflict Mitigation and SBCC Coordinator elaborated 72 awareness messages that will be disseminated through radio programs, radio spots and theater groups to influence gender, social inclusion and conflict behavior. Some of these messages were developed jointly with the DFSAs.

• Training participatory theatre groups. SVC created and equipped three participatory theater groupsin Kabare, Kalehe and Walungu. Each theater group is made up of 13 actors, for a total of 39 actors in the three territories. These actors were selected with support from SVC’s Gender and Social inclusion Specialist to ensure gender and inclusion aspects were accounted for in theater groups.

• Participatory theatre shows. Trained actors staged three performances in Cibimbi (Kabare), Nyamukubi (Kalehe) and Ibinza (Walungu), bringing together apprximately 4,000 people. The topic treated was access of women and youth to agricultural land.

• Production of radio broadcasts. Six radio shows, entitled “Lima-Faidika” are in the production process by SFCG (SVC). Topics discussed, derived from SBCC messages, focus on: (a) the impact of entrepreneurship on economic recovery in Kalehe, (b) women’s workloads and marketing of coffee, soy and beans, (c) the impact of agricultural cooperatives and farmers’ organizations and associations on the marketing of coffee, soy and beans, (d) the issue of access and control of income from the marketing of coffee, soy and beans by women in Kalehe and (e) associative strenth of small producers in the coffee, soy and bean value chains in Kalehe.

• Training “listening clubs.” In Q3 SVC created 20 listening clubs (LC), spread across the SVC ZOI as follows: 6 in Kabare, 10 in Kalehe and 4 in Walungu. These clubs will meet twice a month to listen to the “Lima-Faidika” radio program produced by SVC and broadcast by radio partners. They will engage in debates on the content of radio programs, identify key problems and develop concrete actions to encourage behavior change in their communities. The 20 LC were equipped with solar radios, mobile phones, flash drives and other supplies..

• Organization of “Tribunes d’Expression Populaire” (TEPs). Of TEPs10 planned for this year, three were organized during this quarter—one in each target territory. The subject of these TEPs was access for women and youth to agricultural land11.At the end of the TEPs, three

10 TEPs brought together local authorities with the various actors of coffee, soy and dried bean value chains.

11 The main recommendation from the TEPs is that a meeting between the value chain actors and the concessionaires should be organized to negotiate more flexible and favorable sharecropping conditions for women and youth, increasing access to agricultural land for these groups.

The listening club of Nyamukugi organized an awareness campaign for young girls to get involved in the coffee, soybean and bean business;

The Chiherano listening club started production and marketing of soy and beans, renting a field of three hectares for this purpose.

The Kalehe monitoring commission has already started negotiations with concessionaires as private sector operators and, according to the report received end of June, concessionaires expressed willingness to respond to requests by youth and women for access to land for cultivation.


monitoring commissions were set up (one in each territory), to track implementation of recommendations made during each TEP.

• Training of radio partners in “conflict-sensitive journalism.” Of the seven community radios that are in partnership with SVC, three radios received training this quarter. A total of 12 people (4 women) including journalists, producers, program managers and radio directors, participated. The first training occurred in Minova and involved all partner radio stations in Kalehe: Radio Télévision Communautaire de Kalehe (Ihusi), Radio Communautaire de Bobandana (Minova), and Radio Communautaire de Buzi-Bulenga (Bulenga).

3.5.2 GENDER AND SOCIAL INCLUSION

Highlights from the implementation of the Gender, Social Inclusion and Conflict Mitigation strategy this quarter include:

• Restitution of GSCIM results. Three workshops explaining the action plan and strategy resulting from the Gender, Social Inclusion and Conflict Mitigation study (conducted in Q1 FY18) were held in Kabare, Kalehe and Walungu.

• To ensure GSICM recommendations are integrated into all SVC activities, the Gender and Social inclusion Specialist and the Conflict Specialist held regular sessions with the team to discuss approaches and jointly plan interventions.

• Facilitation of a panel discussion on Women’s Roles and Opportunities to Promote Inclusive Value Chains at Saveur de Kivu.

• A capacity building session was held with the Women in Coffee and Cocoa Initiative (IFCCA) in June at the SVC office in Bukavu. A mini POSA was conducted in collaboration with the PO Development Specialist. Eleven women (members of IFCCA), participated.

• Gender and Youth Advisory Group, The Gender and Social Inclusion Specialist held one introductory meeting at the SVC Bukavu office with sixteen people; a Gender and Youth Advisory Group was created for South Kivu.

• Outreach to Youth. This quarter the Gender and Social Inclusion Specialist interacted with the following youth groups and participated in youth related events:

- Alpha New SARL youth, active in the coffee sector and based in Minova/Kalehe. SVC facilitated this group’s access to an exposition stand at Saveur de Kivu, exposing their coffee labeling, packaging, and e-marketing services. The leader of the group was invited to participate in a panel to discuss opportunities for youth and other marginalized groups in the coffee sector.

- The Experiential Application Program at the Institut Superieur de la Pedagogie (ISP): The Gender and Social Inclusion Specialist and the A2F specialist visited the program in May to a) understand market opportunities for soymilk production and b) to explore economic opportunities surrounding the youth’s approach to recycling plastic bottles.


- Participation in the Great Lakes Global Youth Leadership Forum. The Gender and Social Inclusion Specialist presented a theme on investing in youth for tomorrow’s sustainable development.

3.6 MONITORING, EVALUATION, LEARNING AND ADAPTING During this quarter, the AMELP was re-submitted to USAID; approval is expected during Q4. This important step is required before setting up a rigorous monitoring and evaluation system for SVC. The AMELP will allow transparent and timely reporting of relevant monitoring data. It will help measure program impact on income and livelihoods. The AMELP will also ensure data collection efforts are coordinated and standardized.

With the support of the Tetra Tech Home Office MEL Team, key issues on mobile data collection for SVC indicators have been discussed this quarter. Electronic versions of data collection forms are being developed and will be pilot tested next quarter.

Two SVC quarterly reviews took place this quarter. Technical teams, together with support staff, spent three days together reviewing progress made during this reporting period. The team took advantage of this time to refine strategies and adapt approaches for better coordination and implementation.

Principal activities planned for Q4 FY16

• Support the Coffee team conducting the Best Practices Adoption Baseline. • Support USAID/MECC conducting the first SVC DQA. • Conduc FY 2019 annual work-planning. • Hold two-day workshop on the implementation of the SVC AMELP (after USAID approval).

3.7 TRAINING AND CAPACITY BUILDING In Q2 and Q3 of Year 1, 624 people were trained (48% women). A list of all training events organized this year is included in Annex 8.2.

3.8 ENVIRONMENTAL MANAGEMENT AND MONITORING This quarter the SVC team drafted an Environmental Mitigation and Monitoring Plan (EMMP) to identify the reasonably foreseeable effects of SVC activities on the environment, as well as recommended threshold decisions for the Activity. The EMMP proposes mitigating measures to reduce or eliminate potential negative environmental impacts, and adaptation to climate change risks. The final document will be submitted in Q4 for approval by USAID, in conjunction with a draft Safe Use Action Plan (SUAP), before implementation by the SVC technical team.


4. CHALLENGES AND CONSTRAINTS Programmatic challenges

• Clients and stakeholders do not always understand the complementarity expected to exist between USAID-funded programs in South Kivu. SVC’s development facilitation and technical assistance approach is very different from that of the DFSAs and other humanitarian relief organizations. Because of this, SVC clients are constantly wondering why SVC does not offer a similar packages of interventions (such as asset distribution) like other USAID projects.

• FINCA’s procedures and policies are such that the FINCA branch in Bukavu has no authority to engage directly in negotiations and discussions with the SVC A2F Specialist. The fact that the FINCA Bukavu agency must constantly refer for guidance to the general management in Kinshasa causes delays in the processing of files and significantly delayed the signing of the MOU with SVC.. This is different from Equity Bank where the manager of the Bukavu branch has the power to engage directly with SVC on certain issues, increasing effuciency in decision making.

Coffee Agronomy implementation challenges

• There is a clear lack of knowledge on coffee crop varieites and diseases in the field. One cooperative (not a SVC client) has been widely distributing a coffee variety that is ill-suited to the environment. Varietal trials SVC is undertaking with UCB and INERA will help improve varietal knowledge in the coffee sector.

Wet mill implementation challenges

• The lack of access to timely and and sufficient working capital, resulting in wet mills opening late in the season or closing early as funds run out.

• The breakdown of pulping machinery resultied in over fermented coffee.

• Lack of logistical planning between buying agents and washing stations; buying agents deliver coffee late, or trucks pickking up cherries get stuck on the road.

• During Saveur du Kivu, coffee bean moisture levels were found to be higher than the acceptable level for international cupping competitions. Moisture was also highly variable. Only one-third of the samples were dried to an adequate (10-12%) level.

• There is a distinct lack of transparency beyond the purchasing point-level. For existing cooperatives, management is concentrated at the cooperative office level and little to no documentation is kept at purchasing sites. This leads to the following two problems:

1. During reconciliation - which often only happens post season - huge gaps emerge between funds advanced versus the amount of cherry purchased.

2. There is no certainty concerning the price the farmer actually received, or whether the payment was made in cash or the cherry was delivered on credit. There is little to no


documentation on if/when cherry, where delivered on credit, was paid. This often results in the cooperative taking losses (estimated at $25,000 for the largest washing station operator, SOPACDI) or, if the buying agents come into financial difficulty, farmers who delivered cherry on credit might not get paid out at all, further eroding trust in the cooperative.

SBCC implementation challenges

• SFCG’s field-based SBCC activities appear, to SVC clients, to be non-tangible supports, in contrast to the types of intervention that the people of Kabare, Kalehe and Walungu have long been used to by humanitarian organizations. Conducting popular expression tribunes, radio shows, spots and transmitting messages about behavioral change still appear, for many people, as secondary interventions. SBCC teams face challenges, especially when it comes to mobilizing people in communities for activities.


5. LESSONS LEARNED • TCC/Birava represents a new model for cash constrained groups and enterprises looking to

enter the washed/fully washed coffee sector. Demonstrating that small washing stations can produce high quality coffees, the farmer-financed micro mill attained the highest cupping score of coffees produced in South Kivu at this year’s Saveur de Kivu cupping competition, taking sixth place overall.

• The sustainability standards need assessment visit highlighted the issue of proper waste water management for all washing station clients, which has been included in the EMMP.

• Local traditional and administrative leaders are accustomed to receiving small amounts of money from NGO staff as a tithe when calling and requesting assistance organizing and participating in the sensitization and mobilization meetings. As SVC has not adopted this practice, some leaders have been hesitant to collaborate with SVC.

• Financial literacy and Microsoft Excel skills are low among SVC clients and stakeholders.

• Using community radio announcements during Farmer Trainer village-level recruitment turned out to be highly effective, as more than 400 candidates applied.

• Capitalizing on existing Dialogue and Mediation Committees (CDMs) was not a useful way to develop sustainable listening clubs. These committees are not fully representative of their communities. SVC opened the space for more inclusiveness, representativity and dynamism by integrating other community memembers in SVC listening clubs, in addition to those who are members of the CDM.


6. BEST PRACTICES AND RECOMMENDATIONS

1) During the Saveur du Kivu presentation, Umoja’s president, Philippe Byasasa, demonstrated the process of tracing a bag of coffee parchment taken from his stock to a specific farmer, Georgette, who had grown and delivered it to the Mudakala purchasing point. Georgette and Mr. Mudakala Bahati were both present and able to present their books and receipts. They later served participants coffee brewed from the day-lot delivered by Georgette. The Umoja Cooperative has begun issuing producer record cards to farmer suppliers, to track coffee cherries delivered. (Best Practice)

2) Wet mills in DRC are accustomed to a long and inefficient fermentation process rooted in the colonial plantation model, which devoted 12 hours to dry fermentation, followed by 12-15 hours of wet fermentation and 20-24 hours of soaking. The SVC team has found that this process can easily be reduced to 8-15 hours of dry fermentation monitored by the quality manager, using easy-to-use methods, such as using the sound produced by rubbing the beans as a way of determining whether the fermentation process is complete. (Best Practice)

3) At the start of the season, most of the clients experienced suboptimal pulping output (e.g. unpulped cherries passing through, or bean breakage). Thanks to the three-week capacity building visit facilitated by SVC and financed by Global Coffee Services,12 a coffee equipment supply start-up company in South Kivu, in November 2017, their machine servicing technician is now able to provide machine repair and maintenance services to SVC clients. This season, three SVC washing stations13 had their pulping machines repaired by Global Coffee Services’ machine technician, for a $50 service fee. During each of these repairs, the technician taught the mills’ machinist about his methods. (Best Practice)

4) SVC will collaborate with Root Capital, Twin and Fefisol banks and exporters on access to working capital finance for coffee washing. (Recommendation)

5) Training on maintenance and calibration of machinery for staff of SVC assisted coffee washing stations is necessary to maximize depulping efficiencies. (Recommendation)

12 Global Coffee Services is managed by Steven Kanane, KACCO president. SVC helped Steven set-up a professional email,

reserved an internet domain and had Google approval to have KACCO washing station(s) added on Google Maps. GCS is in discussion with both Penagos (eco-pulping machine supplier) and BrazAfrique (agricultural tools and equipment supplier) to become their distributor in Eastern Congo. The SVC Value Chain Manager has advised Steven on business strategy. Following SVC advice to provide maintenance services to machine buyers, Steven decided to pay for a capacity building visit for a GCS technician. SVC facilitated the visa for the GCS technician to visit Ethiopia, and had the best machine technician in the region and regional distributor of Penagos coach the technician during his visit to Ethiopia at the end of 2017.

13 Tumaini Birava, Tumaini Kahisa, and Umoja.


6) SVC will implement the bookkeeping system model to all clients the coming season. (Recommendation)

7) Business advisory support and hiring local harvest assistants at the beginning of the season is necessary to fully monitor cherry purchasing for all SVC coffee washing station partners. (Best Practice)

8) The SVC team noted the benefits of increased competition in SVC target zones. This season, SVC provided technical support to five new wet mill operators strategically spread across Kabare and Kalehe—two operators running a total of three mills in Kabare, and three operators running a total of six mills in Kalehe—as well as light-touch support to one new operator, SOPADE, in Kalehe. With the introduction of new operators to the sector, the cherry price paid to farmers rose to around 475 FC/kg14 ($1.78/kg green) from last year’s 300 FC/kg15 ($1.38/kg green). This greater competition has the potential to discourage price fixing and level the playing field in the coffee sector in South Kivu. Historically, the South Kivu coffee industry has been dominated by an oligopoly of powerful cooperatives and traders. By encouraging further private sector investment and lending support to new operators, the price of cherry could increase even further in the coming years, as it is still well below the price paid in more developed coffee sectors of East Africa. (Best Practice)

9) One of Mungaano Buchiro’s buyers, Counter Culture Coffee, is particularly keen to buy day lots and is currently negotiating the purchase of a micro-lot of 100 bags. In addition, Letsequiao, a Kigali-based South Korean boutique coffee exporter, has bought a micro-lot of 350 kg of parchment from Cadobu, another SVC operator and wet mill in Minova, at $4.50/kg of green, singling out the plantation produced coffee from the rest, thanks to the newly established day lot separation. (Best Practice)

10) Virunga Coffee was unhappy with the sampling method rolled out for Saveur de Kivu. They had already handpicked and sorted their own green samples. They do not want a third-party or the ONC to complete this task for them. Virunga provided samples which did not conform to the sampling protocol and which were insufficient in size for the competition. They were not considered in judging by the International Jury. ONC should communicate proactively with partners concerning sampling protocols for Saveur de Kivu. Protocols should be distributed in advance of sampling. A calendar for sampling in both South and North Kivu should be developed, communicated in advance, and respected. (Recommendation)

14 Based on business team’s field observations prices for the majority of wet mills in Kabare and Kalehe have fluctuated between

450 and 500 during the season. Therefore, an estimated average of 475 CF is used here. The exchange rate has been stable during the season at 1600 CF/USD.

15 Based on business team’s field observations and basic client data overview this is a rough estimated average.


7. CONCLUSIONS The SVC team went into high gear during this reporting period and the amplitude and quality of the results produced bear witness to staff engagement and dedication. The SVC team is proud of their accomplishments and committed to accelerating implementation in the future while maintaining quality of programming interventions and broadening outreach to partners in development, government and the private sector, as well as clients in target communities.

The SVC team has put collaboration front and center and staff are constantly looking for opportunities to partner, leverage and create positive synergies. This is not an easy prospect and building partnerships takes a lot of time and effort, often behind the scenes. It requires perseverance, openness, flexibility and the ability to compromise. The first pilot efforts will necessarily be small and short in length to allow for calibration of relationships and trying different ways to sequence, layer, coordinate and collaborate with partners and clients. Because of the time and effort required to develop, cultivate and maintain these partnerships, a Communication, Coordination and Collaboration Director will be added to the team.

SVC staff are pleased with the support received from the USAID Mission and have benefited greatly from the insights and perspectives shared by various USAID personnel while on the ground in South Kivu. The multisectoral visit by USAID/Washington and USAID/Kinshasa with participation from the Resilience Center, Bureau for Food Security, Office of Food for Peace, Health, Economic Growth and Education sectors was both eye opening and encouraging. SVC hopes there will be more occasions like these, to learn and to share.

The SVC team wishes to thank all our implementing partners without whom these accomplishments would not have been possible.


8. ANNEXES

8.1 Summary of Agricultural Input Workshop Recommendations

8.2 Q3 FY18 SVC Capacity Building and Training

8.3 LOA Progress Towards Performance Indicators

8.4 Progress Toward Annual Workplan Activities

8.5 Financial Status


8.1: SUMMARY OF AGRICULTURAL INPUTS WORKSHOP RECOMMENDATIONS Stakeholders that participated in an SVC-sponsored workshop on agricultural inputs proposed five priorities in each of four action areas to facilitate the availability, accessibility, adoption and sustainability of agricultural inputs in Kabare, Kalehe and Walungu. Key findings and recommendations from the workshop are outlined below.

Key Findings

Figure 1: Quantity of bean and soybean seed needed in MT, by territory

-6000

-4000

-2000

0

2000

4000

6000

Beans Soybean Beans Soybean Beans Soybean

Kabare Kalehe WalunguQua

ntit

y in

ton

s

Available

Need

Gap

Figure 2: Quantity of fertilizer needed in MT, by territory and type

-8000-6000-4000-2000

02000400060008000

Urea DAP NPK Urea DAP NPK Urea DAP NPK

Kabare Kalehe WalunguQua

ntit

y in

ton

s

Available

Need

Gap


Workshop Recommendations

Availability: 5 strategic priorities • Identify and provide capacity reinforcement for seed multipliers • Promote large scale seed multiplication on a local (South Kivu) level • Create a banking product to assist in financing needs of local seed multipliers • Establish a fertilizer factory and certification laboratory for the certification of ag inputs • Advocate for tax exoneration on the importance of agricultural inputs

Accessibility: 5 key actions • Increase and improve the number of input sales/distribution points within the SVC ZOI. • Diversify input supply and distribution points so they align with market days and are in

proximity to major production sites. • Diversify marketing channels and communication vectors for public outreach. • Lobby for the government to publish the true tax nomenclature for the agricultural input

sector. • Regulate pricing of inputs by middle-men in the input sector.

Adoption: 5 priorities • Participation in the selection of agricultural inputs. • Improved input extension outreach efforts (Information, demonstrations, Lobbying efforts). • Better marketing of inputs (quality, price, availability). • Facilitate exchange visits. • Improve networking among agro-dealers and others within the agricultural input sector.

Sustainability: 5 key focus areas • Create a network for improved collaboration between seed multipliers, research,

SENASEM and the farmers. • Capacity reinforcement to improve the professionalism of agricultural input producers and

manufacturers. • Diversify agricultural input sales and distribution points so they are in proximity to the

farmers in their villages.


• The government needs to assist the ag input supply sector by providing import duty exoneration, better regulation and oversight, and improved quality of technical and extension services.


8.2: SVC CAPACITY BUILDING AND TRAINING

Component Type of Training Q2 Q3 Total Men Women Men Women Men Women Total

Component 1: Vertical and horizontal value chain actors

Strengthening the entrepreneurial spirit and business acumen of bean and soybean producers' cooperatives/associations 7 44 7 44 51 Management training for post-harvest handling and storage 48 34 48 34 82

Component 2: Coffee productivity

Cupping (coffee-tasting) training 27 19 27 19 46 Bookkeeping training 36 36 0 36 Training of coffee trainers and ONC agronomists on coffee production 27 17 27 17 44 Training of coffee trainers in adult training techniques 20 16 20 16 36

Component 3: PPPs

Workshop on bean, soybean, and input sector regulations, tax barriers, and advocacy strategy development with agro-dealers 18 4 18 4 22 Workshop on bean, soybean, and input sector regulations, tax barriers, and advocacy strategy development with agro-dealers 18 8 18 8 26

Component 4: Access to finance

FINCA staff training on DCA rules 1 5 1 5 6 Equity Bank staff training on DCA rules 1 13 1 13 14


Component Type of Training Q2 Q3 Total Men Women Men Women Men Women Total

Cross Cutting Component: Gender, Youth, Inclusion

N/A

0 0 0

Cross Cutting Component: Conflict Mitigation and Resilience

Training for Listening Club members in club operation and management; provided supporting materials 107 102 107 102 209 Training of partner radio journalists on conflict-sensitive journalism 8 4 8 4 12 Training of comedians on participatory theatre techniques for conflict transformation 22 18 22 18 40

85 37 255 247 340 284 624


Feed the Future SVC Staff Training FY18

Component Location Date Training Topic PARTICIPANTS

Male Female Total

Gender and Social Inclusion Bukavu Jul-18

Training in gender equity, social inclusion and youth engagement for SVC staff 25 6 31

Conflict and resilience Bukavu Mar-18

Training in conflict sensitivity for SVC staff 28 6 34

Project Management Bukavu Apr-18

Orientation workshop and training for SVC staff 22 12 34


8.3: Progress Toward Performance Indicators

FY2018 FY2018 FY2018 FY2018

Q1

achievement

Q2

achievement

Q3

achievement

Q4

achievement

1 Prevalence of stunted (HAZ < -2) children under five years of age [ZOI-level] NA - - - - NA

2Prevalence of poverty: Percent of people living on less than $1.90/day 2011 PPP [ZOI-

level] NA - - - - NA

3Number households with a sustained increase of at least $125 in annual income from

agricultural export commodities (Contractual)NA - - - - NA

4Number of individuals participating in USG food security programs [IM-level (GFSS #

49)] 5,000 0

5At least 2,000 additional seasonal worker positions created compared to the baseline

year) (Contractual)NA 0 0 243 243

6Number of farmers with an estimated 30% increase in agricultural productivity of

export crops (Contractual/modified)NA - - - - NA

7Number of individuals who have received USG-supported short-term agricultural

sector productivity or food security training (EG 3.2.1) (*)5,000 0 96 310 397

8aNumber of individuals in the agriculture system who have applied improved

management practices or technologies with USG assistance [IM-level] (GFSS #11)5,000 0 0 420 - 420

8bNumber of farmers or other value chain actors implementing climate-smart practices

(EG.11-1) (Already integrated into Indicator 9. Will be disaggregated)5,000 0 0 0 - 0

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

IR1: Improved agriculture livelihoods among targeted households

N° Performance Indicator FY2018

targets

FY2018

Achieved to

date

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.


FY2018 FY2018 FY2018 FY2018

Q1

achievement

Q2

achievement

Q3

achievement

Q4

achievement

10 Number of containers of specialty coffee exported per year (Contractual) 10 0 0 6 6

11 Value of annual sales of farms and firms receiving USG assistance [IM-level] (GFSS #15) $1,800,000 0 0 0 0

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 (*)

60 0 7 54 61

13 Number of MIS in place in South Kivu covering the three target value chains (Custom) 1 0 0 0 0

Volume of targeted crops processed by food processors and wet mills (Custom) 453 0 0 0 NA

Green Coffee (in metric tons) 324 NA NA NA NA

Nutritional Crops (Soy in metric tons) 17 0 0 0 NA

15Volume of targeted crops treated or stored at aggregation centers (sorting, grading,

drying, bagging, storage); % increase over baseline (Custom)NA NA

16Number of Agricultural Borrowers receiving credit (under the DCA guarantee or not)

(Custom). 10 0 21 4 25

17Total agriculture-related financing accessed as a result of USG assistance [IM-

level] (GFSS 12)$300,000 0 $864,000 $211,000 0 $1,075,000

18Number (and value) of public-private partnerships formed as a result of USG assistance

(EG.3.2-5)3 0 0 2 2

Sub-IR 2.3: Improved access to finance

14

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

Sub-IR 2.1: Improved market linkages and information systems

N° Performance Indicator FY2018

targets

FY2018

Achieved to

date


FY2018 FY2018 FY2018 FY2018

Q1 achievement

Q2 achievement

Q3 achievement

Q4 achievement

19Number of farmer cooperatives that operate on a sustainable basis and are perceived by at

least 75% of their members as providing valued benefits (Custom, contractual)NA - - - - NA

20

Number of farmer or value chain associations or organizations practicing successful

conflict resolution practices, including functioning systems of internal recourse and

linkages to existing community Peace Committees (Contractual)NA - - - - NA

21Number of organizations with increased performance improvement scores [IM-level] (GFSS 48)

NA - - - - NA

22Perception by male and female famers and traders of increased ease of transport

(decreased time spent, decreased costs, etc.)5% - - - - NA

23Number of civil society organizations receiving USG assistance engaged in advocacy

interventions (DR.4.2-2)10 0 0 0 0

24Prevalence of children 6-23 months receiving a minimum acceptable diet [ZOI-level] (context)

NA - - - - NA

25Prevalence of women of reproductive age consuming a diet of minimum diversity [ZOI-level] (context)

NA - - - - NA

26Number of farmer or value chain associations, organizations, and/or businesses that

implement nutrition behavior change communication interventions (Custom)0 - - - - NA

27 Number of people with nutrition messages disseminated (FH/DFSA) (*) 5,000 0 0 0 0

28Number of actors including farmers, farmer associations, organizations, cooperatives, and

businesses engaged in the production and/or marketing of nutritional products (Custom)10 0 0 0 0

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

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

IR3: Improved uptake of essential nutrition behaviors and services

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

N° Performance Indicator FY2018 targets

FY2018 Achieved to

date


FY2018 FY2018 FY2018 FY2018

Q1 achievement

Q2 achievement

Q3 achievement

Q4 achievement

29Abbreviated Women's Empowerment in Agriculture Index (A-WEAI) Score [ZOI-level] (GFSS #8)

NA - - - - NA

30Percentage of female participants in USG-assisted programs designed to increase access to

productive economic resources [IM-level] (GFSS #44)10% NA

31Percentage of women in leadership positions within targeted producer associations,

cooperatives, and businesses (Contractual)30% 0 0 22% 22%

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

5

7

8a

8b

9

This indicator counts all types of employment held during the reporting year in agriculture or rural-related enterprises that were created with U.S. Government assistance. Although

we are not required to report on this indicator in Year 1 (FY18), there are already seasonal worker positions that were created in this first year. This is particularly 243 seasonal jobs

created through the 9 washing stations supported by SVC.

This season the following three management practices were introduced to SVC supported wet mills by training and follow up coaching: (a) Coffee processing and quality techniques

(cherry sorting, fermentation time, time of washing, height of beans on sorting and drying tables, regular turning, use of shade net during heat of day, use of nylex during rains and at

night, waste water management etc). Wet mill staff including casual labourers have been counted towards the number of individuals adopted. 4 clients adopted (351 individuals). (b)

Bookkeeping (a set of bookkeeping books was provided to SVC clients along with instructions how to use them. Cooperative leaders, wet mill staff and buying agents of stations

using these tools have been counted towards the number of individuals adopted. 5 clients adopted (96 individuals). (c) Daily lot seperation (Wet mill staff have been trained on a

daily lot seperation protocol by WCR expert which the quality advisor follow up on the adoption at washing station clients). 6 clients (43 individuals). If we take out any double

counted individuals in the above three practices we count 420 individuals adopting an SVC promoted management practice/technique

In Q2, 96 inviduals were trained in total, including 36 in bookkeeping, 35 in good governance of a cooperative, 35 in coffee quality and proccesing and 46 in cupping. In Q3, SVC

trained 310 people, including 70 individuals in bookkeeping, 51 soybean and beans producers in entrepreneurship and business, and 82 in post harvest handling.

Could not be undertaken before productivity trainings start

The figures are not known at moment. According to our AMELP, this indicator will be captured through the Best Practice Adoption Survey scheduled in August/September 2018.

Cross-Cutting IR: Conflict Prevention and Mitigation

N° Performance Indicator FY2018 targets

FY2018 Achieved to

date


Notes (continued)

10

11

12

13

14

16

17

18

23

27

28

30

31

32

In Q2, 4 coffee cooperatives received loans: KACCO, RWH, SOCPACDI and Muungano. In Q3, 19 agricultural loans have been granted under the DCA guarantee by FINCA (8

agricultural loans of which 5 had been disbursed) and EQUITY BANK (11 agricultural loans of which 8 had been disbursed). Note that the official reporting of the DCA guarantee is

done every 30th June and 31st of December of each year, therefore the figures since 31/12/17 are not completely updated by the banks and are not yet validated by USAID. Apart

from agricultural loans under DCA guarantee, 2 working capital loans were given to 2 coffee cooperatives supported by SVC: Umoja and Tumaini cooperative who received

respectively from Café Lac under a pre-financing contract brokered by SVC.

In Q2, KACCO's loan application was approved by ProCredit for $200,000. RWH received $75,000 and SOPACDI $74,000. Muungano received $300,000 from FEFISOL and

$215,000 from ROOT CAPITAL. Regarding Q3, as of June 30, FINCA disbursed $21,500 as agricultural loans under DCA guarantee, and EQUITY BANK $155,500. This gives a

total of $177,000. The other 2 loans from Café Lac under a pre-financing contract brokered by SVC are as follows: $25,000 to Umoja Cooperative and $29,000 to Tumaini

Cooperative, what gives a total of $34,000.

3 conflict scan analyses are scheduled in Q4

Two PPPs have been developed Ets BISHWEKA VANNY & Societe Olive.

The delay in recruiting the Trade and Policy Specialist meant that activities under this sub-result only started in June 2018. A full update will be provided during Q4 reporting.

Dissemination of nutrition messages is planned for Q4.

Planned for Q4

To be tracked at end of Q4

This figure is that of the 6 coffee cooperatives supported by SVC. An updated will be provided in Q4 once the POSA final report is released.

To be captured end of Q4

As the season has just ended and coffee is not yet exported, the number of containers is not yet known. While this is an industry targets for all mills in South Kivu, looking at this

year’s production for SVC supported clients alone we expect around 6 containers to be exported between July-November. For other washing stations, data will be collected during

Q4.

To date, the 6 containers of coffee from the cooperatives that SVC is supporting are in Goma waiting to be sold. Information about value of sales can’t be provided at this stage. Will

be reported end of Q4 once we get ONC records.

In Q2, we supported 6 coffee cooperatives and 1 women organization (IFCCA). In Q3, SVC has been supporting 54 organizations (inputs suppliers, concessionaires, etc) in food

security-related organization development.

No market information system has been put in place so far, but this activity is scheduled for Q4.


8.4: PROGRESS TOWARDS FY 18 ANNUAL WORKPLAN ACTIVITIES

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

Key Activities and Deliverables Status Value chain actors mapped, and trade flows benchmarked using a participatory process in each target territory, and broad PPP opportunities identified (including PPPs facilitating women and youth access to productive resources)

In progress

Facilitating measurement and documentation of strengthened and improved agricultural market systems In progress PEA findings incorporated into SVC technical approaches, including the identification or refinement of key intervention points, enabling environment factors, etc., contributing to improved program implementation

Accomplished

An Input Supply strategy developed, and one PICS input supplier identified and linked to access to finance, contributing to improved access to agricultural inputs

In progress

At least one input service provider enterprise run by a woman will be supported Not accomplished

In collaboration with the DFAPS, FFS fertilization trials will be implemented with bean and soy cooperatives

Not accomplished

Site specific soil fertility recommendations developed and a series of “best bet” soil fertility packages and cost analyses developed for dissemination to value chain stakeholders, including relevant packages for women and youth farmers, contributing to improved demand for and access to agricultural inputs;

Not accomplished

Six cooperatives or farmers associations strengthened, and business plans developed (A2F), contributing to the development of women cooperative leaders, and to the number of cooperatives operating on a sustainable basis

In progress

Short soy-processing value chain developed, and marketing campaign launched, increasing access to nutritious foods in target zones.

In progress

Ten cooperatives or producer associations assessed using a common tool (Q2) Accomplished Six cooperatives or producer associations receive BDS/business modeling mentoring and coaching

In progress


Key Activities and Deliverables Status Six cooperatives and/or associations (two in each of the three territories) develop bankable business plans and are linked to buyers, microfinance institutions (MFIs) or DCA partners

In progress

A commercial network on PICS bags created; one PICS bag wholesaler (woman) and nine local retailers (youth) supported

In progress

An MIS business model developed with youth, producers, and traders In progress A short value chain targeting local consumption of healthy and nutritious soy and bean products developed in three target zones (in collaboration with DFAPs, PROSANI+)

In progress

Affordable soy and bean processing services and equipment is locally available, saving women time and increasing household access to soy products

In progress

Opportunities for regional soy and bean exports are documented and evaluated In progress A study and comprehensive action plan developed with local partners to increase local demand for soy and soy products (IITA, IKYA, UPSKY, FAO, WFP, Centre Olame)

In progress

A local marketing campaign is designed and piloted (BDS) Not accomplished

New soy products are developed, and increased soy sold because of the marketing campaign Not accomplished

At least five (5) contracts with Bukavu-based supermarkets and/or restaurants/hotels, and three (3) pilots with public and private buyers, such as hospitals, schools, and health organizations

In progress

Concessionaire mapping, identification and PPP purpose Accomplished One or two land use business models developed, with three business-plans In progress Cross border feasibility action plan In progress Two workshops on coffee, soy and bean cross border opportunities Accomplished


COMPONENT 2: ENHANCE COFFEE PRODUCTION

Key Activities and Deliverables Status Coffee production and wet mill actors mapped, and trade flows benchmarked using a participatory process in each target territory, and broad PPP opportunities identified (including PPPs for wet mill production and rehabilitation, and PPP opportunities facilitating women and youth access to the coffee value chain);

Accomplished

Soil and leaf analysis conducted, and results shared with coffee sector group Q4 Site specific soil fertility recommendations developed, and soil fertility packages developed for dissemination to coffee value chain stakeholders, facilitating increases in agricultural productivity and incomes

Q4

A Coffee Sector Working Group established, and a strategy developed Q4 Organic vs. Non-organic coffee certification discussions with ONC, UCB, and INERA Q4 15 on-farm demonstration trial sites selected and planted (50% involving women farmers, or husband and wife teams

Accomplished

Hire an agronomy team, the wet mill team, a research coordinator and 20 Farmer Trainers Accomplished Needs assessment and Best Practice Survey conducted Q4 5,000 farmers enrolled in the Coffee Farm College and receiving monthly agronomy trainings (30% women)

In progress

Seven wet mills evaluated and receiving BDS services Accomplished 2018 Saveur de Kivu implemented, resulting in increased coffee sales and investment linkages made compared to 2017

Accomplished

Congo Coffee Lexicon released Accomplished Areas of greatest need for future wet mills identified Accomplished Wet mill role models identified; seven wet mills assessed and supported during 2018 wet mill season, receiving technical advisory services on: quality control; financial transparency, efficiency and cost control; youth engagement, and women’s empowerment; conflict mitigation; sustainability and eco-friendly, cost effective coffee processing techniques

Accomplished

A small lot coffee testing protocol developed with target wet mills Accomplished


Key Activities and Deliverables Status Cooperative cuppers identified and trained at each wet mill Accomplished At least 15 coffee cooperatives or agro-businesses will participate in marketing events in Bukavu, Goma, and Kinshasa, such as International Coffee Day, the Amani Festival, and other public events, and Kivu coffee will be marketed, branded, and sold throughout the region.

Accomplished

CROSS CUTTING COMPONENT 3: DEVELOP AND IMPLEMENT PUBLIC-PRIVATE PARTNERSHIPS

Key Activity and Deliverable Status The development of three PPP MOUs related to target value chain development (at least one in each In progress value chain

CROSS CUTTING COMPONENT 4: ENHANCE ACCESS TOCOMMERCIAL FINANCE INCLUDING THROUGH TECHNICAL ASSISTANCE TO IMPLEMENT DEVELOPMENT CREDIT AUTHORITY (DCA) AGREEMENTS

Key Activities and Deliverables Status 15 agriculture-related loans disbursed under the DCA guarantee Accomplished $300,000 disbursed in agriculture-related loans under the DCA guarantee Accomplished 9 business plans prepared for priority value chain stakeholders Accomplished Training partner bank key staff on DCA rules (one series of four (4) workshops – Bukavu and Goma, for FINCA and ProCredit separately; loan officers and credit decision makers, credit committee members)

Accomplished

Providing training and informational materials on the needs of agribusiness borrowers (especially women and youth) in the target agriculture value chains (initially four (4) workshops with ongoing TA), and conducting SBCC on gender equality and youth inclusiveness modules (in conjunction with Component 5)

In progress

Supporting banks to conduct or participate in access to finance workshops with target agribusinesses (three (3) access to finance workshops/year), and Facilitating banks’ connections with potential value chain clients and analysis of agribusiness loan requests (building up the loan pipeline; on going as part of SVC TA), with a focus on women and youth value chain clients and actors

In progress


CONFLICT SENSITIVITY AND RESILIENCE

Key Activities and Deliverables Status

All SVC staff trained in conflict sensitivity, mitigation, transformation, and resilience Accomplished SFCG will conduct a conflict scan that covers the three territories targeted by the project in Year 1 Not accomplished Locally specific conflict drivers are identified and the results of the PEA and the Gender Social Inclusion and Conflict Mitigation Assessment are incorporated into SVC activities

Achieved

The SBCC/Conflict Mitigation Coordinator will develop a training curriculum and deliver a training on conflict management and mitigation, sexual and gender-based conflict, effective communication, and the basics of mediation to 3 value chain Cooperative Groups and 20 Cooperatives

Not accomplished

Conflict mitigation messages developed and disseminated, leveraging SFCG’s network of community radio stations and TEPs

In progress

SFCG will hold 2 TEPs in the first year in each of the three targeted territories In progress Beginning mid-year (March 2018) SFCG will commence by producing two radio debates/programs per month that will highlight sensitive issues in the targeted value chains, as well as women and youth inclusion. During off weeks each month SFCG will arrange broadcast of complimentary episodes that are being produced as part of the DFAP project

In progress

SFCG’s participatory theater team will conduct three participatory theater sessions in each of the three territories

In progress

Increased dialogue between cooperative leaders and members, and public and private sector stakeholders in target value chains.

Not accomplished

GENDER EQUITY, WOMEN’S EMPOWERMENT, SOCIAL INCLUSION, AND YOUTH ENGAGEMENT

Key Activities and Deliverables Status All SVC staff and partners trained in gender equity, women’s empowerment, youth engagement, and social inclusion, and performance evaluations linked to gender results

Accomplished

Creation of a Gender and Youth Consultative Group to adapt, pilot, and monitor the implementation of existing SBCC tools on gender equality and youth inclusion across the SVC portfolio

Accomplished


Key Activities and Deliverables Status Development of a youth internship program, with 50% young women and 50% young men, with both administrative and technical opportunities and exposure (collaboration with IITA, Young African Leaders Initiative graduates)

Accomplished

All training modules used by the Activity include SBCC modules on gender equity, women’s empowerment, social inclusion, youth engagement, and leadership (with DFAPS).

In progress

Strengthening the capacity of women’s producer associations/cooperatives, with an emphasis on support to the Women in Coffee Collective, Women Rebuild Hope and other similar groups. • Promote women’s leadership in cooperatives, • Collaborate with the International Women in Coffee platform • Promote women helping women, • Create new marketing models and outlets for women’s cooperative products, and • New opportunities for emerging young women leaders

In progress

SBCC modules will include components on women and youth enhanced decision-making and control over resources and income, to improve gender equality, and promote enhanced participation of women and youth in SVC training, technical support, and policy discussions

In progress

Use GALS on gender equality and youth inclusion to address: • The value of women’s work in the agricultural sector (with a focus on coffee, soy, and beans). • Intra-household, cooperative and farmer organization decision-making about production,

transformation, marketing, storage (including land use, credit) in the 3 value chains. • Intra-household, cooperative and farmer organization decision-making on income use at the household

level. • Discriminatory customary land tenure and inheritance practices. • Time use concerning domestic and productive tasks.

In progress

Identification of women and men champions in nutrition value chains to serve as role models (with PROSANI+/IHP);

Not accomplished

Joint gender and youth communication campaigns designed and implemented in all target territories in collaboration with USAID IPs, local and traditional authorities, and other local development partners

Not accomplished


Key Activities and Deliverables Status Facilitating the creation of and support to coffee and soy clubs with young people to promote cultivation, consumption, and income-generation of/from coffee and soybeans and developing a space for peaceful dialogue. Within this context, creation of a young coffee and soy ambassador competition (with Components 1&2).

Not accomplished

30% of all Y1 SVC direct beneficiaries will be women and youth In progress Enhanced productive and leadership capacity of members of the Women in Coffee and other similar associations/cooperatives.

In progress


8.5: Financial Status The Activity expended $946,988 in Q3 of FY18, incurring a total of $3,677,997 in Life of Activity (LOA) project costs as of June 30, 2018. LOA expenditures represent 16% of the total budget, which was expended over 21.7% of project life (13 months out of 60), and 30% of the current obligation of $12,140,963. The Activity submitted the Activity Monitoring Evaluation and Learning Plan (AMELP) this quarter, which will be charged in the next quarter contingent upon approval. Please find a table summarizing expenditures by contract budget category below. Table 3. Contract Expenditures through June 30, 2018

Category Contract BudgetExpenditures

through March 2018

Expenditures Q3 FY18

Total Expenditures

Percent Expensed

Labor 4,645,382$ 552,167$ 202,150$ 754,317$ 16%S ubcontracts 10,549,037$ 878,373$ 364,253$ 1,242,626$ 12%Allowances 583,430$ 52,230$ 49,358$ 101,588$ 17%Other Direct Cos ts 3,271,580$ 575,312$ 215,306$ 790,617$ 24%Overhead 2,642,107$ 308,510$ 115,921$ 424,431$ 16%Total Estimated Costs 21,691,536$ 2,366,591$ 946,988$ 3,313,579$ 15%F ixed Fee 1,301,493$ 364,418$ -$ 364,418$ 28%TOTALCONTRACT COSTS 22,993,029$ 2,731,009$ 946,988$ 3,677,997$ 16%

Feed the Future DRC Strengthening Value Chains ActivityFY18 Q3 Financial Report

CONTRACT EXPENDITURES through J une 30, 2018

CONTRACT No. AID-660-C-17-00003

U.S. Agency for International Development

Democratic Republic of the Congo Economic Growth Office

198 Isiro Avenue Kinshasa/Gombe

Democratic Republic of the Congo

Documents

FEED THE FUTURE DEMOCRATIC REPUBLIC OF THE CONGO