United Nations Capital Development Fund

1999 Project Evaluation Results
Prepared by the UNCDF Evaluation Unit

Central African Republic

I. Basic Project Data

Project Number:	CAF/91/C01
Type of Evaluation:	Final
Project Title:	Support for Village Self-Help Development Activities
UN Cooperating Agency:	UN Department of Economic and Social Affairs
Government Executing Agency:	Ministry for the Advancement of Women and National Solidarity
Sector:	Social conditions and rural development
Date Project Approved:	November 1992
Date Project Began:	1993 (amended in January 1996)
Date Project Evaluated:	September/October 1999
UNCDF Budget:	US$ 2,408,868
UNDP Budget:	1,437,362
Government Budget:	267,180
Beneficiaries:	136,480
Total Budget:	4,249,890
UNCDF Expenditures at Evaluation:	1,652,140

II. Background

The Central African Republic, a landlocked country in Central Africa, possesses a wealth of diverse natural resources (diamonds, cotton, coffee, wood, tobacco) which are the country’s main export commodities. Manioc is the main food crop, and stock-raising, fishing and hunting are important traditional activities. However, due to several impeding factors, such as the country’s landlocked position, internal communications difficulties, the low population density and the geographical dispersion of the population, the country has not been able to capitalize fully on its potential. In addition, the performance of the major social indicators has been poor. Out of a total of 160 countries ranked by the Human Development Index, the country ranked 142 in 1990 and 144 in 1991.

This deteriorating situation led the Government to embark upon the implementation of development strategies emphasizing human development. In the context of its economic and social development plan (1986-1990), the Government has spelled out the priorities for national planning to the year 2000. These include (i) guaranteeing food security; (ii) improving the health conditions of the population, particularly women and children, and sharply reducing infant mortality; (iii) increasing the degree of participation and the responsibility of the population for grassroots development activities in both urban and rural areas; (iv) increasing social and economic investment in villages and neighbourhoods.

The present project was formulated in support of the Government’s national plan. It covers two non-contiguous areas that differ significantly in terms of socio-economic conditions: Ouham, situated in the northwestern part of the country, with a Sudano-Sahelian climate and a population of 230,000; and Basse-Kotto, situated in the South-East, with an equatorial climate and a population of around 220,000. Before 1992, in the two regions, the insufficient number and unsuitability of the social and health infrastructures constitute major obstacles to economic and social development; as demonstrated by a single badly dilapidated hospital in each region, great difficulty in obtaining medicines and villages without any healthcare facility or services. Lastly, in the two regions, commercial activities were not very developed and were basically confined to the urban centers while the villages for the most part had no structure of their own for supplying everyday consumer goods. The present project is a continuation of an earlier project financed by UNCDF (CAF/82/C06 – Support for Village Self-Help Development Activities). In 1990, the final evaluation of this earlier project and the tripartite meeting that ensued noted the overall encouraging results in attaining the project’s objectives and recommended that the achievements be consolidated under the present project.

III. The Project

Development Objective

The project seeks to improve the overall living conditions of village populations through activities in basic health, income-enhancement, and advancement and integration of women in the development process.

Immediate Objectives

As revised in the amended project document, the immediate objectives are:

To promote self-help development by supporting the creation and management, by the beneficiaries themselves, of community enterprises for the improvement of living conditions in the rural and urban-fringe areas, lightening of women’s work, and generation of income that will be reinvested in new activities benefiting the community at large;
To promote job creation and income generation through the establishment of a savings and loan structure that will, in the long run, be converted into a bank; and
To promote activities specifically geared to women with the aim of lightening their workload through the creation of micro-enterprises that will be supported and supervised post-project.

Expected results

In addition to the consolidation of previous activities, the project was to attain the following results:

Operation of about 100 community enterprises managed on an autonomous basis by the beneficiaries: 34 village pharmacies with health stations; 11 ordinary pharmacies; 40 shops; 10 building materials depots; 4 millet and manioc mills; 1 regional basic drug supply centre;
Establishment in each of the two regions of a formal savings and loan structure which would within a reasonable period of time be able to cover its operating expenses and support the creation and development of individual and community micro-enterprises; and
Economic advancement of women, especially through the establishment of individual and group micro-enterprises (at least 50 per cent of loans to be made to women’s enterprises).

IV. Findings of the Evaluation Mission

Evaluation of results

Consolidation of activities under project CAF/82/C02
The 34 enterprises that were set up before 1992, which the project was intended to consolidate, are still beset by the same management problems. The failure rate for these enterprises is higher than the rate for enterprises established after 1992 (15 per cent as against 9 per cent). The internal organizational and management problems which face the structures (Village Development Committee, Women’s Group, Union, Federation) and infrastructures (Health Stations, Pharmacy, Shops, Depots) set up under the project have been identified and training and awareness-raising sessions have been held. Nevertheless, steps are still needed to ensure the sustainability of the existing achievements.

“Community enterprise” component
Between 1992 and 1998, 79 enterprises were established out of the 100 planned, including 43 health stations, 3 pharmacies, 24 shops, 5 materials depots, 1 Regional Basic Drugs Supply Centre (CRAME), 1 community granary, and 2 mills. The evaluation mission finds that 71 of these 79 enterprises are operating satisfactorily and one somewhat satisfactorily, whereas 7 are bankrupt. The health stations along with the pharmacies account for 63 per cent of the good performers, while the village shops account for 72 per cent of failures. It should be noted that the Bossangoa CRAME is one of the project’s success stories. Established in 1992 as an NGO, it is the result of the successful collaboration between the project, GTZ (Deutsche Gesellschaft für Technische Zusammenarbeit) and the regional health authorities. It is a well-run operation which is yielding good benefits. It is regrettable that the CRAME planned for Basse-Kotto prefecture has not been established. As indicated previously, measures must be taken to improve the management and internal organization of most of the community enterprises established under the project.

Micro-financing component
Between 1992 and 1996, the project management performed the function of lending agent making loans to the groups supervised by the project. During this period loans totalling 14 million CFAF were granted in the two areas covered by the project, which were used primarily to finance community-based activities. Between 1992 and 1998, 72 per cent of the total portfolio was repaid, with 28 per cent of the amount loaned outstanding. Following the technical review conducted in December 1994, the decision was taken to entrust the lending function to an independent entity, as specified in the amendment to the project document. In 1996, however, the UNDP Contracts Committee rejected the only bid tendered by an independent operator. Subsequently, UNCDF decided to suspend implementation of the micro-finance component, because not all the conditions for ensuring the satisfactory implementation of this component seemed to be met.

“Advancement of women” component
Although implementation of this component began relatively late, the project has helped to create 59 women’s groups after awareness-raising activities were carried out. These groups are active in many areas (agriculture, food processing, weaving, dyeing, sewing, soap-making, commerce, etc.) and they support the development of individual or collective enterprises. In all, 110 small-scale income-generating activities and 66 micro-enterprises were started and are managed by women. In addition, 15 groups received credit in connection with savings clubs (tombolas). While a majority of women supervised under the project were, on the whole, able to raise their incomes – the income generated in some cases was used to help finance other activities thanks to a system of “improved tombolas” – preliminary economic viability studies would no doubt have enabled the women to engage in the most profitable activities. Lastly, it is regrettable that, following the decision by UNCDF not to implement the micro-credit component, individual activities which required considerable start-up capital could not be supported.

Immediate objectives

Objective 1: The enterprises established under the project have helped bring about a tangible improvement in living conditions in the target areas by providing community-based services to the populations. Thus, as a result of the creation of health stations and village pharmacies, the inhabitants now have access to healthcare and basic drugs without having to travel long distances to urban areas. The same is true of the village shops which, when they are well run, offer the inhabitants the possibility of obtaining locally the basic necessities. It should be noted that the health stations and pharmacies also benefit the inhabitants of nearby villages. The management problems of the community enterprises nevertheless pose a threat to the sustainability of these achievements. Lastly, since the project has not specifically set about to reduce the burden of women’s work, this objective, which is very much a real concern in rural areas, has not been attained.

Objective 2: The decision by UNCDF to suspend the project’s micro-credit activities because there was no reliable outside operator has penalized and hampered the development of the two other project components. In the two areas covered by the project, the demand for micro-credit continues to be unmet, which highlights the necessity of promoting alternative financing structures that are able to provide small-scale financial intermediation by mobilizing small savings.

Objective 3: The two years’ delay in the start up of this component has had a detrimental effect on the attainment of the objective “promotion of activities specific to women”. The organization of women into women’s groups is, nevertheless, the most salient impact of this component. Before forming their group, women were already involved in some income-generating activities but only on an individual and sporadic basis. With the formation of the groups, a new dynamism has been imparted, and the supervision and training proposed have made more profitable the activities in which women engage. The formation of groups has thus genuinely unleashed women’s initiative, making them more entrepreneurial and more effective in both the economic and the social areas. The mission thus noted that in the two areas covered by the project there were now more female entrepreneurs than male.

Development objective

The project has helped to improve the living conditions in the villages in which it has been carried out through the establishment of local health stations and pharmacies. The activities undertaken have produced additional income for the beneficiaries. The establishment of women’s groups and the initiation of activities specific to women following the conduct of awareness-raising activities have helped women to undertake individual and community activities and have fostered the advancement of women.

Evaluation of the project design

The project document and the amendment thereto suffer from a number of shortcomings relating, in particular, to:

The absence of clearly defined objective and outputs for the pre-1992 activities
The fact that the Department of Social Research, Planning and Statistics of the Ministry of Social Affairs has not had a role to play in monitoring and evaluation of project activities, even though such a role is fully in keeping with its mandate
The fact that a study on promising opportunities and lines of activity was not considered to be a pre-condition for the implementation of the “Advancement of women” component, which would have made it possible to determine which kinds of activities were truly economically viable
The fact that the kind and number of activities to be undertaken and the infrastructures to be built were pre-determined, which is at odds with the participatory approach promoted by the project.

V. Recommendations of the evaluation mission

To the project management:

Active preparations for the post-project period should be made with the partner populations, their institutions and the technical services, with particular emphasis on the “Advancement of women” component.
Regular visits should be made to each enterprise and a record should be made of the status of operations for each enterprise with an indication of the solution to any problems found.
Since the health facilities have never been inspected by the regional health authorities, the project should contribute toward the costs of fuel for the visits by prefectural medical personnel. Before the conclusion of the project, the health facilities established under the project must be inspected at least once by the prefectural doctor.
During the last six months of project implementation, the National Project Coordinator should assume personal responsibility for the tasks formerly performed by the Deputy Coordinator for the “Advancement of women” component and involve the Advancement of Women Department (DGPF) and other women’s organizations, such as NGOs, in preparations for the post-project period.

To the Government:

The Government should respect its commitments with regard to the payment of the wages of the community development officers and the allotment of fuel to be provided.
The Government must also provide the human and material means to the regional and prefectural health departments so that in the post-project phase they can ensure monitoring of the health facilities established under the project and ensure involvement of the DGPF in the “Advancement of women” component.

To UNCDF:

UNCDF should make sure that during the last six months of project implementation the project management arranges for the inhabitants or the Village Development Committees to take over certain of the project’s functions and replaces motorbikes, as necessary, for the use of the community development officers
UNCDF should also authorize the project management to use monies repaid on loans prior to 1994 (currently placed in an account at UBAC) to finance project activities that have not yet been implemented

VI. Lessons learned

The participation of the population is more certain when it has been actively prepared by means of training and awareness-raising campaigns adapted to the specific conditions.
Well-trained and aware populations are receptive to micro-planning and are solid links for grassroots development.
In a traditional clan-based society, the participatory approach can bring about positive change in the organization of society, with the clan or tribe no longer being the inevitable criterion for the formation of an interest group (such as women’s groups).
In order for the community-based enterprises established in the framework of the Village Development Committee to be well managed, the functions of “owner” and “manager” must be separated and clearly assigned. The establishment of an outside management committee reporting to the Village Development Committee – which henceforth has only the function of representing the population — can be an effective means of improving the management of these enterprises.
The establishment within the Village Development Committees of legal provisions (statutes and rules of procedure) governing their operations and specifying membership fees and regular contributions strengthens the role of members and gives them permanent oversight over the management of the community enterprises.

VII. Evaluation team

The evaluation was carried out by:

Mr. Mpoyi-Bajikila Lukusa, Team Leader, UNCDF consultant
Mr. Moise Zami, UNDP national consultant
Mr. Paul Ningadama, Director of Community Development, representative of the Government