ARC International

1
ARC International

• ARC International Two Case Studies
• Country Background-Conflict and Context
• Guinea IGP Programs in Refugee Camps
• Income Generation Program (IGP) Goals
• Descriptions of IGP Products- The Three Step
  Program
• IGP Program Results Statistics and Anecdotes
• Challenges for an IGP/MED Program within the
  camps
• Sierra Leone The Development of Post Conflict
  MED and BDS
• MED/MFI Program Goals and Descriptions
• Linking MFI with IGP and Business Development
  Services Programs
• IGP and sustainable BDS in Post-Conflict
  Situations
• DevTrain
• Lessons Learned-IGP and BDS in Refugee and
  Post-Conflict Situations
• New Directions

2
Background Conflict and Context
Mano River Basin

• POPULATIONS
• Large Sierra Leonean and Liberian refugee
  populations have been in Guinea since 1997.
• The Liberian conflict began in 1989 and has
  continued with only minor interruption until
  today
• Conflict in Sierra Leone began two years later,
  and officially ended in 2001
• Over 100,000 are currently estimated in camps and
  urban areas.
• In the past, numbers have reached an estimated
  200,000
• There are fluid borders and close language,
  family, tribal and economic ties between Sierra
  Leone, Guinea and Liberia
• RECENT MOVEMENTS
• Attacks on the camps and towns along Sierra
  Leonean and Liberian borders in early fall 2000
  caused large scale camp and refugee relocation
• Created a hugely vulnerable host and refugee
  population.
• Refugees were subjected to violence and loss in
  the country of refuge
• Towns and camps on both sides of the border were
  looted and destroyed
• The population remains unable to recover quickly
• SECURITY
• The security in Sierra Leone is improving and
  organized repatriation for the willing from
  Guinea began in the winter of 2003. Over 24,0000
  have already returned.
• Liberian refugees are watching with hope as the
  situation in Monrovia stabilizes.
• Areas outside of the capital remain highly
  unstable
• Humanitarian Assistance is not at full capacity
• Assisted Repatriation is not open for Liberians,
  nor are the refugees self-repatriating

3
MED in Conflict, Refugee, and Post Conflict
Environments

• Goal rebuild productive lives of
  conflict-affected populations
• General Program Areas
• Micro-finance and Micro-credit in refugee camps
  and post-conflict environments
• Start-up grants and business training to refugees
  and returnees
• Sustainable business training
• Savings and literacy programs
• Facilitating markets (building infrastructure,
  connecting buyers and sellers)

4
American Refugee CommitteeGUINEA
ARC (American Refugee Committee) has been working
in Guinea with the refugee population since 1997
with programs in 7 major sectors Curative Heath,
Community Heath, Reproductive Heath, Gender Based
Violence Prevention Programs, HIV Prevention and
Income Generation Programs
5
ARC IGP Program Goals
Improve the economic self-sufficiency of the
refugee population, with a focus on women. We
work to provide choices, dignity and
self-empowerment.
Main Market Area, Laine Refugee Camp, Guinea
Main Market, Laine Camp

• Offer camp-based and peri-urban refugee
  populations in the forest and languet regions
• Start-Up contingent and Artesianal Training
  grants
• Micro-credit products
• Small Business Development Services and
  micro-enterprise training
• Market development, advocacy and support.
• Individual follow-up with ARC IGP camp based
  field staff
• Enable clients are able to carry their credit
  history with them after repatriation
• Directly refer clients and transfer their credit
  history details to the ARC IGP/MED program in
  their home country
• Assure Loan Completion Certificates are
  recognized by other NGOs both in the home and
  host country
• Providing micro-enterprise support both in the
  country of refuge and at home, ARC IGP enables
  clients to build for their future by improving
  their present, thereby reducing their
  vulnerability and combating dependency.

6
The Three Step- Program
7
Start-Up Grant

• The Start-Up Grant newly arrived vulnerable
  refugee women in self-formed groups of 2-3
• Begin a small business and generate a small daily
  income
• Have a consistent activity with peers
• No risk to loan capital and no pressure of
  repayment.
• All clients attend a full day Business Training
  Workshop on Planning, Record Keeping and
  Management designed for non-literates before
  disbursement of initial Grant amount
• Duration of 4 months with two disbursement phases
  of approximately 25.00 USD
• Close (twice-weekly) field staff monitoring
  re-enforces workshop principals and address
  clients problems
• Successful clients may enlarge with additional
  members and apply for a Basic Loan

Voyee Scott, Table Market, Laine Camp, Start-Up
Grant Client, BEA Emmanuel Obanya
8
Basic Loan

• The Basic Loan registered refugees in self-
  formed groups of 5-7
• Begin or grow a small, sustainable business and
  generate a daily income to augment the food
  ration
• Prepare clients to run their business for the
  longer-term
• All clients attend the full-day workshop
• The loan term is 6 months, amounts generally do
  not exceed 65.00 USD per client
• No interest or fees are charged
• All clients attend monthly training workshop on
  Good Business Practices, Problem Solving, Record
  Keeping for non-literates, Business Planning and
  other business development topics
• After successful repayment, clients are eligible
  to apply for an Advanced Loan

Mary Segrian, Table Market, Laine Camp, Start-Up
Grant client, BEA Joseph Kehzie Sr.
9
The Advanced Loan

• The Advanced Loan Successful Basic Loan clients
  in self-formed groups of 3-4
• Expand businesses begun with a Basic Loan start
  another business when pervious Basic Loan group
  members have resettled or repatriated.
• All clients attend an Advanced Business Planning
  Workshop
• The amount does not generally exceed 100.00 USD
  per client, but is flexible and the loan term can
  be 4 or 6 months, depending on the business needs
• All clients attend monthly training workshops to
  reinforce record keeping and planning skills
• A 5 interest change is factored on the principal
  to prepare clients to enter a MFI or more
  sustainable system upon return (such as the ARC
  Sierra Leone MFI Finance Salone)

Mattina Swaray, Lappa (cloth) Seller, Loan
Client, Laine Camp,
10
Program Results
Krubo Yamah, Table Market, Laine Camp, Loan Client

• 100 of clients who participated in the final
  Start-Up Grant disbursement became eligible for
  the second phase of the grant
• 70 of Start-Up Grant clients were able to move
  out of communal tents and into individual
  shelters sooner than their peers
• 98 of Sierra Leonean clients completed full
  loan repayment successfully, despite UNHCR
  assisted repatriation and IGP program close out
• 95 of former clients express a desire to seek
  micro-credit services in their home county upon
  repatriation
• 97 of Sierra Leonean clients who competed their
  loan repayment will continue their businesses
  either in the camps or home country

• Clients assisted from September 2001- July 2003
• Grants (Start-Up and Activity) 3,370
• Loans (Basic and Advanced) 5,386
• Female Clients 83
• Repayment rates
• Kissidougou Sept. 20012002 98
• N'zerekore Oct. 2002July 2003 94
• Arrears Rates
• Kissidougou Sept. 2001 2002 3
• N'zerekore Oct. 2002 July 2003 .4
• Clients moving up the steps
• 58 of Start-Up Grant clients receive a Basic
  Loan
• 70 of Basic Loan clients receive an Advanced
  Loan
• 100 of Advanced Loan clients complete repayment

11
During the Exit Interview, we ask our clients if
and why they felt they were successful

• GOOGEILA GROUP.
• we use each month profit to expand or
  establish another sub-businessesfor example, the
  first two months the 400,000 we realized we
  established a used clothes business and a loan
  club susu controlled by group secretary
  another member. Then the third month we realized
  200,000 and established table market-controlled
  by group head treasurer. These sub-businesses
  in turn pay interest to our group business, as
  in, every 5,000 they will get in these
  businesses, we get 600.
• CONFIDANT KEROSENE GROUP
• Your loan has not only help us make money to
  sustain us and our families, but most important
  showed taught us some real business techniques
  says Hawa Johnson
• BENGOMA LAPPA GROUP
• we dont just depend on selling clothes-lappa.
  For us we also do country-hair-plaiting in
  villages on market dayswe got this idea from
  your training in which you taught us not to
  depend one way to make money, say Massa Ma Fata

12
Challenges for camp-based IGP

• Rapid changes in the security of the region
  resulting in unforeseen population movements
• Clients mobility UNHCR Repatriation,
  Resettlement, self-repatriation
• Severe levels of vulnerability
• Dependency syndrome
• Lack of rooted community, permanent and secure
  shelter, or a sense of stability
• Conflict and economic competition with the host
  community
• Short funding cycles and the tendency for donor
  fatigue

Mamayan Jabateh, Cooked food, Laine Camp, Loan
client
13
American Refugee CommitteeSierra Leone
ARC (American Refugee Committee) has been working
in Sierra Leone with the returnee population
since 2000 with programs in 3 major sectors
Gender Based Violence Prevention Programs, HIV
Prevention and Micro-Enterprise Development and
Micro-Finance programs
14
ARC Sierra LeoneThe Development of Post Conflict
MED

• In 2001 the conflict in Sierra Leone ended,
  UNAMSIL Peace Keeping troops remained in place
  and the rebuilding of a country ravaged by 11
  years of war began.
• ARC Sierra Leone began a micro-finance program
  linked with Guinea that served returning
  refugees, IDPs and host population entrepreneurs
  with credit and business training. This program
  began five years after Guineas and was able to
  benefit from Guinea's staff and knowledge base to
  create a sustainable MFI in the country of
  return.

15
ARC Sierra LeoneLinking MFI with IGP and
Business Development Services Programs

• In addition to managing the MFI Finance Salone
  in the returnee population, ARC Sierra Leone will
  begin working with the camp and settlement based
  refugee population
• Sierra Leone has a refugee population of
  Liberians, who have been in settlements and camps
  along the border area since the conflict ended in
  2001.
• ARC Sierra Leone is launching a IGP/BDS program
  based on the Guinea program three-step model to
  address the need of this population
• We will begin using the Making Cents curriculum
  in the settlements in conjunction with IGP
  programs
• The use of best practice BDS to re-enforce IGP
  activities will test sustainability strategies
• We hope to determine whether training can be
  offered for a fee in the camps by refugee
  trainers (unlikely), or can be offered in Liberia
  by refugee trainers when they return

16
DevTrain Program
Recently has ARC Sierra Leone has started to look
at BDS as a program area in its own right Working
with the returnee population the DevTrain program
works to adapt BDS best practices to the
post-conflict environment

• In partnership with Making Cents, ARC developed a
  program to create a sustainable business training
  market in Sierra Leone
• 100 trainers of at least 25 different
  organizations (private and public) will be
  trained on the Making Cents curriculum and will
  offer the training on a fee-for-service basis in
  the capital, a regional center and a relief area.
• ARC and Making Cents will accompany the TOT with
  marketing training and general awareness raising
  activities to spur demand
• The program aims to reach 15,000 entrepreneurs
  with cost recovery services
• A proposal has been submitted to AID (BDS IGP),
  if unsuccessful, alternative funding will be
  sought from UNDP

17
Lessons LearnedIGP and BDS in Refugee and
Post-Conflict Situations

• Camp-Based IGP/MED
• Self-motivated, self-formed groups and smaller
  loan sizes
• Various products to serve different levels of
  vulnerability
• Large gender-balanced field staff to provide
  close client follow-up and support
• Sufficient Monitoring and Evaluation procedures
  and staff to protect a vulnerable population
• Decentralized, non-field based decision making to
  reduce the possibility of client exploitation
• Transparent, clear and well monitored application
  procedures
• Close collaboration with the many other
  implementing partners to avoid duplication
• Policies must be in place to deal with the camp
  context
• Frequent client replacement within the groups
• Sudden population movements transfers forced
  relocation, spontaneous repatriation, new
  arrivals
• Frequent change of businesses
• Death / Serious illness

• Sustainable BDS/MFI
• Although a lending component may work well, it is
  crucial to have a training component of quality
  in a severely economically stressed environment
• Cost recovery of training services is difficult
  in a camp setting, but should be possible in a
  post-conflict setting with sufficient attention
  to program design, service quality and value and
  staffing
• When implementing a sustainable or fee-based
  program within a returnee/refugee context, the
  breaking of the cycle of dependence must be
  designed into the program.
• For refugees, sustainability can be thought of in
  terms of their return skills, credit history,
  relationships can be transferred to return
  context.

18
New Directions

• USAID RESTOR Project, Guinea
• In partnership with Plan Guinea. Post-Conflict
  Reconstruction
• Languet border area, devastated by the 2001
  attacks.
• Small agricultural and economic grants to
  entrepreneurs and farmers with Business Training
  and support. Community identified recipients
• Grants are used to re-start lost businesses and
  increase families ability to exploit their
  destroyed fields.
• Working with local artisans to place
  ex-combatants seeded, but sustainable, apprentice
  programs based on existing local customs
• Refugee to Return, West Africa Region