Conflict Affected States in Africa

IFC, a member of the World Bank Group, is providing immediate assistance, and long-term support, to fragile and conflict affected African countries to help them rebuild their private sectors, increase stability, reduce poverty, and put their populations back to work.

IFC’s Conflict Affected States in Africa (CASA) initiative, launched in 2008, is a five-year program that will help design and implement integrated strategies specially targeted to support economic recovery in conflict affected countries.

IFC’s CASA Program focuses on:

• Improving the business environment through regulatory reform
• Strengthening small and medium sized businesses and support institutions, such as chambers of commerce
• Rebuilding financial markets, banks and other financial institutions
• Increasing private sector involvement in providing and rebuilding infrastructure such as roads, ports, schools, and power stations

Special Needs of Conflict Affected Countries

The terrible combination of poverty and conflict has devastated many countries in Africa. Prolonged conflict can leave economies without infrastructure, collapse legal and regulatory structures, and cause mass unemployment. The aftermath of war can also leave tens of thousands of ex-combatants dangerously idle.

Although most countries enjoy a quick upturn as basic economic activity resumes following the end of hostilities, sustaining long-term growth often proves problematic. Economies recovering from conflict can suffer from:

• Lack of government institutional capacity
• Weak and balkanized business associations
• High levels of corruption and a climate of mistrust
• High levels of informality
• Marginalization of small domestic firms
• Lack of basic infrastructure
• Deterioration of financial services
• Loss of markets

IFC’s CASA Program draws on all of IFC’s resources and expertise to develop both immediate and long-term holistic solutions to help speed private sector growth and stability.

IFC is working with a number of donor partners and private and public stakeholders to help bring opportunity to countries that need it most. The CASA Program is designed to engage with these countries quickly, and to provide long-term private sector development support.


Where is IFC’s CASA Program Active?

The program has begun work in some of the world’s most challenging countries, where war has destroyed businesses and brought grinding poverty to the population. Initial priority countries are:


Central Africa Republic (CAR)
Ranked 180 of 181 countries in the World Bank’s 2009 Doing Business Report

Landlocked and heavily dependent on aid, CAR is one of the poorest countries in the world. CAR has a long history of coups and revolts and a weakly-developed private sector. IFC is working in the capital, Bangui, to support the investment climate through public-private dialogue processes, and to help foster the growth of small and medium sized enterprises (SMEs).

Democratic Republic of Congo
Ranked 181 of 181 countries in the World Bank’s 2009 Doing Business Report

The Second Congo War, which erupted in 1998, is the deadliest conflict since World War II, killing more than 5 million people, and devastating DRC’s economy. Fighting continues to this day. Poverty, famine, and disease are widespread in the country. IFC is working to improve DRC’s investment climate, unlock the growth potential of agribusiness, oil, gas & mining, and other sectors, and support the growth of SMEs

Liberia
Ranked 157 of 181 countries in the World Bank’s 2009 Doing Business Report

Years of violence have ruined Liberia’s infrastructure and caused widespread poverty. The conclusion of long-running civil wars in 2003 has ushered in an era of hope and democracy in the country, where Africa’s first elected female head of state is leading major reform efforts. IFC is working to improve the investment climate, support SMEs, and the development of the important tree crops sector.

Sierra Leone
Ranked 156 of 181 countries in the World Bank’s 2009 Doing Business Report

Sierra Leone was convulsed by a 10-year civil war that ended in 2001. The country still faces widespread unemployment and poverty, but confidence is rising along with stability. IFC is supporting improvements to Sierra Leone’s investment climate, including tax simplification and investment promotion, helping the development of SMEs, as well as leasing and private schools programs.


CASA Program donors:

IFC, Ireland, Netherlands, Norway