Helping Rebuild in Conflict Affected Countries

IFC is taking its expertise to some of the most testing economic environments in Africa, helping countries devastated by conflict rebuild their private sectors to create jobs and opportunity.

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

While IFC has been working in a number of conflict affected countries for many years, the new initiative will build on knowledge gained through these experiences to support more comprehensive recovery strategies.

Long-Term Growth Problematic

Because of prolonged fighting, a number of African countries today suffer from mass unemployment, collapsed legal and regulatory structures, and a weakened infrastructure. War destroys roads, bridges, and power stations, and 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.

Countries recovering from conflict often suffer from high levels of corruption, weak or non-existent business associations, a lack of financial services, and a deterioration of markets. In this difficult environment, jobs are scarce, poverty widespread.

Fragile and conflict affected economies need both immediate assistance and long-term nurturing to ensure sustained private sector growth and a return to stability.

To help countries rebuild after conflict, IFC focuses on:

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

Core to our Mission

IFC’s work in fragile and conflict affected countries is core to our mission of supporting private sector growth to help create jobs, reduce poverty, and bring opportunity.

A member of the World Bank Group, IFC is increasingly focusing its efforts in Africa on smaller economies and those with the most pressing developmental needs.

Bernard Chidzero, General Manager of IFC’s Private Enterprise Partnership for Africa, said: “IFC’s work supporting the growth of a stable private sector is critically important in countries where open and transparent markets have been compromised. The Conflict Affected States Program is designed to bring opportunity to people suffering from the one-two punch of conflict and poverty.”

The program, which is backed by IFC donor partners Ireland, Netherlands, and Norway, is beginning work in four countries, each of which presents huge difficulties – and opportunities -- for private sector growth.

The four countries are:

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

Landlocked and heavily dependent on aid, the Central African Republic 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 mainly in the capital, Bangui, to support public-private dialogue and the growth of small and medium sized enterprises (SMEs).

Democratic Republic of Congo
Ranked 181 of 181 countries in the 2009 Doing Business Report

The Second Congo War, which erupted in 1998, is the deadliest conflict since WWII, killing more than 5 million and devastating DRC’s economy. Fighting continues to this day. 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 2009 Doing Business Report

The conclusion of long-running civil wars in 2003 ushered in an era of hope and democracy in Liberia, where Africa’s first elected female head of state is strongly supporting reform. Years of violence have devastated Liberia’s infrastructure and caused widespread poverty. 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 2009 Doing Business Report

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

For more information contact:
Jason Hopps
Johannesburg, South Africa
Phone: +27 11 731 3120
E-mail: jhopps@ifc.org