ICF 2014 Annual Report

Partners in Building the Future

2014ANNUAL REPORT

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ANNUAL REPORT 2015INVESTMENT CLIMATE FACILITY FOR AFRICA

WHO WE ARE 3

MESSAGE FROM ICF CO-CHAIRS 4

FOREWORD FROM CHIEF EXECUTIVE OFFICER 5

IMPORTANCE OF THE INVESTMENT CLIMATE 6

ICF IMPACT 7

ASSESSING THE IMPACT OF OUR WORK 8

WHERE WE WORK 9

PROJECTS COMPLETED IN 2014 10

ONGOING PROJECTS 14

ICF BOARD OF TRUSTEES 18

ICF SUPPORTERS 20

FINANCIALS 22

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WHO WE AREAs a champion for a conducive business environment, the Investment Climate Facility for Africa (ICF) stands firm in its conviction that creating a healthy investment climate is integral to sustainable economic growth, self-sufficiency and prosperity for the continent. Since its establishment in 2007 as a donor-funded organization based in Dar es Salaam, Tanzania, ICF has partnered with African governments, the private sector and international donors to unlock the region as a significant and gainful destination for local and foreign investors.

69APPROVEDPROJECTS

21PARTNER

GOVERNMENTS

35COUNTRIESIMPACTED

42COMPLETEDPROJECTS

ICF’s overall objectives are:

• Building effective coalitions with businesses and governments to identify and implement priority projects that drive Africa’s investment climate

• Working with governments to create a conducive legal, regulatory and administrative environment for businesses at all levels to invest, grow and create jobs

• Improving Africa’s image as an investment destination by effectively telling the story of rapid improvements in the investment climate

In just seven years, ICF’s unique approach to working with governments, private companies and development partners has attracted an unprecedented number of projects that are delivering real results for businesses in Africa.

With a footprint in 35 countries, and with 42 out of 69 approved projects already completed, the demand for ICF’s services has increased significantly. Many more projects are in the pipeline awaiting approval.

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MESSAGE FROM ICFCO-CHAIRS

We are proud of the impressive progress shown by African countries as measured by the World Bank’s Doing Business Report 2015, which indicates that nearly a third (75 out of 230) of the regulatory reforms worldwide happened

in the African continent.

As Co-Chairs of the ICF Board of Trustees, we are pleased to present ICF’s 2014 Annual Report. The report reflects ICF’s activities and achievements in the past year as it continues to drive significant improvements in the business environment in Africa. We are proud of the impressive progress shown by African countries as measured by the World Bank’s Doing Business Report 2015, which indicates that nearly a third (75 out of 230) of the regulatory reforms worldwide happened in the African continent.

These reforms are impacting directly on the ability of those countries to attract local and foreign investment and boost their economic growth. ICF is happy to be part of this drive to improve the investment climate in Africa and create an environment where businesses can invest, grow and flourish.

As the first phase of ICF’s mandate draws to a close, we are preparing to take our work into a second phase. This entails closing out current projects and raising funds for the next phase. Our mandate remains robust, and so does the need – we have over 60 project applications on the pipeline looking for ICF’s assistance. We appeal to and urge donors, African governments and private companies to support ICF’s work and help create an Africa that is open for business, investor-friendly and geared towards ever-greater economic development.

As we prepare for the second phase of ICF’s support for prosperity in Africa, we look forward to raising the bar in working with our partners – African governments, the private sector and our donors – to further entrench the solid foundation on which African enterprises can grow, create much-needed jobs and sustainable economic growth for all.

In September 2014 we bid farewell to three retiring trustees namely Wolfgang Kroh, Nkosana Moyo and Dipak Patel. We thank them for their many years of service to ICF and wish them well in their future endeavours.

We could not do our work without the support from our bilateral and multilateral donors, as well as private sector corporations. We thank them for their support and active engagement in the work that we do. In the year ahead, we look forward to extending our track record of improving the investment climate in Africa by enabling countries to tap into the opportunities that bring growth and development.

Neville IsdellCHAIRMAN

Benjamin MkapaCO-CHAIRMAN

Neville Isdell Benjamin Mkapa

“In 2013/14, sub-Saharan Africa accounted for the largest number of business regulatory reforms: 75 of 230 regulatory reforms worldwide.”

World Bank Group’s Doing Business Report 2015

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William Asiko

FOREWORD FROM THECHIEF EXECUTIVE OFFICER

This is the second annual report since my appointment and marks ICF’s eighth year since its establishment in 2007. During that time, ICF has invested over US$ 116 million in 69 projects in 21 countries across Africa. With a footprint in 35 countries, ICF has successfully completed more than 50% of these projects

during the past seven years.

In 2014 ICF initiated five new projects and completed eight. These include helping Togo to increase access to commercial justice, supporting Mali in creating alternative mechanisms for solving commercial disputes, and assisting South Africa to increase the ability of its municipalities to provide services and attract investment. ICF worked with Cape Verde and Seychelles to increase private sector participation in the provision of public infrastructure and other services through public-private partnerships.

I am excited that our work in 2014 helped Mauritius to improve the business registration process and now a business can be registered in 30 minutes instead of the previous half day.

We assisted Mozambique, Senegal and Zambia to modernize their tax administration systems. Businesses in Senegal can now declare and pay their

taxes online in 15 minutes, instead of the 2 days that were required in the previous manual system. In Zambia the process of filing, paying and processing tax returns now takes 1 day instead of the previous 16 days.

We have worked with the City of Kigali, in Rwanda, to establish an online system for processing construction permits that allows businesses and residents of the City of Kigali to apply for, process and receive their construction permits online.

I am grateful to our Contributors for their support during the reporting period and greatly appreciate the cooperation from all African governments and the private sector. The constructive and gainful collaboration with all ICF’s stakeholders has made it possible for us to deliver successful and sustainable projects that are making a meaningful impact on businesses in Africa.

We are confident of their continued collaboration and support in the years ahead. As 2015 unfolds and we prepare for the second phase of ICF’s mandate, we will continue pursuing strategic partnerships that strengthen our work and re-engage with our donors, even as we seek new sources of funding.

Africa is widely acknowledged as “the continent of the future.” For the past seven years, ICF has been helping African countries to take concrete steps towards this future.

In the year ahead our work will continue to help African countries unlock their remarkable potential and translate it into greater opportunities for future generations.

William AsikoCHIEF EXECUTIVE OFFICER

Africa is widely acknowledged as “the continent of the future.” For the past seven years, ICF has been helping African countries to take concrete steps towards this future.

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IMPORTANCE OF THE INVESTMENT CLIMATE

There is no doubt that an economically empowered Africa will improve livelihoods and increase the well-being of communities throughout the continent.

Such a future for Africa, however, can be secured only when businesses have an investment climate that enables them to create wealth, employment and opportunities.

ICF is the only pan-African organization based in Africa with a mandate to focus exclusively on improving the continent’s investment climate.

This implies dealing with country-specific factors that impede opportunities and incentives for investment, job creation and growth. In effecting its mandate, ICF brings together African governments, the private sector and international development partners to practically, systematically and rapidly address investment barriers in African countries.

ICF’s role is to identify and implement specific initiatives that, collectively, will improve the overall investment climate on the continent. ICF’s consultative and demand-driven

interaction with key stakeholders has identified nine areas for immediate and medium-term improvement to Africa’s investment climate:

• Property rights and contract enforcement

• Business registration and licensing• Taxation and customs• Financial markets• Infrastructure facilitation• Labour markets• Competition• Corruption and crime• Capacity building

ICF’s Financial Leverage:

ICF’s model leverages additional financing for investment climate reforms at two levels: At one level, the projects that ICF support often require beneficiary governments to provide co-funding, and often attract additional funding from other development partners. At another level, ICF’s work helps boost further reforms in countries which are keen to

build on the achievements of ICF projects. For every dollar ICF has invested in a project, we have been able to leverage an additional US$ 1.16 from our co-funding partners. To date, ICF has provided a total of US$ 116 million of direct funding to all its projects and leveraged an additional US$ 135 million (54%) from its project partners.

ICF portfolio by priority areas

1. Property Rights and Contract Enforcement

4. Financial Markets

2. Business Registration and Licensing

5. Infrastructure Facilitation

3. Taxation and Customs

6. Labour Markets

8. Corruption and Crime9. Metoring/Capacity Building

7. Competition

36% 16% 32% 10%3% 3%

“The Government of Cabo Verde sees The Investment Climate Facility for Africa as a perfect partner.”Cristina Duarte, Cape Verde Minister of Finance

Every $1 from ICF brings in another $1.16 from Partners

Direct ICF funding

Co-funding from ICF

project partners116M

US$ US$135M

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ICF IMPACT 2014 RESULTS

Modernization of the Registrar of Companies

Modernization of Tax Administration

Modernization of Tax Authority, Phase II

The impact of ICF projects completed in 2014 includes the following:

Mauritius Senegal Zambia

Before ICF project After project completion

0.5 day

Was

30 minutes

Now

Reduce the time to incorporate a company Declaration and payment of taxes Time to register a taxpayer

14 days

Was

7 days

Now

Filing of returns, accounts and other documents Corporate tax reimbursements

Filling, payment and processing of tax returns

2-3 days

Was

1 day

Now

Delivery of certified copies VAT credit refunds Processing tax refunds

2 days

Was

15minutes

Now 1 day

Now

175 days

Was

15days

Now

1 day

Now

175 days

Was

3 days

Was

16 days

Was

45 days

Was

30days

Now

15days

Now

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In 2014, ICF assessed the impact of some of the projects that were completed two years ago. The results of these assessments are:

ASSESSING THE IMPACTOF OUR WORK

ETHIOPIA

MALI

MODERNIZATION OF THE TAX AUTHORITY

ALTERNATIVE DISPUTE RESOLUTION, PHASE I

Between June 2010 and July 2012, ICF worked with the Government of Ethiopia to implement the Modernization of the Tax Authority project. The aim of the project was to provide large taxpayers with online access to the Tax Authority in order to reduce the time and cost associated with paying taxes. Key achievements include:

A CALL CENTRE HAS BEEN ESTABLISHED to facilitate interaction with all

taxpayers and better dissemination of relevant tax information.

The establishment of AN E-FILING SYSTEM at the Large Taxpayer

Office and Medium Taxpayer Office in Addis Ababa.

The time taken to submit tax applications and effect payment has BEEN REDUCED TO ONE DAY, greatly reducing the tax compliance burden

for businesses.

Between August 2008 and October 2010, ICF supported the Mali Chamber of Commerce and Industry to implement Phase I of the Alternative Dispute Resolution project. The initiative aimed to modernize and strengthen Mali’s Centre of Conciliation and Arbitration in an effort to reduce time and costs and eliminate uncertainties about commercial litigation in Mali. Key achievements include:

The number of sectors seeking arbitration has increased FROM

TWO (Energy and Mining) TO EIGHT (Energy, Mining, Trade, Consultancy, Telecommunications, Construction,

Services and Agriculture).

Time taken from trial to judgement of a commercial dispute was REDUCED

FROM 860 DAYS TO 120 DAYS

The number of arbitration cases has increased significantly, FROM ONLY

TWO CASES within three years (2005 - 2008) TO 19 CASES within three months (March - May 2014)

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ICF works across the African continent. Its inclusive, consultative approach and commitment to delivering practical solutions and measurable outcomes has increased the demand from African governments for new projects. ICF funding is conditional to government commitment to investment reform as this helps ensure sustainability and visibly improves the country’s investment climate.

ICF has partnered with 21 African Governments to implement investment climate transformation. These include:

1 - Burkina Faso2 - Cape Verde3 - Ethiopia4 - Ivory Coast5 - Kenya6 - Lesotho7 - Liberia8 - Mali9 - Mauritius10 - Mozambique11 - Nigeria12 - Rwanda13 - Sao Tome & Principe14 - Senegal15 - Seychelles16 - Sierra Leone17 - South Africa18 - Tanzania 19 - Togo20 - Tunisia21 - Zambia

ICF also partners with regional organisations to reach many other countries as well. This has the added benefit of promoting cross-border collaboration and adoption of unified practices and procedures. These regional institutions are:

The East African Community (EAC), which includes five countries: Burundi, Kenya, Rwanda, Uganda and Tanzania. ICF has been helping the EAC to harmonize business laws and establish a policy on anti-counterfeiting and piracy.

Organization for the Harmonization of Business Laws in Africa (OHADA), which includes 17 countries: Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Comoros, Republic of Congo, Democratic Republic of Congo, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal and Togo. ICF is helping OHADA to harmonize business laws among its 17 member states.

WHERE WE WORK

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PROJECTS COMPLETEDIN 2014

Mozambique Modernization of Taxpayer Services Phase I

ICF worked with the Government of Mozambique to modernise the Mozambique Revenue Authority’s provision of services to taxpayers. The project has operationalized a call centre that enhances taxpayer interaction with the Revenue Authority and improves taxpayer education. The Revenue Authority employees have also been trained to improve customer care to taxpayers.

Rwanda Kigali Construction Permit

This project aimed to enable the City of Kigali to provide better construction permit services to the private sector and members of the public. It has

Mauritius Modernization of Registrar of CompaniesThe aim of this project was to reduce the time and cost of registering documents in Mauritius to enable the private sector and members of public to process their transactions quickly and cost effectively. The introduction of an electronic document management system for business registration has reduced the time for registering and filing statutory information and improved the quality of data collected. The project has reduce the time it takes to register a company from half-a-day to half-an-hour, the time to file returns from 14 days to eight days and delivery of certified copies from two to three days to same-day delivery.

implemented a web-based construction permit management information system for the full construction permit process cycle, from submission to delivery. The system supports client relations as well as the administration of construction and other related permits (e.g. occupation, renovation, change of use, transformation and permit to construct a fence) issued by the City of Kigali district offices. As a result, the number of visits needed to the authorities to process a construction permit for both residential and commercial buildings has been reduced from seven to 10 days to a maximum of three days.

Senegal Modernization of Tax Administration

This project aimed to introduce a new legal framework that will streamline regulatory and administrative tax procedures in an effort to increase transparency, and reduce time and cost for tax declaration and restitution. The project established an e-Tax and e-Payment system for large taxpayers, bringing considerable time savings to businesses. Corporate tax reimbursements now take 15 days instead of 175 days, VAT credit refunds take 30 days instead of 175 days, whilst the declaration and paying of taxes takes 15 minutes instead of two days. The project has introduced modern transparent systems backed by a legal framework that will benefit all taxpayers once the e-Tax system is rolled out beyond the Large Taxpayer Office.

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Zambia Modernization of Tax Administration Phase II

ICF worked with the Government of Zambia to modernise tax administration in the country. The project established an integrated online system for filing and paying taxes, and strengthened the capacity of the Zambian Revenue Authority to deliver improved services. As a result, the time to register for tax has been reduced from three days to one day, while the time to file and pay income tax has been reduced from 10 days to one day. Tax refunds can now be processed in 30 days instead of the previous 45 days. This has greatly reduced the tax compliance burden for all taxpayers.

Anti-Counterfeiting and Piracy Policy and Legislation in the East African Community (EAC)

ICF worked with the East African Community Secretariat to develop an EAC-wide policy to combat piracy and counterfeit practices in the region as they have an adverse effect on the investment climate. The project quantified the magnitude of the challenge that member states face in combating pirated and counterfeit goods. It formulated a regional policy and recommended harmonization of the current anti-counterfeit and piracy laws in the region as a means to combat the problem.

Harmonization of Commercial Laws in the East African Community (EAC)

ICF’s partnership with the East African Community Secretariat sought to bring the EAC closer to total economic integration by harmonizing commercial laws within the EAC. Establishing a synchronised legal framework for partner states will reduce the private sector’s burden of having to deal with different laws when doing cross-border transactions. The project has outlined the current EAC partner state laws governing commercial transactions and recommended harmonization of commercial laws in the region. The project also developed a commercial code (set of laws) for the region, which is pending adoption.

Pan-African Capacity Building and Knowledge Sharing

The aim of this project was to strengthen capacity building within ICF projects through the sharing of knowledge and best practices. The project conducted Project Directors and Accountants workshops in different parts of the continent, and in different languages, to cater for greater participation. The workshops stimulated the exchange of ideas and experiences, and enabled Project Management Teams to give honest and unbiased feedback. This improved financial management in ICF projects, especially in financial reporting and controls, and reduced audit findings. The project also included sectoral knowledge sharing initiatives on commercial justice as well as business and asset registration, which enabled different countries to learn from one another.

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“I have no doubt whatsoever that the ICF support to the LCA has been of great value in helping reduce the time it takes to adjudicate commercial disputes in Lagos by highlighting the availability of arbitration and ADR for commercial disputes and moving more disputes into these areas, thereby enabling the judges to deal more effectively with other types of dispute and assisting in improving the business climate in Nigeria.”

Babajide Ogundipe, President of the Lagos Court of Arbitration (2010-2014)

‘‘ICF has brought an inestimable amount of support to the Tunis Stock Exchange during these last three years to allow the development of a modern educational program. We are very proud of this partnership, which has borne fruit rather quickly. We have seen a record number of introductions of companies in the stock exchange since 2013 and the entrance of thousands of investors to support their growth.”

Mr Mohamed Bichiou, CEO of the Tunis Stock Exchange

“The Rwanda Ministry of Natural Resources appreciates and recommends ICF’s contribution to the remarkable progress registered under our country’s land reform programme and investment climate enhancement. This partnership has grown significantly over the last seven years and Rwanda is keen to continue working with ICF to help it achieve its objectives, particularly in the field of land administration.”

Vincent Biruta, Rwanda Minister of Natural Resources

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“The Government of Cabo Verde sees The Investment Climate Facility for Africa as a perfect partner. Cabo Verde has benefited from ICF’s speedy project implementation, a less heavy administrative disbursement procedure, and a supply of technical assistance to ensure compliance with project deadlines. We all need such a partner for the sustainability of our development.”

Cristina Duarte, Cape Verde Minister of Finance

“The Zambia Revenue Authority’s vision is to be a world class service organization, recognized as a beacon for excellence, effectiveness, professionalism and efficiency. The introduction of the TaxOnline System, co-funded by the Government of the Republic Zambia and ICF is one great step towards achieving that vision.”

Berlin Msiska, Commissioner General of Zambia Revenue Authority

“Through ICF’s support, Tanzania Revenue Authority managed to lay down the foundation for a new customs integrated administration system called TANCIS. Delivering a project of this magnitude that has a huge potential of changing the business climate and opening up Tanzania’s competitive advantage in doing business with neighbouring landlocked countries would have been even more challenging without the key support from ICF. We really appreciate the support and feel that ICF is a game changer when it comes to improving the business climate in Africa.”

Rished Bade, Commissioner General of Tanzania Revenue Authority

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ONGOING PROJECTS

CABO VERDE

Tax Reform

ICF is working with the Government of Cabo Verde (Cape Verde) to increase tax revenue and simplify the tax administration system to increase efficiency and customer service, and improve the investment climate in Cabo Verde. This includes structural reform of the Tax Office, review of existing tax laws, creation of a simplified tax regime for micro and small enterprises, and the establishment of anti-tax avoidance and fraud measures. The project is expected to reduce a taxpayer’s annual tax payments from 43 to only seven and increase the number of taxpayers submitting income tax returns from the current 40% to 70%.

Privatisation and Public-Private Partnerships

ICF and the Africa Development Bank are supporting the Government of Cape Verde to increase economic growth and reduce the public debt burden in Cape Verde by privatizing selected state-owned enterprises and increasing private sector participation in key strategic sectors. The project will provide the Privatisation & Public-Private Partnership Unit with legal, regulatory and institutional support. Privatisation and public-private partnerships are expected to stimulate private sector investment in the provision of public services, such as transport, water and electricity, as well as improve the quality of these services and contribute to the wider transfer of knowledge and technology.

ETHIOPIA

Modernization of Ethiopia Commodity Exchange

ICF is assisting the Ethiopia Commodity Exchange (ECX) to establish electronic commodity trading to improve trading efficiency and stakeholder access. This will be done by the introduction of electronic spot trading, establishment of a central trading centre and building the capacity of ECX’s stakeholders. The aim is to make the commodity market more effective, help reduce the cost of trading, and help farmers to get more equitable revenues.

Ethiopia Single Window System for International Trade

This second project aims to reduce the procedures, time and costs of international trade transactions in Ethiopia by deploying an end-to-end electronic Single Window System for trade. The system will allow electronic submission, processing and delivery of clearance documents for import, export and transit of goods. The project is expected to reduce the average time for importing goods from 47 days to 11 days and exporting goods from 39 days to nine days.

BURKINA FASO

Facilitation of Customs Procedures

ICF is working with the Government of Burkina Faso to streamline customs pre-clearance procedures through the introduction of an Electronic Single Window for customs administration. A single window for customs is being developed to reduce the number of documents required for import cargo from 10 to seven, and from 10 to three for export cargo. The processing time is expected to reduce from 15 days to three days.

Interconnection of Business, Lands and Construction Services

This second project aims to reduce transaction processing time, procedures and costs in the business, land and construction sectors. This will be done by creating separate but interconnected databases for land registration, business registration and construction licensing, which will enhance electronic registration (e-Registry).

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IVORY COAST

Alternative Dispute Resolution

ICF is working with the Chamber of Commerce of Ivory Coast to promote arbitration and mediation. The project will improve contract enforcement in Ivory Coast by promoting an alternative avenue for SMEs to resolve their commercial disputes. This includes promoting the Court of Arbitration of Cote d’Ivoire (CACI), reinforcing the internal capacity of the CACI and its stakeholders, and promoting alternative dispute resolution as a swift and transparent way for settling commercial disputes in Ivory Coast. The project is expected to reduce the time from filing a case to judgement from 180 days to 100 days.

KENYA

National Single Window Project for Trade

ICF is working with the Government of Kenya to speed up import and export trade in Kenya by reducing processing delays and lowering costs associated with clearance of goods at the Kenyan borders. It will establish an Electronic Single Window platform for submitting and processing documentation used in clearing cargo. The electronic single window will be the sole entry point for lodging trade transaction documentation in Kenya. It is expected to reduce cargo dwell time at seaports, airports and borders posts from eight days to three days, five days to one day, and two days to an hour, respectively.

MALI

Alternative Dispute Resolution Phase II

ICF is working with the Mali Chamber of Commerce and Industry to promote the use of arbitration and mediation in resolving commercial disputes. The aim is to reduce the time, costs and uncertainties related to commercial litigation by providing alternative mechanisms for businesses to resolve their disputes. The project will promote Mali’s Centre of Arbitration and Conciliation (CECAM), reinforce CECAM’s internal capacity, introduce mediation and increase the acceptance of arbitration within the judicial community.

MAURITIUS

Modernization of the Judiciary

ICF is working with the Government of Mauritius to modernise its Judiciary by simplifying and automating the settlement process and reducing the turnaround time for lodging commercial cases in the Supreme Court. A Mediation Division has been established in the Supreme Court to deal with all commercial cases first before going to full trial. A Fast Track will also be set up in the Commercial Division of the Supreme Court to hear and judge cases within 36 days. With ICF support, the duration of full trials for commercial cases is expected to reduce from 180 days to 100 days.

Modernization of Electronic Registration

This second project with the Government of Mauritius will introduce an electronic Registry which would allow users to submit and pay for asset registrations online. This will make it easier for businesses and members of the public to transfer ownership of property.

MOZAMBIQUE

Integrated Business Licensing

ICF is working with the Government of Mozambique to develop a single electronic portal that will link trade one-stop-shops with decision-making bodies at provincial and ministerial levels across the country. The objective is to reduce the procedures, time and costs of business licensing in the retail, industry, tourism and small enterprise sectors. The portal, which focuses on license integration, will eventually serve as an Integrated Platform of Services for citizens.

NIGERIA

Lagos Alternative Dispute Resolution

ICF is working with the Government of Nigeria to fully operationalize the Lagos Court of Arbitration. The aim is to reduce time, cost and the number of procedures taken to resolve commercial disputes and enforce commercial contracts. The project intends to reduce the number of procedures needed to enforce commercial contracts. The existing 40 procedures in the traditional commercial justice system will be reduced to six only for Lagos Court of Arbitration. This is expected to reduce the number of days spent on enforcing commercial contracts from 457 to 180.

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streamline business processes, develop a pool of real time court reporters, develop Law Reports and build synergies between the Judiciary and the newly established Kigali International Arbitration Centre.

SAO TOME AND PRINCIPE

International Trade Facilitation

ICF is working with the Government of Sao Tome and Principe to improve international trade facilitation so that goods can be imported and exported more easily. The project aims to reduce the procedures, time and cost of international trade transactions in the country by establishing an end-to-end single window trade system. The system will create one portal for importers, exporters and government institutions dealing with international trade facilitation to process all customs clearances. The project is expected to reduce export and import processing time from 26 and 28 days respectively to 16 days for both exports and imports.

SENEGAL

Construction Permit

ICF is supporting a project to improve the process of issuing construction permits in the region of Dakar. The project will introduce an electronic system for individuals and companies to apply, pay and receive their construction permits online. The system includes SMS notification to alert applicants about the status of their application. The project is expected to reduce the permit processing time from 90 days to 28 days for simple construction projects

and 40 days for complex construction projects. The processing fee is expected to reduce by 93% from US$28 to US$2 (excluding tax).

SEYCHELLES

Public-Private Partnership

ICF and the Africa Development Bank are supporting the Government of Seychelles to develop a comprehensive legal, regulatory and operational framework for Public-Private Partnerships (PPPs) as a means to stimulate private sector development, and to support government capacity to leverage resources for infrastructure development and public service delivery. This includes setting clear rules for prospective investors and creating new funding and procurement methods for infrastructure development that leverage private investment.

SIERRA LEONE

Airport Transfer

ICF is working with the Government of Sierra Leone to improve connections for air passengers between Freetown and the International Airport in Lungi, 176km away. The journey can take up to seven hours by road and alternative transport methods are expensive and unreliable. The project aims to establish safe and reliable transfer services between Freetown and Lungi and reduce airport transfer time and costs. An airport transfer before check-in by boat or helicopter is expected to be a maximum of two hours or one hour, respectively. In addition, a regulatory and administrative framework will be established to enable the private sector to participate in providing transport.

RWANDA

Land Administration Enhancement

ICF is working with the Government of Rwanda to further reduce the procedures, time and cost of land transfers in Rwanda. The project will integrate legal and spatial land information into one database, and operationalise the Rwanda Natural Resources Authority’s Land Administration Information System in all districts in Rwanda. Links will also be created with the City of Kigali for construction permits and the Office of the Registrar General for mortgage registration.

Alternative Dispute Resolution

This second project with the Government of Rwanda will streamline the procedures, time and cost of enforcing commercial contracts by operationalizing the Kigali International Arbitration Centre (KIAC) and establishing a pool of professionals in mediation and arbitration. The project will also promote alternative dispute resolution in Rwanda and KIAC as a seat of arbitration and mediation in Rwanda and Africa.

Business Lifecycle Services

The third project builds on gains achieved in a previously ICF-funded Rwanda Investment Climate Project which had helped to set up online business registration. This current project aims to strengthen the online business registration system by including mortgage registration and by establishing the practice of insolvency resolution in Rwanda. This is expected to address challenges that businesses face during their business lifecycle.

Commercial Justice

The aim of the fourth project is to help the Government of Rwanda implement the second generation of commercial contract enforcement reforms in the country. The project will help the Judiciary to upgrade an electronic case and records management system,

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SOUTH AFRICA

Municipal Capacity Building

ICF is working with Anglo American South Africa (AASA) and the Development Bank of Southern Africa (DBSA) to build the capacities of five municipalities to increase the provision of basic services in their areas. The objective is to improve service delivery to attract business investment, create jobs and improve the local economy.

TANZANIA

Modernization of Customs Administration Phase II

ICF is working with the Government of Tanzania to improve the investment climate by modernising customs administration. The project will introduce a new online portal through which importers, exporters and all relevant agencies can process customs clearance electronically. The initiative will shorten goods clearance times, increase customs efficiency and transparency and help the Tanzania Revenue Authority to cope with increasing trade volumes.

Small and Medium Enterprise Capacity Building

ICF is working with the Government of Tanzania to build the capacity of Small and Medium Enterprises (SMEs) to transition from the informal to formal economy. With a focus on the retail trade, small manufacturing and fisheries sectors in Dar es Salaam and Mwanza, the project will provide business management and entrepreneurial skills training to 500 small enterprises.

TOGO

Commercial Justice

ICF is working with the Government of Togo to reduce the time and costs for enforcing contracts in the country. The project will create dedicated commercial chambers at the Appeals Court in Lome and introduce an integrated commercial justice case management system and real time court reporting. The project is expected to reduce the time for trial and judgement in the Court of Appeal from 346 days to 100 days.

TUNISIA

Stock Exchange Capacity Development

ICF is working with the Government of Tunisia to strengthen the professional training and investor education capacity of the Tunis stock market. This initiative will broaden the investor base and encourage more enterprises, specifically small and medium ones, to list on the Tunis Stock Exchange to access the capital market as an alternative source of funding.

ICF PAN-AFRICAN PROJECTS

Organization for the Harmonization of Business Laws in Africa (OHADA) Phase II

ICF has been working with OHADA to harmonize business laws across 17 countries in West and Central Africa by reviewing and reinforcing some of OHADA’s eight Uniform Acts. The second phase of this project is working on the reform and adoption of the Companies Act and Bankruptcy Act. Adoption of the reformed Companies Act will lead to a reduction in the minimum capital required to start a business from an average of US$ 2,000 to US$ 100.

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investment and development through her company, Africa Matters Ltd. Lynda is also co-ordinator of the Honorary International Investment Council of President Goodluck Jonathan of Nigeria and a member of similar bodies in Uganda and Tanzania.

Sam Jonah is the Executive Chairman of Jonah Capital and past Executive President of AngloGold Ashanti. He is the Chancellor of the University of Cape Coast Ghana, a Member of the Board of Ashesi University in Ghana, a Visiting Professor of Business at The University of Witwatersrand Business School in Johannesburg and a member of its governing council. In 2003, Queen Elizabeth II conferred on him an honorary knighthood as Knight Commander of the Civil Division of the Most Excellent Order of the British Empire (KBE). He currently serves on the International Investment Advisory Councils of Nigeria and Togo, as well as on the Board of Vodafone UK, among others.

BOARD OF TRUSTEES

Neville Isdell Benjamin Mkapa

Lynda Chalker Sam Jonah

Bringing together a passionate group of outstanding achievers with vast international experience and a common vision of Africa’s bright future, ICF’s independent Board of Trustees is a blend of top African and international political and business leaders. Led by President Benjamin Mkapa and Neville Isdell, this is an active board that sets policy and overall strategic direction for ICF. The Board meets every three months to monitor the operational performance of the organization and its management team.

Affairs. He was a member of the Commission for Africa, Chair of the Advisory Council of Microsoft 4Afrika, and Co-Chair of the African Emerging Markets Forum (AEMF). He is the Chairman of the South Centre, a Geneva-based intergovernmental organization of developing countries, a member of the Boards of InterAction Council, Club of Madrid, Africa Forum, and Africa Wildlife Foundation. He is Chancellor of the University of Dodoma and Cavendish University of Uganda.

Lynda Chalker is a UK politician with over 30 years of experience in Africa. She served for 12 years as UK Minister for Africa and eight years as Minister for Overseas Development. She was the first woman to be appointed as an Advisory and then Non-Executive Director of Unilever. She was Chairman of the Board of the Medicines for Malaria Venture for five years and a Non-Executive Director of Group Five (Pty) from 2001 to 2012. She is an independent adviser on Africa,

Neville Isdell is the ICF Co-Chair and Chair of the Board. He is the former Chairman of the Board of Directors and Chief Executive Officer of The Coca-Cola Company. In his 43 years in the Coca-Cola Company he served in many senior roles including Chairman and CEO of Coca-Cola Beverages Plc in Great Britain from 1998 to 2000, and Vice Chairman of Coca-Cola HBC. He is the Chairman of the World Wildlife Fund US and a member of the WWF International Board of Trustees. He also serves on the Board of Directors of General Motors. He is a recipient of the Clinton Global Citizen Award.

Benjamin Mkapa is the ICF Co-Chair and Chair of International Relations. He was President of Tanzania from 1995 to 2005 and Chairman of Tanzania’s ruling party, CCM (Chama cha Mapinduzi). Prior to being elected President in 2005, he was Minister for Science, Technology and Higher Education, Minister for Information and Culture, and Minister for Foreign

19


William Kalema Linah Mohohlo

Nkosana Moyo Dipak Patel

Wolfgang Kroh

Evelyne Tall

William Kalema is the former Chairman of the Boards of the Uganda Investment Authority, DFCU Bank, and Uganda Breweries. He is a Director of several companies in Uganda and also chairs a number of charitable institutions in East Africa. He was a member of the Commission for Africa.

Wolfgang Kroh served in KfW, the German policy and development bank, in various regional and managerial functions for 38 years. After his retirement as Managing Director of KfW in 2009 he, among other mandates, chaired the board of REGMIFA, the Micro and SME Investment Fund for Sub-Saharan Africa, since its inception in 2010 until the end of 2014.

Linah Mohohlo is the Governor of the Bank of Botswana. She has also worked for the International Monetary Fund (IMF) and, in her capacity as Governor of the IMF for Botswana, she

has been a member of the International Monetary and Financial Committee (IMFC), representing the Africa Group 1 Constituency comprising more than 20 English speaking sub-Saharan African countries. She served in the Commission for Africa, and is currently a member of the Africa Progress Panel, Bretton Woods Committee and UN Staff Pension Fund Investment Committee. She is a recipient of Botswana’s highest public service award – the Presidential Order of Honour.

Nkosana Moyo is the Executive Chairman of the Mandela Institute for Development Studies and the former Vice-President and Chief Operations Officer of the African Development Bank Group (AfDB). He has held senior positions at IFC (World Bank Group), Actis and was Minister of Industry and International Trade for Zimbabwe. He is currently serving on various boards, including Old Mutual PLC as well as the African Leadership Institute.

Dipak Patel is a former Minister for Commerce, Trade and Industry in the Zambia government. He was also Chair Coordinator of the Least Developed Countries World Trade Organization (WTO) negotiations in 2005.

Evelyne Tall is the Deputy Group Chief Executive Officer and Group Chief Operating Officer of Ecobank Transnational Incorporated (ETI). She oversees the Retail Banking Subsidiaries / Affiliates of ETI across Africa including the Group Internal Control, Group Customer Service and Group Compliance functions. As an Executive Director of ETI, she represents the Group on the Board of the largest subsidiaries (Ecobank Nigeria, Ecobank Cote d’Ivoire, Ecobank Ghana, Ecobank Kenya, Ecobank Cameroun and Ecobank Zimbabwe). She also served as the Managing Director for Ecobank in Mali and Senegal and was the Group Executive Director for Domestic Bank prior to her current role.

20


ICF SUPPORTERS

Support from international development partners

ICF receives financial support from international development partners including governments and multilateral development organisations. They include the development agencies of the following governments:

ICF is also supported by:

African Development BankInternational Finance Corporation

Germany Ireland

United Kingdom.

Netherlands

South Africa

21


Support from corporate partners

Some of the world’s most successful global companies with active interests in Africa are keen supporters of ICF. Not only do they appreciate the outcomes and benefits of ICF’s interventions, but have also contributed significant funds to ICF. Our corporate partners include:

In addition to their financial support, ICF’s private and public sector sponsors have shared their skills, time and expertise in a number of different ways. These ‘in-kind’ contributions are integral to increasing the scope of ICF’s impact on the investment climate in Africa.

ICF engages regularly with all project supporters by sharing experiences and testing techniques and processes to ensure successful and sustainable project outcomes.


22


Trustees’ responsibility for the financial statements

The Trustees are responsible for the preparation of these financial statements in accordance with the accounting policies described in Note 2 to the financial statement and for such internal controls as Trustees determines necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express an opinion on the accompanying financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (ISAs). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatemnet. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment

INDEPENDENT AUDITOR’S REPORTREPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of the Registered Trustees of the Investment Climate Facility for Africa Trust (“ICF” or “the Trust”) which comprise the statement of financial position as at 31 December 2014 and the statements of financial activities and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes. These financial statements are the responsibility of the Trustees and have been prepared in accordance with the accounting policies described in Note 2 to the financial statements. Our responsibility is to express an opinion on the accompanying financial statements based on our audit.

of the risks of material misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the Trust’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstaces, but not for the purpose of expressing an opinion on the effectiveness of accounting policies used and the reasonbaleness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements of ICF for the year ended 31 December 2014 are prepared, in all material respects, in accordance with the accounting policies described in Note 2 to the financial statements.

Basis of accounting and restriction on distribution and use

Without modifying our opinion, we draw attention to Note 2 to the financial statements, which describes the basis of accounting.

The financial statements are prepared to provide information to the contributors of ICF. As a result, the financial statements may not be suitable for another purpose. Our report is intended solely for ICF and its contributors and should not be distributed to or used by parties other than those specified.

_______________________________________Nelson E. Msuya, FCPA - PPFor and on behalf of PricewaterhouseCoopersCertified Public AccountantsDar es Salaam 26 MARCH 2015

23

ANNUAL REPORT 2015INVESTMENT CLIMATE FACILITY FOR AFRICA ANNUAL REPORT 2015INVESTMENT CLIMATE FACILITY FOR AFRICA

Note 2014 2013

US$ US$

Voluntary incomeInvestment income 3a 151,586 291,700

Other Income 3b 8,460 -

160,046

291,700

Resources expended

Project activities 4a 16,032,497 12,319,968

Cost of generating funds 4b 139,003 69,890

Governance costs 4c 565,338 595,171

Operating costs 4d 1,330,632 1,573,983

Provision on prepaid project expenditure 747,444 1,388,124

18,814,914 15,947,136

Net outgoing resources before other recognised (losses)/gainsNet expenditure for the year (18,654,868) (15,655,436)

Other recognised (losses)/gains 5 (465,348) 108,504

Net movement in funds (19,120,216) (15,546,932)

Reconciliation of funds:At beginning of year 52,535,992 68,082,924

Net movement for the year (19,120,216) (15,546,932)

At end of year 33,415,776 52,535,992

STATEMENT OF FINANCIAL ACTIVITIESFOR THE YEAR ENDED 31 DECEMBER 2014

24


Note 2014US$

2013US$

Non-current assetsTangible fixed assets 7 39,154 43,837

Current assetsContributions receivable 8 3,265,463 6,697,209

Accounts receivable 9 145,399 128,298

Prepaid project expenditure 10 8,592,502 7,845,058

Funds in Trust 11 30,654,264 36,678,823

Cash at bank and in hand 12 248,543 10,017,281

42,906,171 61,366,669

Current liabilitiesAccounts payable 13 937,047 1,029,456

Provision on prepaid project expenditure 10 8,592,502 7,845,058

9,529,549 8,874,514

Net current assets 33,376,622 52,492,155

Net assets 33,415,776 52,535,992

General fundsCommitted projects future disbursements 14 20,605,154 31,283,296

Uncommitted funds 15 12,810,622 21,252,696

Total funds 33,415,776 52,535,992

The financial statements on pages 23 to 48 were approved for issue by the Board of Trustees of ICF on 26 March 2015 and signed on its behalf by:

________________________________________ Neville IsdellCHAIRMAN

26 MARCH 2015

________________________________________ Benjamin William MkapaCO-CHAIRMAN

26 MARCH 2015

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2014

25


Note 2014US$

2013US$

Cash absorbed in operations 16 (15,765,396) (15,234,015)

Management of liquid resources:

Change in funds in Trust 6,024,559 14,381,411

Net cash absorbed in operating activities (9,740,837) (852,604)

Cash flow from investing activitiesTangible fixed assets acquired 7 (27,901) (27,029)

Net cash outflow to investing activities (27,901) (27,029)

Net decrease in cash and cash equivalents (9,768,738) (879,633)

Movement in cash and cash equivalentsAt start of year 10,017,281 10,896,914

Decrease (9,768,738) (879,633)

At end of year 12 248,543 10,017,281

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2014

26


1 NATURE OF OPERATIONS AND AFFILIATIONS

The Registered Trustees of the Investment Climate Facility for Africa Trust (“ICF” or “the Trust”) was incorporated in Tanzania under the Trustees’ Incorporation Act, Cap 318, R.E. 2002 on 19 April, 2007.

2 SIGNIFICANT ACCOUNTING POLICIES

a) Basis of preparation

These financial statements have been prepared on the accrual basis of accounting, under the historical cost convention. The principal accounting policies which have been consistently applied to all years presented unless otherwise stated are as follows:-

b) Funds structure

Funds, revenues, gains and losses are classified based on the existence of donor-imposed restrictions. Accordingly, funds and any changes therein not subject to donor-imposed restrictions and available for the Trustees to apply to the general purposes of the Trust are classified as general funds.

c) Foreign currency re-measurement

The financial statements are presented in U.S. dollar which is ICF’s functional and presentation currency. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses arising from the settlement of such transactions and from translations at the period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of financial activities as other recognised (losses)/gains.

d) Tangible fixed assets

Direct expenditure on the acquisition, creation or enhancement of fixed assets is capitalized on an accruals basis.

Expenditure on a tangible asset in excess of $100 is capitalized provided that it yields benefits to the organization over a period exceeding one year. Tangible assets acquired for less than $100 are expensed.

Depreciation is provided to write off the cost of the fixed assets on a straight-line basis over the expected useful lives of the assets as follows:

Computer equipment 33% per annum

Furniture & fittings 15% per annum

Leaseholds improvements over the life of the lease

e) Cash at bank

Cash at bank consists of cash held at depository local bank accounts.

f) Incoming resources

Voluntary income received by way of contributions and grants that are without any donor imposed purpose or use restrictions is recognized on an accruals basis as revenues in the unrestricted net asset class where there is entitlement, certainty of receipt, and when it can be reliably measured.

Contributions in kind are included at the value of ICF Trust of the service provided.

Investment income is recognized on an accruals basis.

NOTES TO THE FINANCIAL STATEMENTS

27


g) Resources expended

Expenditure is recognized on an accruals basis as the liability is incurred. Project activities

Project activities costs are made up of task forces costs and project costs. Task forces costs comprises the direct costs incurred on an accrual basis by ICF headquarter during project initiation and promotion as well as project monitoring and evaluation. Project costs are those incurred by the Projects during implementation and are being recognised in ICF headquarter financial statements based on accountability reports which are submitted on a quarterly basis.

Costs of generating funds

Costs of generating funds consist of costs incurred during the fund raising process. These are fund raising costs, contributors’ relations and strategy and business planning costs.

Governance costs

Governance costs include expenditure associated with meeting the constitutional and statutory requirements of the Trust which are board meeting costs and finance committee costs.

Operating costs

Operating costs are all other costs excluding project activities costs, governance costs, cost of generating funds and provision on prepaid project expenditure.Prepaid project expenditure

Advances to projects are recognised as prepaid project expenditure and are amortised to project expenditure in the statement of financial activities as and when allowable project costs are reported by the grantees. For those grantees that are yet to report their expenditure, ICF makes provision on the prepaid amount to the grantees.

Provision on prepaid project expenditure

A provision on prepaid projects expenditure is booked considering that it’s highly unlikely that the funds sent to the projects will be reimbursed. This is recognised as a liability in the statement of financial position.

h) Funds in Trust

The Funds in Trust are managed by the African Development Bank (“AfDB”) under the Portfolio Management Agreement dated 28 February 2008 between the AfDB and ICF that governs AfDB’s investment management and advisory services. According to the agreement between ICF and AfDB, ICF can withdraw these funds at any time, provided it gives the Bank not less than thirty (30) days prior notice in writing.

NOTES (CONTINUED)

28


3 VOLUNTARY INCOME

a) Investment Income

This relates to the interest income earned on the ICF funds invested with African Development Bank (AfDB) and the local banks as summarised below:

2014US$

2013US$

Income from funds in Trust (AfDB) 116,078 121,183

Income from local banks 35,508 170,517

151,586 291,700

b) Other Income

This relates to Value Added Tax (VAT) of US $ 8,460 which was initially paid by Rwanda Revenue project erroneously. The money was paid back to ICF account in September 2014.

NOTES (CONTINUED)

29


4 TOTAL RESOURCES EXPENDED 2014

Schedule 4a Project Initiation

and Promotion 2014

Project Monitoring &

Evaluation 2014

Project Implementation

2014

Total Project Activity

2014

US$ US$ US$ US$

Projects:EAC Anti-Counterfeiting and Piracy Policy and Legislation

- 671 575 1,246

BURKINA FASO Establishment of Commercial Courts

- 3,998 - 3,998

BURKINA FASO Facilitation of Custom Procedures

- 3,493 130,943 134,436

BURKINA FASO Interconnection Business, Lands& Const Serv

- 9,734 951,321 961,055

CAPE VERDE Privatization and Public Private Partners

16,767 - - 16,767

CAPE VERDE Modernization of tax Admin - 7,024 233,541 240,565

COTE D’IVOIRE Alternative Dispute Resolution - 28,069 185,083 213,152

ETHIOPIA Single Window 1,752 9,455 100,948 112,155

ETHIOPIA Commodity Exchange Modernization - 35,097 474,757 509,854

KENYA National Electronic Single Window System

- 13,682 1,591,766 1,605,448

GAINDE Project Phase II - 5,000 - 5,000

MALI Alternative Dispute Resolution phase II - 2,533 18,315 20,848

MAURITIUS Modernization of the Judiciary - 2,081 - 2,081

MAURITIUS Electronic Registration Project - 7,037 1,024,248 1,031,285

MAURITIUS Registrar of Companies - 1,586 57,857 59,443

MOZAMBIQUE Modernization of Taxpayer System

- 19,656 390,397 410,053

MOZAMBIQUE Integrated Business Licensing - 69,759 562,855 632,614

Nigeria Lagos Alternative Dispute Resolution - 734 64,179 64,913

OHADA Uniform Acts Reform II - 17,406 361,259 378,665

RWANDA Alternative Dispute Resolution - 9,997 521,369 531,366

RWANDA Kigali Construction Permit - 3,208 389,544 392,752

Sub-total c/f to page 30 18,519 250,220 7,058,957 7,327,696

NOTES (CONTINUED)

30


4 TOTAL RESOURCES EXPENDED 2014 (CONTINUED)

Schedule 4a Project Initiation and Promotion

2014


Evaluation 2014


2014


2014

US$ US$ US$ US$

Projects: (continued)Balance b/f from page 29 18,519 250,220 7,058,957 7,327,696RWANDA Land Administration Enhancement project

4,719 308,754 313,473

RWANDA Business Life Cycle Project 8,434 453,950 462,384

RWANDA Commercial Justice Project - 9,851 857,753 867,604

SAO TOME and PRINCIPE International Trade - 4,206 260,758 264,964

SOUTH AFRICA Municipal Capacity Building Project

1,716 11,227 314,205 327,148

SENEGAL Construction Permit Projects - 10,598 368,828 379,426

SENEGAL Modernization of Custom Authority - 7,589 121,028 128,617

SEYCHELLES PPP 4,134 1,960 6,094

SIERRA LEONE Airport Transfer - 4,456 408,244 412,700

SIERRA LEONE Registry General - (23,413) (23,413)

TANZANIA Modernization Customs Administration Phase II

- 5,207 1,006,264 1,011,471

TANZANIA Small and Medium Enterprise Capacity Building Project

- 8,677 384,379 393,056

TOGO Alternative Dispute Resolution - 2,354 941,740 944,094

TUNISIA Stock Exchange Capacity Development - 13,830 148,811 162,641

ZAMBIA Modernization of the Judiciary Phase II

- - 45 45

ZAMBIA Modernization of Tax Administration Phase II

- 9,352 808,179 817,531

Auditing Expenses - 136,268 - 136,268

Project promotion 28,546 - - 28,546

Projects Funds transfer charges - - 17,912 17,912

Impact Assessment costs - - 525,923 525,923

Allocation of Administration costs 44,225 88,450 44,225 176,900

Allocation of Fundraising costs 24,323 48,646 24,323 97,292

Projects support staff costs 429,069 825,056 - 1,254,125

Grand Total 550,532 1,451,100 14,030,865 16,032,497

NOTES (CONTINUED)

31


4 TOTAL RESOURCES EXPENDED 2013


2013


Evaluation 2013


2013


2013

US$ US$ US$ US$

Projects:BURKINA FASO Establishment of Commercial Courts

- 4,069 512,067 516,136


- 1,865 665,437 667,302

BURKINA FASO Land registration project PhaseII - 5,580 - 5,580

BURKINA FASO Interconn Business, Lands& Const Serv

1,493 - 628,263 629,756

CAPE VERDE Modernization of tax Admn 4,323 - 37,428 41,751

COTE D’IVOIRE Alternative Dispute Resolution 6,041 - - 6,041

PAN AFRICA Capacity Building - - 262,540 262,540

ETHIOPIA Single Window 30,416 - 30,416

ETHIOPIA Commodity Exchange Modernization 281 38,593 104,540 143,414

ETHIOPIA Modernization of Tax Administration - - 3,023 3,023


- 3,866 27,061 30,927

MAURITIUS Electronic Registration Project - 1,743 936,240 937,983

MAURITIUS Registrar of Companies - 7,098 400,400 407,498


- 7,082 115,469 122,551

MOZAMBIQUE Integrated Business Licensing - 90 387,626 387,716

NIGERIA Lagos Alternative Dispute Resolution - 6,884 319,915 326,799

OHADA Uniform Acts Reform II - 5,461 677,095 682,556

RWANDA Alternative Dispute Resolution - 8,086 518,775 526,861

RWANDA Kigali Construction Permit - 9,704 - 9,704

RWANDA Land Administration Enhancement Project

- 8,325 91,418 99,743

RWANDA Business Life Cycle Project - 9,123 80,759 89,882

Sub-total c/f to page 32 42,554 117,569 5,768,056 5,928,179

NOTES (CONTINUED)

32


4 TOTAL RESOURCES EXPENDED 2013 (CONTINUED)


2013


Evaluation 2013


2013


2013

US$ US$ US$ US$

Projects: (continued)Balance b/f from page 31 42,554 117,569 5,768,056 5,928,179RWANDA Commercial Justice Project - 7,137 153,602 160,739

SAO TOME and PRINCIPE International Trade 934 - 379,133 380,067

SENEGAL Construction Permit Projects - - 39,498 39,498

SENEGAL Modernization of Tax Administration - 11,491 1,080,957 1,092,448

SENEGAL Modernization of Custom Authority - 1,484 - 1,484

SIERRA LEONE Land Registration System - - 138,671 138,671

SIERRA LEONE Airport Transfer - 9,140 1,126,513 1,135,653

SIERRA LEONE Registry General - - 69,184 69,184

TANZANIA Modernization Customs Administration Phase I

- - 9,131 9,131


113 - 41,887 42,000

TANZANIA Police Force - 132 132

TANZANIA Small and Medium Enterprise Capacity Building Project

- 24 - 24

TOGO Alternative Dispute Resolution - 62,242 62,242

TUNISIA Stock Exchange Capacity Development - 17,203 314,679 331,882

ZAMBIA Modernization of the Judiciary Phase II - 703 (15,102) (14,399)


- 9,509 728,649 738,158

Project promotion 114,003 - - 114,003

Auditing expenses - 146,637 - 146,637

Independent Review - 84,487 - 84,487

Projects Funds transfer charges - - 17,403 17,403

Impact Assessment other costs - - 183,298 183,298

Allocation of Administration costs 46,573 93,146 46,573 186,292

Allocation of Fundraising costs 11,764 23,528 11,764 47,056

Impact Assessment staff costs - - 253,875 253,875

Projects support staff costs 451,583 720,241 - 1,171,824

Grand Total 667,524 1,242,431 10,410,013 12,319,968

NOTES (CONTINUED)

33


4 TOTAL RESOURCES EXPENDED (CONTINUED)

Year ended 31 December 2014Schedule 4

Costs of generating funds (4b)

Governancecosts (4c)

Operating costs (4d)

US$ US$ US$

Board Trustees fees - 321,250 -

Board meetings - 209,138 -

Fincom - 34,950 -

Contributors meeting 15,177 - -

Fund raising costs and contributors’ relations 123,826 - -

Staff costs - - 498,116

Communications department costs - - 273,222

Finance department costs - - 334,149

Bank charges & fees - - 44,369

Office occupancy - - 61,749

Telecommunication - - 41,288

Insurance - - 22,935

Office expenditure - - 32,749

Professional fees - - 3,808

Depreciation of fixed assets - - 18,247

Total 139,003 565,338 1,330,632

Year ended 31 December 2013Schedule 4

Board Trustee fees - 346,250 -

Board meetings - 214,495 -

Fincom - 34,426 -

Contributors meeting 10,000 - -

Fund raising costs and contributors’ relations 59,890 - -

Staff costs - - 793,328

Communications department costs - - 238,513

Finance department costs - - 305,044

Bank charges & fees - - 57,685

Office occupancy - - 58,965

Telecommunication - - 36,161

Insurance - - 26,196

Office expenditure - - 40,217

Professional fees - - 1,120

Depreciation of fixed assets - - 16,754

Total 69,890 595,171 1,573,983

NOTES (CONTINUED)

34


5 OTHER RECOGNISED (LOSSES)/GAINS

2014US$

2013US$

Currency translation (losses)/gain on contribution receivable (431,745) 147,702

Currency translation losses - other items (33,603) (39,198)

(465,348) 108,504

6 INCOME TAX

No income tax expense or obligations have been recognised in the financial statements because of the Government Notice (GN) No. 409 issued on 5 November 2010 which recognised ICF as a diplomatic institution under the Diplomatic and Consular Immunities and Privileges Act. Amounts derived by persons entitled to privileges under the Diplomatic Consular Immunities and Privileges Act are exempted from income tax under item 1 (c) of the 2nd schedule to the Income Tax Act, 2004.

NOTES (CONTINUED)

35


Year ended31 December 2013

CostAt start of year 137,029 29,770 85,318 252,117

Additions 21,267 932 4,830 27,029

At end of year 158,296 30,702 90,148 279,146

Accumulated depreciationAt start of year 122,981 17,607 64,802 205,390

Charge for the year 12,738 6,267 10,914 29,919

At end of year 135,719 23,874 75,716 235,309

NBV at year end 22,577 6,828 14,432 43,837

7 TANGIBLE FIXED ASSETS

Year ended31 December 2014

Computer equipment

Furniture & fittings

Leasehold improvements

Total

US$ US$ US$ US$

CostAt start of year 158,296 30,702 90,148 279,146

Additions 26,856 1,045 - 27,901

At end of year 185,152 31,747 90,148 307,047

Accumulated depreciationAt start of year 135,719 23,874 75,716 235,309

Charge for the year 15,840 5,422 11,322 32,584

At end of year 151,559 29,296 87,038 267,893

NBV at year end 33,593 2,451 3,110 39,154

NOTES (CONTINUED)

36


8 CONTRIBUTIONS RECEIVABLE

Total committed

contributions

Total contributions paid up to 31

December 2014

Accumulated currency loss

for the year 31 December 2014

Contributions receivable at 31 December

2014

US$ US$ US$ US$

African Development Bank 15,000,000 (15,000,000) - -

Anglo American Plc 2,500,000 (2,500,000) - -

Celtel/ Zain 1,000,000 (1,000,000) - -

Coca Cola 2,500,000 (2,500,000) - -

DFID 28,408,302 (28,408,302) - -

IFC/ World Bank 30,000,000 (30,000,000) - -

Republic of Ireland 2,816,074 (2,816,074) - -

KfW Germany 1st Commitment 15,042,835 (15,042,835) - -

KfW Germany 2nd Commitment 18,428,200 (18,428,200) - -

Kingdom of Norway 1,556,261 (1,556,261) - -

Netherlands 20,052,519 (16,355,311) (431,745) 3,265,463

Republic of South Africa 3,000,000 (3,000,000) - -

Royal Dutch Shell and SF 1,500,000 (1,500,000) - -

SAB Miller 1,500,000 (1,500,000) - -

Sasol 1,500,000 (1,500,000) - -

Standard Bank 2,500,000 (2,500,000) - -

Unilever Plc 1,000,000 (1,000,000) - -

Total contributions

148,304,191

(144,606,983)

(431,745)

3,265,463

Contributions paid through AfDB bank (126,422,921)

Contributions paid through local banks (18,184,062)

Total contributions paid (144,606,983)

NOTES (CONTINUED)

37


8 CONTRIBUTIONS RECEIVABLE (CONTINUED)

The movement of contributions receivable is as follows:

Contributions receivable

1 January 2014

Contributions paid

during the year

Currency loss in 2014

Contributions receivable as at

31 December 2014

Contributions receivable as at

31 December 2014

US $ US $ US $ US $ (Original currency)

IFC/World Bank 3,000,000 (3,000,000) - - -

Netherlands 3,697,208 - (431,745) 3,265,463 Euro 2,688,052

6,697,208 (3,000,000) (431,745) 3,265,463

9 ACCOUNTS RECEIVABLE

31 December 2014

31 December 2013

US$ US$

Prepayments 145,399 106,502

Accrued investment income - 21,796

145,399 128,298

NOTES (CONTINUED)

38


10 PREPAID PROJECT EXPENDITURE

1 Jan 2014 Disbursement 2014

(Refunds)/currency

translations from projects

Projects expenditure

31 December 2014

US$ US$ US$ US$ US$

ProjectBURKINA FASO Facilitation of Custom Procedures

316,943 323,333 - (130,943) 509,333

BURKINA FASO Interconnection Business, Lands& Const Service

350,626 835,025 - (951,321) 234,330

CAPE VERDE Tax - 823,776 - (233,541) 590,235

COTE D’IVOIRE Alternative Dispute Resolution

- 190,553 1,203 (185,083) 6,673

EAC Anti-Counterfeiting and Piracy Policy and Legislation

575 - - (575) -

ETHIOPIA Commodity Exchange Modernization

71,658 619,000 - (474,757) 215,901

ETHIOPIA Single Window - 124,320 - (100,948) 23,372


1,158,003 1,460,458 (5,895) (1,591,766) 1,020,800

MALI Alternative Dispute Resolution phase II - 106,517 - (18,315) 88,202

MAURITIUS Modernization of the Judiciary 689,057 - - 689,057

MAURITIUS Registrar of Companies 57,857 - - (57,857) -

MAURITIUS Electronic Registration Project 307,249 857,826 - (1,024,248) 140,827


410,135 - (18,029) (390,397) 1,709

MOZAMBIQUE Integrated Business Licensing

52,667 1,018,662 (562,855) 508,474

NIGERIA Lagos Alternative Dispute Resolution

608,194 72,000 - (64,179) 616,015

OHADA Uniform Acts Reform II 272,905 300,000 - (361,260) 211,645

Sub-total c/f to page 39 4,295,869 6,731,470 (22,721) 6,148,045) 4,856,573

NOTES (CONTINUED)

39


10 PREPAID PROJECT EXPENDITURE (CONTINUED)

1 Jan 2014 Disbursement 2014

(Refunds)/currency


Projects expenditure

31 December 2014

US$ US$ US$ US$ US$

Project (continued)Balance b/f from page 38 4,295,869 6,731,470 (22,721) (6,148,045) 4,856,573 RWANDA Alternative Dispute Resolution 98,431 600,176 - (521,369) 177,238

RWANDA Business Life Cycle Project 347,306 578,294 - (453,950) 471,650

RWANDA Commercial Justice Project 512,202 848,868 - (857,756) 503,314

RWANDA Kigali Construction Permit 391,284 - (1,741) (389,543) -


213,805 377,343 - (308,756) 282,392

SAO TOME and PRINCIPE International Trade

33,155 505,909 757 (260,758) 279,063

SENEGAL Construction Permit Projects 323,484 370,558 - (368,827) 325,215

SENEGAL Modernization of Tax Administration

106,721 -

- -

106,721

SENEGAL Modernization of Custom Authority

135,052 -

(14,024) (121,028)

-

SIERRA LEONE Airport Transfer 186,339 250,000 - (408,244) 28,095

SIERRA LEONE Registry General 1,580 - (24,993) 23,413 -

SOUTH AFRICA Municipal Capacity Building Project

- 1,022,584 - (314,205)

708,379


285,695 742,171 - (1,006,264) 21,602

TANZANIA Small and Medium Enterprise Capacity Building

291,267 98,646 - (384,379) 5,534

TOGO Commercial Justice Project - 955,172 - (941,740) 13,432

TUNISIA Stock Exchange Capacity Development

262,786 155,480 2,207 (148,811) 271,662


360,037 983,832 5,942 (808,179) 541,632


45 - - (45) -

Grand Total 7,845,058 14,220,503 (54,573)

(13,418,486)

8,592,502

NOTES (CONTINUED)

40


11 FUNDS IN TRUST

The Funds in Trust are managed by the African Development Bank (“AfDB”) under the Portfolio Management Agreement dated 28 February 2008 between the AfDB and ICF that governs AfDB’s investment management and advisory services.

The details of funds in Trust are as follows;

31 December 2014

31 December 2013

US$ US$

Bonds 26,041,220 33,044,067

Time deposits 1,514,000 2,793,000

Cash held by AfDB 3,099,044 841,756

30,654,264 36,678,823

12 CASH AT BANK AND IN-HAND

US$ Current Account held with Stanbic Bank 45,173 511,620

US$ Current Account held with CRDB Bank 34,535 371,881

TZS current Account held with CRDB Bank 64,321 492,165

US$ Call Account held with Stanbic Bank 92,385 257,572

US$ Fixed deposit Account held with CRDB Bank - 3,000,000

Ordinary Call Account held with CRDB Bank 11,848 5,383,735

Cash in hand 281 308

248,543 10,017,281

13 ACCOUNTS PAYABLE

Sundry creditors 46,945 54,002

Accrued fees and expenses 546,031 636,967

Accrued staff costs 344,071 338,487

937,047 1,029,456

NOTES (CONTINUED)

41


14 COMMITTED PROJECTS FUTURE DISBURSEMENTS 2014

Status Project commitment

per agreement

Total projectsdisbursements at 01 Jan 2014

Project disbursement 31 December

2014

(Refunds)/currency


Savings Committed projects future disbursementsat 31 Dec 2014

Projects Name US$ US$ US$ US$ US$ US$

BURKINA FASO Land Registration System Completed 750,000 (551,318) - - (198,682) -

BURKINA FASO Business Registration and Construction Licence

Completed 555,000 (489,288) - - (65,712) -


Completed 3,900,000 (2,344,035) - - (1,555,965) -


Ongoing 2,500,000 (2,002,748) (323,333) - - 173,919

BURKINA FASO Interconnection Business, Lands& Const Service

Ongoing 3,100,000 (978,889) (835,025) - - 1,286,086

CAPE VERDE PPP Ongoing 1,000,000 1,000,000

CAPE VERDE Business Life Cycle Services Completed 1,800,000 (1,279,938) - - (520,062) -

CAPE VERDE Tax Ongoing 1,650,000 - (823,776) - - 826,224

COTE D’IVOIRE Alternative Dispute Resolution Ongoing 610,839 - (190,553) (1,203) - 419,083

ETHIOPIA Modernization of Tax Administration Completed 1,700,000 (1,331,456) - - (368,544) -


Ongoing 1,200,000 (251,500) (619,000) - - 329,500

ETHIOPIA Single Window Ongoing 4,300,000 - (124,320) - - 4,175,680


Ongoing 3,500,000 (1,185,064) (1,460,458) 5,895 - 860,373

LESOTHO Reform of the VAT Regime Completed 41,649 (41,649) - - - -

LIBERIA Business Registration Completed 2,500,000 (2,415,408) - - (84,592) -

LIBERIA Computerisation of Customs Department

Completed 300,000 (300,000) - - - -

MALI Alternative Dispute Resolution Completed 300,000 (214,562) - - (85,438) -

MALI Alternative Dispute Resolution phase II Ongoing 330,000 - (106,517) - - 223,483

MALI Tax Dispute Resolution Completed 600,000 (520,000) - - (80,000) -

MAURITIUS Modernization of the Judiciary Ongoing 2,700,000 (2,092,333) - - - 607,667

MAURITIUS Registrar of Companies Completed 696,000 (601,041) - - (94,959) -

MAURITIUS Electronic Registration Project Ongoing 2,700,000 (1,381,600) (857,826) - - 460,574

MOZAMBIQUE Business Registration and Licensing for Tourism

Completed 1,400,000 (733,378) - - (666,622) -

Sub-total c/f to page 42 38,133,488 (18,714,207) (5,340,808) 4,692 (3,720,576) 10,362,589

NOTES (CONTINUED)

42


14 COMMITTED PROJECTS FUTURE DISBURSEMENTS 2014 (CONTINUED)


per agreement

Total projects disbursements at 01 Jan 2014

Project disbursement

during the year

(Refunds)/currency

translations from

projects


Projects Name (continued) US$ US$ US$ US$ US$ US$

Balance b/f from page 41 38,133,488 (18,714,207) (5,340,808) 4,692 (3,720,576) 10,362,589


Completed 750,000 (594,000) - 18,029 (174,029) -

MOZAMBIQUE Integrated Business Licensing Ongoing 2,700,000 (439,777) (1,018,662) - - 1,241,561

NIGERIA Lagos Alternative Dispute Resolution Ongoing 2,809,278 (1,163,547) (72,000) - - 1,573,731

RWANDA Rwanda Investment Climate Project

Completed 8,968,100 (8,346,558) - - (621,542) -

RWANDA Energy and Power Sector in Rwanda

Completed 4,000,000 (2,289,570) - - (1,710,430) -

RWANDA Modernization of Tax Administration

Completed 2,500,000 (2,010,700) - - (489,300) -


Ongoing 830,000 (305,223) (377,343) - - 147,434

RWANDA Kigali Construction Permit Completed 515,000 (396,533) - 1,741 (120,208) -

RWANDA Commercial Justice Project Ongoing 2,100,000 (687,465) (848,868) - - 563,667

RWANDA Alternative Dispute Resolution Ongoing 1,450,000 (656,874) (600,176) - - 192,950

RWANDA Business Life Cycle Project Ongoing 1,100,000 (428,065) (578,294) - - 93,641


Ongoing 1,100,000 (412,288) (505,909) (757) - 181,046

SENEGAL GAINDE Paperless Trade Phase I Completed 526,000 (508,498) - - (17,502) -

SENEGAL GAINDE Paperless Trade Phase II Completed 3,700,000 (3,638,791) - - (61,209) -


Completed 3,800,000 (3,775,500) - 14,027 (38,527) -


Ongoing 4,000,000 (3,826,000) - (174,000)

SENEGAL Construction Permit Projects Ongoing 1,400,000 (362,982) (370,558) - - 666,460

SEYCHELLES PPP Ongoing 114,000 114,000

SIERRA LEONE Land Registration System Completed 1,500,000 (1,457,781) - (42,219) -

SIERRA LEONE Fast Track Commercial Court in Freetown

Completed 1,900,000 (1,529,931) - - (370,069) -

SIERRA LEONE Airport Transfer Ongoing 5,400,000 (4,919,249) (250,000) - - 230,751

SIERRA LEONE Registry General Completed 1,400,000 (1,324,592) - 24,993 (100,401) -

SOUTH AFRICA Municipal Capacity building project

Ongoing 2,700000 - (1,022,584) - - 1,677,416

TANZANIA National Land Bank Completed 81,025 (81,025) - - - -

TANZANIA Modernization of the Judiciary Completed 2,000,000 (1,314,764) - - (685,236) -

Sub-total c/f to page 43 95,476,891 (59,183,920) (10,985,202) 62,725 (8,325,248) 17,045,246

NOTES (CONTINUED)

43




per agreement

Total projects disbursements at 01 Jan 2014


during the year

(Refunds)/currency

translations from

projects





Completed 316,640 (183,869) -

- (132,771) -


Ongoing 2,700,000 (327,582) (742,171) - - 1,630,247

TANZANIA Movement of Goods and Services

Completed 1,300,000 (963,108) -

- (336,892) -

TANZANIA Small and Medium Enterprise Completed 443,000 (291,267) (98,646) - (53,087) -

TOGO Alternative Dispute Resolution Completed 325,000 (250,500) - - (74,500) -

TOGO Commercial Justice Project Ongoing 2,300,000 - (955,172) - - 1,344,828


Ongoing 816,000 (577,480) (155,480) (2,207) - 80,833

ZAMBIA Modernization of the Judiciary Phase I

Completed 500,000 (486,641) - - (13,359) -


Completed 2,100,000 (1,127,073) -

- (972,927) -

ZAMBIA Modernization of Tax Administration Phase I

Completed 930,000 (472,923) - - (457,077) -


Completed 2,148,000 (1,088,696) (983,832) (5,941) (69,531)


Completed 1,000,000 (681,654) - - (318,346) -

EAC Harmonization of Commercial Laws Completed 800,000 (401,897) - - (398,103) -

PAN AFRICA (BAFICAA) Completed 257,474 (257,474) - - - -

OHADA Uniform Acts Reform Completed 1,105,067 (1,025,629) - - (79,438) -

OHADA Uniform Acts Reform II Ongoing 1,754,000 (950,000) (300,000) - - 504,000

Financial Sector Task Force Completed 300,000 (20,690) - - (279,310) -

Power Sector Task Force Completed 300,000 (108,243) - - (191,757) -

PAN AFRICA Journalist Training Completed 600,000 (383,138) - - (216,862) -

PAN AFRICA Modernization of Domestic Taxes Admin

Completed 400,000 (52,063) - - (347,937) -

PAN AFRICA Capacity Building Completed 500,000 (500,037) - - 37 -

Grand Total

116,372,072

(69,333,884)

(14,220,503)

54,577

(12,267,108) 20,605,154

NOTES (CONTINUED)

44


14 COMMITTED PROJECTS FUTURE DISBURSEMENTS 2013


per agreement

Total projects disbursements

at 01 Jan 2013


during the year

(Refunds)/ currency

translations from

projects


Projects Name US$ US$ US$ US$ US$ US$

BURKINA FASO Land Registration System Completed 750,000 (655,000) - 103,682 (198,682) -

BURKINA FASO Business Registration and Construction Licence

Completed 555,000 (508,333) - 19,045 (65,712) -


Ongoing 3,900,000 (2,410,510) - 66,475 - 1,555,965


Ongoing 2,500,000 (1,662,216) (340,532) - - 497,252

BURKINA FASO Interconnection Business, Lands& Construction Service

Ongoing 3,100,000 - (978,889) - - 2,121,111

CAPE VERDE Business Life Cycle Services Completed 1,800,000 (1,405,000) - 125,062 (520,062) -

CAPE VERDE Tax Ongoing 1,650,000 - - - 1,650,000

COTE D’IVOIRE Alternative Dispute Resolution

Ongoing 610,839 - - - 610,839

ETHIOPIA Modernization of Tax Administration

Completed 1,700,000

(1,444,259) - 112,803 (368,544) -


Ongoing 2,200,000 (115,000) (136,500) - - 1,948,500

ETHIOPIA Single Window Ongoing 4,300,000 - - - 4,300,000


Ongoing 3,500,000 (1,185,064) - - 2,314,936

LESOTHO Reform of the VAT Regime Completed 41,649 (41,649) - - - -

LIBERIA Business Registration Completed 2,500,000 (2,415,408) - - (84,592) -

LIBERIA Computerisation of Customs Department

Completed 300,000 (300,000) - - - -

MALI Alternative Dispute Resolution Completed 300,000 (288,000) - 73,438 (85,438) -

MALI Tax Dispute Resolution Completed 600,000 (520,000) - - (80,000) -

MAURITIUS Modernization of the Judiciary Ongoing 2,700,000 (2,092,333) - - - 607,667

MAURITIUS Registrar of Companies Ongoing 696,000 (357,300) (243,741) - - 94,959

MAURITIUS Electronic Registration Project Ongoing 2,700,000 (171,000) (1,210,600) - - 1,318,400

MOZAMBIQUE Business Registration and Licensing for Tourism

Completed 2,400,000 (733,378) - - (1,666,622) -

Sub-total c/f to page 45 38,803,488

(15,119,386)

(4,095,326)

500,505 (3,069,652) 17,019,629

NOTES (CONTINUED)

45




per agreement


at 01 Jan 2013


during the year

(Refunds)/currency

translations from

projects





Ongoing 750,000 (99,000) (495,000) - - 156,000

MOZAMBIQUE Integrated Business Licensing Ongoing 2,700,000 (439,777) - - 2,260,223

NIGERIA Lagos Alternative Dispute Resolution Ongoing 2,809,278 (600,800) (562,747) - - 1,645,731

RWANDA Rwanda Investment Climate Project

Completed 8,968,100 (8,346,558) - - (621,542) -

RWANDA Energy and Power Sector in Rwanda

Completed 4,000,000 (2,585,767) - 296,197 (1,710,430) -

RWANDA Modernization of Tax Administration

Completed 2,500,000 (2,129,817) - 119,117 (489,300) -


Ongoing 830,000 (12,272) (292,951) - - 524,777

RWANDA Kigali Construction Permit Ongoing 515,000 (76,718) (319,815) - - 118,467

RWANDA Commercial Justice Project Ongoing 2,100,000 (220,330) (467,135) - - 1,412,535

RWANDA Alternative Dispute Resolution Ongoing 1,450,000 (161,612) (495,262) - - 793,126

RWANDA Business Life Cycle Project Ongoing 1,100,000 - (428,065) - - 671,935


Ongoing 1,100,000 - (412,288) - -

687,712

SENEGAL GAINDE Paperless Trade Phase I Completed 526,000 (526,000) - 17,502 (17,502) -

SENEGAL GAINDE Paperless Trade Phase II Completed 3,700,000 (3,675,000) - 36,209 (61,209) -


Completed 3,800,000 (3,775,500) - - (24,500) -


Ongoing 4,000,000 (3,118,000) (708,000) - 174,000

SENEGAL Construction Permit Projects Ongoing 1,400,000 - (362,982) - 1,037,018

SIERRA LEONE Land Registration System Completed 1,500,000 (1,457,781) - (42,219) -

SIERRA LEONE Fast Track Commercial Court in Freetown

Completed 1,900,000 (1,638,800) - 108,869 (370,069) -

SIERRA LEONE Airport Transfer Ongoing 5,000,000 (4,528,318) (390,931) - - 80,751

SIERRA LEONE Registry General Ongoing 1,400,000 (1,324,592) - - - 75,408

TANZANIA National Land Bank Completed 81,025 (81,025) - - - -

TANZANIA Modernization of the Judiciary Completed 2,000,000 (1,314,764) - - (685,236) -

Sub-total c/f to page 46 92,932,891

(50,792,040)

(9,470,279)

1,078,399

(7,091,659) 26,657,312

NOTES (CONTINUED)

46




per agreement


at 01 Jan 2013


during the year

(Refunds)/currency

translations from

projects



Balance b/f from page 45 92,932,891 (50,792,040) (9,470,279) 1,078,399 (7,091,659) 26,657,312


Ongoing 316,640 (235,869) - 52,000 (132,771) -


Ongoing 2,700,000 - (327,583) - - 2,372,417

TANZANIA Movement of Goods and Services

Ongoing 1,300,000 (1,010,139) - 47,031 (336,892) -

TANZANIA Small and Medium Enterprise Ongoing 443,000 (291,267) - - 151,733

TOGO Alternative Dispute Resolution Completed 325,000 (250,500) - - (74,500) -


Ongoing 816,000 (470,840) (106,640) - - 238,520

ZAMBIA Modernization of the Judiciary Phase I

Completed 500,000 (500,000) - 13,359 (13,359) -


Completed 2,100,000 (1,603,919) - 476,846 (972,927) -

ZAMBIA Modernization of Tax Administration Phase I

Completed 930,000 (584,145) - 111,222 (457,077) -


Ongoing 2,148,000 (1,088,686) - - 1,059,314


Ongoing 1,000,000 (681,654) - - (318,346) -

EAC Harmonization of Commercial Laws Ongoing 800,000 (401,897) - - (398,103) -

PAN AFRICA (BAFICAA) Completed 257,474 (257,474) - - - -

OHADA Uniform Acts Reform Completed 1,105,067 (1,105,067) - 79,438 (79,438) -

OHADA Uniform Acts Reform II Ongoing 1,754,000 (250,000) (700,000) - - 804,000

Financial Sector Task Force Completed 300,000 (20,690) - - (279,310) -

Power Sector Task Force Completed 300,000 (108,243) - - (191,757) -

PAN AFRICA Journalist Training Completed 600,000 (383,139) - - (216,861) -

PAN AFRICA Modernization of Domestic Taxes Admin

Completed 400,000 (52,063) - - (347,937) -

PAN AFRICA Capacity Building Ongoing 500,000 (237,497) (262,540) - 37 -

Grand Total

111,528,072

(58,945,176)

(12,246,995)

1,858,295

(10,910,900) 31,283,296

NOTES (CONTINUED)

47


15 UNCOMMITTED FUNDS

At1 January

2014

Incoming resources

Outgoing resources

Committed projects future disbursements

Other recognized

losses

At31 December

2014

Total funds 21,252,696 - - - - 21,252,696

Contributions written off -

Losses - - - - (465,348) (465,348)

Operating income & expensesInvestment Income - 151,586 - - - 151,586

Other Income 8,460 8,460

Cost of generating funds - - (123,826) - - (123,826)

Governance Expenses - - (1,330,631) - - (1,330,631)

Operating expenses (580,516) (580,516)

Project activitiesProject Initiation and Promotion - - (550,532) - - (550,532)

Project Monitoring & Evaluation - - (1,451,100) - - (1,451,100)

Project Implementation - - (14,030,865) - - (14,030,865)

Provision on prepaid projects expenditures - - (747,444) - - (747,444)

Projects commitment

At start of the period - - - 31,283,296 - 31,283,296

At end of the period - - - (20,605,154) - (20,605,154)

Total Unrestricted Funds 21,252,696 160,046 (18,814,914) 10,678,142 (465,348) 12,810,622

NOTES (CONTINUED)


48


16 NOTE TO THE STATEMENT OF CASH FLOWS

The net movement in funds for the year is reconciled to cash generated from operations as follows:

2014 2013

US$ US$

Cash flows from operationsNet movement in funds for the year (19,120,216) (15,546,932)

Adjustments for items that do not involve the movement of funds:

Depreciation expense 32,584 29,919

Accrual on prepaid projects expenditure 747,444 1,388,124

Adjustments to reconcile change in total funds to cash used in operating activities:

Change in contributions receivable 3,431,746 352,298

Change in accounts receivable (17,101) (39,128)

Change in prepaid project expenditure (747,444) (1,388,124)

Change in accounts payable (92,409) (30,172)

Cash absorbed in operations (15,765,396) (15,234,015)

NOTES (CONTINUED)

49

ANNUAL REPORT 2015INVESTMENT CLIMATE FACILITY FOR AFRICA ANNUAL REPORT 2015INVESTMENT CLIMATE FACILITY FOR AFRICA

50


51


Investment Climate Facility for Africa, 2nd Floor, 50 Mirambo Street,P.O. Box 9114, Dar es Salaam,Tanzania

T: +255 22 212 9211, F: +255 22 212 9210E: [email protected]

Investor Relations

ICF 2014 Annual Report