Midterm evaluation of Togo rural institutions and private sector project (TRIPS), USAID project no. 693-0227

Mid-term evaluation covers the period 1988-5/91. The project is being implemented by CARE and the Credit Union National Association of North America/Federation des Unions Cooperatives d'Epargne et du Credit (CUNA/FUCEC). The number of farmers working with CARE has declined, and it is not likely that project targets will be achieved. CARE has applied a credit-driven model: it has introduced marginally profitable technical packages that require high inputs and capital outlays. Even though the project region is well-endowed agriculturally and close to the Lome market, no verifiable increase in economic growth has been discerned. approaches were attempted, but neither appears sustainable. Over and above the evaluation team's critique of the CARE model, doubt was expressed about CARE's ability to implement in the field. This component -- though not A.I.D.'s support for small farmers in the region -- should be discontinued. The small and microenterprise development component suffered due to the failure of the first component. Nor has it complemented the savings-driven, rural credit mechanism promoted by CUNA/FUCEC. The microenterprises element reached quantitative output goals but was not sustainable, and only 1 of 10 targeted small enterprises (stove manufacturing and sales) was developed. Rural associations, the component's final target group, are largely agglomerated microenterprises which have suffered from a stagnant farm economy. Either the component should be discontinued, or CARE should hire an experienced small enterprise specialist and focus work on high value crops and marketing. CARE's training component trained CARE field staff in support of group activities (25%); and trained personnel and trainers of local NGO's and public sector agencies (75%). Although end-of-project objectives were surpassed, training activities seem overextended. CARE provides training at no cost, and uses additional monies from an operational research fund to pay per diems and to supply materials. As a result, the training activities also distort the local market; they should be more focused, and CARE should more carefully select clients. Operational funds should be used for clients who match contributions. This component should chiefly contribute to the project through business advisory training and services. FUCEC's principal role in TRIPS is to establish institutions for savings and productive credit. Funds available to FUCEC for productive credit have yet to be used, as funds have been available through a central liquidity facility. This component has successfully met or surpassed its targets; however, efforts should be redoubled in the area of productive credit. A.I.D. should continue to support development of appropriate credit union legislation. The project management team, composed of the grantees, the Government of Togo's Planning and Programming Service (PPS), and OAR/Lome representatives, has not effectively coordinated TRIPS activities. Personnel shortages, poor data gathering capacity, and training exigencies have restricted the role of the PPS in coordinating TRIPS. The PPS is progressing with the assistance of an A.I.D.-supported advisor; significant improvements are anticipated by end of project. It is recommended that OAR/Lome maintain a stronger supporting role for PPS through its participation in the project management team, and that the PPS use local consultants to assist with its weighty mandate. (Author abstract, modified)