USAID-funded Commercially-Viable Conflict-Free Gold Project FY20 Quarterly Report April 1-June 30, 2020

The program aims to build on recent successes achieved by donor-funded initiatives to export responsibly-produced gold to jewelry buyers in North America and Europe. Implemented by Global Communities in partnership with Levin Sources, CVCFG brings unique qualifications and expertise to address the challenges and take advantage of opportunities within the artisanal gold supply chain. Artisanal and Small-scale Mining (ASM) is a significant driver of DRC's economy, with many communities in the eastern part of the country relying on the ASM sector for their livelihoods. While national, regional, and international regulations have been put in place to address the illegal trade of conflict minerals, over 80% of ASM gold produced in DRC is exported illicitly. Gold continues to fuel conflict in eastern DRC. The ASM gold supply chain is beset with challenges, both within the upstream and downstream sectors, relying on donor resources to address persistent weaknesses in the chain. CVCFG takes a market systems approach to push the supply chain towards sustainability and scale by increasing demand for and co-investment in responsibly-sourced ASM gold from eastern DRC. The program will carry out activities to increase the reputation, visibility, and availability of responsibly-sourced gold from eastern DRC that meets International Conference of the Great Lakes Region (ICGLR) and the Organization of Economic Cooperation and Development (OECD) due diligence requirements for responsible minerals supply chains. The program also aims to increase the volume of exports of responsibly-sourced ASM gold from eastern DRC by strengthening the capacity of upstream and midstream supply chain actors to adhere to responsible supply chain traceability activities and comply with OECD due diligence guidance. Additionally, CVCFG seeks to improve the commercial viability of ASM gold cooperatives through targeted and participatory training to ensure profitability and longevity through responsible market linkages, improved membership management, and good governance structures. The theory of change for this project suggests that if the reputation, visibility, and accessibility of responsibly-sourced ASM gold improve, barriers and costs to trade in ASM gold are reduced, and returns to miners through effective cooperative structures improve, then commercially-viable investments in ASM gold supply chains by private sector supply chain actors (upstream and downstream) will increase, resulting in a sustainable, traceable, scalable, conflict-free ASM gold supply chain that originates from eastern DRC. Implementation of the project has made significant progress, with activities focused on increasing demand for and co-investment in responsibly-sourced ASM gold from eastern DRC. The program has carried out activities to increase the reputation, visibility, and availability of responsibly-sourced gold from eastern DRC that meets ICGLR and OECD due diligence requirements. Additionally, CVCFG has strengthened the capacity of upstream and midstream supply chain actors to adhere to responsible supply chain traceability activities and comply with OECD due diligence guidance. The program has also made progress in improving the commercial viability of ASM gold cooperatives through targeted and participatory training. Training has been provided to ensure profitability and longevity through responsible market linkages, improved membership management, and good governance structures. The program has also established a Refiner Community of Practice to promote responsible gold refining practices and improve the commercial viability of ASM gold cooperatives. Despite progress, the program has faced implementation challenges, including the COVID-19 pandemic, which has impacted the supply chain and market demand. The program has developed a COVID-19 contingency plan to mitigate the impact of the pandemic on the project. The plan includes measures to support the supply chain, maintain market demand, and ensure the continued implementation of the project. The program has also made significant progress in private sector engagement and leverage, with activities focused on increasing demand for and co-investment in responsibly-sourced ASM gold from eastern DRC. The program has engaged with jewelers and refiners, exporters/offtakers, and the Responsible Artisanal Gold Solutions Forum (RAGSF) to promote responsible gold sourcing practices and improve the commercial viability of ASM gold cooperatives. The program has also made progress in external affairs, including event participation and communication. The program has participated in various events, including the Responsible Minerals Initiative (RMI) conference, to promote responsible gold sourcing practices and improve the commercial viability of ASM gold cooperatives. The program has also established a communication strategy to promote the project's activities and achievements to stakeholders. The program has also made progress in management and administrative issues, including financial management. The program has established a financial management system to ensure the effective management of project funds. The program has also established a risk management plan to identify, mitigate, and manage risks associated with the project. The program has also made progress in lessons learned, with activities focused on identifying best practices and lessons learned from the project. The program has established a lessons learned framework to capture best practices and lessons learned from the project. The framework includes measures to identify, document, and disseminate best practices and lessons learned from the project. The program has also made progress in planned activities