Annex 8 | MASSIF Market Creation Program (M-MCP) 

Executive summary

This report is the first annual report of the Massif Market Creation Program (M-MCP) and covers the period 1 November 2023 till 31 December 2024. During this year we have committed €3,163,640 to 3 projects and disbursed €229,337. During the reporting period we reached many achievements in terms of intervention origination & execution, program management and design of the market creation platform.

We kick-started our work with supporting ambitious projects (ARIA and CASA+), in which we work with 15 DFIs and enter difficult markets. In these projects we are actively collaborating with service providers and partners to add value. Whilst both Casa+ and ARIA are ecosystem projects, we are seeing early compelling business development outcomes as a result.  For instance, two DRC located businesses supported by ARIA already ended up in DFI pipeline (total value $50m). While actual reported results in this reporting period are still modest as the program was starting up, growing interest in supported interventions amongst the DFI community and wider ecosystem are expected to scale results in the near term.

In terms of program management, significant efforts have been put in creating a collaborative partnership with Triple Jump. A pilot governance structure and a jointly designed origination framework have enhanced our strategic alignment and are improving process efficiency between us. Also, fundraising activities leveraging M-MCP have been successful. Partly due to existing relationships and aligned mandates with MoFA and EU, fundraising for market creation has been successful and resulted in contracting €33.7M additional funding from the EC by the end of 2024.

Lastly, significant traction has been made in designing the Market Creation platform. Overall, the reception of the Market Creation (MC) Platform has been positive by various stakeholders engaged so far; they see a clear need for bridging the gap between donor private sector development programming and investment mandates of DFIs towards closing the SDG gaps. However, the value proposition of the platform needs more refinement through deeper engagement with DFIs and relevant stakeholders before launching a minimum viable product, which is now envisioned for 2025.

Actual Results

Introduction

What follows is an updated table of progress towards contracted outputs based on the program’s logical framework for intervention level indicators. The program’s Theory of Change (ToC) and the Impact Framework are part of our broader MEL plan which was approved by the Ministry in August 2024 (included in Annex 1). 

As outlined in our ToC, the target outcomes of the program are to build a pipeline of bankable opportunities by improving entrepreneurial ecosystems, enhancing financial solutions and support for early-stage businesses, and convening investors and industry players. These outcomes are designed to contribute to the goal of increased investment from DFIs and other investors into Low Income Countries (LICs) and fragile states. We track several indicators (full list in annex 1) to monitor progress against our ToC, which form part of our broader MEL plan.

Results in the reporting period

In terms of inputs, we have committed €3,163,640 to 3 projects and disbursed €229,337. Table 1 below provides a summary of the achieved outputs across the three pillars of our market creation Theory of Change, namely ecosystem development, business development and convening & influencing.

Table 1: Summary of outputs in the reporting period across the 3 Market Creation Pillars

Table 2 below provides an overview of the outputs achieved per output indicator.

Table 2: MMCP outputs achieved per indicator