CONFLICT SENSITIVITY IN PROJECTS: Practical Measures for Private Sector Clients

In today's globalised economy, many private sector actors operate in regions where there is political instability, social unrest, or armed conflict, which can pose significant risks to their operations, investments, and reputation. Conflict sensitivity helps private sector investors to identify and mitigate the risks associated with operating in conflict-affected areas, promote social license to operate, and increase the resilience of investments. Conflict sensitivity can also help the private sector avoid exacerbating conflict, and, instead, maximize the positive impact of its investments and build resilience in fragile contexts.

Through a collaboration between IFC and EIB, the Africa Resilience Investment Accelerator (ARIA) published a guide in March 2023 to share the importance of conflict sensitivity for the private sector and how it can be applied at programme level.

Conflict sensitivity should be embedded throughout the full lifecycle of a project, from 1) planning, through early security and conflict risk screening and community stakeholder mapping, to 2) implementation, through development of risk mitigation measures and opportunities to maximize positive impact, and 3) ongoing monitoring, to anticipate changes in the context and trigger events that may impact the project.

By understanding the drivers of conflicts, the actors involved, and how their activities may be or are influenced by the conflict context, investors can develop strategies to help projects avoid exacerbating further conflict and violence, applying a “do no harm” approach, identifying opportunities to reduce conflict risks and have a positive impact. Additionally, by understanding the local context and engaging with local stakeholders, investors can identify market opportunities that align with the needs and aspirations of the local population.

By being conflict-sensitive, investors can both enhance the resilience of their own investments as well as contribute to sustainable development in the regions where they operate.