Sector Investment Programs (SIPs) are an integral part of the World Bank's strategy for renewal in Africa. The objective of the study was therefore to examine the key elements of SIPs, to explain their rationale, and to prepare a practical guide for their preparation. Further, the objective was to assess the likely number of such programs that can be expected to be seen over the next few years, and to serve as a pedagogic tool in disseminating the new approach, both to borrowers and to other donors. SIPs offer a real alternative approach that is generating higher impact on the ground. The operations are expensive to prepare (especially for the lead donor), but significantly reduce costs over the medium term. SIPs are only possible when there is genuine local commitment to such an approach, and where there exists goodwill among the donor community, especially amongst those actively present in the country.