The World Bank Implementation Status & Results Report Ghana Development Finance Project (P169742) Ghana Development Finance Project (P169742) Western and Central Africa | Ghana | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2021 | Seq No: 3 | ARCHIVED on 18-May-2022 | ISR51049 | Implementing Agencies: Ministry of Finance, Development Bank Ghana, Republic of Ghana Key Dates Key Project Dates Bank Approval Date: 29-Oct-2020 Effectiveness Date: 25-Feb-2022 Planned Mid Term Review Date: 25-Jun-2024 Actual Mid-Term Review Date: Original Closing Date: 30-Jun-2027 Revised Closing Date: 30-Jun-2027 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To support the establishment of a financially sustainable development bank to increase access to finance, in particular long-term finance, for viable MSMEs and small corporates Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Long-term wholesale financing and technical assistance:(Cost $185.50 M) Partial credit guarantee (PCG) facility and digital financing platform:(Cost $56.50 M) Capital market development:(Cost $6.00 M) Project management, monitoring and evaluation:(Cost $2.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The project became effective on February 25, 2022. Following project effectiveness, regular dialogue with Development Bank Ghana (DBG), Ministry of Finance, and the Securities and Exchange Commission (SEC) has focused on meeting the disbursement conditions and legal covenants, as well as developing Terms of Reference for technical assistance activities. Progress in project implementation and towards PDO are rated as satisfactory. Supported by the Project, the DBG is now operational and ready to start disbursing loans to participating financial institutions and end-borrowers (MSMEs and small corporates). 5/18/2022 Page 1 of 6 The World Bank Implementation Status & Results Report Ghana Development Finance Project (P169742) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Substantial Substantial Substantial Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Support establishment dev. bank to increase access to finance to viable MSMEs and small corporates IN01128970 ►Volume of financing to viable MSMEs and small corporates facilitated by the project (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 475,000,000.00 Date 31-Dec-2019 28-Feb-2021 31-Dec-2020 30-Jun-2027 Cumulative amount (in USD equivalent, at the time of disbursement) of all sub-loans provided by participating financial institutions (PFIs) to all subborrowers that are fully or partially funded by the project's Comments: credit line, or guaranteed by the project's partial credit guarantee (PCG) facility, or facilitated by the digital financing platform. IN01128971 Volume of financing to MSMEs facilitated by the project (Amount(USD), Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 425,000,000.00 IN01128972 ►Average non-performing loans (NPL) ratio of the PFIs' loan portfolio financed by the Project (Percentage, Custom) 5/18/2022 Page 2 of 6 The World Bank Implementation Status & Results Report Ghana Development Finance Project (P169742) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 30-Jun-2020 28-Feb-2021 31-Dec-2021 30-Jun-2027 NPLs are the outstanding principal of those loans overdue by at least 90 days. The NPL ratio is to be calculated as a percentage of total (gross) loans financed by the Project and be reported with reference to Comments: June and December of each calendar year. The overall ratio is a weighted average of the PFIs' gross loan portfolio financed by the Project (through the line of credit and PCG Facility). IN01128973 ►Average maturity of sub-loans extended by participating financial institutions under the project (Years, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6.00 Date 30-Jun-2020 28-Feb-2021 31-Dec-2021 30-Jun-2027 Average contractual maturity of outstanding sub-loans (in years) at the time of reporting, weighted by the Comments: sub-loan amount. IN01128974 ►DBG’s return on equity (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 31-Dec-2019 28-Feb-2021 31-Dec-2021 30-Jun-2027 The Development Bank Ghana's return on equity is its net profit (after taxes) for the year divided by total average equity during the year. The average equity during the year is the sum of equity at the end of the Comments: year and equity at the beginning of the year divided by two. The indicator is measured using the most recent audited annual financial statements. IN01128975 ►Risk-based supervision (RBS) approach developed and implemented by the SEC (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target RBS approach Value No RBS No RBS No RBS implemented Date 30-Jun-2020 28-Feb-2021 31-Dec-2021 31-Dec-2026 RBS is an approach and methodology that allows the SEC to allocate its scarce supervisory resources Comments: based on the risk of each supervised market operator. Intermediate Results Indicators by Components Long-term wholesale financing and technical assistance IN01128976 ►Volume of DBG loans to participating financial institutions (PFIs) financed by the project (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target 5/18/2022 Page 3 of 6 The World Bank Implementation Status & Results Report Ghana Development Finance Project (P169742) Value 0.00 0.00 0.00 175,000,000.00 Date 30-Jun-2020 28-Feb-2021 31-Dec-2021 30-Jun-2027 Cumulative amount (in USD equivalent, at the time of disbursement) of all loans provided by the DBG to Comments: participating financial institutions (PFIs) funded by the project. IN01128982 Volume of DBG loans to PFIs for low-carbon and climate resilient investments financed by the Project (Amount(USD), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 8,750,000.00 Date 30-Jun-2020 28-Feb-2021 31-Dec-2021 30-Jun-2027 IN01128983 Volume of DBG loans to PFIs for women-owned/controlled enterprises financed by the Project (Amount(USD), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 17,500,000.00 Date 30-Jun-2020 28-Feb-2021 31-Dec-2021 30-Jun-2027 IN01128984 ►DBG’s maximum non-performing loan (NPL) ratio (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 30-Jun-2020 28-Feb-2021 31-Dec-2021 30-Jun-2027 NPLs are the outstanding principal of those loans overdue by at least 90 days. The NPL ratio is to be Comments: calculated as a percentage of total (gross) loans. NPL ratio to be reported with reference to June and December of each calendar year. Partial credit guarantee (PCG) facility and digital financing platform IN01128977 ►Volume of guarantees issued under the project (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 175,000,000.00 Date 31-Dec-2019 28-Feb-2021 31-Dec-2021 30-Jun-2027 The cumulative USD amount of guarantees issued by the partial credit guarantee facility, as of the end of Comments: the reporting period. IN01128980 ►Digital financing platform established and operational (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Platform established Value No platform No platform No platform and operational 5/18/2022 Page 4 of 6 The World Bank Implementation Status & Results Report Ghana Development Finance Project (P169742) Date 31-Dec-2019 28-Feb-2021 31-Dec-2021 31-Dec-2023 Digital platform for SME financing is an online platform that allows multiple participants in a market for Comments: receivables discount financing, and that can be accessed through digital channels. The platform is operational when it is "live" with registered users (SMEs, buyers, or financiers). Capital market development IN01128978 ►Percentage of capital market operators that undergo inspection by the SEC during the year (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20.00 20.00 20.00 50.00 Date 30-Jun-2020 28-Feb-2021 31-Dec-2021 30-Jun-2027 Capital market operators are those with a valid license issued by the Securities and Exchange Commission (SEC) and active in the Ghanaian capital markets during the reference period. For the Comments: purposes of this indicator, capital market operators are the brokers-dealers, investment advisers, and fund managers. IN01128981 ►Number of capital market professionals trained under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 250.00 Date 30-Jun-2020 28-Feb-2021 31-Dec-2021 31-Dec-2026 Cumulative number of capital market professionals that completed the continuing professional Comments: development course developed by the Ghana Investment and Securities Institute under the Project. Project Management, Monitoring and Evaluation IN01128979 ►Feedback received from the beneficiary satisfaction survey addressed and used to improve project interventions (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Feedback addressed Value No survey No survey No survey and used to improve project interventions Date 30-Jun-2020 28-Feb-2021 31-Dec-2021 30-Jun-2027 The citizen/stakeholders engagement will entail the completion a survey of beneficiaries (PFIs, MSMEs, Comments: capital market operators) to assess their satisfaction with the products and services (lines of credit, PCGs, training programs) and collect feedback to improve project interventions. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) 5/18/2022 Page 5 of 6 The World Bank Implementation Status & Results Report Ghana Development Finance Project (P169742) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P169742 IDA-67880 Effective USD 250.00 250.00 0.00 3.96 246.04 1.6% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P169742 IDA-67880 Effective 29-Oct-2020 12-Nov-2020 25-Feb-2022 30-Jun-2027 30-Jun-2027 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 5/18/2022 Page 6 of 6