The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) WESTERN AND CENTRAL AFRICA | Western and Central Africa | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2018 | Seq No: 8 | ARCHIVED on 05-Aug-2022 | ISR52466 | Implementing Agencies: Banque des Etats de l'Afrique Centrale (BEAC), Commission Bancaire de l'Afrique Centrale - COBAC, Groupe d' Action contre le Blanchiment d' Argent en Afrique Centrale (GABAC) Key Dates Key Project Dates Bank Approval Date: 04-May-2018 Effectiveness Date: 24-Oct-2018 Planned Mid Term Review Date: 15-Jul-2021 Actual Mid-Term Review Date: 18-Oct-2021 Original Closing Date: 04-Jul-2023 Revised Closing Date: 04-Jul-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to strengthen the capacity of selected CEMAC regional financial institutions to implement their mandates in the areas of financial stability, inclusion and integrity. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1. Strengthening the Capacity of BEAC and COBAC to Implement their Financial Stability Mandate:(Cost $12.00 M) Component 2: Strengthening the Capacity of BEAC and COBAC to implement their Financial Inclusion Mandate:(Cost $14.00 M) Component 3: Strengthening Capacity of GABAC to Implement its Financial Integrity Mandate:(Cost $4.00 M) Component 4: Supporting Selected Reforms through Results Based Financing:(Cost $2.00 M) Component 5: Project Implementation:(Cost $3.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Progress towards achievement of the PDO remain satisfactory and overall implementation remains contingent to the COVID-19 global pandemic which has impacted some activities. Activities which were highlighted during the last supervision mission as delayed due to the global Covid-19 crisis have now resumed. In terms of the M&E framework one of the four PDO indicators has been achieved and the remaining three are on track to materialize towards the second half of 2022. Five of the eleven Intermediate indicators have been met or exceeded. All the legal 8/5/2022 Page 1 of 7 The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) covenants have also been met. The PIU has been working tirelessly with the beneficiary entities taking advantage of the loosening of COVID- related restrictions. Component 1. Strengthening the Capacity of BEAC and COBAC to Implement their Financial Stability Mandate. Over the last three years the Program has focused on the roll out of crisis and economic reactivation- related activities in light of COVID 19 (FOGADAC, stress testing, credit registry and credit bureau), Since June 2020, the BEAC publishes its financial statements in compliance with IFRS standards. Thanks to the loosening of COVID-19 restrictions, data collection for the development of the statistical component. Modernization of the IT supervisory infrastructure at COBAC is ongoing. Component 2: Strengthening the Capacity of BEAC and COBAC to implement their Financial Inclusion Mandate. This component is progressing well. Diagnostic work on legal, supervisory and infrastructure of payment systems has been completed and new SYSTAC 2 and SYGMA are expected to become operational by March 2023. The preparation of the regional financial inclusion strategy has reached important milestones and expected to be completed in September 2022. Component 3: Strengthening Capacity of GABAC to Implement its Financial Integrity Mandate. The National Risk Assessments (NRA) of Cameroon and Congo Rep. have been completed. The NRAs of the remaining countries have been launched and expected to before July 2023. The Mutual Evaluation for Cameroon and Congo Rep have been completed. Gabon, Chad, and CAR evaluations are ongoing. Equatorial Guinea evaluation is expected to be launched in July-August 2022. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Moderate Moderate Macroeconomic High Moderate Moderate Sector Strategies and Policies Low Low Low Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Low Low Low Stakeholders Moderate Low Moderate Other -- Moderate Moderate Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Increase the capacity of CEMAC regional financial institutions IN01172134 ►Increased capacity of COBAC to supervise banks under new risk based supervision framework. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 8/5/2022 Page 2 of 7 The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) Value 0.00 0.00 0.00 100.00 Date 03-Jul-2018 30-Nov-2021 15-Jul-2022 03-Jul-2023 IN01172135 ►Increased capacity of BEAC to produce reliable financial, monetary and economic statistics on a monthly basis. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Data updated and Value No data published No data published No data published published every month Date 02-Apr-2018 30-Nov-2021 15-Jul-2022 03-Jul-2023 IN01172136 ►Increased capacity of BEAC to expand the population coverage of the regional credit registry. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 03-Jul-2018 30-Nov-2021 15-Jul-2022 03-Jul-2023 IN01172137 Increased capacity of BEAC to expand the female population's coverage of the regional credit registry. (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 12.00 IN01172138 ►Increased capacity of GABAC to comply with the FATF membership requirements. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Yes Yes Yes Yes Date 02-Jul-2018 30-Nov-2021 30-Nov-2021 03-Jul-2023 Intermediate Results Indicators by Components Component 1. Strengthening the Capacity of BEAC and COBAC to Implement their Financial Stability Mandate IN01172139 ►The Composite Index of Economic Activity is computed based on data from 6 countries and published on a quarterly basis. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target CIEA is compiled with data compiled for 4 data from 6 countries Value No data published No data countries and published on a quarterly basis Date 02-Jul-2018 30-Nov-2021 15-Jul-2022 03-Jul-2023 IN01172143 8/5/2022 Page 3 of 7 The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) ►BEAC to prepare financial statements in compliance with IFRS standards by year 2 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 03-Jul-2018 30-Nov-2021 15-Jul-2022 03-Jul-2023 IN01172147 ►Adoption of an operations manual outlining FOGADAC's key responsibilities, procedures and relevant documentation for the rapid an effective resolution of a failing bank by year 3 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Jul-2018 30-Nov-2021 15-Jul-2022 03-Jul-2023 IN01172149 ►Implement risk based supervision for MFIs by Year 3 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Jul-2018 30-Nov-2021 15-Jul-2022 03-Jul-2023 IN01172151 Migrate MFI data from SESAME to CERBER system by year 2 (Yes/No, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Jul-2018 30-Nov-2021 15-Jul-2022 03-Jul-2023 IN01172153 Develop methodologies, procedures and systems to conduct risk based supervision by year 2 (Yes/No, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Jul-2018 30-Nov-2021 15-Jul-2022 03-Jul-2023 IN01172154 Produce reports and dashboards with KPI on MFI performance by year 3 (Yes/No, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes IN01172155 ►Assess MFIs financial conditions under the new risk based framework (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 03-Jul-2018 30-Nov-2021 15-Jul-2022 03-Jul-2023 8/5/2022 Page 4 of 7 The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) Component 2: Strengthening the Capacity of BEAC and COBAC to implement their Financial Inclusion Mandate IN01172140 ►Updated regulations for issuing and processing emoney by year 2 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 02-Jul-2018 30-Nov-2021 15-Jul-2022 03-Jul-2023 IN01172144 ►Regional financial inclusion task force created by year 2 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 02-Jul-2018 30-Nov-2021 15-Jul-2022 03-Jul-2023 IN01172148 ►Financial inclusion indicators produced and published by year 3 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 02-Jul-2018 30-Nov-2021 15-Jul-2022 03-Jul-2023 IN01172150 ►Conduct at least 2 innovative pilots in selected economies (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 03-Jul-2018 30-Nov-2021 15-Jul-2022 03-Jul-2023 IN01172152 Percentage of women amongst the new financial services users reached through innovative pilots in selected countries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Component 3: Strengthening Capacity of GABAC to Implement its Financial Integrity Mandate IN01172141 ►Number of staff trained to carry out mutual evaluations by year 2 (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 20.00 20.00 15.00 8/5/2022 Page 5 of 7 The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) Date 02-Jul-2018 30-Nov-2021 15-Jul-2022 03-Jul-2023 IN01172145 ►Number of Mutual Evaluations carried out in CEMAC member countries using the revised FATF methodology (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 3.00 6.00 Date 02-Jul-2018 30-Nov-2021 15-Jul-2022 03-Jul-2023 Component 4: Supporting selected reforms through results based financing IN01172142 ►Adopt credit bureau law by year 2 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 15-Mar-2019 30-Nov-2021 15-Jul-2022 03-Jul-2023 IN01172146 ►Private credit bureau operator selected by year 4 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 15-Mar-2019 30-Nov-2021 15-Jul-2022 03-Jul-2023 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P161368 IDA-62290 Effective USD 25.00 25.00 0.00 10.68 13.31 45% P161368 IDA-D3030 Effective USD 10.00 10.00 0.00 6.10 3.62 63% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P161368 IDA-62290 Effective 04-May-2018 26-Jul-2018 24-Oct-2018 04-Jul-2023 04-Jul-2023 P161368 IDA-D3030 Effective 04-May-2018 26-Jul-2018 24-Oct-2018 04-Jul-2023 04-Jul-2023 8/5/2022 Page 6 of 7 The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 8/5/2022 Page 7 of 7