Document of The World Bank FOR OFFICIAL USE ONLY Report No: ICR00005329 IMPLEMENTATION COMPLETION AND RESULTS REPORT TF Number TF-A1680; TF-A8548 ON A GRANT IN THE AMOUNT OF US$ 11.7 MILLION TO THE Ashesi University, innoHub Foundation FOR THE Ghana Climate Innovation Center May 30, 2021 Finance, Competitiveness and Innovation Global Practice Western and Central Africa Region CURRENCY EQUIVALENTS Exchange Rate Effective {Aug 21, 2020} Currency Unit = Cedi 5.81 Cedi = US$1 FISCAL YEAR July 1 - June 30 Regional Vice President: Ousmane Diagana Country Director: Pierre Frank Laporte Regional Director: Abebe Adugna Dadi Practice Manager: Rashmi Shankar Task Team Leader(s): Michael Ehst ICR Main Contributor: Ciliaka Gitau, Yaba Haffar, Sati Achath ABBREVIATIONS AND ACRONYMS ARAP Abbreviated Resettlement Action Plan AUC Ashesi University College CIC Climate Innovation Center CTP Climate Technology Program CO2 Carbon Dioxide CPS Country Partnership Strategy CVFF Climate Venture Financing Facility E&S Environmental and Social Safeguards ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan E&Y Ernst & Young FM Financial Management GCIC Ghana Climate Innovation Center GCVF Ghana Climate Venture Facility GDP Gross Domestic Product GHG Greenhouse Gas GRM Grievance Redress Mechanism IBRD International Bank for Reconstruction and Development IFC International Finance Corporation IFR Interim Financial Report IUFR Interim Unaudited Financial Report M&E Monitoring and Evaluation MESTI Ministry of Environment, Science, Technology, and Innovation MFD Maximizing Finance for Development MoF Ministry of Finance MT Metric Tonnes MTR Mid-Term Review NCCP National Climate Change Policy PAD Project Appraisal Document PDO Project Development Objective POC Proof of Concept PSD Private Sector Development RAP Resettlement Action Plan RETF Recipient-Executed Trust Fund SDGs Sustainable Development Goals SME Small and Medium Enterprise STI Science, Technology, and Innovation UNU-INRA United Nations University Institute for Natural Resources in Africa WGV Wangara Green Ventures WB World Bank TABLE OF CONTENTS DATA SHEET .......................................................................................................................... 1 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ....................................................... 5 A. CONTEXT AT APPRAISAL .........................................................................................................5 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) .......................................8 II. OUTCOME ...................................................................................................................... 9 A. RELEVANCE OF PDO ................................................................................................................9 B. ACHIEVEMENT OF PDO (EFFICACY) ........................................................................................ 10 C. EFFICIENCY ........................................................................................................................... 17 D. JUSTIFICATION OF OVERALL OUTCOME RATING .................................................................... 18 E. OTHER OUTCOMES AND IMPACTS (IF ANY) ............................................................................ 18 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 20 A. KEY FACTORS DURING PREPARATION ................................................................................... 20 B. KEY FACTORS DURING IMPLEMENTATION ............................................................................. 21 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 22 A. QUALITY OF MONITORING AND EVALUATION (M&E) ............................................................ 22 B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ..................................................... 23 C. BANK PERFORMANCE ........................................................................................................... 24 D. RISK TO DEVELOPMENT OUTCOME ....................................................................................... 25 V. LESSONS AND RECOMMENDATIONS ............................................................................. 26 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ........................................................... 29 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ......................... 34 ANNEX 3. PROJECT COST BY COMPONENT ........................................................................... 36 ANNEX 4. BORROWER, CO-FINANCIER, AND OTHER PARTNER/STAKEHOLDER COMMENTS .. 37 ANNEX 5. SUPPORTING DOCUMENTS .................................................................................. 41 The World Bank Ghana Climate Innovation Center (P145765) DATA SHEET BASIC INFORMATION Product Information Project ID Project Name P145765 Ghana Climate Innovation Center Country Financing Instrument Ghana Investment Project Financing Original EA Category Revised EA Category Partial Assessment (B) Partial Assessment (B) Organizations Borrower Implementing Agency Ashesi University, innoHub Foundation Ashesi University College, innoHub Foundation Project Development Objective (PDO) Original PDO

The objective of the project is to support entrepreneurs and SMEs involved in developing profitable and locally- appropriate solutions to climate change and increase business activity in the climate technology sector through the establishment of a locally based climate innovation center.

Page 1 of 41 The World Bank Ghana Climate Innovation Center (P145765) FINANCING Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 8,500,000 8,359,370 8,359,370 TF-A1680 3,200,000 2,700,000 2,700,000 TF-A8548 Total 11,700,000 11,059,370 11,059,370 Non-World Bank Financing 0 0 0 Total 0 0 0 Total Project Cost 11,700,000 11,059,370 11,059,370 KEY DATES Approval Effectiveness MTR Review Original Closing Actual Closing 02-Feb-2016 22-Feb-2016 18-Sep-2018 30-Jun-2020 30-Nov-2020 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 21-Sep-2018 3.82 Change in Implementing Agency Change in Institutional Arrangements Change in Financial Management Change in Procurement Change in Implementation Schedule 13-Jun-2020 9.96 Change in Loan Closing Date(s) Reallocation between Disbursement Categories KEY RATINGS Outcome Bank Performance M&E Quality Moderately Satisfactory Satisfactory Substantial Page 2 of 41 The World Bank Ghana Climate Innovation Center (P145765) RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 11-Jun-2016 Satisfactory Satisfactory 1.00 Moderately 02 27-Dec-2016 Moderately Unsatisfactory 1.00 Unsatisfactory 03 27-May-2017 Moderately Satisfactory Moderately Satisfactory 1.48 04 01-Mar-2018 Moderately Satisfactory Moderately Satisfactory 2.28 05 22-Oct-2018 Moderately Satisfactory Moderately Satisfactory 3.82 06 21-May-2019 Moderately Satisfactory Moderately Satisfactory 6.16 07 19-Dec-2019 Moderately Satisfactory Moderately Satisfactory 8.93 08 17-Jun-2020 Moderately Satisfactory Moderately Satisfactory 9.96 SECTORS AND THEMES Sectors Major Sector/Sector (%) Financial Sector 51 Banking Institutions 38 Other Non-bank Financial Institutions 13 Industry, Trade and Services 49 Other Industry, Trade and Services 49 Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Page 3 of 41 The World Bank Ghana Climate Innovation Center (P145765) Private Sector Development 0 Business Enabling Environment 16 Innovation and Technology Policy 16 Enterprise Development 21 MSME Development 21 Finance 0 Financial Infrastructure and Access 21 MSME Finance 21 Environment and Natural Resource Management 0 Climate change 42 Mitigation 42 ADM STAFF Role At Approval At ICR Regional Vice President: Makhtar Diop Ousmane Diagana Country Director: Henry G. R. Kerali Pierre Frank Laporte Director: Anabel Gonzalez Abebe Adugna Dadi Practice Manager: Ganesh Rasagam Rashmi Shankar Task Team Leader(s): Michael Ehst, Diletta Doretti Michael Ehst ICR Contributing Author: Ciliaka Millicent Wanjiru Gitau Page 4 of 41 The World Bank Ghana Climate Innovation Center (P145765) I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL 1. Country Context. At project appraisal, Ghana was experiencing strong economic growth. Poverty was declining steadily among Ghana’s estimated population of 25 million people, as reflected in the number of people classified as poor, which dropped from about 50 percent to less than 30 percent of the population between 1992 and 2006. Despite these improvements, inequalities remained and were reflected in significant disparities in economic and social opportunities. Ghana’s growing vulnerabilities to climate change threatened the long-term sustainability of poverty reduction and economic development gains. While Ghana’s contribution to climate change through greenhouse gas (GHG) emissions was negligible, the impacts of climate change on Ghana’s economy, people, and development prospects were projected to be substantial. There was evidence of rising temperatures across all the ecological zones of Ghana, while rainfall levels had been generally declining and weather patterns had become increasingly erratic. The adverse impacts of these trends on livelihoods, health, and hydropower generation were already being felt. 2. Small and Medium Enterprises and Private Sector Development. Unlocking Ghana’s strong private sector growth potential required improvements in the business enabling environment and increasing access to financing. Local businesses faced a high cost of capital, poor power supply, high levels of taxation, lack of business support services, and lack of access to raw materials. Although Ghana’s financial sector was relatively well developed and competitive, affordable credit to the private sector was insufficient because of high government borrowing needs. Small and early- stage businesses with limited collateral faced severe borrowing constraints. Ghana had a significant gap in productivity between its Small and Medium Enterprises (SMEs) sector and its more productive large businesses. The industry sector in Ghana was mostly private, smaller in size, and contributed less to growth than it did previously. SMEs comprised about 80 percent of all businesses in Ghana. Increasing management capacity, workforce skills, innovation, and the absorption of technology were assessed as key requirements to increase productivity and boost the competitiveness of the SME sector. 3. Climate (Clean) Technology Sectors. A significant part of Ghana’s economic activity was dependent on climate- sensitive sectors such as agriculture, fisheries, tourism, and forestry. These vulnerable sectors supported a large share of employment and livelihoods for Ghana’s rural poor. The changing climate was expected to adversely affect crop yields, leading to a decline in agricultural productivity. Unpredictable rainfall was expected to lead to energy shortfalls across Ghana given its reliance on hydropower. Recognizing the impacts of global climate change, Ghana adopted a National Climate Change Policy (NCCP) which recommended actions to reduce Ghana’s vulnerability to climate change while promoting a low carbon growth strategy that relied on attracting clean technology investments. However, there was limited progress toward designing specific policies and programs to achieve the objectives of the NCCP, particularly in the field of advancing the development of climate (clean) technologies to meet Ghana’s climate change challenges. Ghana’s natural advantages and its low carbon growth strategy offered an important opportunity to attract significant investments in climate (clean) technology sectors and to build the capacity of local businesses to participate in these high-value sectors. 4. Startups and SMEs in the climate technology sector face unique constraints. The climate technology businesses are in highly regulated sectors, such as energy, water, waste, agriculture, among others, they need high investment upfront to stock and distribute physical products, and they are perceived as high risk since they are testing innovations Page 5 of 41 The World Bank Ghana Climate Innovation Center (P145765) and business models. Businesses often require sophisticated technical capacity and skills to develop and most solutions have a public good element and government intervention is often required to make them feasible. There is also a dearth of about US$1 million financing options in Ghana for risky businesses and in climate technologies sectors, the gap is even wider. Business survey results show access to finance as a major constraint for SMEs to grow and expand. Theory of Change (Results Chain) 5. The Project’s results chain was rooted in the theory of fostering competitive entrepreneurship development in climate technologies through a set of technical and financial solutions. The established climate innovation center (CIC) and a climate venture finance facility (CVFF) would help address key constraints to innovation and entrepreneurship through the provision of high quality and comprehensive business support services and complementary financing. This would improve the quality and quantity of clean tech businesses, create more jobs and contribute to the climate change agenda. Figure 1 depicts the deconstructed Project results chain. Figure 1: Results Chain Project Development Objectives (PDOs) 6. The objective of the Project was to support entrepreneurs and SMEs involved in developing profitable and locally appropriate solutions to climate change and increase business activity in the climate technology sector through the establishment of a locally based CIC. Page 6 of 41 The World Bank Ghana Climate Innovation Center (P145765) 7. Higher-level objectives to which the project contributes. The project was aligned and contributed to Ghana’s Shared Growth and Development Agenda1 and NCCP. The NCCP vision is to ensure a climate-resilient and climate- compatible economy while achieving sustainable development through equitable low-carbon economic growth for Ghana. The project supported NCCP by supporting entrepreneurs and businesses involved in developing appropriate solutions to climate-related issues. The project also supported two of the three pillars of the Ghana Country Partnership Strategy (FY13-16): i) improving competitiveness and job creation and ii) protecting the poor and the vulnerable. Key Expected Outcomes and Outcome Indicators 8. The key expected outcome of the Project was the development of a sustainable innovation and entrepreneurship ecosystem which would build an entrepreneurship and business development environment to support climate change adaptation and mitigation. The expected outcome was measured by three PDO-level indicators: i) Increased sales revenue for targeted firms; ii) Number of participants in workshops, training events, seminars, conferences, etc. (of which 20% are women); and iii) Number of households with access to new/improved products/services. Components 9. The Project had two components: (1) CIC establishment, services and monitoring and evaluation (US$8.5 million) and (2) Climate Venture Finance Facility (CVFF) (US$8.7 million). A portion of component 2 funding, US$5.5 million, was to be raised through matching private financing and US$3.2 million funded by the Project. The Project was funded by the Embassy of Denmark (DANIDA) and the Embassy of the Netherlands and was administered through the World Bank’s infoDev Climate Innovation Trust Fund (CITF). Each component was financed by a separate recipient- executed trust fund (RETF) grant. 10. Component 1: CIC establishment, services, and monitoring and evaluation. This component financed the establishment of GCIC at Ashesi University College (AUC). The GCIC was expected to provide a full suite of financing and capacity-building services to Ghanaian entrepreneurs, SMEs, technologists, and new ventures that addressed challenges to starting and scaling climate (clean) technology businesses in sectors such as solar energy, domestic waste management, climate-smart agriculture, energy efficiency, and water purification and management. GCIC services included business advisory and training services, small proof-of-concept (POC) grants, market development services, access to product testing facilities, and technology and product development services. The GCIC was also expected to positively influence the policy and regulatory regime for climate sectors based on the feedback about market challenges from GCIC client businesses. The GCIC was to act as a national focal point, coordinating efforts in promoting the growth of climate (clean) technology sectors. The GCIC also provided a platform to create international business-to-business linkages, enhance knowledge sharing, and facilitate trade. 11. Component 2: Climate Venture Finance Facility (CVFF). This component supported the establishment of the CVFF that would provide financing to eligible GCIC clients and other climate technology companies that demonstrated significant potential to grow, create jobs, and address climate challenges. The CVFF would operate in close coordination with the GCIC and seek to address the financing gap for promising early-stage climate technology entrepreneurs in Ghana. The CVFF component aimed to develop a deal flow of investible, sustainable, and scalable enterprises that would 1 Ghana Shared Growth and Development Agenda (GSGDA) II, https://www.un-page.org/files/public/gsgda.pdf Page 7 of 41 The World Bank Ghana Climate Innovation Center (P145765) contribute to and attract additional investment to Ghana’s growing climate technology sectors. Project financing would be used to establish the CVFF, catalyze fundraising of additional public and private funds for the CVFF investment pool, and provide technical assistance (advisory services) and investment capital for SMEs in the CVFF pipeline and portfolio. The CVFF was expected to offer a variety of financing options that met the needs of different companies while seeking a return, using a disciplined but more patient and flexible investment approach relative to traditional commercial sources of capital. B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) 12. During the April 21, 2018 restructuring, the Project implementation arrangement was revised at project mid- term, separating the CIC and CVFF implementation agencies. The GCIC implementation partners were expected to prepare for the CVFF implementation. However, due to initial implementation delays and challenges with the GCIC component, AUC requested that the implementation arrangement for the CVFF component be revised. In a collective decision between the board of AUC, the Government of Ghana, and the World Bank, it was agreed that the Project should utilize an alternative implementing agency for Component 2, rather than AUC, to give both components the best chance for success. Through a level 2 restructuring, (i) the Project implementation was split between AUC (Component 1) and Innohub Foundation (Component 2), and (ii) component 2 was retitled to the “Ghana Climate Venture Facility” (GCVF) from “Climate Venture Financing Facility” as shown in the original Project appraisal document. As a result of this revision of the implementation arrangement, the procurements and financial management were adjusted to reflect the changes. 13. There was a modification to a withdrawal condition for the GCVF RETF grant prior to project closing and a reallocation within a cost category for the GCVF RETF grant, related to the modified withdrawal condition. The modification provided the GCVF with a final US$1 million portion of investment capital so that the GCVF could attract necessary additional private and public funding and make investments into SMEs while maintaining the incentive for the implementing agency to raise matching private capital. 14. The Project closing date was extended by three months to allow for completion of Project activities given Covid- 19 impact. There was a three-month, no-cost extension of the Project closing date on both RETF grants, from June 30, 2020, to September 30, 2020. The Rationale for Changes and Their Implication on the Original Theory of Change 15. In recognition of AUC’s hesitancy to implement the CVFF after initial challenges with GCIC implementation, an additional project implementing agency was identified, Innohub Foundation, a business accelerator, and impact investment platform, as the CVFF implementing agency. Component 2 was originally intended to be financed through a second grant agreement to AUC with implementation to begin in late 2017. However, the implementation of Component 1 experienced initial delays due to the unforeseen departure of the original GCIC Executive Director and challenges in recruiting a suitable replacement. This lack of leadership at the GCIC held up most other aspects of Component 1 implementation in 2016. These issues were remedied through the hiring of a dynamic Executive Director and a strong core team to manage the GCIC. The delays, however, revealed capacity limitations at AUC – the implementation of Component 1 represented a significant undertaking for a university the size of AUC – and it was agreed that implementing Component 2 would further stretch AUC’s capacity and risk diminishing the quality of both components. Implementation and negotiation of these changes led to significant delays which reduced the time available for GCVF to realize tangible Page 8 of 41 The World Bank Ghana Climate Innovation Center (P145765) outputs and contribute to Project outcomes during Project life. Nevertheless, this change had no implication on the original theory of change. 16. The modification of the withdrawal condition and reallocation within the GCVF RETF Grant: While the GCVF Investment Company had achieved its investment targets, it had not achieved its fundraising targets. The proposed withdrawal condition modification recognized the progress on investment targets while leaving in place incentives to meet fundraising targets, which were modified to reflect the impacts of COVID-19 on fundraising timelines. The specific modification and reallocation were related to a final USD 1m disbursement of grant funding for investment capital to the investment facility. This change had no implication on the original theory of change. 17. The Project Closing Date was extended by three months to allow for the completion of Project activities that were delayed due to the COVID-19 pandemic. GCIC and GCVF were affected by COVID-19 related consequences and the additional three months were provided to complete delayed activities. The GCIC continued to support businesses during COVID-19 albeit with challenges. II. OUTCOME A. RELEVANCE OF PDO Assessment of Relevance of PDOs and Rating 18. The relevance of the PDO is rated High. The PDO was highly relevant at appraisal and remains highly relevant in the current country context of Ghana. Climate-resilient development and low carbon growth remain at the core of Ghana’s sustainable development approach. Increasing business activity in climate technology sectors has the potential to increase Ghana’s resilience to climate change, mitigate greenhouse gas (GHG) emissions, and generate job-creating economic activity. At appraisal, the PDO was well aligned with the Country Partnership Strategy (CPS) (Report number 76369, discussed at the WBG Board in September 2013) FY13-16 (extended to FY13-18) contributing to two of the three main pillars: (i) improving competitiveness and job creation and (ii) protecting the poor and the vulnerable. The PDO was aligned with two of Ghana’s Shared Growth and Development Agenda (2014-2017) thematic areas, including (i) enhanced competitiveness of Ghana’s private sector and (ii) accelerated agricultural modernization and natural resource management. The PDO is aligned with the NCCP which emphasizes climate-resilient development and low carbon growth. 19. The PDO remains very relevant to the World Bank’s Strategy in Ghana. By providing a suite of business and financial support services to Ghanaian entrepreneurs and SMEs, the Project responded to the Systematic Country Diagnostics’ (2018) key elements of inclusive growth and poverty reduction, these are private sector development and job creation. Through its activities and financing, the GCIC and its network of partners and stakeholders continue to provide a country-driven approach to address climate, energy, and resource challenges and create jobs. The WB is currently preparing the follow-on CPF (FY21-26) which will establish a framework to support Ghana's development efforts and priorities. The Project remains relevant and is aligned with the proposed CPF focus on climate change adaptation and mitigation including promoting resilience and climate-smart agriculture. 20. GCIC and GCVF remain critical institutions to fulfilling Ghana’s huge potential for more innovative and profitable climate-related business. This is particularly the case for businesses in agriculture and energy-related sectors that have limited experience with climate technologies and innovations and have inadequate early-stage financing Page 9 of 41 The World Bank Ghana Climate Innovation Center (P145765) options. GCIC and GCVF are relevant in fulfilling Ghana’s climate technology market needs given the: (i) growing climate adaptation and mitigation solutions need; (ii) expanding business capital needs to pilot or scale-up climate-smart solutions; (iii) budding sustainable focused entrepreneurship; and (iv) capital markets gap in the size and stage that GCVF services, among others. GCIC and GCVF are catalyzing greater entrepreneurship in the climate technology space, thus stimulating job creation and growth of climate technology sector. B. ACHIEVEMENT OF PDO (EFFICACY) Assessment of Achievement of Each Objective/Outcome 21. The Project’s efficacy is assessed as Substantial. The Project focused on addressing the market failure caused by a constrained business environment as well as limited business support and early-stage financing options for climate technology businesses. Thus, the Project supported market-based solutions to promote climate-smart innovations and entrepreneurship. This was achieved by developing capable institutions that supported entrepreneurs and SMEs to develop, pilot, and grow climate-smart solutions. The PDO can be unpacked into 3 objectives: (i) establish a locally based climate innovation center (GCIC and GCVF); (ii) support entrepreneurs and SMEs involved in developing profitable and locally appropriate solutions to climate change; and (iii) increase business activity in the climate technology sector. The Project indicators are presented in Table 2. One PDO and one intermediate indicator were not achieved; the rest surpassed the targets by a substantial margin. Table 2: Summary of PDO and Intermediate Indicators’ Achievement End Actual PDO Indicators Baseline Target (as of Sept. 2020) Remarks Increased sales revenue for targeted firms (Amount - Not USD) 0 4,500,000 2,978,356 achieved Number of participants in workshops, training events, 1,296 Exceeded seminars, conferences, etc. (of which 20% are women) 0 1,100 (28.9% o.w. women) Number of households with access to new/improved Exceeded products/services 0 20,000 417,494 Intermediate Results Indicators by Components Number of firms with access to new/improved 176 Exceeded products/ services (of which, 20% are women-owned) 0 90 (19.3% o.w. women-owned) Number of new laws/regulations/amendments/codes/ Not Government policies drafted, or contributed to the achieved drafting 0 4 0 Number of new direct jobs created (of which 20% are 139 Exceeded women) 0 96 (49% o.w. women) 121 Exceeded Number of firms with additional access to finance (of (29.6% o.w. women- which, 20% are women-owned) 0 14 owned) Page 10 of 41 The World Bank Ghana Climate Innovation Center (P145765) Outcome: locally based climate innovation center (GCIC and GCVF) established contributing to improved business environment 22. The Project supported the establishment of locally based institutions to service and finance entrepreneurs and SMEs. A grant agreement to establish GCIC was signed with AUC in February 2016 but implementation was delayed due to the lack of a core management team. AUC was the grant recipient and lead implementation agency of a consortium of four members including Ernst & Young Ghana, SNV Netherlands Development Organization, and the UNU-INRA. AUC had the primary responsibility for overseeing and managing the development and operation of the GCIC, staffing, facilities, and outreach, and the three other organizations provided specific services on behalf of the GCIC. The GCIC service delivery started in June 2017 following the recruitment of the executive director and technical and support team. 23. Operational management and governance structures for GCIC and GCVF support service delivery to beneficiaries. GCIC and GCVF have Advisory Boards and Steering Committees that provide leadership and technical guidance to management. These structures were critical to ensure GCIC and GCVF concretely delivered on their mandate during the Project and beyond. The consortium was supported by an advisory board that was chaired by the Ministry of Environment, Science, Technology, and Innovation’s (MESTI) Deputy Minister and included representatives from the development partners’ governments, Denmark and the Netherlands, and from the private sector. The steering committee held regular meetings and supported the GCIC and GCVF management to improve on their service delivery and keep the momentum. 24. GCIC provides a range of business and financial services and is highly regarded by entrepreneurs and other sector players. There are more than 16 incubation centers/hubs in Ghana but GCIC is the only green growth incubation center that supports climate-focused entrepreneurs and SMEs. In a nascent clean technology ecosystem, capable institutions are a pre-requisite to successful businesses. The comprehensive services GCIC delivered to entrepreneurs including the training program, networking events, management training, and coaching, market access program, peer exchange program, technology development grant, POC grant, and post-training incubation program supported them to enhance their ideas and prototypes and pilot their products, and access modern equipment. The GCIC business and technical support to existing and new businesses will enable a clean technology sector to grow. There are synergies and interlinkages between the advisory and incubation services offered by GCIC and GCVF’s finance facility. The independent institutions established are expected to continue supporting entrepreneurs and collaborating with other partners beyond the Project's life. 25. The Incubator Benchmark Assessment Tool show GCIC’s improved service delivery and operational capacity to support its entrepreneurs to grow their businesses. The results of the Incubator Benchmark Assessment Tool,2 comparing 2019 and 2020, show GCIC’s continued capacity and capability improvement especially in training programs, inclusivity, and market facilitation (Figure 2). This is in addition to sustained good performance in all other key dimensions, including entrepreneur engagement, networking, and access to finance. However, the business development dimension registered a slight decrease due to Covid-19 related lockdown measures. GCIC has quality internal capacity aligned with global good 2 Incubator Benchmark Assessment Toolkit (IBAT) is CIC’s standardized evaluation, measuring 1) program offerings to the entrepreneurs and 2) CIC’s operational management. The ratings are based on a scale of 0-4, with 0 indicating no offering and 4 indicating global best practice, with the idea that over time the incubator would progress to the outer edges, however they may selectively choose which dimensions are priorities —and while some scores are composite averages of different elements, there is no single global score. Page 11 of 41 The World Bank Ghana Climate Innovation Center (P145765) practice regarding strategy and leadership, technical team and ecosystem presence which supports the provision of quality and relevant business support to entrepreneurs and SMEs. Figure 2: Assessment for GCIC Services and Internal Capacity, 2019 and 2020 Service Provision Training 2019 Internal Capacity 2019 Strategy and Programs 2020 Leadership 2020 4.0 4.0 Entrepreneur Mentorship 3.0 3.8 Engagement Program Entrepreneur People / 2.0 3.6 Management Team Gender/Inclu 1.0 3.4 sivity 0.0 Networks 3.2 Focused… Ecosystem Finances Market Business Presence Facilitation Development Access to Facilities Finance 26. GCIC has been recognized at national and global platforms as a credible partner in the climate technologies space. GCIC has participated in and organized national and international conferences that have stimulated in-depth climate change engagements. For instance, in a UNDP solid waste competition, 9 out of the 10 finalists were businesses incubated by GCIC. This demonstrates the quality of GCIC services to support entrepreneurs to realize their business goals. GCIC was invited to speak at the UN General Assembly’s Climate Summit about the center’s climate action work in the small and growing business sector. Additionally, GCIC represented Ghana in the Climate Launchpad competition (one of the largest green business ideas competition globally). A few of the GCIC beneficiaries have proceeded on to win national and international awards. The presence in global and regional events were important for GCIC to network and showcase its work which could lead to future funding opportunities. 27. GCVF was established in 2019 to provide innovative financing to support SMEs in climate technologies sector. The grant recipient and lead implementing partner for the GCVF was Innohub Foundation, a Ghanaian not-for-profit entrepreneurship support organization. Innohub Foundation acted as the fiduciary for the Bank grant and it established the GCVF Investment Company – branded publicly as Wangara Green Ventures (WGV) (https://wangaragreenventures.com/). Despite the short duration in operation, WGV has in place management and governance structures supporting the delivery of its financing services. GCVF has provided financing and technical assistance to eligible GCIC clients and other climate technology SMEs. These businesses, while still at early growth stage, are generally much more advanced than the typical GCIC business and are contributing a large portion of the project results around revenues generated, jobs created, and households reached as of project closing. GCVF deploys a blend of public and private capital to offer equity and quasi-equity financing to climate technology start-ups and SMEs. 28. GCVF innovative financing is critical to support the nascent, high-risk, and underserved climate technology sector. The Project subsidized the GCVF setup and initial management costs and offered a first loss to attract commercial capital which was necessary to attract a fund manager to the early-stage climate investment space in Ghana. This incentive approach, though expensive, is important to enabling access to finance and technical services to entrepreneurs and SMEs Page 12 of 41 The World Bank Ghana Climate Innovation Center (P145765) in the climate technology sector that is deemed as too risky by mainstream financial institutions. The approach departs from the alternative approach of subsiding financial institutions to deliver a certain quota of financial services to target sectors, which often terminate or reduce the program incentives after the project closes. Outcome: support entrepreneurs and SMEs involved in developing profitable and locally appropriate solutions to climate change 29. The Project supported entrepreneurs and SMEs involved in solar energy, domestic waste management, climate- smart agriculture, energy efficiency, and water purification and management. The Project offered complimentary business support services that addressed the business constraints in Ghana’s climate technologies sector. This included technical, financial and market access support. Most of the Project beneficiaries received more than one service including training, customized business development support, market analysis, market linkage programs, and grants – depending on the needs of each business and GCIC’s evaluations and recommendations. 30. The Project provided business development support services identified as critical to the growth and survival of businesses. Limited management capability is recognized as a key constraint to business growth. In most cases, entrepreneurs do not have formal entrepreneurship training and they establish and run their businesses by instinct. Access to entrepreneurship training programs has been shown to increase business survival significantly. GCIC hired and trained technical team to train and provide technical and business support to entrepreneurs and SMEs. The bootcamps and knowledge exchange programs exposed entrepreneurs to like-minded people and a conducive learning environment. A total of 83 businesses were supported through the full GCIC incubation program. An additional 87 start-ups and SMEs were supported through boot-camps and other short-course events including a global Climate Launchpad competition, a water innovation lab competition, and a “breaking barriers” bootcamp as part of GCIC’s annual Incubating Innovation symposium. GCVF has provided financial and technical assistance to six businesses. 1,296 (28.9 percent of which were women) current and potential entrepreneurs participated in GCIC workshops, training, and seminars against a target of 1,100. Through these events and service delivery the GCIC and GCVF are shifting mindsets and introducing professionalism in Ghana’s incubation sector and stimulating interest in the climate technologies sector. 31. The Project facilitated piloting, testing, and commercialization of products, some of which won international awards. Lack of incubation facilities and services makes it difficult for most promising ideas to transition into viable business models and leads to a high cost of quality technology. Without such facilities and services, there is limited knowledge sharing and slow development of relevant in-country knowledge and expertise. Product design and testing in most cases require significant investment that is often unaffordable for SMEs. The Project supported entrepreneurs and SMEs to access facilities and services to actualize their ideas and where possible demonstrate them to potential investors. Many entrepreneurs came into the GCIC incubator with ideas that grew into viable businesses as a result of GCIC support. For example, the Award-winning Neat Meat company joined the GCIC at the ideation stage and proceeded on to win two awards.3 Box 1: GCIC Success Stories Neat Meat (Ecofeed) Company joined GCIC as part of Cohort 2 in 2017 at the ideation stage, proposing to produce Neat Eco Feeds. Neat Eco Feeds is a business that converts waste products from operations of abattoirs in the Upper East region to produce “maggots” and compost by introdu cing Black Soldier flies into the process. The 3Neat Eco-Feeds was awarded: (i) Special Commendation: Innovations in Food, Water and Land Category; and (ii) Overall Winner: Excellence in Circular Economy Innovation. The enterprise has also been awarded follow-on funding of $100,000 from the African Entrepreneurship Program. Page 13 of 41 The World Bank Ghana Climate Innovation Center (P145765) GCIC full incubation support and a Proof of Concept grant of US$ 17,950 in 2018, enabled Neat Meat to start operations. Neat Eco Feeds has become successful and has progressed on to win two prestigious international awards at the 2019 Financial Times/International Finance Corporation “Transformational Business Awards” that were held in London on the June 13th, 2019. The Transformational Business Awards highlight ground-breaking, long-term private sector solutions to major development issues, with the program’s core categories directly related to global efforts to achieve the UN Sustainable Development Goals (SDGs). Neat Eco-Feeds was awarded: (i) Special Commendation: Innovations in Food, Water and Land Category; and (ii) Overall Winner: Excellence in Circular Economy Innovation. The enterprise has also been awarded follow-on funding of US$100,000 from the African Entrepreneurship Program. Northlite Solar Ltd, HUB500, is a solar kiosk model that operates as an independent distributor of solar products and services in several off-grid communities reaching households without access to electricity. Northlite Solar Ltd successfully piloted and launched this novel concept as a prototype with full technical and financial Proof of Concept investment from GCIC. The business also developed a construction manual to aid subsequent product development activities. 32. The Project supported increased domestic and international market access through promotion and business- to-business packages. Limited market access and understanding of consumer needs, competitive landscape, and comparative advantage for a business limits growth and scale-up opportunity. Besides, climate technology products have higher initial costs requiring regulatory support to build a market. The Project supported entrepreneurs and SMEs to undertake in-depth market analysis and improve their product quality and efficiency and showcase them on regional and global platforms. For example, the Ghana Bamboo Bikes Initiative, one of GCIC’s beneficiaries, grew its market and investment flow following Project support. 33. Provision of tailor-made financial solutions through diverse instruments aligned to entrepreneurs needs attained significant impact. Access to finance is ranked as the top business constraint in Ghana and Africa region according to World Bank Enterprise Surveys. The Project provided different types of financing to match the needs of entrepreneurs. The Proof–of-Concept (POC) grants provided security to entrepreneurs and innovators to pilot new ideas. For instance, Northlite Solar Ltd. successfully piloted and launched its novel concept as a prototype with a full technical and financial POC investment from GCIC. The technology development grant supported entrepreneurs to prototype their products and ideas, receive training and assess and purchase needed equipment to grow their businesses. GCIC beneficiary firms reported a US$2.28m increase in revenue during the Project implementation. The complementary GCVF funding filled a unique financing gap, unlocking the potential for businesses involved in the climate technology sector. 34. Unlocking business constraints through improved regulatory frameworks recorded limited progress. In Ghana, as in most countries, developing a new regulation or amendment of existing law is a long-term process, usually longer than the Project life. Given that the climate change focus is in its initial stages in Ghana, the Project design was ambitious in targeting to achieve four new laws/regulations/amendments/codes/Government policies drafted or contributed to the drafting. The progress was also adversely affected by the Project’s initial implementation delay. Nevertheless, the GCIC engaged in policy advocacy events and related research to enhance awareness of the need to provide an enabling environment for climate innovators to thrive and contribute to Ghana’s green transitions. Page 14 of 41 The World Bank Ghana Climate Innovation Center (P145765) Outcome: increase business activity in the climate technology sector 35. The Project increased awareness regarding the climate technology sector and demonstrated the potential in five sectors. The Ghana NCCP approved in 2013 was among the initial organized steps to address climate change issues in Ghana. There was limited private sector driven climate change participation and solutions prior to the Project. The Project has led to increased awareness and sensitization about climate change impacts and the potential public and private solutions that can be implemented to pursue sustainable growth. The Project led 13 Public-Private Dialogue sessions with participation from various relevant stakeholders including development partners, ministry officials, entrepreneurs, and research experts. The Project developed over 60 knowledge products, organized about 50 knowledge-sharing events, and had over 223 media appearances. GCIC has supported and incubated 83 businesses through its full incubation program, 31 percent of which are women-owned, as shown in Table 3. The five sectors were identified through a rigorous process that ranked 15 climate technology sectors against 13 criteria informed by expert evaluation and stakeholder surveys. The green businesses supported have demonstrated that the sector holds potential for contributing to Ghana’s climate change agenda and sustainable growth. Table 3: Businesses supported in each technology area per cohort and total out of 83 businesses Energy Solar Domestic Waste Climate-Smart Water Management Cohort Total Efficiency energy Management Agriculture and Purification 1 2 3 4 2 0 11 2 1 1 5 5 0 12 3 2 0 3 4 1 10 4 2 0 8 9 1 20 5 3 2 6 18 1 30 Total 10 6 26 38 3 83 % of total 12 7 31 46 4 100 36. The Project led to production and use of energy-efficient products and reduced CO2 emissions. Agriculture is considered one of the main contributors to GHG emissions. The Project has supported climate-smart agriculture (46 percent of businesses supported) and has led to over 14,000 MT of CO2 emissions being avoided. The Project has contributed to increased household awareness and the usage of energy-efficient products. More than 417,000 households (against a target of 20,000) accessed new/improved products and services. This was largely through access and use of bricks made from wastepaper, increased use of energy efficient cook-stoves, biofuels, and solar power systems which contributed to clean energy. About 30,000 low carbon or energy efficient technologies were supported. 37. The Project promoted regional coverage and inclusivity reaching lagging regions and women entrepreneurs. The Project operations were spread across the country reaching rural areas that are often lagging or left out of climate technologies initiatives. The Project conducted awareness campaigns and promotional roadshows across the country and all regions were well represented in both locations of supported businesses and the beneficiaries accessing climate- friendly solutions. In the Northern region, about 600 women are engaged in GCIC supported businesses as casual staff. Women entrepreneurs and women users of climate technologies were specifically targeted by the GCIC activities given the limited representation of women in technology-based firms but overrepresentation of women in climate affected activities, such as cooking and farming. Women were the main beneficiaries of some innovative products such as the cook- stoves, since they are typically responsible for cooking chores. The stoves are cheaper, easy to use and energy efficient. The GCIC also conducts a dedicated women’s entrepreneurship program to promote women entrepreneurs. The program Page 15 of 41 The World Bank Ghana Climate Innovation Center (P145765) has helped women realize their full potential as business leaders and role models while providing mentorship to each other. 38. Though GCVF was only operational for about one year, the innovative financing products provided developed local solutions to climate technologies. Ghana has a huge potential for more climate-related business but the limited financing for climate innovation hinders realization of this potential. GCVF is playing an important role by being more risk- appreciative in its intake of new clients and in offering appropriate financing terms to SMEs. The GCVF deploys a blend of public and private capital to offer equity and quasi-equity financing to climate technology start-ups and SMEs. GCVF also provides high-touch management assistance that enables companies to validate/refine their business models, accelerate sales, build capacity, and get on the path to scale. WGV has built an investment pipeline of over 106 leads, conducted due diligence on eight businesses, and has had three investments approved by its investment committee. It is presently providing investment readiness training to seven potential investee companies and technical assistance to two prospects. WGV, the fund management company for GCVF, is designed as a permanent capital vehicle, meaning that returns on investment from its initial capital will be re-invested into additional ventures. Due to this innovative structure, and with the WGV fully established, governance and operational structures in place, and a well-resourced core investment team, it is expected that WGV will continue to support the development of green solutions that contribute to addressing climate change in Ghana and beyond. 39. Raising funds to support operations beyond Project life is ongoing. WGV is discussing with several investors but is yet to secure any investment commitments. The WGV investment team has ongoing discussions with four investors (two institutional and two individuals) for an aggregate investment of around US$4 million (200% of the target for the matching funding withdrawal condition). As of September 2020, these investors had concluded preliminary due-diligence and discussed investment terms with the WGV, with two investors issuing Letters of Intent for US$2.25 million. The investors’ follow-up action plans include completing remaining due-diligence, including in-person site visits, and making final investment decisions including completing negotiations of terms. Due to COVID-19 impacts, while the two investors (with a total investment interest of US$2.25 million) are proceeding with their plans, they are unable to effectively conduct due diligence which cannot be completed remotely until the travel restrictions are lifted. Justification of Overall Efficacy Rating 40. The Project achievements are considered Substantial. Two out of three PDO-level indicators exceeded their targets while the third PDO-level indicator, i.e. the increased revenues of trained businesses, was below target, largely due to a two-year delay in launching GCVF. Similarly, all four intermediate results indicators exceeded their targets except for one, i.e.: the number of new laws/regulations/codes/Government policies drafted or contributed to the drafting (Table 3). Some of the policy dialogues organized by GCIC highlighted sector and entrepreneur needs and proposed possible policy measures that could address them. The GCIC also submitted comments to the Ministry of Science, Technology and Innovation’s draft policy on Science, Technology, and Innovation (STI). The policy, yet to be adopted, is being amended to incorporate some of the GCIC’s submission. Further consultation with the Project beneficiaries and public officials corroborated the findings that the project has achieved its objectives and contributed to the formation of the green business ecosystem in Ghana. Page 16 of 41 The World Bank Ghana Climate Innovation Center (P145765) C. EFFICIENCY Assessment of Efficiency and Rating 41. The Project efficiency is assessed as substantial. At appraisal, the Project adopted the economic and financial analysis conducted for the business plan proposal (pre-project feasibility study) which was broader than the Project activities and targets. The Business plan economic and financial analysis was informed by ambitious objectives and targets reaching 194 businesses and over 100,000 people with access to efficient products at 5 years. While in the Project Appraisal Document (PAD), the Project design and indicator targets were adjusted to align with the Project implementation period and context, the economic analysis assumptions and targets were not adjusted, and hence not directly comparable. Nevertheless, the main value proposition for the Project, which was to catalyze the climate technology ecosystem in Ghana and contribute to sustainable innovation and business development, was well targeted and achieved with significant impact. 42. The Project impact was estimated based on the number of businesses and technologies supported and the analysis found a positive economic rate of return. The Project envisaged to support and catalyze increased business activities in the climate technologies sector. The Project invested US$8.2m for component 1 and US$3.2 for Component mainly used to establish GCIC and GCVF and to deliver a complementary set of services and funding to entrepreneurs and SMEs, from ideation to acceleration. The assumption was based on the evidence that business support and market access programs increase SME’s capabilities leading to increased sales and productivity. Hence, higher likelihood of survival. Applying the actual increase in sales, energy saving, and incomes from jobs created during Project life and growth projection in the next 6 years we estimated a 16 percent Economic Rate of Return (ERR) in a ten-year period using a 10 percent discount rate. The downside to the estimation is the lack of counterfactual to compare with the treatment. Nevertheless, the ERR is expected to be much higher for a long period as the GCIC’s business expands. The GCVF benefits were not analyzed since it has been in operations for about one year and this short time frame is not adequate to conduct an efficient analysis. The evaluation was assessed against a Project cost of US$11.7 million. 43. The capacity building and institutional strengthening gains derived from the Project will be leveraged in the long term which would increase the Project return. The Project has been successful in building a body of knowledge on environment and climate technologies in Ghana. Access to and usage of this knowledge and information is likely to contribute to growth of climate technology sector. The GCIC has emerged as a capable and recognized partner and business incubator supporting SMEs. The GCIC and GCVF are expected to continue in operation and support more entrepreneurs and SMEs contributing to enterprise development. The Project laid a foundation for innovative climate technologies entrepreneurship in Ghana. The Project delivered diverse services at a relatively high cost due to the cost of GCIC establishment and operations. However, the business support cost is likely to decline as the fixed costs are spread overtime. Moreover, GCIC is likely to increase its efficiency with continued learning by doing.4 44. The Project achieved almost a 94.5 percent disbursement of the US$11.7 million Project cost. The Project cost was US$11.7 million, US$11.059 million of which was disbursed. Component 1 allocation was US$8.5 and Component 2 allocation of US$8.7 million included US$3.2 million from the Bank for initial fund set-up and activities and US$5.5 million funding was to be raised as a matching amount.5 US$1 million of the US$3.2 million was to be available for withdrawal if 4 The GCIC has become the go-to organization for matters related to green entrepreneurship in Ghana. The GCIC has emerged as west Africa’s leading business incubator for SMEs that are developing profitable and locally appropriate solutions to climate change mitigation and adaptation. 5 The PAD indicated project cost as US$17.2 million (US$8.5 for component 1 and US$8.7 million for component 2). Component 2 US$8.7 million had two parts US$3.2 million and US$5.5 million. US$0.5m of the US$3.2 million funding was not disbursed. Page 17 of 41 The World Bank Ghana Climate Innovation Center (P145765) GCVF raised a percentage of this matching funding. . Due to the short period of operation, GCVF did not raise the additional US$5.5 million and hence US$0.5 million of funding was not disbursed. The evaluation was assessed against a Project cost of US$11.7 million (US$8.5m and US$3.2m). D. JUSTIFICATION OF OVERALL OUTCOME RATING 45. The overall outcome rating of the Project is assessed to be Moderately Satisfactory with a high rating for the relevance of objectives and substantial ratings for efficacy and efficiency in achieving the PDO outcomes. The Project has met and exceeded all indicators apart from two. GCIC has made a strong impact on raising sector awareness which supports building a pipeline of future clean technology entrepreneurs. However, the lack of effective policies or reforms and delays experienced during the Project implementation rendered a shorter period to realize the full outcome as expected for GCVF. E. OTHER OUTCOMES AND IMPACTS (IF ANY) Gender 46. The Project designed, adopted, and implemented gender-focused and responsive interventions. The Project provided extended support including mentoring, training, and funding facilitation to 176 companies of which women entrepreneurs and women users of climate technologies were specifically targeted. Given their limited representation in the technology-based firms in Ghana and overrepresentation in climate-affected activities such as farming. GCIC ensured gender was a central theme mainstreamed across all its activities and specifically created additional initiatives, including the development of a ‘Gender Charter’ which described how to support women entrepreneurs in overcoming legal barriers and voicing their needs and concerns. A ‘road-show’ covering the entire country was also organized to advocate the ‘Gender Charter’ which largely assisted women to overcome legal barriers. 47. The Project included a gender-disaggregated approach in monitoring and evaluation. The Project results framework ensured that gender-disaggregated data was captured whenever feasible. One of the three PDO-level indicators set to at least 20 percent women participation in the workshops, training events, seminars, and conferences. At Project closing, the events attracted about 1,296 participants against a 1,100 target, with 29 percent women participation against the 20 percent target. Similarly, the Project included gender disaggregation for three of the four Intermediate level indicators to ensure women had visible representation. In this regard: (i) 34 of the 176 firms (19.3 percent) that had received GCVF’s and GCIC’s core support, excluding boot-camps, were women-owned businesses, almost the 20 percent targeted; (ii) 49 percent of new direct jobs produced by the GCIC employed women, above the 20 percent targeted; and (iii) 29.8 percent (36 out of 121 firms) of firms receiving additional access to finance were women- owned, above the 20 percent targeted. See Annex 1 for more details. 48. In addition to the above, the Project also ensured gender equity considerations in all its interventions. For example: (i) Gender-responsive search and selection process for entrepreneurs: The GCIC realized a 40 percent participation by women entrepreneurs. Page 18 of 41 The World Bank Ghana Climate Innovation Center (P145765) (ii) Gender-responsiveness in the choice of facilitators, business advisors, and consultants working with GCIC as third parties in the incubation program. (iii) Design of a bespoke Women Entrepreneurs Transformation Program: Through this program, established women leaders support GCIC’s women entrepreneurs to become transformational executives. It is expected that this will successfully drive the women entrepreneurs’ personal development and business growth, as well as encourage them to be role models for emerging women entrepreneurs and the ecosystem in general. (iv) Gender-awareness training for all GCIC team members, including gender-sensitive online and offline communication tone and language; and (v) 360-degree “gender audits” were conducted for GCIC businesses to establish their effectiveness vis-à-vis gender responsiveness in their service delivery. Institutional Strengthening 49. The Project contributed to the establishment of a strong clean technology foundation in Ghana. The Project supported the establishment and institutional strengthening of GCIC and WGV, the GCVF management company enabling them to provide quality services to entrepreneurs and SMEs. GCIC and WGV staff accessed continuous learning on technical and business issues but also training regarding social and environmental safeguards and the use of screening checklists and safeguard procedures. Public and private stakeholders recognize GCIC and WGV as key partners in spearheading the climate change agenda. They have contributed to Ghana’s green economy framework and increased awareness on the potential for locally developed solution to climate technologies sector. When successful, WGV would be critical in addressing the financing gap for climate-focused early-stage enterprises and stimulating the development of the climate financing sector in Ghana. Mobilizing Private Sector Financing 50. The Project was particularly successful at maximizing finance for development at the firm level, and this was also one of the goals since the Project design. The Project aimed to support locally viable and profitable entrepreneurs and SMEs to pilot and grow their business. Successful beneficiaries received over US$2.0 million grants from GCIC and they raised an additional US$1.84 million from other financiers as early and growth-stage funding. The funding was raised from various sources including Government projects, local, regional, and international grants and investments. The Project has created a conducive environment for business opportunities and private investments prioritizing green growth and has demonstrated how to leverage these opportunities to support sustainable growth in Ghana. Further investments are expected to be realized from the deals under negotiation with WGV worth about US$5 million. Poverty Reduction and Shared Prosperity 51. The Project activities were well targeted to contribute to poverty reduction and shared prosperity. The Project beneficiaries mainly included young entrepreneurs and businesses that served households that were largely excluded in the provision of public services. The Project supported job creation mostly in rural or peri-urban areas leading to increases in rural incomes, where poverty tends to be higher than average. For example, Project beneficiaries produced energy- efficient cookstoves that helped many households increased access and use of clean energy. One of the successful businesses supported by the Project, Neplast Ghana Ltd., supported the production and distribution of Eco-bricks made Page 19 of 41 The World Bank Ghana Climate Innovation Center (P145765) from plastic waste. This not only created jobs for plastic collectors but also enabled access to affordable and clean products. The project made positive social impacts by creating jobs. The beneficiary projects contributed to supply of local water and sanitation facilities, improved climate-smart agricultural technologies, and supply of reliable renewable energy supplies hence contributing to reduced poverty and shared prosperity. Other Unintended Outcomes and Impacts 52. The Project provided technical and business support and it has stimulated entrepreneurship ecosystem changes in Ghana. The Project introduced a new approach piloting innovative structure using blended finance for early-stage investment in Ghana. Access to the grant enabled GCIC and GCVF to introduce different levels of support and risk which are contributing to improved business development support in Ghana as other business service providers learn and adapt from the GCIC model. The GCIC success and reputation of GCIC’s beneficiaries has influenced other project designs, such as the Startup Catalyst Fund under the Ghana Economic Transformation Project, to pilot a similar approach. This peer- learning is progressively shifting the entrepreneurship ecosystem and enhancing the professionalism of incubation center services. 53. Most of the products developed are likely to have positive impacts on livelihoods especially for women who mainly undertaking agriculture and household activities. The Project supported enterprises that produced energy- efficient, safe, and clean products such as cook-stoves. In most households, women undertake most of the household chores including cooking where they often use charcoal or wood which produce a lot of smoke and cutting down trees. The efficient cook-stoves safe time reduce CO2 emission and reduce health issues. Literature shows that cook-stoves significantly reduce household air quality and hence contribute to improved women and children's health6. III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME A. KEY FACTORS DURING PREPARATION 54. The Project’s design was informed by an extensive feasibility study and stakeholder engagement process that informed the GCIC business plan. During feasibility study a broad stakeholder’s engagement including private sector, development partners, public sectors, civil society, and others, ensured diverse perspectives on climate change and entrepreneurship and possible solution mechanism were evaluated. The GCIC business plan identified the key challenges facing clean technologies entrepreneurs and SMEs, and mechanisms that would stimulate entrepreneurship focused on a climate change agenda. The Project design aimed to support growth-oriented innovative clean technologies by providing a set of financing and capacity building services to SMEs by locally established GCIC and GCVF. However, the feasibility study was overly optimistic on implementation pace and results estimates that could be achieved. During Project preparation the targets were revised, informed by experience and learning from the Bank implementation of similar Projects in other countries and projects implementation in Ghana. The Development Partners provided their funding based on the feasibility study expected results and not the results proposed in the Project Appraisal Document. 6 Thakur et al, 2018, https://thorax.bmj.com/content/73/11/1026 Page 20 of 41 The World Bank Ghana Climate Innovation Center (P145765) 55. The Project preparation and implementation leveraged the knowledge and experience from the network of CICs.7 The Ghana CIC was among the seven CICs established under the World Bank infoDev’s Climate Technology Program with GCIC as the last one. The Project design and activities were informed by the key lessons learned from other CICs such as the selection of activities, delivery mechanism, the identification of potential entrepreneurs, the reporting and M&E system and capacity building services, among others,. The local institutions and local innovations approach were chosen due to their proved higher impact and to enhance sustainability over importing technologies and applying them in Ghana. This helped the Project preparation and readiness for implementation. Key lessons considered were on the key role of GCIC leadership to the success of the Project. The Project approach departs from the alternative approach of recruiting an international firm that only provides support services during Project life. Most beneficiaries continue to have a connection to GCIC and GCVF and more entrepreneurs and SMEs will continue to leverage the services of GCIC and GCVF. 56. While the Project design was sound, implementation readiness could have been stronger. The Project design benefited from the lessons learned from other private sector, energy, and environment projects in Ghana. Particularly the Ghana MSME Project, the Ghana Skills and Technology Development Project, the Ghana Energy Development and Access Project, the Ghana Rural Energy Access Project, and the wide range of economic and sector work related to competitiveness. The CIC model was preferred to stimulate climate technologies entrepreneurship given the specific sector needs, nascent entrepreneurs in the sector, and the need to demonstrate success. The CIC implementation model anchors on providing business and technical support in line with the entrepreneur’s and SMEs’ needs. The Project designed an implementation arrangement and identified the relevant stakeholders. However, the Project could have better considered the timing of recruitment of the GCIC executive director to minimize the delay upon Project approval. Though, a founding Executive Director had been identified during project preparation, he was lost to the Project as final Project approvals and effectiveness were received and putting procurement and other processes in place at an implementing partner new to World Bank projects took over six months. B. KEY FACTORS DURING IMPLEMENTATION 57. Technical and operational constraints delayed the Project’s implementation start date. There was a delay in constituting a core team to manage the GCIC, particularly an Executive Director who could manage GCIC establishment and operations. The design, structure, and staffing of GCIC took longer than envisioned and significantly delayed the initiation of Project activities. Nevertheless, the partnership with key government and non-government agencies led to enhanced GCIC visibility and awareness creation. During the mid-term restructuring, there was a long negotiation with the government to ensure that a local partner acceptable to the government would be the GCVF grant recipient and lead implementation partner; this led to a more than one-year delay to launch Component 2. WGV, a first-time fund manager took time to develop adequate deal traction which led institutional and anchor investors to be reluctant to partner with it and delayed fundraising. The decision-making process and requirements of approval from various stakeholders including the GCVF Steering committee, WGV Board, and the WB also delayed or stalled some investor discussions. In some cases, the agreed fund structure was rigid and turned off some the potential investors. 58. The Project implementation arrangements leveraged public and private sector strengths, but also posed some vulnerability. The government representative from MESTI chaired the GCIC steering committee. This ensured that the public sector was sufficiently informed of the incubator’s activities and provided a channel to continue dialogue on public 7Morocco (2014), Vietnam (2015), Kenya (2012), Caribbean (2014), Ethiopia (2014), and South Africa (2013) CICs were launched with infoDev support prior to the preparation of the Ghana CIC. Source: infodev.org Page 21 of 41 The World Bank Ghana Climate Innovation Center (P145765) policy. The private sector representatives brought on board the needed efficiency and technical expertise. However, effective engagement with government officials was in some cases derailed by the changes in government and key officials at the ministry. These changes also led to a delay in approving key Project activities such as the implementing company for GCVF. Nevertheless, this implementation arrangement design was robust and ensured that the Project had adequate support, control, and checks. 59. The COVID-19 Pandemic continues to unfold leading to job losses and business’s reduced activity. Despite the Government of Ghana’s effort8 to protect lives and jobs and support businesses, COVID-19 has had devastating impacts. According to the World Bank and Government of Ghana’s Business Pulse Survey, businesses are facing reduced demand for their products and difficulties in accessing finance and sourcing inputs. Most businesses have been forced to change their business model and operations, and to increase the use of digital services. The Innovation for Poverty Action survey9 shows a 28 percent decrease in employment. GCIC beneficiaries reported 17 job losses up to September 2020. In addition, some WGV fundraising negotiations stalled due to COVID-19 uncertainties. IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME A. QUALITY OF MONITORING AND EVALUATION (M&E) M&E Design 60. The M&E design is rated Substantial. The Project’s Results Framework was well defined with indicators aligned with the Theory of Change. The Key PDO and intermediate indicators provide insight into the achievement of the PDO as reflected in Annex 1 of the PAD. A performance management framework—common to each of the CICs in the global network—was developed and included in the PAD. M&E Implementation 61. M&E implementation is rated substantial. Ernst & Young (E&Y) Ghana led the M&E implementation for the Project. With its commercial background, E&Y had a good understanding of M&E and realized the importance of reporting. It understood that M&E was important not only for reporting but also for learning needs. An M&E specialist was hired and provided training on (i) the basics of M&E frameworks; (ii) different types of indicators required for Project monitoring; (iii) Project baseline data collection efforts including conducting beneficiary surveys; and (iv) the Bank reporting requirements. The GCIC M&E system was based off the framework used by other CICs. WGV has also developed a robust M&E framework based on international good practice for impact investment funds. 62. The GCIC M&E system was a valuable management tool that informed GCIC management decision making. Ernst & Young developed an M&E plan and data collection activities to inform GCIC monitoring of process and activities, which occurred regularly, comparing the “planned” situation with the “real execution situation.” The GCIC M&E framework allowed for detailed monitoring of the Project’s progress against targets. 8Government’s GH¢600 Million Stimulus Package to small and medium scale enterprises (SMEs) 9See https://www.poverty-action.org/sites/default/files/publications/The-Effects-of-COVID-19-on-Business-and-Employment-in-Ghana- November-2020.pdf Page 22 of 41 The World Bank Ghana Climate Innovation Center (P145765) 63. GCIC adopted a data-centric approach to its operations. The Bank supported the Ernst & Young team on analysis and ways of integrating the insights into the GCIC’s operations. The Bank team worked with the Ernst & Young team and closely monitored results to ensure Project targets were being achieved. The Bank team provided continuous guidance on data collection and reporting. Reporting templates were developed that captured the required information for monthly, quarterly, and annual reporting. Ernst & Young effectively monitored GCIC activities and proactively sourced feedback from entrepreneurs regularly to constantly improve service provision. The quarterly and annual progress reports were used to monitor the Project’s outcome and results indicators. M&E Utilization 64. M&E utilization is rated substantial. An online data collection and aggregation tool was developed, and training was provided to the Ernst & Young M&E staff on its use. Data was collected and proactively followed through to verify progress. The monitoring data allowed GCIC to make informed decisions and adjustments to improve implementation. The GCIC management team reviewed the quarterly M&E results and used the data therein to inform on cohort search and selection, the sector of business operation to focus on for new cohorts, the location of national roadshows (which influenced regional equity of incubator cohorts), and the programmatic content of boot-camps and innovation labs. By utilizing the M&E system, the limited coverage of the water sector enterprises was identified and, in turn, informed the decision to co-host a water innovation lab with the German Chamber of Commerce (German AHK) to enhance outreach. The analysis of monitoring data informed the roadshows venue selection which increased coverage of the northern regions of Ghana. Justification of Overall Rating of Quality of M&E 65. The overall quality of M&E is rated Substantial. The M&E system as designed and implemented informed Project implementation, and the Ernst & Young team actively collected additional data to inform the Project outside of the results framework. Frequent field visits to beneficiaries also informed Project implementation. The M&E implementation and utilization were adequate to assess the achievement of the objectives and test the links in the results chain. The M&E rating remained ‘satisfactory’ during the Project implementation. B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE 66. The Project complied with all its Environmental and Social Safeguards (E&S) policies. The Project triggered the Bank’s Environmental Assessment Policy (OP/4.01) and was rated as a category B (Partial Assessment) to account for minimal and localized potential environmental and social impacts that could be easily mitigated. The Bank’s involuntary resettlement policy (OP 4.12) was not triggered because the investment activities under the beneficiary SMEs were not expected to lead to land acquisition or loss of livelihoods or assets. The Environmental and Social Management Framework (ESMF) guided the avoidance, mitigation, and management of the E&S safeguard impacts and risks as the actual location of sub-projects at the time were not known. The ESMF was disclosed in Ghana on April 10, 2015 and published through the Bank’s InfoShop on April 15, 2015. Sub-projects implemented were small and hence no further E&S documents were required and potential E&S impacts were small. The designed ESMF had provisions to screen, identify, and mitigate against these project impacts during the selection and preparation of sub-project activities. 67. The Environmental and Social Safeguards were monitored at the enterprise level. The GCIC and WGV staff responsible to provide business support received E&S training, especially regarding E&S screening and implementation. The M&E officer was assigned the responsibility to supervise environmental and social safeguards screening and Page 23 of 41 The World Bank Ghana Climate Innovation Center (P145765) implementation. The Bank’s E&S Specialists performed safeguards monitoring as part of routine field visits, including spot-checking, technical backstopping, and tailor-made training for the duration of the Project implementation. The Project contributed to environmental improvements since some of the climate technologies businesses sought to enhance environmental performance. 68. The GCIC developed a Grievance Redress Mechanism (GRM) and procedure and codified the process within the GCIC Policies and Procedures that are signed by every entrepreneur in the program. The Policies and Procedures included a reference to the Bank’s direct grievance channels such as outreach to the Project team or the Bank’s inspection panel. 69. The Project’s overall Financial Management (FM) performance was adequate. The Project was compliant in submitting the Interim Unaudited Financial Reports (IUFRs) and audit reports throughout the implementation period that were acceptable to the Bank. The FM Manual incorporated the necessary internal control guidelines using the country finance system. All the Project’s internal controls worked as intended. The key Project staff attended training workshops to understand the approved Manual. The Project complied with all the fiduciary covenants during implementation. Adequate internal control arrangements were put in place and FM, procurement, and disbursement systems were satisfactorily maintained. The Project was compliant in submitting audit reports within the agreed deadline. There was an incident of misappropriation of funds by a local employee of a GCIC implementation partner. The GCIC recovered the funds and reimbursed the amount back into the Project account. 70. The Project’s overall Procurement performance improved progressively during Project implementation. Procurement was conducted following the Bank’s procurement guidelines under IBRD loans and credit and following the Project’s approved Procurement Plan. Initially, there were delays in procurement mostly associated with weak procurement capacity as well as unfamiliarity with the Bank’s procurement requirements. The implementation agencies’ procurement capacity improved markedly during Project implementation with the appointment of a dedicated procurement specialist at the GCIC, hands-on support by the Bank, capacity building of GCIC staff as well as a prior review of all procurement transactions. Recommendations made during the Project mid-term review, combined with the continuous training resulted in improved processes and a reduction in procurement processing turn-around time. C. BANK PERFORMANCE Quality at Entry 71. The overall quality at entry is assessed as Moderately Satisfactory. The World Bank carried out preparatory work and held extensive consultations with various stakeholders, which informed the architecture of the Project. The Project was grounded on the realities of Ghana and business environment constraints in the climate technology sectors. During the appraisal, the Bank team considered the adequacy of the Project design and major aspects including technical, financial, economic, institutional, and procurement, and if the activities included were adequately prepared to achieve the PDO. The Project design reflected on risk factors and lessons learned from past experiences and CICs and Project objectives were aligned with strategic priorities. 72. The Project design and readiness for implementation was not adequate and this led to initial implementation delays and restructuring of the Project to adjust the implementation arrangements. The Project expected to achieve four new laws/regulations/amendments/codes/Government policies drafted or contributed to the drafting in four years. Investment Project Financing is not the Bank’s main instrument to support policy reforms and the team could have Page 24 of 41 The World Bank Ghana Climate Innovation Center (P145765) considered complementary assistance to support the reforms through advisory work or development policy operation actions. The Project undertook policy advocacy activities, but to support the client to improve on climate change related reforms a different instrument would be necessary. In addition, the Project could have considered mechanisms of identify key staff before the Project effectiveness, perhaps by using alternative funding to mitigate delay in recruitment of key GCIC staff which further led to the Project restructuring. The planned Project life of four years, though limited by the life of the Trust Fund, should have considered the adequate time to demonstrate success of the incubation center and venture fund especially because the Project targeted SMEs that requires more support and have higher risk. Quality of Supervision 73. The Bank quality of Supervision is rated Satisfactory. The project management team remained proactive throughout the implementation processes. The task team conducted regular supervision missions, on average twice per year. Implementation supervision reports were thorough and proactive in identifying weaknesses and presenting recommendations to address them. Procurement and financial reviews were regularly carried out and their findings were reflected in the overall supervision reporting. The team restructured the Project twice revising the implementation arrangement and disbursement withdrawal conditions. During the mid-term review, the Project team introduced changes in the institutional arrangements including changes in the implementing agency for Component 2 and extended the closing date. Project supervision constituted of experienced and committed task teams, both in Accra and the Headquarters in Washington D.C., with a wide range of specialists including an Entrepreneurship specialist, M&E specialist, and FM and Procurement specialists who continuously provided technical support. Project stability and focus were ensured since the Project was led by the same Task Team Leader throughout preparation and implementation. The Bank team supported Ernst & Young to develop and deliver a strong M&E framework that informed Project implementation and improved on GCIC service delivery. Justification of Overall Rating of Bank Performance 74. The Bank’s overall performance is rated as Moderately Satisfactory with a Moderately Satisfactory rating for the Quality at Entry and Satisfactory rating for the Quality at Supervision. D. RISK TO DEVELOPMENT OUTCOME 75. The risk to development outcome is considered moderate. The main risk to the development outcomes is the sustainability of the newly established institutions and their ability to continue delivering support to entrepreneurs efficiently. Most incubators and venture funds in developing countries tend to face resource constraints and high operations costs. This is not exceptional for GCIC and GCVF. The size and client base of these institutions is still small and cannot be relied upon to generate adequate income to sustain them. Global Affairs Canada has in principle agreed to provide CAD 10 million for a period of five years to GCIC. The funding will be applied to implement the GCIC 2.0 strategy continuing the close collaboration with entrepreneurs and focusing on policy advocacy and climate-resilient fiscal policy in collaboration with like-minded institutions10. WGV has made progress but has not secured any signed commitments yet. The investment team has ongoing discussions with four investors (two institutional and two individual) for an aggregate investment of around US$4 million. 10 Such as Policy Alternatives for a Green Economy (PAGE)-Ghana Page 25 of 41 The World Bank Ghana Climate Innovation Center (P145765) 76. Most of the GCIC beneficiaries are still at an early stage which tends to have a high failure risk. Many such businesses tend to fail within their first two years. Most of the GCIC and WGV beneficiaries are still in this early stage and face substantial risk to growth. However, given the continuing support and complementarity of GCIC and WGV services, the businesses will develop a capacity for growth. The alumni network11 GCIC has established will bridge some of the information gaps that the businesses might still require to thrive and enable organic peer-to-peer knowledge sharing. It will be important for GCIC and WGV to work closely to create synergy and bring support to entrepreneurs that will continue giving them an edge in the market. Inadequate post-investment management undermines the efforts made so far. 77. Nascent and untested WGV business model and the nature of governance, ownership, and management structure to support entrepreneurs. The venture capital market has evolved markedly and interest in developing countries continues to grow. However, Ghana’s market is largely at the early stages of development with several inherent risks that make it less attractive to investors. Testing innovative and disruptive technologies and business models, especially in a sector that is yet to gain high momentum, poses risks to quick and attractive returns. WGV aims to raise US$10 million in five years. However, this target is perceived as small by some venture funds that could be potential partners to WGV and limits its potential market for raising funds. WGV operations and management need to be sufficiently flexible to navigate the current context and succeed to continue supporting commercially viable business solutions to climate change. On the other hand, Ghana has a high entrepreneurship potential and hence a large market for WGV to leverage. 78. Some Project indicators’ achievements have regressed due to the COVID-19 related consequences and the risk remains high. The COVID-19 related lockdown measures and closure of non-essential activities have led many entrepreneurs to close their businesses. This has led to markedly reduced output, employee layoffs, and market disruptions. The number of new jobs created under the Project reduced from 153 to 133 between March and September 2020. The ability of WGV to raise capital and optimal investment opportunities has been adversely affected by the pandemic in the short and medium-term. The length, depth, and impact of COVID-19 is still unknown and continues to pose major risks to domestic and international markets and business sustainability. V. LESSONS AND RECOMMENDATIONS 79. The Project supported innovative business models and solutions to address the climate technologies sector and job creation in Ghana. This remains a critical objective for the government and the World Bank. Relevant lessons emerging from this Project include: 80. Establishing new and capable institutions is time-consuming but increases the likelihood of Project impact and sustainability. The Project sought to establish and equip GCIC and GCVF to support entrepreneurs and SMEs. This process led to substantial project delays and reduced the time to provide services to about three years relative to the planned four years of Project life. Despite the short duration, the established institutions managed to deliver on almost all Project targets, and they continue to provide quality and timely support to existing and new beneficiaries. This approach has been especially beneficial in the nascent entrepreneurship ecosystem in Ghana and it provides a successful demonstration. The leadership, management, and structure of these institutions are critical to their success and growth. The existence of these institutions ensured the stability of the implementing unit and sustained implementation progress. 11 Climate Innovation Enterprise Network Ghana (CIENOG) held its first Green Enterprise Summit in November 2019. Page 26 of 41 The World Bank Ghana Climate Innovation Center (P145765) GCIC and WGV are expected to expand their business and service delivery and hence create a higher and longer-term impact in the clean technologies sector in Ghana and beyond. This CIC model has been shown to have a high impact in appropriate contexts and implementation in Ghana provides further evidence. Nevertheless, GCIC and GCVF still need technical assistance to equip them with improved capability to deliver better and more impactful entrepreneurship support. 81. Customized support to entrepreneurs and SMEs increases the prospect of business success. The Project adopted a pragmatic and flexible approach to support entrepreneurs and SMEs by undertaking a personalized and detailed review of each proposal to identify the needs and curate a relevant support mechanism. This is contrary to often off-the-shelf business support solutions that are easier and cheaper but provide generalized entrepreneurship support. The approach led to a significant impact on businesses’ performance on increasing sales and creating jobs and increased access to the local and international markets. The Project particularly targeted women entrepreneurs and applied innovative approaches to incentivize more women to pursue entrepreneurship. The approach advanced MFD’s approach through innovative programs. 82. Business incubation and support are costly and take time to demonstrate results. The climate technologies sector entrepreneurship in Ghana is still nascent and there is a need for a demonstration effect to catalyze the market. The Project substantially delivered on this objective. However, this represented a substantial cost to establish and maintain the GCIC and GCVF and it took several months to recruit and train relevant staff. The beneficiaries also required constant handholding in developing and implementing their proposals. WGV, as a first-time fund manager, experienced fundraising challenges in an environment with few appropriate investors interested in a relatively high-risk sector. WGV needed enhanced promotion and upstream support to potential clients. This increased business costs. Nevertheless, GCIC and GCVF have built and developed their capacity to support entrepreneurs who have successful testimonies. 83. The climate technologies sector has significant potential to contribute to sustainable development especially in developing contexts. Climate change presents exceptional challenges to developing countries but also tremendous opportunities. The Project supported the development of climate change-focused entrepreneurship and, though in operation for a shorter period than planned, delivered significant results. This demonstrates both the untapped entrepreneurship capability and climate technologies opportunities in Ghana. The Project de-risked and supported entrepreneurs and SMEs to develop innovative locally appropriate solutions that have been recognized internationally. This shows that with adequate support, the climate technologies sector has the potential to substantially contribute to sustainable and inclusive economic growth and poverty reduction, and continued support is critical. 84. Collaboration and partnership between the public and private sectors are critical to improving the business environment and support entrepreneurs in climate technology sectors. The Project included a wide range of stakeholders including development partners, the consortium, government ministries, and implementing institutions, among others. The stakeholders brought to the Project their strengths but there were also challenges to coordinate them and maintain the Project implementation momentum. Close and continuous communication, as well as clarification of expectations, will facilitate stakeholders’ contribution aided by high-level leadership. This will stimulate all the stakeholders to effectively collaborate towards a better outcome. The Project shows that the implementation and impact of private sector-led operations require constant collaboration with the public sector to realize a broad public impact. Active public-private dialogue should be encouraged to continue beyond the Project life to keep the push for an improved business environment. Page 27 of 41 The World Bank Ghana Climate Innovation Center (P145765) 85. The Project team needs to remain flexible and responsive to the changes throughout Project preparation and implementation. The task team was proactive and restructured the Project to change the implementation arrangement and the closing date. However, the Project did not make any progress regarding the regulatory space and no actions were taken. The team should have reviewed and proposed specific activities to improve progress on this front or adjust the indicator to align with Project activities and context, noting the challenges faced. Supporting policy reforms might not be effectively achieve under an Investment Policy Financing instruments. The task team could have considered complementary advisory work to support policy reform agenda. 86. Establishment of the venture fund was critical to provide more advanced businesses with capital, but this requires more time to demonstrate value, especially in a nascent sector and venture financing ecosystem. The Project went through a rigorous negotiation process with the Government officials to define the design and implementation structure of the venture fund. It was difficult to identify a qualified and experienced fund manager in the country that did not have international partners, which was a requirement of the government put in place during negotiations. This led to significant delays in launching the fund and the lack of pre-existing fund-raising relationships necessary to raise investment that was required for full capitalization of the fund. . Page 28 of 41 The World Bank Ghana Climate Innovation Center (P145765) ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS A. RESULTS INDICATORS A.1 PDO Indicators Objective/Outcome: support entrepreneurs and SMEs involved in developing profitable solutions to climate change Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Increased sales revenue for Amount(USD) 0.00 4,500,000.00 2,278,356.00 targeted firms 01-Apr-2016 30-Jun-2020 30-Sep-2020 Comments (achievements against targets): This indicator was not achieved. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of participants in Number 0.00 1,100.00 1,296.00 workshops, training events, seminars, conferences, etc. 01-Apr-2016 30-Jun-2020 30-Sep-2020 (of which 20% are women) Page 29 of 41 The World Bank Ghana Climate Innovation Center (P145765) Comments (achievements against targets): Objective/Outcome: increase business activity in the climate technology sector Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of households with Number 0.00 20,000.00 417,494.00 access to new/improved products/services 01-Apr-2016 30-Jun-2020 30-Sep-2020 30-Sep-2020 Comments (achievements against targets): A.2 Intermediate Results Indicators Component: Climate Innovation Center Establishment, Services and Monitoring and Evaluation Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of firms with access Number 0.00 90.00 176.00 to new/improved products/services (of which, 01-Apr-2016 30-Jun-2020 30-Sep-2020 20% are women-owned) Comments (achievements against targets): Page 30 of 41 The World Bank Ghana Climate Innovation Center (P145765) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of new Number 0.00 4.00 0.00 laws/regulations/amendmen ts/codes/Government 01-Apr-2016 30-Jun-2020 30-Sep-2020 policies drafted, or contributed to the drafting Comments (achievements against targets): Though there was no progress made on this indicator. The Project conducted and contributed to advocacy events and public-private dialogue that contributes to the awareness and deliberations of limitations of current regulatory framework. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of new direct jobs Number 0.00 96.00 133.00 created (of which 20% are women) 01-Apr-2016 30-Jun-2020 30-Sep-2020 Comments (achievements against targets): Component: Ghana Climate Venture Facility Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Formally Revised Completion Page 31 of 41 The World Bank Ghana Climate Innovation Center (P145765) Target Number of firms with Number 0.00 14.00 109.00 additional access to finance (of which, 20% are women- 01-Apr-2016 30-Jun-2020 30-Sep-2020 owned) Comments (achievements against targets): Page 32 of 41 The World Bank Ghana Climate Innovation Center (P145765) B. KEY OUTPUTS BY COMPONENT 1. Support entrepreneurs and SMEs involved in developing profitable and locally appropriate solutions to climate change 1. Increased sales revenue for targeted firms. Outcome Indicators 2. Number of participants in workshops, training events, seminars, conferences, etc. (of which 20% are women). 1. Number of firms with access to new/improved products/ services (of which, 20% are women-owned). Intermediate Results Indicators 2. Number of firms with additional access to finance (of which, 20% are women-owned). 1. US$2.28m sales revenue generated by beneficiary firms. 2. 1,296 participants, 375 of whom were women, in 84 workshops, training events, seminars, conferences; 600 of the participants provided satisfactory feedback with the sessions. 3. 176 of firms with access to new/improved products/ services. Key Outputs by Component 31.7 percent o.w. are women-owned. (linked to the achievement of the 4. 109 firms with additional access to finance, 31 percent o.w. Objective/Outcome 1) are women-owned, amounting to US$2.05m. 5. 106 WGV investment leads and seven potential investee companies. 6. 14,526 CO2 emissions avoided. 7. 10 businesses raised early and growth stage finance. 2. Increase business activity in the climate technology sector 1. Number of households with access to new/improved Outcome Indicators products/services 1. Number of new laws/regulations/amendments/codes/ Intermediate Results Indicators Government policies drafted or contributed to the drafting 2. Number of new direct jobs created (of which 20% are women) 1. 417,494 households accessed new/improved products/services. 2. 133 jobs created, 49 percent of which are women. Key Outputs by Component 3. 29,799 low carbon/energy efficiency technologies supported. (linked to the achievement of the 4. 13 public-Private dialogue sessions held. Objective/Outcome 2) 5. 12 partnerships with financial and non-financial stakeholders. 6. 223 media appearances and 60 knowledge products developed. Page 33 of 41 The World Bank Ghana Climate Innovation Center (P145765) ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION A. TASK TEAM MEMBERS Name Role Preparation Michael Ehst, Diletta Doretti Task Team Leader(s) Charles John Aryee Ashong Procurement Specialist(s) Robert Wallace DeGraft-Hanson Financial Management Specialist Felix Nii Tettey Oku Social Specialist Afua Ayew Entsuah Team Member Ana Isabel Dos Reis E Sousa Piedade Abreu Environmental Specialist Anne Ytreland Team Member Julia Brethenoux Team Member Aun Ali Rahman Team Member Yehia Khedr Eldozdar Team Member Jonathan d'Entremont Coony Team Member Jana Malinska Team Member Jana Malinska Team Member Mohammad Nadeem Counsel Edith Ruguru Mwenda Counsel Djibrilla Adamou Issa Team Member Alexandra C. Bezeredi Safeguards Advisor/ESSA Tanangachi Ngwira Team Member Supervision/ICR Michael Ehst Task Team Leader(s) Charles John Aryee Ashong Procurement Specialist(s) Robert Wallace DeGraft-Hanson Financial Management Specialist Esinam Julia Nduom Financial Management Specialist Sarah Antwi Boasiako Social Specialist Yaba Agyeman Haffar Team Member Justice Odoiquaye Odoi Environmental Specialist Akhilesh Ranjan Social Specialist Abdulai Darimani Team Member Aun Ali Rahman Team Member Ciliaka Millicent Wanjir Gitau ICR Author Page 34 of 41 The World Bank Ghana Climate Innovation Center (P145765) Farah Dib Team Member Yehia Khedr Eldozdar Team Member Nightingale Rukuba-Ngaiza Counsel Charlotte Hayfron Team Member Lydia Sam Procurement Team B. STAFF TIME AND COST Staff Time and Cost Stage of Project Cycle No. of staff weeks US$ (including travel and consultant costs) Preparation FY13 0 14,786.09 FY14 32.052 282,444.87 FY15 39.428 362,174.15 FY16 21.210 404,927.84 FY17 3.847 14,435.39 Total 96.54 1,078,768.34 Supervision/ICR FY17 20.537 261,152.87 FY18 25.440 234,597.62 FY19 47.421 582,027.18 FY20 56.495 457,770.51 Total 149.89 1,535,548.18 Page 35 of 41 The World Bank Ghana Climate Innovation Center (P145765) ANNEX 3. PROJECT COST BY COMPONENT Amount at Approval Actual at Project Percentage of Approval Components (US$M) Closing (US$M) (US$M) Climate Innovation Center Establishment, Services and 8.50 8.36 98.40 Monitoring and Evaluation Climate Venture Financing 3.20 2.70 84.40 Facility Total 11.70 11.06 94.50 Page 36 of 41 The World Bank Ghana Climate Innovation Center (P145765) ANNEX 4. BORROWER, CO-FINANCIER, AND OTHER PARTNER/STAKEHOLDER COMMENTS GCIC prepared a Project Completion Report, documenting the final outcomes of the project implementation. This PCR was used in preparing this ICR. This annex includes a summary of the main points. PURPOSE OF THE PROJECT 1. The Ghana Climate Innovation Centre (GCIC) project was established to support entrepreneurs and SMEs involved in developing profitable and locally appropriate solutions to climate change and increase business activity in the climate technology sector through the establishment of a locally based climate innovation center (CIC). 2. Ghana’s growing vulnerabilities to climate change threaten the long-term sustainability of poverty reduction and economic development gains. While Ghana’s contribution to climate change through greenhouse gas emissions is currently small, the impacts of climate change on Ghana’s economy, people, and development prospects are projected to be substantial. 3. The GCIC project responds to a request from the government for support to the National Climate Change Policy (NCCP), specifically to support Ghanaian entrepreneurs and businesses involved in developing profitable and locally appropriate solutions addressing climate-related issues, mitigation, and adaptation. Through its programs, activities, and financing, the Ghana Climate Innovation Center (GCIC) and its network of partners and stakeholders was to provide a country-driven approach to solve climate, energy, and resource challenges, and support economic development and job creation. Project Beneficiaries 4. The project was expected to provide targeted support, mentoring, training, and funding facilitation to approximately 90 companies in Ghana over five years, targeting increased revenues and job creation for these supported companies. The project’s end beneficiaries were expected to be approximately 20,000 households who would be assisted to increase their resiliency to climate change through increased access to cleaner sources of energy and better and more efficient sources of water and agricultural resources. Poor and vulnerable populations were also expected to be among the key beneficiaries as they represent many of the most in need of climate adaptation solutions (for example, improved irrigation solutions, off grid energy solutions). Women entrepreneurs and women users of climate technologies were to be specifically targeted by the GCIC project given the limited representation of women in technology-based firms in Ghana and overrepresentation of women in climate-affected activities such as farming Project Description 5. The GCIC provided a full suite of financing and capacity-building services to Ghanaian technologists, entrepreneurs, SMEs, and new ventures that address challenges to starting and scaling their climate (clean) technology businesses in sectors such as renewable energy, climate-smart agriculture, energy efficiency, and water management and purification. 6. In addition to incubating promising start-ups, the GCIC provide a dedicated proof of concept (POC) and seed capital funding to entrepreneurs to bridge local funding gaps. In parallel to investments, the GCIC also provided business advisory and training services, market development services, access to product testing facilities, and government engagement on policy. In this way, the GCIC acted as a national focal point, coordinating efforts in promoting the growth of locally relevant Page 37 of 41 The World Bank Ghana Climate Innovation Center (P145765) climate sectors. The GCIC also provided a platform to create international business-to-business linkages, enhance knowledge sharing, and facilitate trade Based on an assessment of 15 climate technology sectors—which used a quantitative methodology to analyze the potential climate, energy and related impacts, as well as economic growth potential—the following five sectors were identified as being those that will be the priority focus of the GCIC: i) Energy efficiency (industrial and household), ii) Domestic waste management, iii) Solar energy, iv) Water management and purification, and v) Climate-smart agriculture. 7. Given Ghana’s vulnerability to the effects of climate change, these priority sectors reflect a primary focus on adaptation with mitigation technologies as a secondary focus. For example, climate-smart agricultural practices can assist Ghana’s farmers who face droughts, temperature fluctuations, and other changing climate conditions. Other priorities reflect Ghana’s unique development challenges. For example, energy efficiency reflects Ghana’s need to manage inade - quate power supply, and solar energy can provide energy access to areas still off the grid in Ghana. Component One: Climate Innovation Center Establishment, Services and Monitoring and Evaluation 8. This report relates to project activities related to component one of the GCIC project only. Component 2 of the project, that is the Ghana Climate Venture Facility (GCVF), has been implemented and managed by a separate entity, the InnoHub Foundation. 9. Component 1 provided financing to establish the GCIC at the Ashesi University College (AUC), operate the center, and provide a full range of services to client entrepreneurs and SMEs during the first five years of its operations. It also provides funding for monitoring and evaluation (M&E) of these activities. 10. The GCIC was established at the AUC, the lead organization of a competitively selected implementation consortium of four organizations. The AUC had the primary responsibility of overseeing and managing the development and operation of the center, staffing, facilities, and outreach. The GCIC under Component 1 offered a full range of services to support climate technology entrepreneurs and the enabling environment for climate technology businesses that include the following. 11. Entrepreneurship and venture acceleration services to assist entrepreneurs to turn an idea into a viable business or to scale up an existing business or business line. Some of these activities took place on site at the GCIC, while others involved varying degrees of distance or virtual learning. These services include (a) business advisory, mentoring, and access to professional services; (b) technical training and skills development; (c) seminars, events, and networking opportunities; (d) office space and services for entrepreneurs and start-ups; and (e) a women’s entrepreneurship program. 12. POC subgrants and investment facilitation services facilitated access to early-stage financing for GCIC clients. These services included (a) POC grants up to US$40,000 to support innovators or businesses to test the market potential of a promising technology, product, or process and (b) facilitation of commercial investment through investor intro- ductions, matchmaking, and investment advisory services. 13. Market growth and access services to assist SMEs to reach new regional and international customers, enter global value chains, and facilitate the overall growth of Ghana’s domestic climate technology market. These services included (a) research and analytics on markets, competitors, and sector trends; (b) export promotion program; (c) technology quality and performance information and database; and (d) countrywide networking events for climate technology SMEs and entrepreneurs. 14. Technology and product development services to assist with the technical aspects of developing an innovative product or service. Most of these services were provided to GCIC clients through outsourcing relationships with technical Page 38 of 41 The World Bank Ghana Climate Innovation Center (P145765) experts and service providers. These services included (a) access to technical facilities and services to design, prototype, test, and demonstrate products; (b) linking of local SMEs with technology suppliers; (c) and commercialization program for universities and research institutes involved in climate technology research and development (R&D). 15. Policy and regulatory support services to improve the overall enabling environment for climate technology businesses. These services include (a) advocacy with the government on behalf of entrepreneurs on climate technology policy issues; (b) research on sector policy trends, policy implementation and effectiveness, and best international practices; and (c) policy dialogues, roundtables, and events to engage policy makers. 16. Across the GCIC services, specific outreach and service offerings targeted to reach poor and vulnerable populations across Ghana that will be greatly impacted by climate change. This included targeting the attraction of businesses from all of Ghana’s regions including the northern regions and of businesses that have solutions that have a positive impact on these vulnerable populations, particularly climate-resilient agricultural solutions. This component also provided funding for the M&E of the project. M&E was integrated into the operations of the GCIC, as it requires much of the M&E data on an ongoing basis to support its work with client companies. M&E was supplemented by independent evaluation of the project at regular intervals. OBJECTIVES ACHIEVED/NOT ACHIEVED 17. As of the end of Q3 2020, all three of GCIC’s PDO level indicators have exceeded targets, namely: (i) households accessing climate friendly solutions, which has reached over 340,000 Ghanaian households, far surpassing the initial target of 20,000; and (ii) the number of participants in workshops, trainings, and other events, which has increased to 1,267, exceeding the initial target of 1,100; and (iii) the third PDO level indicator on increased revenues of targeted businesses has reached US$2,278,356 against the end target of US$1,537, 694. 18. Intermediate indicators have also been exceeded in most cases. The number of businesses cumulatively supported with business incubation services as well as research commercialization services reached 101, which is above the target of 71. In addition to the 101 businesses, GCIC also reached a further 75 businesses through entrepreneurship bootcamps and workshops it held nationally during its national roadshows and specific green enterprise bootcamps. Direct jobs created is now 133 net (i.e. including gains and any losses to those same jobs), above the target of 103 for the project. Indirect, part time and season jobs, while not captured systematically, are also being created. Indirect, part time and season jobs, while not captured systematically, are also being created. For instance, over 600 women in the Northern and Upper Regions are being engaged by GCIC businesses as casual staff. Locations include Talensi-Nabdam, Kamega, Saboba Chereponi, and Karaga among others. 19. An intermediate indicator that has not been achieved is the top line measure of new laws / regulations / amendments / codes / Government policies drafted or contributed to the drafting, which is defined as new laws passed as a direct outcome of the GCIC’s public-private dialogue (PPD) sessions. Zero against the target of four for the project duration has been achieved. However, other measures captured by the GCIC demonstrate that the project has supported the policy making process considerably. The GCIC has recorded 13 Public Private Dialogue sessions with policy makers in attendance. The GCIC has also had 205 media appearances, 44 knowledge products developed, and 33 knowledge-sharing events hosted – all increasing the GCIC’s reach and relevance to policy. The GCIC has submitted a direct contribution to the Ministry of Environment, Science, Technology and Innovation’s science, technology and innov ation (STI) draft government policy. The policy, yet to be adopted, is being amended to incorporate GCIC’s submission. 20. The GCIC project continues to reach women-owned businesses, through the GCIC’s women entrepreneurs’ transformation program. 31% of businesses supported by the project are women-owned and 48% of direct jobs created employ women, exceeding the 20% target for both indicators. GCIC’s climate emission reduction outcomes are measured Page 39 of 41 The World Bank Ghana Climate Innovation Center (P145765) by one of the GCIC’s implementing partners EY Ghana (though emissions are not part of the project indicators as households reached with climate solutions was selected as the project’s climate measure). There have been 14,526 MT of carbon dioxide emissions avoided cumulatively from the project. This represents a significant increase in the emissions avoided compared to the project target of 3,172MT 21. In terms of direct financial grant support, GCIC provided at total of US$1,100,000 in Proof of Concept (PoC) grants to enterprises in the incubator. This was the targeted figure of PoC grant disbursements at project start. In addition to PoC grants, the GCIC project provided financial grant support to participating entrepreneurs under the Technology and Product Development workstream. These grants totaled some US$230,000 and covered support services and activities in the following areas: a. Access to Design & Prototype Development – this was designed to support entrepreneurs with expert services in product design coaching, prototype development, user feedback and fine-tuning b. Access to Laboratory testing & Analysis - this grant scheme supported entrepreneurs with scientific analysis of product and services development, improvement, and quality assurance. The analytical data on the quality of product and services as well as the production process serves as a guide for quality control and market accessibility c. Access to Product registration and Certification - the product registration and certification grant scheme supported entrepreneurs to perform the necessary due diligence and to ensure their products or services meet the criteria for standard and quality. Services requested by entrepreneurs and supported under the scheme included green certification, food quality certification, nursery pot standard certification, Improved stove standard certification, PPRSD licensing. The Food and Drugs Authority and Ghana Standards Authority were the main service providers under this scheme d. Access to Engineering Services - the engineering services support scheme addressed peculiar technical challenges related to facility or production engineering. Services supported under this scheme included, inter alia, solar hub engineering, safety system engineering, wastewater management, water distribution, hatchery set-up and management, hydroponics, construction of large-scale substrate tanks, sheds and water circulatory canals e. Access to Procurement of Technical Equipment - A few businesses under the GCIC incubation program were identified to have insufficient equipment and basic machineries for commercial production. The technical needs assessment identified these as critical for sustainable business growth. This grant supported the procurement of equipment and simple machines for such businesses to improve production capacity and standardization. Equipment/machines procured under this scheme included: industrial weighing scale, battery protection system, hammer mill, mixer, roller press, briquetting machine, biogas generator among others f. Research Commercialization Component - GCIC adopted research commercialization as an approach to collaborate with research and academic institutions to develop innovative research findings into potentially marketable products and/ or services. The Research Commercialization component was specifically intended to support the commercialization of promising climate innovations in the fields of (1) energy efficiency & renewable energy; (2) solar power; (3) climate smart agriculture; (4) waste management; and (5) waste purification and management. Researchers within universities and research institutions were supported to commercialize their innovations to bring their products or services to scale. This was to open up an opportunity to create sustainable business ventures through the establishment of partnerships between green business entrepreneurs and research institutions. The research commercialization strategy turned technical and scientific intellectual property (IP) into commercially viable market demanded products or services. Page 40 of 41 The World Bank Ghana Climate Innovation Center (P145765) ANNEX 5. SUPPORTING DOCUMENTS 1. Project Appraisal Document, Report No.: PAD1272, dated February 1, 2016 2. Project Restructuring Paper, Report No.: RES27704 3. Project Restructuring Paper, Report No.: RES41715 4. Implementation Status and Results Reports: 1 through 8 (June 8, 2016 – June 16, 2020) 5. Mid Term Review Report, dated September 10-18, 2018 6. Project Missions Aide-Memories: 7. Ghana Country Partnership Strategy: Report No.: 76369-GH, dated August 20, 2013 8. Grant Agreement: TFOA8548, dated, October 11, 2018 9. Grant Agreement between Innohub and Wangara Green Venture Capital Company 10. Memos regarding amendments to the Grant Agreements and Restructuring Papers 11. Mid-Term Review Report prepared by GCIC, September 2018 12. ‘Value for Money Audit Report’ by ‘Perspectivator’ for the Embassy of Denmark in Ghana 13. Ghana Private Equity and Venture Capital Ecosystem Study 14. WANGARA Green Ventures – Quarterly Reports 15. GCIC Final Project Report Page 41 of 41