The World Bank Implementation Status & Results Report Financial Inclusion and Entrepreneurship Scaling Project (P168577) Financial Inclusion and Entrepreneurship Scaling Project (P168577) AFRICA EAST | Malawi | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2021 | Seq No: 1 | ARCHIVED on 23-Nov-2020 | ISR44272 | Implementing Agencies: Ministry of Industry and Trade, The Republic of Malawi, Reserve Bank of Malawi Key Dates Key Project Dates Bank Approval Date: 25-Aug-2020 Effectiveness Date: -- Planned Mid Term Review Date: 11-Sep-2023 Actual Mid-Term Review Date: Original Closing Date: 30-Sep-2025 Revised Closing Date: 30-Sep-2025 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to increase access to financial services, promote entrepreneurship and capabilities of MSMEs in Malawi including addressing Coronavirus Disease 2019 (COVID-19) implications. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Liquidity Enhancement for MSMEs:(Cost $65.00 M) Scaling Entrepreneurship and Building Firm Capabilities:(Cost $7.50 M) Enhancing the Enabling Environment for Supporting the Financial Inclusion and Growth of Entrepreneurs:(Cost $9.00 M) Project Implementation Support:(Cost $4.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO -- Satisfactory Overall Implementation Progress (IP) -- Satisfactory Overall Risk Rating -- Moderate Implementation Status and Key Decisions The project was approved by the Board on July 9, 2020. Malawi’s parliament approved the authorization bill for the project on October 22, 2020 and the Financing Agreement was signed on November 5, 2020. The government has indicated that a Legal Opinion will be shared with the bank within shortest period possible and project effectiveness is expected soon afterwards. 11/23/2020 Page 1 of 7 The World Bank Implementation Status & Results Report Financial Inclusion and Entrepreneurship Scaling Project (P168577) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate -- Moderate Macroeconomic Substantial -- Substantial Sector Strategies and Policies Low -- Low Technical Design of Project or Program Moderate -- Moderate Institutional Capacity for Implementation and Moderate -- Moderate Sustainability Fiduciary Moderate -- Moderate Environment and Social Moderate -- Moderate Stakeholders Moderate -- Moderate Other Substantial -- -- Overall Moderate -- Moderate Results PDO Indicators by Objectives / Outcomes To increase financing to MSMEs IN00917369 ►Value of MSME loans provided by Participating Financial Intermediaries (PFIs) through the Line of Credit including the COVID-19 emergency facility (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 47,000,000.00 Date 01-Oct-2020 -- 12-Nov-2020 27-Dec-2024 Comments: This indicator captures the value of MSMEs loans through the line of credit including the COVID-19 facility IN00917407 Ratio of loans from PFIs to women-owned MSMEs (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 40.00 IN00917409 Ratio of loans from PFIs to youth owned MSMEs (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target 11/23/2020 Page 2 of 7 The World Bank Implementation Status & Results Report Financial Inclusion and Entrepreneurship Scaling Project (P168577) Value 0.00 -- 0.00 20.00 IN00917411 ►Value of funds financed by MAIIC for innovative start-ups and SMEs (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 6,000,000.00 Date 01-Oct-2020 -- 12-Nov-2020 27-Dec-2024 This indicator captures the value of funds from the project that MAIIC used for equity and quasi equity Comments: financing for innovative start-ups IN00917412 Ratio of the funds for women-owned enterprises (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 40.00 IN00917413 Ratio of the funds for youth owned enterprises (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 20.00 To scale up entrepreneurship IN00917406 ►Number of new firms established through the project support to incubators and accelerators (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 500.00 Date 01-Oct-2020 -- 12-Nov-2020 02-Dec-2024 Comments: This indicator captures the new firms established through the support to incubators and accelerators IN00917410 Ratio of which are women-owned (%) (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 40.00 To scale up entrepreneurship and skills support for MSMEs IN00917370 ►Number of MSMEs reporting improvement in capabilities (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 1,000.00 11/23/2020 Page 3 of 7 The World Bank Implementation Status & Results Report Financial Inclusion and Entrepreneurship Scaling Project (P168577) Date 01-Oct-2020 -- 12-Nov-2020 27-Dec-2024 This indiator captures the number of MSMEs reporting improvements in their firms’ capability after Comments: receiving support from the project (disaggregated by gender) IN00917408 Ratio for women owned MSMEs (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 40.00 Intermediate Results Indicators by Components Increasing financing available to MSMEs IN00917414 ►NPLs on project portifolios (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 5.00 Date 02-Oct-2020 -- 12-Nov-2020 27-Dec-2024 Comments: This indicator captures the level of NPLs ratio to gross loans for the project loan portifolio IN00917417 ►Increase in citizen satisfaction with the project's provisioning of financial services to MSMEs based on periodic beneficiary feedback survey (percentage) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 25.00 Date 01-Oct-2020 -- 12-Nov-2020 27-Dec-2024 Survey to cover 4 aspects of satisfaction with implementation of FInES: knowledge on part of citizens; Comments: efficiency of implementation; responsiveness to citizen needs; transparency of process. IN00917422 of which: women citizen satisfaction (percentage) (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 10.00 Date 01-Oct-2020 -- 12-Nov-2020 27-Dec-2024 IN00917423 ►Value of PCG under the project (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 2,000,000.00 Date 01-Jan-2021 -- 12-Nov-2020 01-Jan-2026 11/23/2020 Page 4 of 7 The World Bank Implementation Status & Results Report Financial Inclusion and Entrepreneurship Scaling Project (P168577) Comments: The amount of PCG capitalization Scaling Entrepreneurship and Building Firm Capabilities for MSMEs IN00917415 ►Number of project beneficiaries who successfully complete stage 1 of the training program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 1,000.00 Date 01-Oct-2020 -- 12-Nov-2020 27-Dec-2024 Comments: This indicator captures the number of beneficiaries that complete the first stage of the training program IN00917418 ►Number of project beneficiaries who successifully complete the stage 2 of the program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 500.00 Date 01-Oct-2020 -- 12-Nov-2020 27-Dec-2024 This indicator captures the number of beneficiaries that completes the second stage of the training Comments: program IN00917420 ►Number of project beneficiaries who successfully complete the stage 3 of the trainign program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 250.00 Date 01-Oct-2020 -- 12-Nov-2020 27-Dec-2024 Comments: The indicator captures the number of beneficiaries that completes the third stage of the training program IN00917425 ►Number of female entrepreneurs trained through the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 120.00 Date 01-Oct-2020 -- 12-Nov-2020 27-Dec-2024 Comments: This indicator captures the number of female entrepreneurs that are trained by the project Enhancing the Enabling Environment for Supporting Financial Inclusion IN00917416 ►Financial Literacy rate, disaggregated by gender (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 11/23/2020 Page 5 of 7 The World Bank Implementation Status & Results Report Financial Inclusion and Entrepreneurship Scaling Project (P168577) Value 37.00 -- 37.00 60.00 Date 01-Oct-2020 -- 12-Nov-2020 27-Dec-2024 Comments: This indicator tracks the level of financial literacy in Malawi, including for women IN00917419 ►Credit bureau coverage (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 -- 2.00 15.00 Date 01-Oct-2020 -- 12-Nov-2020 27-Dec-2024 Comments: This indicator measures the ratio of population of adults coverage of credit bureaus to total population IN00917421 ►MFI Hub Membership (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 22.00 -- 22.00 80.00 Date 01-Oct-2020 -- 12-Nov-2020 27-Dec-2024 Comments: The indicator measure the growth of membership to the MFI Hub IN00917424 ►MSME satisfactory rate with project implementation, disagregated by gender (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 80.00 Date 01-Oct-2020 -- 12-Nov-2020 27-Dec-2024 Comments: This indicator measures the project satisfactory rate by the MSMEs Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Not P168577 IDA-67460 USD 86.00 86.00 0.00 0.00 88.51 0% Effective Key Dates (by loan) 11/23/2020 Page 6 of 7 The World Bank Implementation Status & Results Report Financial Inclusion and Entrepreneurship Scaling Project (P168577) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date Not P168577 IDA-67460 25-Aug-2020 -- -- 30-Sep-2025 30-Sep-2025 Effective Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 11/23/2020 Page 7 of 7