The World Bank Implementation Status & Results Report Somalia Capacity Advancement, Livelihoods and Entrepreneurship, through Digital Uplift Project (SCALED-UP) (P168115) Somalia Capacity Advancement, Livelihoods and Entrepreneurship, through Digital Uplift Project (SCALED-UP) (P168115) AFRICA EAST | Somalia | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2019 | Seq No: 5 | ARCHIVED on 25-Jun-2021 | ISR47200 | Implementing Agencies: Ministry of Finance, Federal Republic of Somalia, Ministry of Finance, Federal Republic of Somalia Key Dates Key Project Dates Bank Approval Date: 07-Mar-2019 Effectiveness Date: 08-Aug-2019 Planned Mid Term Review Date: 30-Jun-2023 Actual Mid-Term Review Date: Original Closing Date: 30-Jun-2023 Revised Closing Date: 31-Dec-2025 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to support progress towards increased access to basic digital financial and government services targeting entrepreneurship and employment, particularly for women. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Strengthening Institutions:(Cost $13000000.00 M) Enabling Financial and Digital Services:(Cost $55000000.00 M) Project Management and Coordination:(Cost $2000000.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The Project development objective is to support progress toward increased access to basic digital financial and government services targeting entrepreneurship and employment, particularly for women. The project became effective on August 8, 2019, and is making a good implementation progress. The project has three components, which are summarized below. Component 1: Strengthening Institutions (US$7 million equivalent). This component is focused on stabilizing core government functions enabling access to services for individuals and businesses. This is a reform area requiring progress across multiple ministries, departments, and agencies (MDAs) in several areas. Component 2: Enabling Financial and Digital Services (US$20 million equivalent). This component focuses on increasing individuals’ and businesses’ access to services that expand economic opportunities and help restore resilience in a gender-sensitive manner. Under this component, the project will support sustainable mechanisms for service delivery. 6/25/2021 Page 1 of 8 The World Bank Implementation Status & Results Report Somalia Capacity Advancement, Livelihoods and Entrepreneurship, through Digital Uplift Project (SCALED-UP) (P168115) Component 3: Project Management and Coordination (US$4 million equivalent). The component will fund project management and coordination activities. The project remains on track on achieve its PDO. On June 9, 2021, the World Bank Executive Board of Directors approved $US70 million additional financing (AF) project, combined with a restructuring. The AF will aid the FGS in supporting resilient recovery of households and businesses affected by the COVID-19 pandemic. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High High Macroeconomic High Substantial Substantial Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and High Substantial Substantial Sustainability Fiduciary High High High Environment and Social Substantial Substantial Substantial Stakeholders Substantial Substantial Substantial Other -- -- -- Overall High Substantial Substantial Results PDO Indicators by Objectives / Outcomes Number of people who have received their unique ID number, of which (%) are female IN01008807 ►Number of people who have received their unique ID number (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3,000,000.00 Date 30-Jun-2019 25-Nov-2020 15-Jun-2021 31-Dec-2026 Comments: • Number of people who have received their unique ID number or ID card IN01008826 Of which (%) are female (Percentage, Custom Supplement) 6/25/2021 Page 2 of 8 The World Bank Implementation Status & Results Report Somalia Capacity Advancement, Livelihoods and Entrepreneurship, through Digital Uplift Project (SCALED-UP) (P168115) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Number of transactional accounts opened using CVS/eKYC IN01008806 ►Number of unique transactional accounts opened using a digital Customer Verification System (CVS) to enable electronic KYC (eKYC) protocols (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1,000,000.00 Date 30-Jun-2019 25-Nov-2020 15-Jun-2021 31-Dec-2025 Comments: Total number of people accessing financial services, including transaction accounts, using their digital ID. IN01008825 of which % are female owned transaction accounts (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 15.00 25.00 # of MSME loans disbursed from Gargaara by Participating Retail Financial institutions IN01008809 ►Cumulative number of MSME loans disbursed from the Retail PFIs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,452,423.00 136.00 5,500.00 Date 20-Nov-2019 25-Nov-2020 15-Jun-2021 31-Dec-2025 Value of MSME loans (cumulative) from the MSME Financing Facility. Includes re-flows from microloans Comments: window. IN01008828 Of which (%) are loans to women owned and managed businesses (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.60 15.00 40.00 Number of firms that benefit from reformed business registration requirements IN01008808 ►Number of firms that benefit from reformed business registration requirements (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 364.00 5,000.00 Date 31-Oct-2018 25-Nov-2020 15-Jun-2021 31-Dec-2025 Comments: Total number of businesses registered with the e-registration services at MOCI 6/25/2021 Page 3 of 8 The World Bank Implementation Status & Results Report Somalia Capacity Advancement, Livelihoods and Entrepreneurship, through Digital Uplift Project (SCALED-UP) (P168115) IN01008827 Of which % are women owned firms (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 6.00 30.00 Intermediate Results Indicators by Components Component 1 IN01008810 ►Digital ID Authority established & operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 30-Jan-2019 25-Nov-2020 16-Jun-2021 31-Dec-2025 Legal framework governing the implementation of the digital ID body/system is passed by Parliament, Comments: assented to by the President, and effective. IN01008813 ►CBS legal and institutional framework strengthened to enable CBS’ capitalization (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The CBS Board, FGS MoF, and the Value N.A -- Not yet due recipient’s Cabinet have approved a credible CIP Date 30-Jan-2019 25-Nov-2020 15-Jun-2021 31-Dec-2025 IN01008815 ►Activation of critical institutional systems within CBS to enable corresponding banking arrangements (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The CBS Governor has (i) established 2 additional active corresponding Value N.A -- Not yet due arrangements for the CBS and (ii) extended CBS operations to 3 out of the 5 FMS Date 30-Jan-2019 25-Nov-2020 15-Jun-2021 31-Dec-2025 IN01008818 ►Shared legal, strategic, policy and governance frameworks and standards adopted by key institutions supported (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 9.00 6/25/2021 Page 4 of 8 The World Bank Implementation Status & Results Report Somalia Capacity Advancement, Livelihoods and Entrepreneurship, through Digital Uplift Project (SCALED-UP) (P168115) Date 30-Jun-2019 25-Nov-2020 15-Jun-2021 31-Dec-2025 IN01008819 ►Improved CBS supervisory oversight, capacity building and staff reorganization into a more effective structure to tackle financial integrity and de-risking. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target PFI customers with transaction accounts verified using Customer Verification Value NA -- Not yet due System (CVS) enabling electronic KYC (eKYC) protocols 50 percent (proportion) Date 30-Jun-2020 25-Nov-2020 15-Jun-2021 31-Dec-2025 Component 2 IN01008811 ►Cumulative Value of MSME loans from the Retail PFIs (Million USD) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 76.00 3,100,000.00 30.00 Date 30-Jun-2019 25-Nov-2020 15-Jun-2021 31-Dec-2025 Total number of SME and Micro loans that are financed by MSME Financing Facility via the PFIs (cumulative). Comments: IN01008829 Of which % are disbursed to female owned businesses (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50.00 5.00 30.00 IN01008816 ►Number of firms that receive BDS as part of the COVID-19 response support (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 300.00 Date 31-Jan-2019 25-Nov-2020 15-Jun-2021 31-Dec-2025 PFIs of the MSME Financing Facility will introduce target quotas for women to increase women’s access to finance. Comments: IBS Bank 30%, Amal Bank 30%, Premier Bank 30% of the funds allocated to women IN01008820 ►Volume of additional private capital mobilized (including through the risk-sharing facility, lines of credit and additional DFI capital mobilized) (Million USD) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target 6/25/2021 Page 5 of 8 The World Bank Implementation Status & Results Report Somalia Capacity Advancement, Livelihoods and Entrepreneurship, through Digital Uplift Project (SCALED-UP) (P168115) Value 0.00 153,034.00 153,034.00 20.00 Date 30-Jun-2019 25-Nov-2020 15-Jun-2021 31-Dec-2025 IBS Bank - $106,084 and Premier Bank $46,950. This indicator captures how the MSME Financing Facility incentivizes PFIs to voluntarily strengthen their Comments: capital position, as the terms of agreement for PFIs to access funds includes a clause that borrowing from the MSME Financing Facility cannot exceed 20% of current capital. IN01008821 ►Digital ID system operational (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target ID system able to capture and securely transmit and store data not applicable until FY for enrollment, issue Value N.A. -- 23 unique ID numbers, and facilitate digital identity verification and authentication Date 30-Jun-2019 25-Nov-2020 15-Jun-2021 31-Dec-2025 Not applicable until the enrollment activities commence. This indicator will be captured through a survey which measures satisfaction on planning and enrollment Comments: process of digital ID IN01008822 ►Shared digital platforms introduced to enable remote and secure e-service expansion (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.30 0.00 4.00 Date 30-Jun-2019 25-Nov-2020 15-Jun-2021 31-Dec-2025 Amal Bank 6.5% , Premier Bank 4.1%, IBS Bank 0% Comments: The asset quality of PFIs verified through the sum of impaired assets and those past due items that are overdue 90 days or more IN01008823 ►Prepared reports on feedback from beneficiary consultations regarding perspectives on identification and if/ how this feedback has been integrated into the ID system’s design and implementation (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 30-Jun-2019 25-Nov-2020 15-Jun-2021 31-Dec-2025 IN01008824 ►PFIs receiving training/TA to develop new savings and lending product for women – cumulative (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 6.00 6/25/2021 Page 6 of 8 The World Bank Implementation Status & Results Report Somalia Capacity Advancement, Livelihoods and Entrepreneurship, through Digital Uplift Project (SCALED-UP) (P168115) Date 30-Jun-2019 -- 15-Jun-2021 31-Dec-2025 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P168115 IDA-D4330 Effective USD 18.00 18.00 0.00 6.55 11.87 36% Not P168115 IDA-D8430 USD 50.00 50.00 0.00 0.00 50.23 0% Effective P168115 TF-A9642 Effective USD 13.00 13.00 0.00 2.99 10.01 23% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P168115 IDA-D4330 Effective 07-Mar-2019 10-Apr-2019 08-Aug-2019 30-Jun-2023 30-Jun-2023 Not P168115 IDA-D8430 09-Jun-2021 -- -- 31-Dec-2025 31-Dec-2025 Effective P168115 TF-A9642 Effective 07-Mar-2019 10-Apr-2019 08-Aug-2019 30-Jun-2023 30-Jun-2023 Cumulative Disbursements 6/25/2021 Page 7 of 8 The World Bank Implementation Status & Results Report Somalia Capacity Advancement, Livelihoods and Entrepreneurship, through Digital Uplift Project (SCALED-UP) (P168115) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History Level 2 Approved on 13-Jul-2020 ,Level Approved on 16-Jul-2020 Related Project(s) P174765-SOMALIA CAPACITY ADVANCEMENT, LIVELIHOODS AND ENTREPRENEURSHIP, THROUGH DIGITAL UPLIFT PROJECT (SCALED-UP) AF ,P174769-Somalia Capacity Advancement, Livelihoods and Entrepreneurship, through Digital Uplift Project (SCALED-UP) Additional Financ ,P175391-sclae up 6/25/2021 Page 8 of 8