Public Disclosure Copy The World Bank Implementation Status & Results Report Morocco Microfinance Development Project (P144500) Morocco Microfinance Development Project (P144500) MIDDLE EAST AND NORTH AFRICA | Morocco | Finance & Markets Global Practice | Recipient Executed Activities | Specific Investment Loan | FY 2014 | Seq No: 7 | ARCHIVED on 07-Mar-2017 | ISR25892 | Implementing Agencies: Key Dates Key Project Dates Bank Approval Date:27-Jun-2013 Effectiveness Date:25-Jul-2013 Original Closing Date:31-Jan-2018 Revised Closing Date:31-Jan-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project objective is to promote access to finance to low income households and micro and small enterprises through the promotion of a sustainable and inclusive microfinance sector. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Unsatisfactory  Moderately Unsatisfactory Implementation Status and Key Decisions This project, financed under the Middle East and North Africa Transition Fund (Deauville), became effective upon signing of the Grant Agreement on July 25, 2013. The project aims to improve access to finance for low-income households and micro and small businesses through the development of an inclusive and sustainable microfinance sector. .The project advances sectoral reforms to the microfinance sector and supports the Government of Morocco’s (GoM) broader financial inclusion objectives. This in an effort to promote private sector led growth and development in Morocco. Since the last reporting period (August 2016), key activities completed include an institutional study supporting the modernization of the regulatory regime for microfinance, the advancement on a 3/7/2017 Page 1 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Morocco Microfinance Development Project (P144500) national financial inclusion strategy, launching of global findex update, the development of digital financial education tools, and the organization of a large-scale (250+ attendance) regional financial education conference. The study on the regulatory regime for microfinance may feed into ongoing policy dialogue for policy lending operations. Implementation delays, complex governance arrangements, and procurement challenges continue to slow down satisfactory implementation of the project. Implementation progress rating is maintained at moderately unsatisfactory although the achievement of the overall development objective is listed as moderately satisfactory. The team notes gradual improvements in the pace of implementation of key activities since January 2016 and congratulates the project implementation unit (PIU) in this respect. The current disbursement ratio stands at $1.491 million (31%). Disbursement has passed from less than 10% of the total grant amount to more than 30% over the course of the past twelve months. A procurement plan and work plan has been updated since the last supervision mission in January 2017 and has been approved through World Bank review. The team will consider upgrading implementation progress after the April 2017 mission and pending successful advancement on the 2017 work plan. Tools introduced to monitor project progress include a weekly supervision tool developed and sent out by the PIU to key project partners. The project has also prioritized and consolidated project activities to minimize administrative procedures and maximize overall project effectiveness. 3/7/2017 Page 2 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Morocco Microfinance Development Project (P144500) 3/7/2017 Page 3 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Morocco Microfinance Development Project (P144500) 3/7/2017 Page 4 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Morocco Microfinance Development Project (P144500) 3/7/2017 Page 5 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Morocco Microfinance Development Project (P144500) Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall  Moderate  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL % of Adults (and women) with an account at a formal financial institution, including low income households (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 39.00 41.00 41.00 51.00 Date 01-Dec-2012 25-Jul-2016 21-Feb-2017 01-Feb-2018 Comments This indicator will be updated through the Findex update exercise. Results are expected end of calendar year 2017. The 41% headline indicators is from the World Bank Morocco Financial Capability Survey finalized end of 2014. PHINDPDOTBL No of active loan accounts -Microfinance (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 804,000.00 760,000.00 764,000.00 1,200,000.00 Date 01-Dec-2012 25-Jul-2016 21-Feb-2017 01-Feb-2018 Comments Progress on this indicator is related to general market developments in the microfinance sector. The sector has experience a 3-5% growth rate on average. Updated statistics will be provided by the PIU, working with the industry association and other market players, and will be provided to the World Bank team by March 15, 2017. 3/7/2017 Page 6 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Morocco Microfinance Development Project (P144500) PHINDPDOTBL Portfolio at Risk - Microfinance (Percentage, Core) Baseline Actual (Previous) Actual (Current) End Target Value 6.70 3.77 3.77 6.40 Date 01-Dec-2012 25-Jul-2016 15-Feb-2017 01-Feb-2018 Comments Indicator exceeded. PHINDPDOTBL Outstanding Microfinance Loan Portfolio (Amount(USD), Core) Baseline Actual (Previous) Actual (Current) End Target Value 550.00 567.00 567.00 590.00 Date 01-Dec-2012 25-Jul-2016 21-Feb-2017 01-Feb-2018 Comments Please note indicators is in USD millions. Overall Comments The PIU agreed with the mission to provide updated results data before March 10, 2017, working with the Central Bank and market players. Intermediate Results Indicators 3/7/2017 Page 7 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Morocco Microfinance Development Project (P144500) PHINDIRITBL Strengthening Institutional, Legal, Regulatory, Tax and Governance Framework for Microfinance: Regulatory Studies Completed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 3.00 Date 01-Dec-2012 25-Jul-2016 28-Feb-2017 01-Feb-2018 PHINDIRITBL Strengthening Institutional, Legal, Regulatory, Tax and Governance Framework for Microfinance: Number of operational and regulatory initiatives implemented by BAM and other key stakeholders (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 3.00 Date 01-Dec-2012 25-Jul-2016 28-Feb-2017 01-Feb-2018 Comments Current change refers to organizational restructuring by the FNAM following December 2013 workshop on legal and regulatory framework for microfinance in Morocco, financed by the project. PHINDIRITBL Strengthening Market infrastructure, product innovation and funding sources for microfinance: Number of alternative microfinance products developed and piloted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 2.00 3.00 Date 01-Dec-2012 25-Jul-2016 28-Feb-2017 01-Feb-2018 PHINDIRITBL Strengthening market infrastructure, product innovation and funding sources for microfinance: Number of Trainings to Micro Entrepreneurs Delivered (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,260.00 2,260.00 1,100.00 Date 01-Dec-2012 25-Jul-2016 21-Feb-2017 01-Feb-2018 3/7/2017 Page 8 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Morocco Microfinance Development Project (P144500) PHINDIRITBL Integrating Microfinance into a national financial inclusion strategy: Financial Inclusion Stock-Taking Completed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-Dec-2012 18-Feb-2016 21-Feb-2017 09-May-2016 PHINDIRITBL Microfinance into a national financial inclusion strategy: Evaluation Completed of Existing Financial Inclusion Integrating Measures (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 01-Dec-2012 25-Jul-2016 28-Feb-2017 30-Dec-2016 PHINDIRITBL IntegratingMicrofinance into a national financial inclusion strategy: Number of Beneficiaries Receiving Financial Literacy Training (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6,000.00 8,618.00 8,618.00 14,000.00 Date 01-Dec-2012 25-Jul-2016 21-Feb-2017 01-Feb-2018 Overall Comments The PIU has been requested to provide updated results indicators before March 15, 2017, working with the microfinance sector association and the Central Bank. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P144500 TF-15084 Effective USD 4.90 4.90 0.00 1.51 3.39 31% Key Dates (by loan) 3/7/2017 Page 9 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Morocco Microfinance Development Project (P144500) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P144500 TF-15084 Effective 25-Jul-2013 25-Jul-2013 25-Jul-2013 31-Jan-2018 31-Jan-2018 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 3/7/2017 Page 10 of 10 Public Disclosure Copy