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) EASTERN AND SOUTHERN AFRICA | Somalia | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2019 | Seq No: 7 | ARCHIVED on 30-Jun-2022 | ISR51451 | 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 Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The project has three components, which are summarized below. Component 1: Strengthening Institutions. 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. 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. Component 3: Project Management and Coordination. The component will fund project management and coordination activitiesThe Project development objective is to support progress toward increased access to basic digital financial and government services targeting entrepreneurship and employment, particularly for women. 6/30/2022 Page 1 of 8 The World Bank Implementation Status & Results Report Somalia Capacity Advancement, Livelihoods and Entrepreneurship, through Digital Uplift Project (SCALED-UP) (P168115) Since the last implementation support mission in October 2021, the project has made a good progress across a number of areas, including: (i) the launch of the online Business Licensing and Registration System in Mogadishu in March 2022; (ii) the publication of the National Risk Assessment in May 2022; (iii) Strong reform momentum at the Central Bank of Somalia; (iv) Significant measures taken to strengthen Gargaara’s performance in increasing access to finance for MSMEs; (v) Public disclosure of the Stakeholder Engagement Plan and the Environmental and Social Management Framework; and (vi) Good progress made on implementing agreed actions on the financial management and procurement activities. The rating for the Implementation Progress (IP) is maintained as Moderately Satisfactory (MS), and the rating towards achieving the Project Development Objective (PDO) is changed from Satisfactory to Moderately Satisfactory. While the project remains on track to achieve its PDO, MSME financing under Gargaara is behind targets, digital ID enrollment targets are at risk, there some delays in launching the new Customer Verification System/e-Know-Your-Customer systems, and more efforts are needed to reach women beneficiaries. Overall project disbursements under the project are at US$16 million as of May 2021, affected by the slowdown of lending to MSMEs through Gargaara and the stalled implementation progress on the digital ID subcomponents. 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 Moderate Moderate 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 IN01142031 ►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 02-Dec-2021 07-Jun-2022 31-Dec-2026 6/30/2022 Page 2 of 8 The World Bank Implementation Status & Results Report Somalia Capacity Advancement, Livelihoods and Entrepreneurship, through Digital Uplift Project (SCALED-UP) (P168115) Comments: • Number of people who have received their unique ID number or ID card IN01142035 Of which (%) are female (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Number of transactional accounts opened using CVS/eKYC IN01142005 ►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 02-Dec-2021 07-Jun-2022 31-Dec-2025 Comments: Total number of people accessing financial services, including transaction accounts, using their digital ID. IN01142034 of which % are female owned transaction accounts (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 25.00 # of MSME loans disbursed from Gargaara by Participating Retail Financial institutions IN01142033 ►Cumulative number of MSME loans disbursed from the Retail PFIs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 138.00 168.00 5,500.00 Date 20-Nov-2019 02-Dec-2021 16-May-2022 31-Dec-2025 Value of MSME loans (cumulative) from the MSME Financing Facility. Includes re-flows from microloans Comments: window. IN01142037 Of which (%) are loans to women owned and managed businesses (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 15.00 16.00 40.00 Number of firms that benefit from reformed business registration requirements IN01142032 ►Number of firms that benefit from reformed business registration requirements (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/30/2022 Page 3 of 8 The World Bank Implementation Status & Results Report Somalia Capacity Advancement, Livelihoods and Entrepreneurship, through Digital Uplift Project (SCALED-UP) (P168115) Value 0.00 774.00 1,156.00 5,000.00 Date 31-Oct-2018 02-Dec-2021 26-May-2022 31-Dec-2025 Comments: Total number of businesses registered with the e-registration services at MOCI IN01142036 Of which % are women owned firms (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 7.00 30.00 Intermediate Results Indicators by Components Component 1 IN01142038 ►Digital ID Authority established & operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes No Yes Date 30-Jan-2019 02-Dec-2021 07-Jun-2022 31-Dec-2025 A bill establishing a new ID Authority (DADSOM) has been passed by Parliament and approved by the President. Further efforts are needed to align this bill with the 2019 ID Policy, ensuring that inclusive Comments: governance arrangement are leveraged. Moreover, the World Bank is yet to receive confirmation that the authority is currently staffed and operational. IN01142040 ►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 Not applicable recipient’s Cabinet have approved a credible CIP Date 30-Jan-2019 02-Dec-2021 07-Jun-2022 31-Dec-2025 procurement of the Independent Verification Agent to verify PBCs is not yet completed Comments: IN01142042 ►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 Value N.A Not yet due Not applicable corresponding arrangements for the CBS and (ii) extended 6/30/2022 Page 4 of 8 The World Bank Implementation Status & Results Report Somalia Capacity Advancement, Livelihoods and Entrepreneurship, through Digital Uplift Project (SCALED-UP) (P168115) CBS operations to 3 out of the 5 FMS Date 30-Jan-2019 02-Dec-2021 02-Dec-2021 31-Dec-2025 procurement of the Independent Verification Agent to verify PBCs is not yet completed Comments: IN01142044 ►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 Date 30-Jun-2019 02-Dec-2021 07-Jun-2022 31-Dec-2025 Draft e-Government policy is due to be adopted. Legal frameworks for data protection, cybersecurity, and e-transaction are in the pipeline, in addition to shared frameworks for cybersecurity and operationalizing Comments: data protection. IN01142045 ►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 Not applicable System (CVS) enabling electronic KYC (eKYC) protocols 50 percent (proportion) Date 30-Jun-2020 02-Dec-2021 07-Jun-2022 31-Dec-2025 procurement of the Independent Verification Agent to verify PBCs is not yet completed Comments: Component 2 IN01142039 ►Cumulative Value of MSME loans from the Retail PFIs (Million USD) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,100,000.00 4.00 30.00 Date 30-Jun-2019 02-Dec-2021 26-May-2022 31-Dec-2025 Comments: IN01142041 Of which % are disbursed to female owned businesses (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 18.00 30.00 IN01142043 6/30/2022 Page 5 of 8 The World Bank Implementation Status & Results Report Somalia Capacity Advancement, Livelihoods and Entrepreneurship, through Digital Uplift Project (SCALED-UP) (P168115) ►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 02-Dec-2021 07-Jun-2022 31-Dec-2025 BDS services program is yet to be launched under AF Comments: IN01142046 ►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 Value 0.00 153,034.00 153,034.00 20.00 Date 30-Jun-2019 02-Dec-2021 07-Jun-2022 31-Dec-2025 Risk sharing mechanism is yet to be launched under AF Comments: IN01142047 ►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. not applicable until FY 23 23 unique ID numbers, and facilitate digital identity verification and authentication Date 30-Jun-2019 02-Dec-2021 07-Jun-2022 31-Dec-2025 IN01142048 ►Shared digital platforms introduced to enable remote and secure e-service expansion (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 3.00 4.00 Date 30-Jun-2019 02-Dec-2021 07-Jun-2022 31-Dec-2025 (i) Launch of the online Business Registration and Licensing System; (ii) Launch of the National Payment System; and (iii) Launch of the Electronic Management Information Systems for Office of the Accountant Comments: General IN01142049 ►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 No Yes Date 30-Jun-2019 02-Dec-2021 07-Jun-2022 31-Dec-2025 6/30/2022 Page 6 of 8 The World Bank Implementation Status & Results Report Somalia Capacity Advancement, Livelihoods and Entrepreneurship, through Digital Uplift Project (SCALED-UP) (P168115) IN01142050 ►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 0.00 6.00 Date 30-Jun-2019 02-Dec-2021 07-Jun-2022 31-Dec-2025 TA to PFIs is yet to be launched under AF Comments: 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 8.61 9.13 49% P168115 IDA-D8430 Effective USD 50.00 50.00 0.00 0.60 47.29 1.3% P168115 TF-A9642 Effective USD 13.00 13.00 0.00 6.18 6.82 48% P168115 TF-B5774 Effective USD 20.00 20.00 0.00 0.60 19.40 3% 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 P168115 IDA-D8430 Effective 09-Jun-2021 16-Jul-2021 30-Nov-2021 31-Dec-2025 31-Dec-2025 P168115 TF-A9642 Effective 07-Mar-2019 10-Apr-2019 08-Aug-2019 30-Jun-2023 30-Jun-2023 P168115 TF-B5774 Effective 07-Jun-2021 16-Jul-2021 30-Nov-2021 31-Dec-2023 31-Dec-2023 Cumulative Disbursements 6/30/2022 Page 7 of 8 The World Bank Implementation Status & Results Report Somalia Capacity Advancement, Livelihoods and Entrepreneurship, through Digital Uplift Project (SCALED-UP) (P168115) 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 6/30/2022 Page 8 of 8