The World Bank Implementation Status & Results Report Building Institutions And Systems to Harness And Realize Agenda 2063 Project (P180117) Building Institutions And Systems to Harness And Realize Agenda 2063 Project (P180117) EASTERN AND SOUTHERN AFRICA | Eastern and Southern Africa | IBRD/IDA | Investment Project Financing (IPF) | FY 2023 | Seq No: 2 | Archived on 20-Apr-2024 | ISR00135 Implementing Agencies: African Continental Free Trade Area Secretariat, African Union Commission 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 01-Jun-2023) To improve the capacity of the African Union Commission and the African Continental Free Trade Area Secretariat in supporting member states to negotiate and implement selected commitments to enhance regional integration and intracontinental trade in Africa. Has the Development Objective been changed since Board Approval of the Project Objective? No 2. COMPONENTS Name Improved effectiveness of the AUC management functions:(Cost 18,990,000.00) Improved capacity for implementation of commitments to enhance intracontinental trade:(Cost 24,950,000.00) Project Implementation, Results Based Management, and Stakeholder Engagement:(Cost 6,060,000.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall ESS Performance --- Satisfactory Overall Risk Rating Moderate Moderate Apr 20, 2024 Page 1 of 16 The World Bank Implementation Status & Results Report Building Institutions And Systems to Harness And Realize Agenda 2063 Project (P180117) 4. KEY ISSUES & STATUS 4.1 Implementation Status and Key Decisions The project became effective on October 12, 2023. Since then the AUC has made efforts to establish project implementation structures, notably the establishment of the Project Steering Committee (PSC). The PSC which comprises all the directors of implementing directorates will provide strategic guidance during project implementation. The first six months since effectiveness have been slower than expected and the implementation pace is expected to accelerate in 2024 as activities in the project are now fully aligned with the AUC budget of the same year. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 01 - 22 Sep Proposed Rating 01 Jun 2023 2023 Political and Governance Substantial Substantial Substantial Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Substantial Substantial Substantial Stakeholders Substantial Substantial Substantial Other Moderate Moderate Moderate Overall Substantial Moderate Moderate Apr 20, 2024 Page 2 of 16 The World Bank Implementation Status & Results Report Building Institutions And Systems to Harness And Realize Agenda 2063 Project (P180117) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes Improved capacity of AUC and AfCFTA Secretariat to implement select Agenda 2063 projects Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year The following Jun/2023 No changes in 01-Apr-2024 No changes in 01-Apr-2024 The following Jun/2028 functions are baseline values baseline values are in place not in place: and (a) multi-year functioning: planning and a)multi-year budgeting; (b) planning and mid year budgeting; (b) budget review; mid year Increased effectiveness of (c) end to end budget review; critical financial management automated (c) end to end processes of the AUC payment automated (Text) PBC system; and payment (d) compliance system; and with financial (d) compliance reporting with financial requirements. reporting requirements. Comments on Comments here. achieving targets AUC procurement 0.00 0.00 100.00 Apr 20, 2024 Page 3 of 16 The World Bank Implementation Status & Results Report Building Institutions And Systems to Harness And Realize Agenda 2063 Project (P180117) transactions completed Comments on Comments here. on e-procurement achieving targets platform (Percentage) Payment transactions 0.00 0.00 80.00 made through the Bank Comments on Comments here. Communication achieving targets Management (BCM) platform (Percentage) Share of female employees in 37.00 Mar/2023 37.00 31-Aug-2023 42.00 Jun/2028 AU Organs and institutions Comments on Comments here. (Percentage) achieving targets of which, Head of 36.00 36.00 46.00 Division or higher Comments on Comments here. (Percentage) achieving targets Enhanced regional integration for increased intracontinental trade in Africa Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Policy Review Jun/2023 Secretariat 03-Apr-2024 Secretariat 03-Apr-2024 Additional Jun/2028 Mechanism currently currently reviews has not been conducting conducting undertaken in, established, workshops workshops at least, four Increased compliance of with State with State other State Parties with AfCFTA Parties to Parties to countries. Treaty obligations finalize on finalize on (Text) PBC policy review policy review mechanism mechanism (PRM). (PRM). Finalization of Finalization of Apr 20, 2024 Page 4 of 16 The World Bank Implementation Status & Results Report Building Institutions And Systems to Harness And Realize Agenda 2063 Project (P180117) PRM note PRM note complete. complete. Comments on Comments here. achieving targets Reported Non-Tariff 0.00 0.00 80.00 Barriers (NTB) cases Comments on Comments here. addressed through achieving targets AfCFTA Secretariat’s NTBs reporting, monitoring, and eliminating mechanism. (Percentage) Countries supported by 5.00 5.00 30.00 Secretariat to establish Comments on Comments here. national achieving targets implementation committees (Number) Countries with national 0.00 0.00 0.00 15.00 focal points established Comments on Comments here. for the investment achieving targets protocol (Number) Trade among countries 7.00 Jun/2023 7.00 31-Aug-2023 20.00 Jun/2028 benefitting from the Comments on Comments here. preferential tariff regime achieving targets under AfCFTA (Number) Air transport capacity 14.50 Mar/2023 14.50 31-Aug-2023 20.00 Jun/2028 provided by African airlines Comments on Comments here. through 5th Freedom Rights achieving targets (Percentage) Routes operated by 15.00 15.00 15.00 20.00 Apr 20, 2024 Page 5 of 16 The World Bank Implementation Status & Results Report Building Institutions And Systems to Harness And Realize Agenda 2063 Project (P180117) African airlines through Comments on Comments here. 5th freedom rights achieving targets (Number) 6.2 Intermediate Results Indicators by Components Improved effectiveness of the AUC management functions Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year AUC IT Jun/2023 No changes in 10-Apr-2024 No changes in 10-Apr-2024 Completed Jun/2028 systems baseline values baseline values upgrade of functionality network and processes infrastructure are sub- performance optimal, and security architecture (Measurement inadequate, : At least: i. and ICT Deployment of Enhancement of AUC's IT Infrastructure High Density Systems (Text) is not fully Wireless integrated. Infrastructure; ii. Deployment of Access and Distribution Switches for NCC Building; iii. Deployment of a Network Access Control Apr 20, 2024 Page 6 of 16 The World Bank Implementation Status & Results Report Building Institutions And Systems to Harness And Realize Agenda 2063 Project (P180117) Soution on Compatible Network Access Switches; iv. Upgrade Network Analytics Solution, v. Deploy Network Controller and Management Dashboard Solution; and (vi) rolled out of new ERP at AUC (including all regional offices) and at least three organs). Comments on Comments here. achieving targets Partial No change in No change in Sustained full Digitization of automation of baseline value baseline value (100%) document document utilization of management system management EDMS for (Text) process. processing Apr 20, 2024 Page 7 of 16 The World Bank Implementation Status & Results Report Building Institutions And Systems to Harness And Realize Agenda 2063 Project (P180117) new documents. Comments on Comments here. achieving targets e-procurement No change in No change in e- solution baseline value baseline value procurement developed. fully functional E-procurement System in, at least ,75 expanded to all percent of AU agencies (Text) offices. Comments on Comments here. achieving targets AUC IT No change in No change in Business systems baseline value baseline value Intelligence functionality functionality and processes utilized to are sub- produce optimal, analytics on at architecture least 75% of Progress in inadequate, core establishment of the and ICT administrative foundation for a data Infrastructure functions ( In driven AUC (Text) is not fully HRM, Finance, integrated. Operations Services, Conference, and Legal). Comments on Comments here. achieving targets Apr 20, 2024 Page 8 of 16 The World Bank Implementation Status & Results Report Building Institutions And Systems to Harness And Realize Agenda 2063 Project (P180117) Previous year internal audit 40.00 Jun/2022 40.00 01-Apr-2024 40.00 01-Apr-2024 90.00 Jun/2028 findings fully addressed by Comments on Comments here. responsible department. achieving targets (Percentage) Eligible staff for whom 65.00 Dec/2022 65.00 01-Apr-2024 65.00 01-Apr-2024 90.00 Jun/2028 annual performance Comments on Comments here. evaluation completed in the achieving targets previous FY (Percentage) Functional Jun/2023 No change in 01-Apr-2024 No change in 01-Apr-2024 Functional Dec/2028 Directorate baseline value baseline value Directorate have agreed achieved at Effectiveness of AUC KPIs in the least 90 Directorates performing core African Union percent of management functions in Monitoring agreed KPIs support of Agenda 2063 and Evaluation goals (Text) Tool (AMERT). Comments on Comments here. achieving targets Improved capacity for implementation of commitments to enhance intracontinental trade Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Directorates Dec/2022 No change in 31-Aug-2023 Directorates Dec/2028 do not have baseline value achieved at Effectiveness of AfCFTA agreed KPIs least 90 Secretariat to support State percent of Parties (Text) agreed KPIs Comments on Measures progress in building the institutional capacity of the Secretariat to support Treaty achieving targets implementation Apr 20, 2024 Page 9 of 16 The World Bank Implementation Status & Results Report Building Institutions And Systems to Harness And Realize Agenda 2063 Project (P180117) Core elements Mar/2023 No change in 31-Aug-2023 AfCFTA Jun/2028 of the Dispute baseline value Secretariat has Settlement conducted Body (DSB) not training on key in place except elements of Appellate dispute Body. resolution ( Operationalization of the e.g., dispute AfCFTA Dispute Settlement settlement Body (Text) PBC and the appeal process) to key stakeholders in another 15 State Parties. Comments on Measures establishment and functioning of the Dispute Settlement Body. achieving targets Protocol on Jun/2023 No change in 31-Mar-2024 No change in 31-Mar-2024 Negotiations Jun/2028 Women and baseline value baseline value completed and Children and all protocols Progress in concluding Protocol on and additional Negotiations of Protocols Digital Trade committees (Text) not yet operational completed Comments on Measures completion of negotiations of one of the two remaining protocols. achieving targets Sectors and sub-sectors 5 5 5 At least 10 negotiated under the Trade in AfCFTA Protocol on Services Trade in Services sectors (Text) included in the Apr 20, 2024 Page 10 of 16 The World Bank Implementation Status & Results Report Building Institutions And Systems to Harness And Realize Agenda 2063 Project (P180117) negotiations under the AfCFTA Protocol on Trade in Services. Comments on Progress on completing negotiations for at least one of five of the following protocols: Trade achieving targets in Goods Policies; Competition and Cross-border Policies; Investment and Digital Trade; Protocol on Intellectual Property Rights; Women and Youth in Trade States that have 4 4 4 8 ratified FMP Protocol Comments on Number of additional States that AUC facilitates to ratify the FMP protocol. (Text) achieving targets No monitoring Jun/2023 No change in 31-Mar-2024 No change in 31-Mar-2024 An additional 4 Dec/2028 mechanism baseline value baseline value countries from established. 2 RECs have RECs adopting developed and implementation plans to approved align with the AfCFTA implementatio protocol on investment n plans for (Text) alignment. Comments on Measures progress in harmonizing trade policies in RECs with the Treaty achieving targets State Parties benefiting from 0.00 Mar/2023 0.00 31-Aug-2023 15.00 Jun/2028 the schedules of specific Comments on Measures the number of State Parties benefiting from the schedules of specific commitments commitments and regulatory achieving targets and regulatory frameworks in the 5 priority sectors. Priority sectors are: Business services, frameworks in the 5 priority Communication services, Financial services, Tourism and Transport. sectors (Number) Apr 20, 2024 Page 11 of 16 The World Bank Implementation Status & Results Report Building Institutions And Systems to Harness And Realize Agenda 2063 Project (P180117) No Jun/2023 No change in 31-Aug-2023 Programs Jun/2028 Number of State Parties mechanisms baseline value conducted in receiving awareness raising/ available at least 10 training targeting MSMEs, Member Women and Youth; Informal States Cross Border Traders. (Text) Comments on Implementation of measure to leverage participation of women, youth, and MSME to achieving targets participate in intra-continental trade of which AfCFTA 0.00 0.00 0.00 15.00 Secretariat has conducted a citizen engagement survey (Number) 16.00 Jun/2023 16.00 31-Mar-2024 16.00 31-Mar-2024 26.00 Jun/2028 States with Bilateral Air Comments on The intermediate indicator will measure the number of States in which AFCAC facilitates Service Agreements aligned achieving targets “Domestication and Harmonization” through alignment of YD principles in BASAs with an with YD (Number) initial focus on 19 States participating in AFCAC’s SAATM Pilot Implementation Program 239.00 239.00 239.00 439.00 of which actual BASA's Comments on Measures actual number of BASA aligned aligned (Number) achieving targets Aviation data Jun/2023 No change in 31-Aug-2023 APAD is fully Jun/2028 blue print has baseline value utilized a Africa Program for Aviation not been source of Data (APAD) blueprint and prepared. market initial rollout. (Text) intelligence. Comments on Implementation of APAD platform to support sector performance and YD compliance achieving targets monitoring FMP Border Assessment 0.00 Jun/2023 0.00 31-Mar-2024 0.00 31-Mar-2024 10.00 Jun/2028 Apr 20, 2024 Page 12 of 16 The World Bank Implementation Status & Results Report Building Institutions And Systems to Harness And Realize Agenda 2063 Project (P180117) Diagnostics prepared Comments on AUC and ILO assessment framework to support States with FMP readiness (Number) achieving targets 6.3 Performance Based Conditions (PBC) Actual (Previous) Actual (Current) PBC Name Baseline Closing Period Value Date Value Date The following functions are not in place: (a) multi-year planning and 1 : Increased budgeting; (b) mid effectiveness of year budget review; No changes in No changes in Value critical financial (c) end to end baseline values baseline values automated payment 31-Aug-2023 31-Aug-2023 management processes of the system; and (d) AUC (Text) compliance with financial reporting requirements. Allocated 0.00 0.00 0.00 1,000,000.00 Amount 2 : Increased Policy Review No changes in No changes in compliance of State Value Mechanism has not baseline values baseline values Parties with AfCFTA been established, 31-Aug-2023 31-Aug-2023 Treaty obligations Allocated (Text) 0.00 0.00 0.00 1,200,000.00 Amount Apr 20, 2024 Page 13 of 16 The World Bank Implementation Status & Results Report Building Institutions And Systems to Harness And Realize Agenda 2063 Project (P180117) Core elements of the 3: Dispute Settlement No change in No change in baseline Operationalization Value Body (DSB) not in baseline value value of the AfCFTA place except 31-Aug-2023 31-Aug-2023 Dispute Settlement Appellate Body. Body (Text) Allocated 0.00 0.00 0.00 1,000,000.00 Amount Apr 20, 2024 Page 14 of 16 The World Bank Implementation Status & Results Report Building Institutions And Systems to Harness And Realize Agenda 2063 Project (P180117) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed IDA-E2020 Effective 50.00 50.00 0.00 3.77 45.66 7.54% 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing IDA-E2020 Effective 01-Jun-2023 05-Oct-2023 12-Oct-2023 30-Jun-2028 30-Jun-2028 8. KEY DATES Apr 20, 2024 Page 15 of 16 The World Bank Implementation Status & Results Report Building Institutions And Systems to Harness And Realize Agenda 2063 Project (P180117) Key Events Planned Actual Approval 01-Jun-2023 01-Jun-2023 Effectiveness 12-Oct-2023 12-Oct-2023 Mid-Term Review No. 01 18-Aug-2025 Operation Closing/Cancellation 30-Jun-2028 9. RESTRUCTURING HISTORY 10. ASSOCIATED OPERATION(S) There are no associated operations Apr 20, 2024 Page 16 of 16