The World Bank Implementation Status & Results Report Support to MSME Growth Competitiveness and Access to Finance (P164283) Support to MSME Growth Competitiveness and Access to Finance (P164283) WESTERN AND CENTRAL AFRICA | Guinea | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2019 | Seq No: 7 | ARCHIVED on 22-May-2023 | ISR53033 | Implementing Agencies: Ministry of Industry and SMEs, Republic of Guinea Key Dates Key Project Dates Bank Approval Date: 07-Jun-2019 Effectiveness Date: 27-Jan-2020 Planned Mid Term Review Date: 09-Jan-2023 Actual Mid-Term Review Date: 09-Jan-2023 Original Closing Date: 29-May-2024 Revised Closing Date: 29-May-2024 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) Support micro, small and medium enterprises access to markets and access to finance in the Conakry urban area. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Support entrepreneurship and MSME Development:(Cost $10.00 M) Support financial infrastructure:(Cost $10.00 M) Develop financial services tailored towards MSMEs:(Cost $8.00 M) Project Management and Monitoring:(Cost $2.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating High High Implementation Status and Key Decisions The project was approved on June 7th, 2019 and signed on July 29th, 2019. It became effective on January 25th, 2020 as planned. This is the MTR (or sixth ISR) which was conducted with feedbacks from the PIU and the update of the results indicators. Since the last supervision mission in June 2022, the main achievements per components are as follows: Component 1: Support to SMEs - For CAPME Institutional Support: the recruitment of all staff was completed. These include an Operations Director, an expert in charge of training and access to finance, and three agents (in charge of logistics, partnership and business registration). Study trips to Côte d'Ivoire and Senegal were made by CAPME agents, UEP representatives and supervisory ministry officials. An action plan and SME support mechanism were developed by the CAPME team; and a firm responsible for providing technical support to CAPME was recruited and carried out two missions in the field. Despite these results, the mission notes the slow integration of CAPME into the activities of the MICPME, illustrated by the late legal creation of CAPME in 5/22/2023 Page 1 of 7 The World Bank Implementation Status & Results Report Support to MSME Growth Competitiveness and Access to Finance (P164283) March 2023 after more than two years after institutional support and by the lack of a budget to ensure its operation. This is a significant risk to its sustainability after the closing of PRECOP support in June 2023. - For the support to SMEs related to the development of linkages between large " donneurs d'ordre" and MSMEs, an action plan, established on the basis of collaboration with several key actors (BSTP, APIP, Jatropha) has been put in place. In coordination with BSTP, 150 SMEs operating in various sectors were trained with the objective of increasing their resilience to the COVID 19 pandemic by taking into account the business opportunities offered by their sector of activity and the constraints created by the current environment with the COVID-19 pandemic. Similarly, 180 firms, including 30 start-ups, have benefited from the Project's COVID-19 response program, which provides technical assistance to MSMEs producing masks, hydro-alcoholic solutions and hand washing stations, in partnership with Jatropha. An assessment of the financial, technical and managerial capacities of 300 targeted MSMEs was finalized. Specific recommendations for improving the productivity of the target SMEs were also formulated. In addition, the study on the process of pre-qualification of local suppliers, the manual of procedures for the labeling of MSMEs, as well as the categorization of suppliers on the basis of validated information and their technical and financial skills have all been finalized. The implementation of a labeling program for 100 pilot MSMEs that are members of the BSTP is being finalized. This program will improve their management, technical, financial and operational capacities and facilitate their access to business opportunities. A firm in charge of supporting the implementation of strategic initiatives to promote local content in coordination with clients has been recruited and has begun its assistance. Finally, given the central role of the BSTP in the promotion of local content and market access for local SMEs, the Project continues to support the management body of this structure, so that it can offer quality services to SMEs and perfect its mission. - For the Support to entrepreneurship and suppliers of Ecosystems: (i) a training need assessment for ecosystem providers has been completed; (iii)the structure in charge of the independent verification of the business plan and innovation competition process and of the selection process for business development service providers has produced a procedures' manual; (iii) workshops were organized to introduce the Project to the principals and other stakeholders; (iv) a procedures manual for the implementation of the results-based funding of ecosystem providers and the Business Plan and Innovation Competitions was finalized by the firm supporting these activities and (v) the recruitment of two firms to strengthen the capacity of entrepreneurial ecosystem providers and start-ups is underway; (vi) the launch of the first business plan competition of ecosystem providers and start-up have been launched with 10 ecosystem providers and 40 start-ups selected. However, the diligence of the PIU is required to accelerate the disbursement of funds related to these competitions and the close monitoring of project implementation in accordance with the performance contracts signed by the beneficiaries. Component 2: Financial infrastructure - For SWITCH: The implementation of the National SWITCH has been moving forward despite several technical delays mainly due to the difficulty to communicate between all stake holders (GUIM, CB, BCRG, PIU, local project team supported by an international consulting firm and financial institutions) about technical choices. The team recommended the support of the international advisory firm to support the client all along the implementation phase. The first module (the mobile money module) is expected to go live by the end of June 2023. - For the mutualized information system (MIS) for selected microfinance institutions: The need assessment was finalized in December 2021 and procurement documents (technical specifications) are being completed. The DAO has been successfully launched and the signature of the contract is expected to take place by June 2023. - For the credit registry (public "Systeme d'Information de Credit"), the restructuring supported the upgrade of the IT platform. Technical specifications were completed and the contract with the firm was signed (addendum to the contract with existing the provider). The upgrade of the software is ongoing and will be finalized by the end of December 2023. - For the modernization of the collateral registry, a project chief has been hired and the definition of technical specifications have been defined following the legal review. The procurement process of the new IT platform is about to start and should end by the end of June 2023. Component 3: Support to the Credit Guarantee Fund for SMEs (FGPE) - "Fonds de Garantie des Prets aux Entreprises" As of end March 2023, the FGPE is fully operational and legally created: A new Managing Director was nominated by Presidential decree on February 13, 2023, the FGPE statutes have also been promulgated in January 2023, 2 licensed accountants have been validated by the BCRG, the Fund has also been licensed by the BCRG to operate financial entity, it was legally registered at the Commercial Registry and APIP. All these legal documentations have been prepared with the help of a technical assistance delivered by the IFC. A resident international expert has been also hired to support the FGPE management team and study missions to Madagascar was organized where the Partial Portfolio Guarantee Fund was successfully setup (a visit to Burkina Faso GPP is also planned). Core banking system and processes are being acquired. The licensing of the General Direction by the BCRG has been delayed (more than 2 months), delaying the WOB ANO for 1st tranche's disbursement. Overall, the implementation continue to be slow despite some recent momentum of buy-in by the authorities, mainly on the FGPE. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High High 5/22/2023 Page 2 of 7 The World Bank Implementation Status & Results Report Support to MSME Growth Competitiveness and Access to Finance (P164283) Macroeconomic Substantial High High Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program High Moderate Moderate Institutional Capacity for Implementation and High Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Substantial Substantial Moderate Other Substantial Moderate Moderate Overall High High High Results PDO Indicators by Objectives / Outcomes Support entrepreneurship and MSME growth IN01189828 ►► Value of sales contracts won by MSMEs supported by the project (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 21,000,000.00 37,000,000.00 25,000,000.00 Date 31-Dec-2019 31-Mar-2022 18-May-2023 31-May-2024 Value of SMEs that receives a capacity building programs funded by the project and were as a result Comments: being able to secure sales contracts from a large companies IN01189829 ►Number of start-up or innovative MSMEs successfully supported (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 30.00 100.00 150.00 Date 31-Dec-2019 31-Mar-2022 18-May-2023 31-May-2024 Digital entrepreneurship projects supported by the project Comments: Strengthen financial infrastructure IN01189760 ►Monthly volume of transactions processed by the National Switch (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10,000,000.00 5/22/2023 Page 3 of 7 The World Bank Implementation Status & Results Report Support to MSME Growth Competitiveness and Access to Finance (P164283) Date 31-Dec-2019 31-Mar-2022 18-May-2023 31-May-2024 Comments: Monthly volume of transactions processed by the National Switch IN01189827 ►Credit registry coverage (% population) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.03 3.86 3.86 5.00 Date 31-Dec-2019 31-Mar-2022 18-May-2023 31-May-2024 Credit registry coverage measured as a % of individuals and firms listed in a credit registry with Comments: information on their borrowing history from the past 5 years Increase financial services for MSMEs IN01189826 ►Loans provided to MSMEs by financial institutions participating in the PPCG (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 350.00 Date 31-Dec-2019 31-Mar-2022 18-May-2023 31-May-2024 Number of MSME loans provided by the participating financial institutions by the PPCG Comments: Intermediate Results Indicators by Components Support Entrepreneurship and MSME Development IN01189832 ►Large domestic and foreign companies signed up for MSME linkage program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 16.00 18.00 50.00 Date 31-Dec-2019 31-Mar-2022 18-May-2023 31-May-2024 Large multinationals or domestic companies that sign an MOU with the project to participate in a linkage Comments: programs supported by the project IN01189834 ►Entrepreneurship ecosystem providers to be strengthened (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 13.00 13.00 10.00 Date 30-Dec-2019 31-Mar-2022 18-May-2023 31-May-2024 5/22/2023 Page 4 of 7 The World Bank Implementation Status & Results Report Support to MSME Growth Competitiveness and Access to Finance (P164283) Comments: Strategic partners who are enablers across the entrepreneurship ecosystem IN01189836 ►Number of grass root events, workshops, and strategic engagements with civil society representatives for broad-based consultations on the implementation and impact of MSME programs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12.00 16.00 20.00 Date 31-Dec-2019 31-Mar-2022 18-May-2023 31-May-2024 Number of grass root events, workshops, and strategic engagements with civil society representatives for Comments: broad-based consultations on the implementation and impact of SME programs Support payment infrastructure and access to finance IN01189830 ►National switch fully operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2019 31-Mar-2022 18-May-2023 31-May-2024 Comments: A switch will platform will be designed and implemented to facilitate and increase digital payments IN01189831 ►MFIs digitally transformed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 25.00 Date 31-Dec-2019 31-Mar-2022 18-May-2023 31-May-2024 Comments: Number of MFIs digitally transformed IN01189833 ►Number of inquiries received by SIC on a monthly basis (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6,186.00 8,477.00 20,000.00 Date 31-Dec-2019 31-Mar-2022 18-May-2023 31-May-2024 Comments: Number of inquiries received by SIC on a monthly basis IN01189835 ►A collateral registry established and operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes 5/22/2023 Page 5 of 7 The World Bank Implementation Status & Results Report Support to MSME Growth Competitiveness and Access to Finance (P164283) Date 31-Dec-2019 31-Mar-2022 18-May-2023 31-May-2024 Comments: The collateral will electronically register movable collaterals and allow on-line consultations IN01189837 ►PPCG is created and operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 31-Dec-2019 31-Mar-2022 18-May-2022 31-May-2024 The Partial Portfolio Credit Guarantee managed by the FGPR is created and operational Comments: Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P164283 IDA-64690 Effective USD 15.00 15.00 0.00 4.18 10.82 28% P164283 IDA-D5070 Effective USD 15.00 15.00 0.00 4.83 9.86 33% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P164283 IDA-64690 Effective 07-Jun-2019 29-Jul-2019 27-Jan-2020 29-May-2024 29-May-2024 P164283 IDA-D5070 Effective 07-Jun-2019 29-Jul-2019 27-Jan-2020 29-May-2024 29-May-2024 Cumulative Disbursements 5/22/2023 Page 6 of 7 The World Bank Implementation Status & Results Report Support to MSME Growth Competitiveness and Access to Finance (P164283) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 5/22/2023 Page 7 of 7