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: 8 | ARCHIVED on 28-Jun-2023 | ISR57035 | 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 Satisfactory 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. The MTR (or sixth ISR) was conducted between January and April 2023. Since the last supervision mission, the main achievements per component are as follows: Component 1: Support to SMEs - For CAPME: the institutional support to the CAPME is ending as of June 30, 2023. As part of the transitional arrangements, a decree on CAPME's status, signed in February 2023 by the Minister of Commerce, Industry, and SMEs, is currently being revised. The decree governing the operation of CAPME is currently being prepared. A working meeting was held between CAPME, the Direction Nationale des PME et du Contenu local, and the PRECOP coordination unit to discuss the arrangements for phasing out of project support transferring documentation, and inventorying equipment. The mission reiterated the need to (i) put in place a staffing plan to ensure the continuity of CAPME's activities after PRECOP's support ceases, (ii) ensure the transfer of knowledge between the outgoing CAPME team and the Ministry executives responsible for ensuring CAPME's 6/28/2023 Page 1 of 7 The World Bank Implementation Status & Results Report Support to MSME Growth Competitiveness and Access to Finance (P164283) continuity, (ii) better integrate CAPME into the activities of the MICPME, (iv) set up an institutional framework giving CAPME financial and management autonomy to ensure its sustainability, and (v) make an inventory of CAPME's tools and equipment before the end of June 2023. - Interlinkages:  Labeling: prequalification process for local suppliers' study, the manual of procedures for labeling MSMEs, the categorization of suppliers on the basis of validated information and their technical and financial skills, and the implementation of a labeling program for 100 pilot MSMEs that are members of the BSTP have been finalized.  Strategic initiatives: The diagnostic report for the implementation of initiatives to promote local content has been drawn up. Action plans for the implementation of 10 initiatives are expected by the end of June 2023  A consultancy firm has been recruited to study and supervise the renovation and extension of the BSTP headquarters. The report is currently being drawn up.  BSTP's capacity is being strengthened to improve its services and impact.  The recruitment of a firm to build the capacity of local suppliers is underway.  The mission noted with satisfaction the finalization of all the ToRs relating to this sub-component, which will enable activities to be accelerated. Ecosystem providers and start-ups:  Capacity-building activities for 10 ecosystem providers and 70 start-ups were finalized;  Business plan competition: The first business plan competition (BPC) was finalized with forty (40) startups selected to receive grants. The first installment of 30% of the funding has been paid to the forty (40) startups receiving grants. The firm recruited for this purpose supports the monitoring of the activities of the 40 start-ups. The UEP (safeguard teams and private sector specialists) has also carried out physical inspections of the start-ups. Preparations for the second business plan competition have been launched.  The results-based funding competition for ecosystem providers was finalized, with 10 successful candidates receiving the first tranche of total funding. Component 2: Financial Infrastructure - For SWITCH: The launch of the mobile module is scheduled for June 29, 2023. The leading banks have confirmed their readiness to inter-phase with the digital interoperability platform (national switch), which will enable the creation of an inter-bank and interoperable payment network, made up of interconnected points of sale, including ATMs and mobile devices. The IT equipment is due for delivery on June 30, 2023, and the mission reminded us of the need to be proactive regarding customs clearance and transit procedures to ensure that the IT equipment is delivered. Technical tests are underway and efforts have been stepped up to ensure that the go-live of the instant payment module takes place by the deadline. - For the mutualized information system (MIS) for selected microfinance institutions: The DAO has been successfully launched and the signature of the contract is expected to take place by July 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, 2 field trips were completed (CIV and Ghana). The technical specifications have been finalized and the procurement process of the new IT platform has started and should be completed by September 2023. The regulatory framework diagnostic was completed and the draft of regulations will be done by September 2023. Component 3: Support to the Credit Guarantee Fund for SMEs (FGPE) - "Fonds de Garantie des Prets aux Entreprises" As of the end of March 2023, the FGPE is fully operational and legally created. All preconditions were met to disburse the 1st tranche of capital of 2.5 million USD. E&S requirements should be met by September 2023 and the second tranche of 1.5 million USD is expected to be disbursed by the end of 2023. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High High 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 Moderate Moderate 6/28/2023 Page 2 of 7 The World Bank Implementation Status & Results Report Support to MSME Growth Competitiveness and Access to Finance (P164283) Other Substantial Moderate Moderate Overall High High High Results PDO Indicators by Objectives / Outcomes Support entrepreneurship and MSME growth IN01316091 ►► Value of sales contracts won by MSMEs supported by the project (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 37,000,000.00 37,000,000.00 25,000,000.00 Date 31-Dec-2019 18-May-2023 16-Jun-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 IN01316092 ►Number of start-up or innovative MSMEs successfully supported (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 150.00 Date 31-Dec-2019 18-May-2023 16-Jun-2023 31-May-2024 Digital entrepreneurship projects supported by the project Comments: Strengthen financial infrastructure IN01316088 ►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 Date 31-Dec-2019 18-May-2023 16-Jun-2023 31-May-2024 Comments: Monthly volume of transactions processed by the National Switch IN01316090 ►Credit registry coverage (% population) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.03 3.86 5.50 5.00 6/28/2023 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 18-May-2023 16-Jun-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 IN01316089 ►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 18-May-2023 16-Jun-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 IN01316095 ►Large domestic and foreign companies signed up for MSME linkage program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 18.00 42.00 50.00 Date 31-Dec-2019 18-May-2023 16-Jun-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 IN01316097 ►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 18-May-2023 16-Jun-2023 31-May-2024 Comments: Strategic partners who are enablers across the entrepreneurship ecosystem IN01316099 ►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 16.00 16.00 20.00 Date 31-Dec-2019 18-May-2023 16-Jun-2023 31-May-2024 6/28/2023 Page 4 of 7 The World Bank Implementation Status & Results Report Support to MSME Growth Competitiveness and Access to Finance (P164283) 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 IN01316093 ►National switch fully operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2019 18-May-2023 16-Jun-2023 31-May-2024 Comments: A switch will platform will be designed and implemented to facilitate and increase digital payments IN01316094 ►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 18-May-2023 16-Jun-2023 31-May-2024 Comments: Number of MFIs digitally transformed IN01316096 ►Number of inquiries received by SIC on a monthly basis (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8,477.00 8,477.00 20,000.00 Date 31-Dec-2019 18-May-2023 16-Jun-2023 31-May-2024 Comments: Number of inquiries received by SIC on a monthly basis IN01316098 ►A collateral registry established and operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2019 18-May-2023 16-Jun-2023 31-May-2024 Comments: The collateral will electronically register movable collaterals and allow on-line consultations IN01316100 ►PPCG is created and operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes 6/28/2023 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 18-May-2022 16-Jun-2023 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 5.62 9.38 37% P164283 IDA-D5070 Effective USD 15.00 15.00 0.00 6.20 8.49 42% 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 6/28/2023 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. 6/28/2023 Page 7 of 7