The World Bank Implementation Status & Results Report Sustainable Rural Economy Program (P174002) Sustainable Rural Economy Program (P174002) EASTERN AND SOUTHERN AFRICA | Mozambique | IBRD/IDA | Investment Project Financing (IPF) | FY 2021 | Seq No: 8 | Archived on 28-Jun-2024 | ISR00497 Implementing Agencies: BIOFUND, National Sustainable Development Fund (FNDS), ProAzul Blue Economy Development Fund 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 08-Jun-2021) To improve the performance of targeted small agriculture producers and AgriMSMEs and improve natural resources management practices in selected project areas. Has the Development Objective been changed since Board Approval of the Project Objective? No 2. COMPONENTS Name Increasing productivity and market access:(Cost 109,000,000.00) Enhancing natural resources management:(Cost 35,000,000.00) Strengthening institutions and policies:(Cost 24,300,000.00) Contingency Emergency Response - CERC:(Cost 0.00) Food and Nutrition Security:(Cost 35,700,000.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial Jun 28, 2024 Page 1 of 14 The World Bank Implementation Status & Results Report Sustainable Rural Economy Program (P174002) 4. KEY ISSUES & STATUS 4.1 Implementation Status and Key Decisions At midterm, the pace of implementation continues to be rated Moderately Satisfactory for the implementation progress indicator and Satisfactory for the indicator on achieving the Project's Development Objective. The main conclusion of the mid-term review was to agree with the government to process a project restructuring to adjust selected activities, indicators, and targets in line with the evidence of implementation. 4.2 MPA Program Development Objective Original MPA Program Development Objective (Approved as part of (Seq. ) package on ) Current MPA Program Development Objective (Approved as part of (Seq. ) package on ) 4.3 Multiphase Programmatic Approach (MPA) Status (Public Disclosure) The Sustainable Rural Economy Program is an MPA with 3 phases. It is currently implementing phase 1 and has just completed the mid-term review of that phase. The main conclusion of this review is the need for a restructuring to allow the program to make adjustments in its design to reflect the implementation to date. Preliminary technical discussions are beginning regarding the content of Phase 2. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 07 - 19 Dec Proposed Rating 09 Jun 2021 2023 Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Jun 28, 2024 Page 2 of 14 The World Bank Implementation Status & Results Report Sustainable Rural Economy Program (P174002) Fiduciary Substantial Substantial Substantial Environment and Social Substantial Substantial Substantial Stakeholders Moderate Moderate Moderate Other Moderate Moderate Moderate Overall Substantial Substantial Substantial Jun 28, 2024 Page 3 of 14 The World Bank Implementation Status & Results Report Sustainable Rural Economy Program (P174002) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes Improve the performance of targeted small agriculture producers Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Jan/2021 2.00 31-Oct-2023 3.00 Dec/2026 Comments on Non-cumulative targets. Minimum increase of 50% in productivity (volume harvested per achieving targets hectare) by target beneficiaries (PAs and PACEs) of indicative crops: soy, sesame, beans, and corn. This is the minimum expected productivity increase, but the maximum is much higher, depending on the crop, could be up to 90%. The main crops to be considered are soy, ginger, beans and maize. Productivityaseline (2020) Basic crops with minimum i) Soy-1.2 ton/ha productivity increase by ii) Sesame-0.4 ton/ha target beneficiaries iii) Beans-0.4 ton/ha (Number) iv) Corn-1.1 ton/ha Target of 50% productivity increase: i) Soy-1.8 ton/ha ii) Sesame-0.6 ton/ha iii) Beans-0.6 ton/ha iv) Corn-1.65 ton/ha Targeted small agriculture 0.00 Jan/2021 91.00 31-Oct-2023 80.00 Jun/2026 producers integrated into Comments on Percentage of beneficiary small agriculture producers (farmers/fishermen) selling their agriculture value chains achieving targets product to the market. The threshold to consider a producer selling to the markets is when (Percentage) Jun 28, 2024 Page 4 of 14 The World Bank Implementation Status & Results Report Sustainable Rural Economy Program (P174002) he/she sells more than 10% of their production to the market. Beneficiary producers include PACEs and PAs. Non-cumulative targets. 0.00 28.00 40.00 Female (Percentage) Comments on Same as main indicator achieving targets 0.00 19.00 30.00 Youth (Percentage) Comments on See parent indicator achieving targets Improve the performance of targeted AgriMSMEs Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Feb/2021 0.00 31-Oct-2023 30.00 Jun/2026 Comments on Increase in sales of AgriMSMEs benefiting from matching grants from the program. Increase in gross sales of achieving targets AgriMSMEs are defined as companies in the agriculture and food sector (crops, livestock, targeted AgriMSMEs fisheries) with overall revenue of less than US$500'000/year and a maximum of 99 workers. (Percentage) measured by reporting from matching grants provided to AgriMSMEs. Non-cumulative targets. 0.00 Feb/2021 2,089.00 31-Oct-2023 2,500.00 Jun/2026 Comments on Cumulative targets. ProAzul's Matching Grants finances the businesses of participants while achieving targets sensitizing and providing training for them to be good stewards of the environment. The Targeted value chain actors Scheme is divided into two windows: (i) window 1 targets artisanal fisheries value chain receiving support under operators; and (ii) window 2 targets commercial fisheries, aquaculture and other blue ProAzul's Matching Grants economy value chains. Individual family applicants are operationally defined as window 1 Scheme (Number) applicants. Commercial business applicants are operationally defined as window 2 aplicants. Each application (be it from an individual or commercial entity) counts as 1 unit of output for the indicator, regardless of whether there are joint business plans from several producers. 0.00 Feb/2021 594.00 31-Oct-2023 1,000.00 Jun/2026 Jun 28, 2024 Page 5 of 14 The World Bank Implementation Status & Results Report Sustainable Rural Economy Program (P174002) Female-led individual Comments on Female-led individual family applicants are operationally defined as window 1 female family applicants achieving targets applicants. (Number) Youth-led individual 0.00 Feb/2021 0.00 31-Oct-2023 750.00 Jun/2026 familly applicants Comments on Youth-led individual family applicants are operationally defined as window 1 youth (Number) achieving targets applicants (people under 40 years old). 0.00 3.00 10.00 Commercial business Comments on Commercial business applicants are operationally defined as window 2 applicants. applicants (Number) achieving targets Improve natural resources management practices in selected project areas Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Improved natural resource 23.00 Jan/2021 25.00 31-Oct-2023 32.00 Jun/2026 management effectiveness Comments on Non-cumulative targets. Score following the Management Effectiveness Tracking Tool (METT) of selected achieving targets (METT) applied to the Magoe National Park targeted by the program. conservation area (Number) Improve the Food and Nutrition Security status of the target population in selected districts Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Number of direct 0.00 Feb/2021 81,518.00 31-Oct-2023 400,750.00 Jun/2026 beneficiaries of the FNS Comments on Number of Direct Beneficiaries activities (Number) achieving targets 0.00 22,825.00 160,300.00 Women (Number) Comments on Women Direct Beneficiaries achieving targets Jun 28, 2024 Page 6 of 14 The World Bank Implementation Status & Results Report Sustainable Rural Economy Program (P174002) 6.2 Intermediate Results Indicators by Components Increasing productivity and market access Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Roads rehablitated 0.00 Jan/2021 0.00 31-Oct-2023 1619.50 Dec/2026 (Kilometers) Roads rehabilitated - 0.00 0.00 1619.50 rural (Kilometers) Roads rehabilitated - 0.00 0.00 0.00 non-rural (Kilometers) 0.00 Feb/2021 0.00 31-Oct-2023 91000.00 Jun/2026 Comments on This indicator measures the number of farmers (of agricultural products) who have adopted achieving targets an improved agricultural technology promoted by operations supported by the World Bank. NB: "Agriculture" or "Agricultural" includes: crops, livestock, capture fisheries, aquaculture, agroforestry, timber and non-timber forest products. Adoption refers to a change of practice or change in use of a technology that was introduced Farmers adopting improved or promoted by the project. agricultural technology Technology includes a change in practices compared to currently used pactices or (Number) technologies (seed preparation, planting time, feeding schedule, feeding ingredients, postharvest storage/ processing, etc.). If the project introduces or promotes a technology package in which the benefit depends on the application of the entire package (e.g., a combination of inputs such as a new variety and advice on agronomic practices such as soil preparation, changes in seeding time, fertilizer schedule, plant protection, etc.), this counts as one technology. Farmers are people engaged in farming of agricultural products or members of an agriculture related business (disaggregated by men and women) targeted by the project. Jun 28, 2024 Page 7 of 14 The World Bank Implementation Status & Results Report Sustainable Rural Economy Program (P174002) Farmers adopting 0.00 0.00 36400.00 improved agricultural technology - Female (Number) Farmers adopting 0.00 0.00 54600.00 improved agricultural technology - male (Number) Farmers adopting 0.00 Apr/2021 0.00 24-Sept-2021 27,300.00 Dec/2026 improved agriculture Comments on Same as main indicator. Young farmers considered those under 40 years of age. technology - youth achieving targets (Number) Beneficiary farmers 0.00 Feb/2021 81,518.00 31-Oct-2023 130,000.00 Jun/2026 integrated into value chains Comments on Cumulative targets. Number of farmers that are part of the investment plans of lead farmers (Number) achieving targets or AgriMSMEs receiving matching grants by the program. Beneficiary farmers 0.00 Apr/2021 22,852.00 31-Oct-2023 52,000.00 Dec/2026 integrated into value Comments on Same as main indicator. chains - female achieving targets (Number) Beneficiary farmers 0.00 Apr/2021 15,485.00 31-Oct-2023 39,000.00 Dec/2026 integrated into value Comments on Same as main indicator. Youth considered as less than 40 years old. chains - youth achieving targets (Number) 0.00 Feb/2021 56.00 31-Oct-2023 70.00 Jun/2026 Rural extension agents that Comments on Cumulative targets. Number of extension agents from the private and public systems that have undergone gender achieving targets have undergone gender sensitive training, in alignment with the World Bank's and training (Percentage) Government of Mozambique's gender policies. 0.00 Feb/2021 0.00 31-Oct-2023 3,600.00 Jun/2026 Jun 28, 2024 Page 8 of 14 The World Bank Implementation Status & Results Report Sustainable Rural Economy Program (P174002) Rural households applying Comments on Cumulative targets. Number of targeted small rural producers that area applying the the Gender Action Learning achieving targets methodology GALS learned at trainings supported by the program. The data will be gather for Sustainability (GALS) through field verification and a survey. methodology (Number) 0.00 May/2021 81,518.00 31-Oct-2023 130.00 Jun/2026 Comments on This indicator measures the number of farmers who were provided with climate resilient achieving targets agricultural assets or services as a result of World Bank project support. "Agriculture" or "Agricultural" includes: crops, livestock, capture fisheries, aquaculture, agroforestry, timber, and non-timber forest products. Assets include property, biological assets, and farm and Farmers reached with processing equipment. Biological assets may include animal agriculture breeds (e.g., climate resilient agricultural livestock, fisheries) and genetic material of livestock, crops, trees, and shrubs (including fiber assets or services (Number and fuel crops). Services include research, extension, training, education, ICTs, inputs (e.g., (Thousand)) fertilizers, pesticides, labor), production-related services (e.g., soil testing, animal health/veterinary services), phyto-sanitary and food safety services, agricultural marketing support services (e.g., price monitoring, export promotion), access to farm and post-harvest machinery and storage facilities, employment, irrigation and drainage, and finance. Farmers are people engaged in agricultural activities or members of an agriculture-related business (disaggregated by men and women) targeted by the project. Farmers reached with 0.00 May/2021 22,825.00 31-Oct-2023 52.00 Jun/2026 climate resilient Comments on Same as core, but only for female farmers agricultural assets or achieving targets services - Female (Number (Thousand)) Farmers reached with 0.00 May/2021 15,488.00 31-Oct-2023 39.00 Jun/2026 climate resilient Comments on Same as main, but counting youth (younger than 40 years). agriculture assets or achieving targets services - youth (Number (Thousand)) Enhancing natural resources management Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Jun 28, 2024 Page 9 of 14 The World Bank Implementation Status & Results Report Sustainable Rural Economy Program (P174002) Value Month/Year Value Date Value Date Value Month/Year Infrastructure for sustainable 0.00 Jan/2021 0.00 31-Oct-2023 14.00 Jun/2026 natural resources Comments on Number of infrastructures built and operational for the improved management of natural management built and in achieving targets resources in conservation areas. Operational will mean once the construction is finished and operation (Number) its quality approved by the works supervisor. Artisanal fishing licenses 6,418.00 Jan/2021 9,790.00 31-Oct-2023 11,250.00 Jun/2026 issued in targeted areas Comments on Number of fishing licenses issued annually in targeted areas. Non-cumulative targets. (Number) achieving targets 0.00 Mar/2021 73.00 31-Oct-2023 80.00 Jun/2026 Forest concessions inspected Comments on Percentage of forest concession inspected any given year in Tete and Zambezia (selected in targeted provinces achieving targets areas) to strengthen AQUA. This measures the capacity of administration of forestry (Percentage) concessions and of local authorities to apply the law. Non-cumulative targets. 0.00 Mar/2021 0.00 31-Oct-2023 1.00 Jun/2026 Community Management Comments on Number of Community Management Partnership (CMP) established between a community Partnership established achieving targets and a public/private entity to improve NRM and rural incomes. It is expected that this CMP (Number) be established in the community of Tchuma Tchato. 0.00 Apr/2021 1.00 31-Oct-2023 6.00 Dec/2026 Comments on This indicator measures the number of provinces where the forest information system is Provinces with a forestry achieving targets operational. The digital Forest Information System (SIF) is currently being developed, information system involving 5 related modules (licensing, sustainability, monitoring, planning and managemnt). operational (Number) To be considered operational, the (SIF) must (i) be used in the respective province for licensing operations and (ii) have related relevant information publicly available. Number of beneficiaries of 0.00 Aug/2022 0.00 31-Oct-2023 50,000.00 Jun/2025 ENABLE funded programs (Number) Female (Number) 0.00 0.00 15,000.00 Strengthening institutions and policies Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Jun 28, 2024 Page 10 of 14 The World Bank Implementation Status & Results Report Sustainable Rural Economy Program (P174002) Value Month/Year Value Date Value Date Value Month/Year 0.00 Jan/2021 2.00 31-Oct-2023 4.00 Dec/2026 Rural economy public policies Comments on Number of public policies, institutional reform proposals, and sector strategies related to the and strategies (Number) achieving targets rural economy (agriculture, fisheries, natural resources management) approved by the relevant Ministries. Cumulative targets. 0.00 Jan/2021 78.60 31-Oct-2023 90.00 Jun/2026 Grievances submitted Comments on Percentage of total grievances submitted through the project's GRM that have been through the GRM effectively achieving targets effectively addressed by the project. Effectively addressed are those grievances that are addressed (Percentage) addressed timely and adequately, in accordance with guidelines included in the the Project Implementation Manual. Non-cumulative targets. Agriculture sector 0.00 Jan/2021 2.00 31-Oct-2023 5.00 Jun/2026 contingency plans Comments on Contingency plans developed/approved for managing agriculture sector emergencies (Number) achieving targets (weather, pandemic, animal/plant health, price volatility, etc.). Cumulative targets. Agriculture Sector No Mar/2021 No 31-Oct-2023 Yes Jun/2026 Coordination Committee Comments on CCSA meeting at least once per year. CCSA is a multi-stakeholder committee that represent operational (Yes/No) achieving targets the various stakeholders of the agriculture sector. No Mar/2021 No 31-Oct-2023 Yes Jun/2026 Comments on Conditions met for preparing a P4R operation as part of phase 2. These conditions include: achieving targets (i) Phase 1 performance ratings for IP and DO at least MS; (ii) IDA funding available to fund phase 2; (iii) approval of PEDSA II and PNIA II (end of Year 1); (iv) submission of proposal to Conditions for preparing the Bank of RAs and DLIs for Phase II (end of Year 1); (v) identification of institutions to Phase 2 (P4R) met (Yes/No) implement Phase II (end of Year 1); (vi) action plan for institutional strengthening (technical, fiduciary and safeguards) of identified institutions to implement Phase II (end of Year 1); (vii) full implementation of the institutional strengthening action plan (end of Year 2); and (iii) positive evaluations undertaken by the Bank of the institutions identified for implementing Phase II, including the technical, fiduciary, safeguards and integrated risk assessments (end of Year 2). Food and Nutrition Security Jun 28, 2024 Page 11 of 14 The World Bank Implementation Status & Results Report Sustainable Rural Economy Program (P174002) Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Beneficiaries with perception 0.00 Feb/2021 0.00 31-Oct-2023 80.00 Jun/2026 of having improved their FNS Comments on Percentage of direct beneficiaries whom experienced/perceived a positive impact on the status (Percentage) achieving targets FNS of its household. 0.00 Feb/2022 0.00 31-Oct-2023 860.00 Jun/2026 Irrigation command area Comments on HAs of command area rehabilitated rehabilitated (Hectare(Ha)) achieving targets SETSAN capable to produce 0.00 Feb/2022 0.00 31-Oct-2023 4.00 Jun/2026 important Comments on Number of relevant studies/report/assessments implemented by SETSAN assessments/studies achieving targets (Number) Jun 28, 2024 Page 12 of 14 The World Bank Implementation Status & Results Report Sustainable Rural Economy Program (P174002) 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-D8120 Effective 150.00 150.00 0.00 135.77 7.31 90.52% IDA-E1290 Effective 50.00 50.00 0.00 20.00 30.72 40.00% TF-B9592 Effective 4.00 4.00 0.00 0.00 4.00 0% 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing Jun 28, 2024 Page 13 of 14 The World Bank Implementation Status & Results Report Sustainable Rural Economy Program (P174002) IDA-D8120 Effective 09-Jun-2021 28-Jun-2021 27-Sept-2021 30-Jun-2026 30-Jun-2026 IDA-E1290 Effective 29-Sept-2022 28-Oct-2022 12-Jan-2023 30-Jun-2026 30-Jun-2026 TF-B9592 Effective 29-Sept-2022 28-Oct-2022 28-Oct-2022 30-Jun-2026 30-Jun-2026 8. KEY DATES Key Events Planned Actual Approval 09-Jun-2021 09-Jun-2021 Effectiveness 01-Sept-2021 27-Sept-2021 Mid-Term Review No. 01 18-Mar-2024 10-May-2024 Operation Closing/Cancellation 30-Jun-2026 9. RESTRUCTURING HISTORY 10. ASSOCIATED OPERATION(S) There are no associated operations Jun 28, 2024 Page 14 of 14