The World Bank Implementation Status & Results Report Economic Linkages for Diversification (P171664) Economic Linkages for Diversification (P171664) EASTERN AND SOUTHERN AFRICA | Mozambique | IBRD/IDA | Investment Project Financing (IPF) | FY 2021 | Seq No: 7 | Archived on 03-Sep-2024 | ISR01054 Implementing Agencies: Ministry of Economy and Finance 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 10-May-2021) The project development objective is to strengthen the performance of Micro, Small and Medium Enterprises (MSMEs) in Mozambique through economic linkages. Has the Development Objective been changed since Board Approval of the Project Objective? No 2. COMPONENTS Name Developing economic linkages through skills, finance, and quality upgrading:(Cost 50,000,000.00) Enabling elements to support economic linkages:(Cost 40,000,000.00) Project Management:(Cost 10,000,000.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial 4. KEY ISSUES & STATUS Sep 03, 2024 Page 1 of 9 The World Bank Implementation Status & Results Report Economic Linkages for Diversification (P171664) 4.1 Implementation Status and Key Decisions • The project substantially sped up implementation over the last six months, as evidenced by the more than doubling in disbursements from 9% to 20%, with achievement towards reaching the PDO remaining Moderately Satisfactory. • • Against this background, the mission assessed the PDO “to strengthen the performance of Micro, Small and Medium Enterprises (MSMEs) in Mozambique through economic linkages” to remain fully relevant, given the strong presence of megaprojects in the country, the need for economic diversification, and the challenges faced by MSMEs in accessing sophisticated markets. The project’s emphasis on the North was deemed to remain as critical as ever, given enduring instability and challenging business environment in this region. Actions were recommended to strengthen focus on Cabo Delgado and expand project reach—where possible—to the Niassa province. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 06 - 28 Feb Proposed Rating 11 May 2021 2024 Political and Governance Substantial Substantial Substantial Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Substantial Substantial Substantial Stakeholders Moderate Moderate Moderate Overall Substantial Substantial Substantial Sep 03, 2024 Page 2 of 9 The World Bank Implementation Status & Results Report Economic Linkages for Diversification (P171664) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes Performance of MSMEs Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Change in sales growth of 0.00 Mar/2021 0.00 04-Aug-2022 20.00 Mar/2027 firms supported by the Comments on Simple average change in sales growth of firms supported with skills, quality upgrading, project (Percentage) achieving targets access finance, and access to markets' interventions Change in sales growth 0.00 of women-owned/led Comments on Simple average change in sales growth of women-owned/led firms supported with skills, firms supported by the achieving targets quality upgrading, access finance, and access to markets' interventions project (Percentage) Change in sales growth 0.00 of firms in Cabo Comments on Simple average change in sales growth of firms in Cabo Delgado province supported with Delgado province achieving targets skills, quality upgrading, access finance, and access to markets' interventions supported by the project (Percentage) Number of new, better 0.00 Mar/2021 0.00 04-Aug-2022 5,000.00 Mar/2027 paying, or better quality jobs Comments on New jobs - new employment in firms supported by the project; Better paying jobs - (as defined in methodology) achieving targets improved employment conditions (higher wages) for those working in the firms supported by the firms supported by the by the project; Better quality jobs - improved health and safety, improved skills measured project (Number) thrugh proper testing post skills programs in the firms supported by the project. Number of new, better 0.00 paying, or better Comments on New jobs - new employment in women-owned/led firms supported by the project; Better quality jobs by the achieving targets paying jobs - improved employment conditions (higher wages) for those working in the women-owned/led women-owned/led firms supported by the project; Better quality jobs - improved health and Sep 03, 2024 Page 3 of 9 The World Bank Implementation Status & Results Report Economic Linkages for Diversification (P171664) firms supported by the safety, improved skills measured through proper testing post skills programs in the women- project (Number) owned/led firms supported by the project. Number of new, better 0.00 paying, or better Comments on New jobs - new employment in firms in Cabo Delgado Province supported by the project; quality jobs by the achieving targets better paying jobs - improved employment conditions (higher wages) for those working in firms in Cabo Delgado the firms supported by the project in Cabo Delgado Province; better quality jobs - improved province supported by health and safety, improved skills measured through proper testing post skills programs in the project (Number) the firms in Cabo Delgado Province supported by the project. 0.00 Mar/2021 1.00 09-Jun-2023 2.00 Mar/2027 Implemented reforms Comments on The first reform supported by this Project was implemented with the adoption of the new supporting private sector achieving targets Private Investment Law on May 4, 2023, and its publication in the Official Gazette on June 9, development (Number) 2023 (see Lei ordm; 8/2023 de 9 de Junho in the attached) Value of private sector 0.00 Mar/2020 0.00 04-Aug-2022 0.00 04-Aug-2022 20,000,000.00 Mar/2027 investment leveraged by Comments on Resources mobilized from the private sector in activities of the project that concur in direct activities of the project achieving targets reaching the project's objectives. (Amount(USD)) 6.2 Intermediate Results Indicators by Components Developing economic linkages through skills, finance, and quality upgrading Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Firms benefiting from private 0.00 Mar/2021 0.00 04-Aug-2022 0.00 04-Aug-2022 10,100.00 Mar/2027 sector initiatives (Number) Number of women- 0.00 owned/led firms Comments on Number of women-owned/led firms benefiting from the project interventions benefiting from the achieving targets Sep 03, 2024 Page 4 of 9 The World Bank Implementation Status & Results Report Economic Linkages for Diversification (P171664) project interventions (Number) Number of firms in 0.00 Cabo Delgado province Comments on Number of firms in conflict-affected areas benefiting from project interventions benefiting from project achieving targets interventions (Number) Number of firms 0.00 benefiting from skills Comments on Number of firms benefiting from stage 1, stage 2 and stage 3 under upstream linkages interventions for achieving targets upstream linkages (Number) Number of firms 0.00 benefiting from quality Comments on Unique number of firms benefiting from interventions on upgrading quality standards, standards upgrading for achieving targets including on diagnostics of gaps in quality standards, support from consultants in improving upstream linkages quality systems, and support to certifications. (Number) Number of firms 0.00 benefiting from Comments on (Matching) grants received by firms matching grants or achieving targets competitive grants (Number) Number of firms 0.00 supported by the Comments on Number of firms benefiting from skills and/or access to finance under consumption linkages project for achieving targets interventions consumption linkages (Number) Grievances addressed within 0.00 Mar/2021 100.00 04-Aug-2022 100.00 Mar/2027 the stipulated service Comments on Measures the share of target beneficiaries grievances in Component 1 are addressed using standards (Percentage) achieving targets the GRM Manual. The project shall adopt incident reporting and response protocol. Sep 03, 2024 Page 5 of 9 The World Bank Implementation Status & Results Report Economic Linkages for Diversification (P171664) Number of beneficiary firms 0.00 Mar/2021 0.00 04-Aug-2022 2,500.00 Mar/2027 having increase in sales Comments on Number of beneficiary MSMEs that report increase in sales since project support (generated through the achieving targets economic linkages programs in the project) (Number) Number of firms with 0.00 Mar/2021 0.00 04-Aug-2022 2,000.00 Mar/2027 increased number of clients Comments on Number of firms reporting increased number of contracts with large companies, or number (generated through the achieving targets of other corporate clients, or number of individual clients. economic linkages programs in the project) (Number) Enabling elements to support economic linkages Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Number of digital platforms 0.00 Mar/2021 0.00 04-Aug-2022 5.00 Mar/2027 supported by the project Comments on Number of digital platforms supported by the project (Number) achieving targets 0.00 Mar/2021 0.00 04-Aug-2022 500.00 Mar/2027 Number of unique users in Comments on Number of unique users in the past 12 months of the combination of different digital digital platforms supported achieving targets platforms (SME database, Economic Linkages Platforms, Financial Services Platforms) by the project (Number) supported by the project. Number of productive 0.00 Mar/2021 0.00 04-Aug-2022 3.00 Mar/2027 infrastructure investments Comments on Number of productive infrastructure investments supported by the project that apply supported by the project that achieving targets harmonized climate resilience standards apply harmonized climate resilience standards (Number) Number of institutions 0.00 Mar/2021 4.00 04-Aug-2022 4.00 Mar/2027 capacitated with support Comments on Number of institutions capacitated with support from the project from the project (Number) achieving targets Sep 03, 2024 Page 6 of 9 The World Bank Implementation Status & Results Report Economic Linkages for Diversification (P171664) Number of coordination 0.00 Mar/2021 0.00 04-Aug-2022 1.00 Mar/2027 platforms on economic Comments on Number of coordination mechanisms supported by the project that seek to drive economic linkages supported by the achieving targets linkages project (Number) Grievances addressed within 0.00 Mar/2021 100.00 04-Aug-2022 100.00 04-Aug-2022 100.00 Mar/2027 the stipulated service Comments on Measures the share of target beneficiaries grievances in Component 2 are addressed using standards (Percentage) achieving targets the GRM Manual. The project shall adopt incident reporting and response protocol. Sep 03, 2024 Page 7 of 9 The World Bank Implementation Status & Results Report Economic Linkages for Diversification (P171664) 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-D8100 Effective 100.00 100.00 0.00 18.46 76.66 18.46% 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing IDA-D8100 Effective 11-May-2021 25-May-2021 22-Jul-2021 30-Sep-2027 30-Sep-2027 8. KEY DATES Sep 03, 2024 Page 8 of 9 The World Bank Implementation Status & Results Report Economic Linkages for Diversification (P171664) Key Events Planned Actual Approval 11-May-2021 11-May-2021 Effectiveness 21-Dec-2020 22-Jul-2021 Mid-Term Review No. 01 30-Sep-2024 28-Jun-2024 Operation Closing/Cancellation 30-Sep-2027 9. RESTRUCTURING HISTORY 10. ASSOCIATED OPERATION(S) There are no associated operations Sep 03, 2024 Page 9 of 9