The World Bank Implementation Status & Results Report Malawi Agricultural Commercialization Project (P158434) Malawi Agricultural Commercialization Project (P158434) AFRICA EAST | Malawi | Agriculture and Food Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 10 | ARCHIVED on 22-Dec-2021 | ISR49328 | Implementing Agencies: Ministry of Agriculture, Ministry of Finance, Ministry of Trade, Republic of Malawi Key Dates Key Project Dates Bank Approval Date: 23-May-2017 Effectiveness Date: 30-May-2018 Planned Mid Term Review Date: 30-Sep-2020 Actual Mid-Term Review Date: 21-Sep-2020 Original Closing Date: 31-May-2023 Revised Closing Date: 31-May-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to increase commercialization of agriculture value chain products selected under the project. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured) To increase commercialization of agriculture value chain products selected under the Project and to provide immediate and effective response to an Eligible Crisis or Emergency Components Table Name COMPONENT 1: BUILDING PRODUCTIVE ALLIANCES:(Cost $55.50 M) COMPONENT 2: SUPPORT INVESTMENT ENABLING SERVICES:(Cost $15.60 M) COMPONENT 3: CONTINGENT EMERGENCY RESPONSE COMPONENT (CERC):(Cost $20.00 M) COMPONENT 4: PROJECT COORDINATION AND MANAGEMENT:(Cost $8.90 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating High High Implementation Status and Key Decisions This ISR is based on the implementation support mission carried from November 8 to 29, 2021. The AGCOM project has made impressive progress in recent months. Therefore, both key project ratings are being upgraded to 'satisfactory'. The most notable achievements are the following:  85 producer organizations with 28,964 beneficiaries (12,638 men, 16,326 women and 7,146 being youth) have received matching grants and are doing the investments on the ground. 12/22/2021 Page 1 of 7 The World Bank Implementation Status & Results Report Malawi Agricultural Commercialization Project (P158434)  The total value of the active portfolio of subprojects has increased to approximately US$12 million, and farmers have already mobilized US$1.2 million of own contributions to match the grants.  25 organizations, which commenced the subprojects earlier, are already showing an increase of 16,000 metric tons in volume traded with off takers, a 13% increase only in the first year. This represents approximately a US$12 million increase in sales with respect to the previous year. If the trend continues, the Project will largely exceed the targets.  AGCOM is now benefiting producer organizations in 19 value chains, with half of the subprojects being in dairy and soya. The approach has proved to be effective in promoting the much-needed productive diversification in Malawi.  On top of the matching grants, the Project is supporting a partial credit guarantee, which helps farmers access private financing. Currently, already one producer organization is accessing a loan supported by that facility and we expect that the uptake will continue to grow.  The Project is also preparing about US$15 million in public infrastructure investments linked to the commercial agriculture. This includes roads, bridges, and irrigation schemes, which are strategic for the producer organizations that are doing business, supported by the Project.  AGCOM has sparked significant interest among farmers and, so far, 997 concept notes have been received. AGCOM provides matching grants based on calls for proposals. Currently 140 proposals from organizations have been approved and 85 have already signed the subproject agreements. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial High Substantial Macroeconomic High High High Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program High High Substantial Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary High High High Environment and Social Moderate Moderate Moderate Stakeholders Moderate Substantial Moderate Other -- Low Low Overall High High High Results PDO Indicators by Objectives / Outcomes To increase commercialisation of agriculture value chain products selected under the project IN01072674 ►Increase in sales of producer organizations within productive alliances (Metric tons/year, Custom) Baseline Actual (Previous) Actual (Current) End Target 12/22/2021 Page 2 of 7 The World Bank Implementation Status & Results Report Malawi Agricultural Commercialization Project (P158434) Value 0.00 0.00 16,120.95 15,000.00 Date 03-Jul-2017 01-Jan-2021 29-Nov-2021 31-May-2023 IN01072675 Supplemental sub indicator: Value of sales (Amount(USD), Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 12,000,000.00 10,000,000.00 IN01072676 ►Value chain products with at least 50% increase in commercialization (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 4.00 5.00 Date 03-Jul-2017 01-Jan-2021 29-Nov-2021 31-May-2023 IN01072677 ►Farmers reached with agricultural assets or services (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8,273.00 28,964.00 40,000.00 Date 03-Jul-2017 01-Jan-2021 29-Nov-2021 31-May-2023 IN01072678 Farmers reached with agricultural assets or services - Female (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5,279.00 16,326.00 16,000.00 to provide immediate and effective response to an eligible crisis or emergency IN01072673 ►Beneficiaries of emergency response (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 391,000.00 391,000.00 391,000.00 Date 03-Jul-2017 31-Dec-2020 29-Nov-2021 31-May-2023 Overall Comments PDO With the restructuring carried out after the Mid-Term Review, the target of sales was adjusted to an increase of 15,000 metric tons per year equivalent to US$10 million. The calculation was based on subproject documents of several alliances that had been approved at that time. The first set of real sales data suggest that the target was underestimated, and the Project outcomes are likely to be larger than the projections. Intermediate Results Indicators by Components 12/22/2021 Page 3 of 7 The World Bank Implementation Status & Results Report Malawi Agricultural Commercialization Project (P158434) COMPONENT 1: BUILDING PRODUCTIVE ALLIANCES IN01072684 ►Subprojects financed with matching grants (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 3.00 200.00 Date 03-Jul-2017 25-Sep-2020 29-Nov-2021 31-May-2023 This indicator tracks number of business plans of PAs financed through matching grants Comments: IN01072685 Youth-based producer organizations accessing matching grants (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 3.00 20.00 Date 03-Jul-2017 25-Sep-2020 29-Nov-2021 31-May-2023 IN01072688 Subproject agreements signed (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 30.00 85.00 210.00 IN01072690 Women-only producer organizations accessing matching grants (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 4.00 20.00 IN01072692 ►Producer organizations accessing financing supported by the Partial Credit Guarantee Fund (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 3.00 50.00 Date 03-Jul-2017 30-Nov-2020 29-Nov-2021 31-May-2023 IN01072693 ►Producer Organizations benefited by last-mile infrastructure subprojects (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 03-Jul-2017 30-Nov-2020 29-Nov-2021 31-May-2023 IN01072694 ►Increase in yield of commodities by supported producer organizations participating in Productive Alliance (Metric tons/year, Custom) Baseline Actual (Previous) Actual (Current) End Target 12/22/2021 Page 4 of 7 The World Bank Implementation Status & Results Report Malawi Agricultural Commercialization Project (P158434) Value 0.00 0.00 16,034.58 16,000.00 Date 03-Jul-2017 30-Nov-2020 29-Nov-2021 31-May-2023 COMPONENT 2: SUPPORT INVESTMENT ENABLING SERVICES IN01072686 ►Project supported Agro-business organizations that obtained one or more certifcations (disaggregated by type of certification) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 03-Jul-2017 25-Sep-2020 29-Nov-2021 31-May-2023 IN01072687 ►Automatized systems, policies and regulatory instruments implemented to support agriculture business and commercialization (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 4.00 12.00 Date 03-Jul-2017 25-Sep-2020 29-Nov-2021 30-May-2023 IN01072689 ►Beneficiaries of the warehouse receipt system (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3,511.00 3,511.00 2,264.00 4,100.00 Date 03-Jul-2017 30-Nov-2020 29-Nov-2021 31-May-2023 IN01072691 ►Number of smallholder households with secure land tenure (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,000.00 6,513.00 12,000.00 Date 03-Jul-2017 30-Nov-2020 29-Nov-2021 31-May-2023 COMPONENT 4: PROJECT COORDINATION AND MANAGEMENT IN01072679 ►12. Smallholders/farmers/beneficiaries (male and female farmers or businesses) satisfied with services provided by the project (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 86.00 80.00 Date 03-Jul-2017 25-Sep-2020 29-Nov-2021 31-May-2023 IN01072682 12.a Female farmers satisfied with services provided by the project, % of all respondents (Percentage, Custom Breakdown) 12/22/2021 Page 5 of 7 The World Bank Implementation Status & Results Report Malawi Agricultural Commercialization Project (P158434) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 88.00 80.00 Date 03-Jul-2017 25-Sep-2020 29-Nov-2021 31-May-2023 CERC IN01072680 ►Volume of maize delivered to National Food Reserve Agency (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 21,000.00 21,000.00 21,000.00 Date 03-Jul-2017 30-Nov-2020 29-Nov-2021 31-May-2023 IN01072681 ►Area under irrigation through rehabilitated systems (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,000.00 2,000.00 2,000.00 Date 03-Jul-2017 31-May-2023 29-Nov-2021 31-May-2023 IN01072683 ►Distance improved with rehabilitated transport works (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 03-Jul-2017 30-Nov-2020 29-Nov-2021 31-May-2023 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P158434 IDA-60480 Effective USD 95.00 95.00 0.00 45.55 52.22 47% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P158434 IDA-60480 Effective 23-May-2017 02-Feb-2018 30-May-2018 31-May-2023 31-May-2023 12/22/2021 Page 6 of 7 The World Bank Implementation Status & Results Report Malawi Agricultural Commercialization Project (P158434) Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History Level 2 Approved on 26-Feb-2021 Related Project(s) There are no related projects. 12/22/2021 Page 7 of 7