Fias 2022 ANNUAL REVIEW THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES With support from: ©2023 The World Bank Group 1818 H Street NW Washington, DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org All rights reserved. This volume is a product of the staff of the World Bank Group. The World Bank Group refers to the member institutions of the World Bank Group: The World Bank (International Bank for Reconstruction and Development); International Finance Corporation (IFC); and Multilateral Investment Guarantee Agency (MIGA), which are separate and distinct legal entities each organized under its respective Articles of Agreement. We encourage use for educational and non-commercial purposes. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Directors or Executive Directors of the respective institutions of the World Bank Group or the governments they represent. 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About the Facility for Investment Climate Advisory Services (FIAS) Through the FIAS program, the World Bank Group and donor partners facilitate investment climate reforms in developing countries to foster open, productive, and competitive markets and to unlock sustainable private investments in sectors that contribute to growth and poverty reduction. The FIAS program is managed by the International Finance Corporation (IFC), a member of the World Bank Group, and implemented by IFC Advisory Services teams. For more information, visit https://www.thefias.info. Acknowledgments This report was written and edited by IFC staff. Contributors: Julia Louise Breit, Anna Brown, Syed Estem Dadul Islam, Cynthia Mene, Geoffrey Mercer, Obed Pandit, Devangi Rathod, Emma Lawson-De Roeck. Editor: John Diamond Cover Photo Djenebou Bagayogo works in a greenhouse near Bamako, Mali, growing watermelons, sweet peppers, tomatoes and other vegetables. Photo: Dominic Chavez/World Bank FIAS 2022 Annual Review 3 contents Message from the Director 5 Introduction 6 01 Main Achievements and Milestones  8 A New Era for FIAS 10 FIAS Results at a Glance 11 FIAS Scorecard 13 FIAS Portfolio at a Glance 14 FIAS Fundraising 17 FIAS FY17–21 and FY22 Funding and Expenditure 18 02 Special Topic: FIAS Support for Climate Change-Related Advisory 19 FIAS Supporting Climate-Focused Advisory 21 FIAS FY22 Climate Projects Include Global, Country Approaches 21 New Additions to the FIAS Portfolio  22 03 Operational Highlights 27 Overview of the Portfolio  27 Progress on Gender and Climate Change 28 FIAS Strategy Emphasizing Investment Generation, Retention 29 Strong Results for Development Effectiveness and Client Satisfaction 29 FIAS Reform Activity Lagged in FY22 30 Agility and Continuity: FIAS Supports IFC Crisis Response in Afghanistan and Ukraine 31 Amid New Initiatives, FIAS Maintains Focus on IDA, Africa, FCS 32 Building a Pipeline of Upstream Projects 37 FIAS Supporting Expansion of IFC’s Gender Agenda 45 Knowledge Management, Publications, and Learning Highlights 54 04 Financial Results and Resource Use 58 Funding 58 Use of Funds 59 Fundraising Update 60 05 Annexes 64 Annex 1: FIAS Scorecard and Results Methodology 64 Annex 2: Portfolio of FIAS-Funded Projects in FY22 68 Annex 3: Abbreviations 71 FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 4 FIAS 2022 Annual Review New economic challenges require new approaches, so it is timely that fiscal year 2022 marked the beginning of a new five-year strategy cycle for the Facility for Investment Climate Advisory Services (FIAS) partnership. COVID-19, Russia’s invasion of Ukraine, and the devastating earthquake in Türkiye and Syria have delivered a series of economic aftershocks, including inflation, food shortages, and trade disruptions, falling especially hard on emerging markets and developing economies. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 5 Message from New economic challenges require new approaches, so it is timely that fiscal year 2022 marked the beginning of a new five-year strategy cycle for the Facility for Investment the Director Climate Advisory Services (FIAS) partnership. COVID-19, Russia’s invasion of Ukraine, and the devastating earthquake in Türkiye and Syria have delivered a series of economic aftershocks, including inflation, food shortages, and trade disruptions, falling especially hard on emerging markets and developing economies. This is the arena in which FIAS operates. IFC Advisory and Upstream Services supported by FIAS combine crisis response with strategic vision to help client countries build durable and inclusive private sector growth. The FIAS strategy for F22–26 combines continuity with innovation. FIAS continues to prioritize IDA, Sub- Saharan Africa, and fragile situations while testing and scaling new approaches: helping clients expand promising business sectors, advance opportunities for women, address climate change, and participate in the digital economy. Much of the project activity detailed in the FIAS 2022 Annual Review is new, so the report is inherently forward-looking. Yet the results already achieved in FY22 indicate that the strategy is well-positioned to achieve FIAS results targets. The need for FIAS-supported work has never been greater. The January 2023 edition of the World Bank Group’s Global Economic Prospects (GEP) projects a sharp drop- off in global growth—to 1.7 percent, the third weakest pace in nearly three decades. GEP also tracked investment in 60 emerging markets and developing economies from 1984 to 2020 and found a strong correlation between spurts in investment climate reform and investment growth. This is important confirmation of the value of work supported by FIAS. FIAS is a trust fund and a program, but first and foremost I view it as a partnership, developed with our clients and 12 Development Partner countries (and we expect additions to the roster of FIAS donors soon). Today’s economic turbulence underscores the value of a program that not only delivers much-needed services but enables us to pursue thematic work in gender, climate change, and digitalization, track and measure results, and pilot approaches in job creation, affordable housing, smallholder farming, and other areas that can inform longer-term IFC interventions. This is why we are both optimistic and grateful as we move through the five-year strategy cycle. Anastasia Gekis Director IFC Operations Management Department FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 6 FIAS 2022 Annual Review Fiscal year 2022 (from July 1, 2021, through their deliverables; 58 percent have climate June 30, 2022) marked a significant transition components; and nearly one-third of the for the FIAS development partnership. As Core projects have both gender and climate the first year of the new five-year FY22–26 components. The makeup of new projects strategy cycle, the FIAS portfolio began coming online in FY23 give reason for a process of innovation and renewal. optimism that FIAS will reach its strategy cycle target of 80 percent of Core projects Roughly half of the IFC Advisory Services (IFC including gender and 70 percent including AS) projects supported by FIAS were new to climate change. the portfolio in FY22. Through a new allocation process, FIAS began to rapidly expand its FIAS is a key part of the IFC 3.0 Creating roster of projects with activities geared toward Markets agenda to mobilize private capital improving economic opportunity for women through what IFC calls a “continuum” of effort and addressing the economic challenges of that includes economy-wide advisory with climate change. The FIAS Program, part of deep analytics and reform work geared IFC’s Operations Management Department toward the most promising business sectors. (OMD), is shifting focus to generating concrete The Upstream approach aims to address the and measurable economic benefits, from shortage of bankable deals in many of the new domestic and foreign investment to world’s emerging markets and developing Introduction increased investment retention and facilitation economies (EMDEs) where IFC works— of financing. Despite the relative newness of particularly in the FIAS priority areas of IDA, much of the FIAS portfolio, strong results are Sub-Saharan Africa, and fragile conflict- coming in. Through the end of FY22, FIAS- affected situations (FCS). FIAS supports this supported projects generated $29.7 million agenda through projects aimed at “creating in investment and $22.3 million in value of markets through sector interventions” that financing facilitated (VFF). facilitate private sector investment in which IFC is a potential financing partner along with The new allocation process developed by private investors. the FIAS team and fielded at the midpoint of FY22 incentivizes IFC AS teams to include The effects of the COVID-19 pandemic gender and climate change elements in their continue to buffet the global economy, with project proposals. In several cases, proposed added pressures from the from the Russian projects that lacked these elements were invasion of Ukraine, inflation, and the threat of amended to include them following dialogue recession. These combined impacts are likely with the FIAS team. The new process is a to pose continuing challenges through much key tool helping FIAS deliver on its strategy of the strategy cycle. As client government cycle goal of doubling the percentage of priorities shift, this may slow progress in projects with gender and climate change implementing reforms. components as compared to IFC corporate- wide targets for Advisory Services. As the FIAS 2022 Annual Review details, IFC AS and FIAS are determined to meet At the end of the first year of the strategy these shifting challenges with agility, thanks cycle there are signs the approach is in no small part to the continuing support working. Nearly two-thirds of FIAS projects of the FIAS Development Partners. For this funded through the Core trust fund support, IFC and the FIAS Program team are include gender components as part of deeply grateful. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 7 Man working at a food cart in Istanbul, Türkiye. Photo: Said/Pexels FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 8 FIAS 2022 Annual Review 01 $29.7M in investment Main Achievements generated or retained via FIAS-supported projects $22.3M in value of financing facilitated via FIAS-supported projects 63% of FIAS Core and Milestones projects gender flagged 58% climate flagged; nearly a third have climate and gender elements FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 9 Lima Metro Line 2 station under construction. Photo: Yayo López/World Bank FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 10 FIAS 2022 Annual Review 01 The FIAS Program for FY22–26 supports the IFC 3.0 Creating Markets agenda while helping developing countries recover from pandemic impacts and gird against new challenges ranging from conflict to climate change. IFC Advisory Services supported by FIAS increasingly combine economy-wide reform work with sector-specific and firm-level advisory that can help move client country economies toward new investment and inclusive job creation. The new strategy cycle began on July 1, 2021—the start of FY22—with the FIAS Program team focused on building a new portfolio emphasizing investment generation and finance facilitation. The new projects will have clearer correlations to measurable economic benefits A New Era on the ground, such as new investment benefits in the areas of gender and inclusion and climate change mitigation and adaptation. for FIAS FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 11 FIAS Results at a Glance Many projects in the FIAS portfolio are too new to have begun producing beneficial impacts. Yet the shift in focus of the FIAS Program is still evident in the results generated in FY22 (July 1, 2021, to June 30, 2022). Investment generated and retained for FY22 represents modest progress toward the five-year FIAS target of $1 billion but, in combination with more recent results, gives reason for optimism that FIAS-supported projects are delivering: Emphasis on New Investment, Finance $29.7 $29,733,755 in new Investment New Investment generated investment generated and retained through FIAS-supported projects in Bosnia and Herzegovina and South Africa million $22.3 $22.3 million in value of financing Value of financing facilitated via the Global Housing Advisory Platform project and the Invest West Africa Regional Warehouse Receipts Program million 35 of 73 FIAS projects had ties to IFC or World World Bank, IFC synergies Bank policy and investment operations (28 IFC; 5 World Bank; 2 IFC and World Bank) Regulatory streamlining in Business cost savings Bosnia and Herzegovina generated $296,707 in direct compliance cost savings to private businesses in FY22 Markets and Competition Policy Project in Peru Reforms generated one investment climate reform in FY22, helping enact first economy-wide merger control law FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 12 FIAS 2022 Annual Review 01 Greater Efforts in Gender and Climate Change FIAS Core 63% of FY22 projects funded from FIAS Gender components Core (15 of 24 projects) include gender FY22 components, solid progress toward the FIAS strategy target of 80 percent 47% of all FIAS projects (34 of Projects All FIAS 73) include gender components, ahead of 40 percent target 58% of FIAS Core projects (14 of 24) Climate change components include climate change components, Core FIAS progressing toward the FIAS target of 70 percent 26% of all FIAS projects (19 of 73) Projects All FIAS include climate components; as older projects close and are replaced by new projects, FIAS anticipates meeting the 35 percent target 29% of FIAS Core projects (7 of 24) have Both gender and climate Core FIAS both gender and climate components; 11% of all portfolio projects (8 of 73) have both Continuity in FIAS Priorities: IDA, Africa, FCS, Streamlined Business Regulations Share of FIAS FY22 client-facing spending in IDA, Sub-Saharan Africa, FCS 58% IDA 44% 33% Sub-Saharan Africa FCS below target below target ahead of target Spending levels will more closely align with targets as the portfolio expands FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 13 FIAS Scorecard FY22–26 FY17–21 FY22–26 STRATEGY STRATEGIC THEME INDICATOR* CUMULATIVE FY22 CUMULATIVE TARGET Focus on Priority Clients % FIAS client-facing project implementation spend in IDA 1.  63% 58% 58% 70% countries % FIAS client-facing project implementation spend in Sub- Saharan Africa 46% 44% 44% 50% % FIAS client-facing project implementation spend in FCS 28% 33% 33% 25% Delivering Significant 2.  Number of Reforms supported by FIAS 204 1 1 200 Business Results % reforms supported by FIAS in IDA countries 58% 0% 0% 70% % reforms supported by FIAS in Sub-Saharan Africa 43% 0% 0% 50% % reforms supported by FIAS in FCS countries 24% 0% 0% 25% Client Satisfaction 3.  Overall client satisfaction: FIAS client survey results 94% 96% 96% 90% and Development Effectiveness Development Effectiveness: % FIAS-supported projects rated satisfactory for DE 72% 100% 100% 80% Measuring Impact 4.  Direct Compliance Cost Savings (USD) $196.2M $296,707 $296,707 $200M Investment Generated/Retained (USD) $999.1M $29,733,755 $29,733,755 $1B Measuring Impact 5.  Value of financing facilitated (USD) $22,300,000 $22,300,000 TBD (New Indicator) Measuring Impact 6.  Number of Jobs Pilot impact assessments TBD TBD 10–15 (Jobs) Leverage (New Indicators 7.  Number of IFC investment operations informed and enabled 106 30 30 for tracking and reporting) by FIAS Number of IBRD Development Policy and Investment operations informed by FIAS 28 7 7 Thematic Impact 8.  % projects gender flagged (FIAS Core) 63% 63% 80% (New indicators) % projects gender flagged (FIAS total program portfolio) 47% 47% 40% % projects with climate related activities (FIAS Core) 58% 58% 70% % projects with climate related activities (FIAS total program portfolio) 26% 26% 35% Blank boxes in FY17–21 indicate the value was not part of Scorecard for that cycle; in Target column, blank boxes indicate targets are not being calculated for IFC, IBRD linkages. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 14 FIAS 2022 Annual Review 01 In January 2022 FIAS launched a new allocation process designed to incentivize IFC project teams to step up their work in gender and climate change and to gear projects toward producing new private investment in client countries and enabling them to retain more investment. As of June 30, 2022, the end of FY22, about half the FIAS portfolio of 73 projects was less than two years old. The FIAS portfolio contains projects carried over from the FY17–21 cycle and new additions geared to the FY22–26 strategy. The share of the portfolio delivering sector- specific advisory will increase. As shown below, 14 projects deliver sector advisory exclusively (19 percent); 28 projects (38 percent) do so with enabling environment advisory. In all, 42 projects (58 percent) include sector-level work. ECONOMY-WIDE ENABLING SECTOR-LEVEL AND SECTOR-LEVEL Portfolio at a Glance PROJECT TYPE ENVIRONMENT ADVISORY ADVISORY TOTAL Client-facing 27 14 24 65 Projects Share of Client- 42% 22% 37% 100% facing Projects (%) Global Knowledge 4 0 4 8 Projects Share of Global Knowledge Projects 50% 0% 50% 100% (%) Total Projects 31 14 28 73 Share of Total 43% 19% 38% 100% Projects (%) In FY22–26, FIAS is transitioning to sector-oriented work aimed at helping client countries attract and retain investment leading to inclusive job creation. Sectors covered by FIAS-supported advisory include agriculture and agribusiness, tourism, manufacturing, finance, and infrastructure. As agreed under the new FIAS strategy, any IFC unit, working in areas ranging from manufacturing to finance to infrastructure to enabling environment advisory, is eligible to seek FIAS funding for project activity provided it can demonstrate adherence to the strategy. FIAS While FIAS moves in new directions it maintains its well-established priorities. These include support for projects in borrowing countries of the International Development Association (IDA)—countries that struggle with low per capita income levels (the limit was $1,255 in FY23) and require concessional funding. FIAS allocation decisions also prioritize countries in the Sub-Saharan Africa region, and countries in fragile and conflict-affected situations (FCS) facing high levels of institutional and social fragility, and violent conflict. Some FIAS client countries fall into all three of these categories. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 15 The longstanding priorities of the FIAS Program—work in IDA, Sub-Saharan Africa, and FCS, and a client- focused approach supported by deep regional and global analytics—remain intact as detailed below: Client-Facing Engagements Share of FIAS FY22 client-facing projects in IDA, Sub-Saharan Africa, FCS1 48% IDA Sub-Saharan Africa 48% 35% FCS Global Engagements • Of the 73 FIAS FY22 projects, 59 (81 percent) are specific to a country or set of countries; 14 (19 percent) are global projects • Of the 14 global projects, 8 are knowledge development products (KDPs) advancing knowledge and expertise in areas relevant to the FIAS agenda and applicable across the portfolio • 6 of the global projects are considered client-facing because they are developing activities to be rolled out in client countries; all will eventually support projects in Africa, for example: › The Global Food Safety Platform will benefit clients in IDA and Africa › The Sustainable Banking Network Global project will develop clients in IDA, Africa, and FCS › The Global Microfinance Initiative will develop projects in IDA and Africa Development Effectiveness, Client Satisfaction • 45 clients of FIAS-supported projects responded to the client satisfaction survey, 43 positively, or 96 percent (strategy cycle target: 90 percent) • During FY22, 4 of 4 closed projects received positive ratings for Development Effectiveness, or 100 percent (strategy cycle target: 80 percent): › Europe and Central Asia Agri-Finance Project; closed 2022, DE rating: Successful › Vietnam Private Sector Competitiveness; closed 2022, DE rating: Mostly Successful › Doing Business Mozambique; closed 2020, DE rating: Mostly Successful › ECA Green Banking Academy; closed 2021, DE rating: Mostly Successful 1 The three FIAS priority categories—IDA, Sub-Saharan Africa, and FCS—include many of the same countries. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 16 FIAS 2022 Annual Review 01 100% 97% 96% 96% FIAS CLIENT SATISFACTION, FY17–22 100 91% 90% Share of positive client responses from FIAS supported projects 90 80 70 60 50 40 30 20 10 0 FY17 FY18 FY19 FY20 FY21 FY22 FIAS FY22 Expenditures • FIAS FY22 project expenditures totaled $11.7 million, with $10.4 million, or 89 percent, client-facing (FY21: 88 percent), $1.1 million, or 9 percent, for non-client facing global projects, and $204,052, or 2 percent, for program management and general and administrative costs • Of $10.4 million in FIAS FY22 client-facing expenditures, 58 percent supported IDA (target 70 percent); 44 percent supported Sub-Saharan Africa (target 50 percent); 33 percent supported FCS (target 25 percent) PERCENT OF FIAS FY22 FIAS EXPENDITURES 100% = $11.7 Million Client-Facing (89%) Non-Client Facing (11%) FIAS EXPENDITURE BY REGION, FY22 100% = $11.7 Million Sub-Saharan Africa (44%) Europe and Central Asia (19%) World (12%) East Asia and Pacific (7%) Middle East and North Africa (7%) Latin America and Caribbean (5%) South Asia (4%) FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 17 FIAS FY22–26 Fundraising (as of November 2022) • Through the first quarter of FY23 FIAS secured contributions of $137 million for FY22–26, 69 percent of the way to the five-year $200 million FIAS fundraising goal • $56.3 million (41 percent) was for FIAS Core, the trust fund account that enables the FIAS Program team to direct funding to priority areas (IDA, Sub-Saharan Africa, FCS, gender, climate change) • $80.9 million (59 percent) was raised for programmatic activity in which a donor or donors set priorities within the framework of the FIAS strategy • The ratio of about $4 out of every $10 going to FIAS Core is in line with the FY17–21 cycle • For FY22, FIAS gross receipts from donor contributions and the World Bank Group totaled $31.4 million, with just under half representing donor support for programmatic programs and 45 percent in combined donor and World Bank Group support for FIAS Core • The $11.7 million in direct project expenditures out of $31.4 million in gross receipts reflects the early stage of many of the projects in the developing FIAS FY22 portfolio FIAS Core Contributions $56,266,507 FIAS Programmatic Contributions $80,879,017 Total Combined Contributions $137,145,524 Funding Gap ($62,854,476) FY22 DONOR CONTRIBUTIONS Fundraising (GROSS RECEIPTS) 100% = $31.4 Million Programmatic (48%) Core (29%) World Bank Group (16%) Project Specific (6%) FIAS FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 18 FIAS 2022 Annual Review 01 SHARE OF SHARE OF IN US$ TOTAL IN US$ TOTAL CONTRIBUTIONS (SOURCES OF FUNDS) (FY 2017-21) (FY 2017-21) (FY 2022) (FY 2022) WORLD BANK CONTRIBUTIONS 38,661,111 26% 5,000,000 16% Core 35,000,000 24% 5,000,000 16% IFC [1] 28,661,111 19% 5,000,000 16% World Bank 10,000,000 7% - 0% DONOR CONTRIBUTIONS 109,336,867 74% 26,395,751 84% Core 24,640,465 17% 9,181,888 29% Programmatic 54,665,942 37% 15,219,839 48% Project Specific 30,030,459 20% 1,994,024 6% TOTAL CONTRIBUTIONS 147,997,978 100% 31,395,751 100% FY17–21 and FY22 Funding Less Trust Fund Administration Fees 4,853,929 1,220,086 TOTAL NET CONTRIBUTIONS 143,144,049 30,175,664 EXPENDITURES (USES OF FUNDS) [2] Staff Costs 62,728,065 48% 4,831,751 41% Consultants /Temporaries & Contractual services 48,612,622 37% 6,053,773 52% Operational Travel Costs 13,744,863 10% 474,982 4% Other expenses 6,715,699 5% 329,517 3% TOTAL EXPENDITURES 131,801,249 100% 11,690,024 100% 1 IFC’s annual contribution to the FIAS FY22-26 funding cycle is $5.0 million each year. FY2017-21 IFC contributions includes $3.6 Million in project specific contributions. 2 Includes contributions from all sources of funds that support the FIAS FY22-26 strategic agenda. FIAS FY22-26 funding cycle and Expenditure contributions and expenses (previously reported) have been adjusted for comparative purposes. FIAS FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 19 02 19 Projects in the FIAS FY22 Portfolio Include Climate Change Components, 8 of which also Deliver Change-Related Advisory Gender Advisory FIAS Support for Climate Most of the FIAS Projects Offering Climate-Related Advisory are New as of FY22 Special Topic: FIAS Allocation Process Incentivizes Teams to Include Climate & Gender in Project Design FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 20 FIAS 2022 Annual Review 02 The world is still dangerously off-track when on five key systems responsible for over The world is still it comes to slowing down global climate change. The cost of failing to address this 90 percent of global greenhouse gas emissions: agriculture; food, water, and land; dangerously crisis is already immense and growing. The cities; transport; and manufacturing. IFC is off-track when impact of rising global temperature falls heavily on developing countries, which is why committed to growing its climate-related investments to an average of 35 percent it comes to the World Bank Group is investing heavily in of its own-account long-term commitment slowing down efforts to reverse negative trends. The private volume between 2021 and 2025 and working global climate sector has a vital role in this effort—both in changing methods of production to reduce with financial institutions to finance projects that support mitigation and adaptation. The change. The climate impact and in seizing on huge market IFC strategy calls for aligning 85 percent of cost of failing opportunities associated with responding to climate change. This is why IFC is playing new operations with the goals of the Paris Agreement starting July 1, 2023, and 100 to address this a big part in the Bank Group’s approach to percent starting July 1, 2025, screening all crisis is already climate change, and why FIAS, supporting IFC Advisory Services that advance the projects for physical climate risk by FY23, and advancing private sector solutions for climate immense and climate agenda, can be a catalyst for adaptation and the protection of biodiversity.​​​​​​​ growing leveraging IFC’s investment in this work. During FY22, the World Bank Group Historically, industrialized countries have continued its dramatic expansion of been the largest contributors to global financing to address climate disasters such emissions, but today emerging markets as flooding in Pakistan, and financing for and developing economies (EMDEs), given climate adaptation and mitigation. In FY22 their huge development needs and growing the Bank Group reached $32 billion in energy demand, are seeing a steady growth climate financing, a record that exceeded its in greenhouse gas emissions, and are set to Glasgow target. In November 2022, President account for the largest source of emissions Malpass unveiled a new fund called SCALE, unless sufficient action is taken. EMDEs are for Scaling Climate Action by Lowering also the most heavily impacted by climate Emissions. The fund provides an avenue for change, which could push an additional global action on climate change and funding 132 million people into poverty in the for greenhouse gas emissions reduction. next decade. SCALE will pool funding from the global community and provide grant payments on While low-carbon solutions are gaining a results basis to client countries for lowering traction, a January 2022 study by McKinsey GHG emissions. The fund will also help Global Institute estimates that transitioning countries build a track record of projects to net-zero by 2050 will require an extra $3.5 that unlock private sector funding through trillion per year in capital spending on energy international carbon markets. The Bank and land-use systems alone. Public budgets, Group has published Country Climate and already strained by the COVID-19 pandemic, Development Reports (CCDRs) in more than cannot begin to cover these needs. Private 20 countries, identifying pathways to climate funds and investors, which hold 900 times the action and impact. budget of development finance institutions, will need to step in to fill that gap. From solar IFC projects in the climate finance space energy and climate finance to relatively new have included a subscription opportunity for areas such as hydrogen or carbon capture, a Blue Bond to be issued by BDO Unibank, IFC is uniquely placed to create investable Inc., the largest bank in the Philippines. opportunities and mobilize private capital for The investment will help BDO develop a the decarbonization of economies. Blue Finance Framework, allowing it to fund projects that support the country’s blue In June 2021, the World Bank Group Board economy. IFC also published the Guidelines endorsed the World Bank Group Climate on Blue Finance, drawing attention to a new Change Action Plan 2021–2025, (CCAP). asset class which sees increased interest from Under the plan, IFC is focusing its efforts investors, financial institutions, and issuers FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 21 globally. In addition, IFC invested in Egypt’s The approach is paying dividends. Nearly first private sector green bond, issued by the two-thirds of FIAS projects funded through Commercial International Bank (CIB) in Egypt the Core trust fund (63 percent) include to help unlock finance for climate-smart gender components as part of their projects and support the country’s transition deliverables; 58 percent have climate to a greener economy. And in terms of value components. Nearly one-third of the Core chains, IFC is working with multinational projects (7 out of 24) have both gender and brands like Microsoft, McCormick, and Levi’s climate components. The makeup of new to help green their supply chain in emerging projects coming online in FY23 give reason economies and support local vendors in for optimism that FIAS will reach its strategy reducing their carbon footprint. cycle target of 80 percent of Core projects including gender and 70 percent including FIAS Supporting Climate- climate change. Focused Advisory FIAS FY22 Climate As in IFC Investment Services, IFC Advisory Projects Include Global, Services (IFC AS), including those supported Country Approaches by FIAS, are advancing a climate change agenda geared toward helping client Most of the 19 projects in the FIAS FY22 countries manage economic transformation portfolio that include climate change- aligned with the climate change agenda. IFC related work are new to IFC and to FIAS as AS aims to have 35 percent of its projects of FY22. This reflects both the intensified include climate-related components. The corporate prioritization of climate-related FIAS FY22–26 strategy seeks to double work across all IFC AS and the new FIAS the IFC corporate-wide target by having FY22–26 strategy for gender and climate, 70 percent of its Core portfolio projects supported by an allocation process that tagged as including climate change incentivizes project teams to include these advisory. This is possible because the FIAS components in their plans. Of the 19 projects Program team manages project selection with climate elements, 14 are funded out for Advisory Services funded by FIAS Core. of the FIAS Core account, which gives the Other FIAS-supported work is funded FIAS Program management team the most through programmatic or project-specific latitude in terms of selecting projects that approaches in which donors select the include gender and climate activities. The projects to receive funding. Climate change portfolio includes global projects, such as is a key thematic area for FIAS and a priority Global Housing Advisory and Sustainable for FIAS Development Partners. In mid-FY22 Infrastructure of the Future, and client-facing (the beginning of calendar 2022), the FIAS projects in areas such as special economic Program team launched a new allocation zones in Nigeria and a textile value chain process designed not only to increase the project in Egypt. Of FIAS Core projects, 7 amount of gender- and climate-related of 24, or 29 percent, have both gender and work in the FIAS Core project portfolio but climate components; of the overall portfolio, to interact with teams at the pipeline stage 8 of 73, or 11 percent, have both. to modify projects, when possible, to include these components. FIAS FY22 Portfolio: Gender/Climate Summary # GENDER/ % GENDER/ # GENDER % GENDER TARGET # CLIMATE % CLIMATE TARGET CLIMATE CLIMATE Core (24 projects) 15 63% 80% 14 58% 70% 7 29% All (73 projects) 34 47% 40% 19 26% 35% 8 11% FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 22 FIAS 2022 Annual Review 02 Sustainable Banking and Finance Europe and Central Asia Green Supports Green Finance Banking Addresses Green Finance Potential The goal of the Sustainable Banking and Finance Network (SBFN) is to increase The ECA Green Banking project, which is and deepen uptake and implementation not in the FIAS FY22 portfolio but closed of international environmental, social, successfully in FY21 with a Mostly Successful and governance (ESG) standards and Development Effectiveness rating, built on international best practices across emerging the success of the Green Banking Academy market financial markets, through engaging (GBAC), launched in 2018 in the Latin America financial and banking regulators and industry and Caribbean region. The FIAS-supported associations. This is achieved through Europe and Central Asia (ECA) GBAC project improved awareness, knowledge, and skills aims to address the region’s vast green among financial regulators and banking finance potential. ECA GBAC is a one-stop- associations on ESG standards, and by shop platform with access to materials, advising members on developing strategy, training, and knowledge, enabling IFC clients plans, and guidelines. to integrate climate and development, and grow investment with climate business lines. The project is performing well. Four new members joined SBFN during the reporting The project launched the ECA GBAC period, including Kosovo Banking Association, monthly newsletter with expert articles Central Bank of the Republic of Azerbaijan, on the current topics of climate finance, Bank of Jamaica, and Securities and client stories, resources/publications, and Exchange Commission of Central Africa. upcoming events, as well as a website, www. ecagbac.org, linking to the Online Learning In FY22, the FIAS-supported team contributed Campus on climate finance, a climate finance technical support and global knowledge roadmap, and a self-evaluation tool. The sharing to assist the National Treasury in project organized executive round tables and launching the South Africa Green Finance facilitated sessions exploring climate issues Taxonomy in April 2022. The Taxonomy is per priority. In the first half of FY22, the FIAS designed for investors, issuers, lenders, and team organized four sessions: Reinventing other financial sector participants to track, Climate Finance, Green Bond Facilitation, monitor, and demonstrate the credentials Battery Storage, and the Implications for of their green activities in a more confident Financial Institutions in ECA of COP26. and efficient way. In May 2022, the Central GBAC also offered financial institutions free Bank of Sri Lanka launched the Green participation in GB-TAP Green Bonds training Finance Taxonomy, along with a taxonomy program tailored for emerging markets. background report and frequently asked questions facilitated by SBFN. The taxonomy New Additions to the was a key milestone for implementing the FIAS Portfolio sustainable finance roadmap. SBFN also supported Indonesia and Colombia with In the new strategy cycle, FIAS is supporting Green Taxonomy launches. The team also several innovative projects as part of IFC’s organized five workshops with over 780 climate change agenda. Most of the new participants attending the events. additions to the portfolio are from FIAS Core, validating the FIAS allocation process The coming year will see the Sustainable instituted in January 2022 and geared toward Finance Instruments Working Group map securing the maximum possible alignment of the status and lessons learned from national, the FIAS project portfolio with the FY22–26 regional, and global taxonomy development, strategy. These projects had only just got utilization, governance, and diversification, under way as of the end of FY22 and so have with a focus on SBFN countries. The not yet generated results. Here are some sustainable finance taxonomy tool and case examples of how FIAS is strengthening the studies will be published in FY23. climate activity in its portfolio: FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 23 A project in Luxor, Egypt, creating short-term employment opportunities for unskilled and semi-skilled workers and providing access to basic infrastructure services. Photo: Dominic Chavez/World Bank Egypt Green Building in the stock of EDGE-certified green buildings and thus improve resource utilization and The Government of Egypt issued a green reduce carbon footprint. In FY22 IFC’s building code for residential buildings in team held the first engagement with local 2005 and for commercial buildings in 2009, EDGE experts and engaged internally with and a local certification framework called IFC industry teams to identify potential Green Pyramid Rating System (GPRS) in GB clients. The project team undertook 2010. The Egypt Green Building Council business development activities, meeting (Egypt GBC) was established in 2009 under new clients and building relations with the Housing and Building Research Center interested participants from several sectors, (HBRC). However, the green building market including real estate, financial institutions, has not taken off. According to HBRC, there and universities. A key initial step was to are only 3 green buildings certified based increase awareness of the project in the on the GPRS since 2017, and 22 green Egyptian market by holding its first public in- buildings certified by the LEED (Leadership person event focused on the EDGE program in Energy and Environmental Design) rating in Egypt. The project provided technical system since 2008, while EDGE (Excellence green building support for the launch by in Design for Greater Efficiencies) is almost the Commercial International Bank (CIB) of a unknown in the country. Green Built Environment Program under its Sustaining Sectors Program. Launched in FY22, the Egypt Green Building (GB) project aims to contribute to an increase FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 24 FIAS 2022 Annual Review 02 Solid progress was achieved with the first stabilizing the production and profitability two EDGE certifications in Egypt for two of farmers. Increased and stable incomes university buildings: New Giza University, will also reduce financing risks for financial a CIB client, and the I-Hub Innovation and institutions. The project aims to facilitate Entrepreneurship Center at the Ain Shams access to at least $100 million of finance University. IFC also discussed with the client through loans disbursed to agri-MSME and the importance of developing and enforcing farmers in the market. an incentives program for green buildings and shared global good practices. HBRC is UPSEZWA Nigeria (Upstream taking it forward with the government team. Special Economic Zone West Africa) Central Europe (CEU) Agriculture The 1992 Nigeria Export Processing Finance Digital Platform Zones Authority Act suffers from several deficiencies which prevent Nigeria from Micro, small and medium enterprise efficiently leveraging the private sector (MSME) agriculture is a major driver of through zone development and constitute jobs and growth in the rural economy in the principal reasons for launching the Albania, Bosnia and Herzegovina, Kosovo, UPSEZWA (Upstream Special Economic Montenegro, North Macedonia, Serbia, Zones West Africa) Nigeria Project. and Ukraine. Yet, agriculture sector growth is hampered by small farm size, lack of scale The goal of this Upstream project is production and distribution, and lack of therefore to address and eliminate (or at production modernization, which results in least reduce) the market and government- low productivity in agricultural production. regulatory failures in Nigeria by facilitating Lack of access to finance is the main inclusive economic growth and equitable obstacle for agriculture growth in the region, social development through the adoption influenced by high-risk perception of financial and implementation of competitive Special institutions to the sector. It is estimated Economic-Social Zone (SEZ) legal, regulatory, that financial institutions cover 15 percent and institutional frameworks that align with of the agricultural sector’s working capital Chapter 14 of the Economic Community of needs. Innovative digital solutions, such West African States (ECOWAS) Investment as cashflow-based lending and alternative Policy and the Paris Agreement. The project is collateral instruments, provide an effective expected to achieve the following impact: (1) solution to increase competitiveness and private SEZ investments (including potentially bankability of agricultural producers. private green investments and private IFC investments) of at least $150 million, and (2) To address these market failures and to 10,000 direct/indirect jobs created in respect contribute to the mitigation of negative of any of the SEZs in Nigeria. The project will effects of the COVID-19 pandemic on the also promote the creation of new markets in agribusiness sector, the CEU Agriculture the following sectors: healthcare; aeronautics; Finance Digital Platform project aims to manufacturing; agribusiness; petrochemical; de-risk agri-finance, reduce transaction and infrastructure. the FIAS- costs associated with agricultural lending, increase financial institutions’ participation in In FY22, the FIAS-supported team supported team the sector, and enhance outreach to under- successfully drafted the entire IFC successfully banked agri-MSMEs and farmers. The digital agriculture finance platform will address Cooperation Agreement. The team reviewed and proposed modifications to drafted the information asymmetry between lenders a draft Nigeria SEZ Bill/Law. The aim of the entire IFC and small farmers by consolidating finance, climate, pricing, and other information revised legislation is to align with the Paris Agreement and with ECOWAS Investment Cooperation based on digital data. In addition, focusing Policy regulations relating to land use and Agreement on climate-smart agriculture lending will site selection criteria. The project also aims increase the resilience of local farmers to help establish an SEZ Law Stakeholder to the effects of climate change, thus Working Group. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 25 Circular Economy Knowledge IFC has partnered in numerous countries Development Product (KDP) to identify recycling opportunities and circular economy opportunities related to Aims at Waste Reduction, plastics (Ghana, Morocco, Nigeria, Thailand, Resource Management and Vietnam, among others) with varying approaches to analyzing circularity for this The circular economy is a model of input product. The FIAS team will review production and consumption which the various analytical work across the involves sharing, leasing, reusing, repairing, World Bank and IFC for plastics and design refurbishing, and recycling existing materials, a standardized approach to analyzing the assets, and products as long as possible. value chain and investment potentials. The life cycle of products is extended, and the use of assets is increased and Scaling Biodiversity Finance optimized. In practice, this implies reducing waste generation and use of resources to There are ever-increasing global financial and a minimum. When a product reaches the climate risks associated with biodiversity loss end of its life, its materials are kept within the and far too little funding is being committed economy wherever possible. These can be to address these risks through positive productively used again and again thereby biodiversity-related impact generation. creating further value. Impact investors may be willing to engage early in the market for nature performance This approach to the maximization of the outcomes given their focus on investments use of a resource can be applicable to that generate positive environmental and assets as well, through sharing, leasing, and social returns. Mainstream investors also renting business models. This is a departure have a strong interest in investments or from the traditional, linear economic model, projects related to nature if they can deliver a which is based on a take-make-consume- commercial return. If blended finance can be throw away (or own and underuse) pattern. used to create instruments which meet their A circular economy is regenerative by risk return needs, significantly larger sources design and aims to gradually decouple of capital could be leveraged. growth from the consumption of finite resources. Countries globally, from the The objective of this project is to assess options European Union to Southeast Asia and and partnerships for IFC and/or IFC clients to Africa, have started to adopt the circular invest in opportunities that directly contribute economy to propel growth and strengthen to biodiversity co-benefits at a landscape level, resilience. The planning and implementation thereby significantly scaling IFC’s potential of circular economy approaches at the biodiversity-positive impacts. The focus will industry level is a valuable opportunity to be specifically on areas where the World increase competitiveness while meeting Bank Group could add value, unlock barriers sustainability considerations. to entry, and accelerate and scale possible solutions. The team, with support from FIAS, The Circular Economy project, supported will produce an upfront synthesis and framing by FIAS, aims to develop an evidence- report that covers an assessment of the types based approach to circular economy that of capital/investors that are interested to invest can leverage policy, regulatory, and other in biodiversity conservation, and two detailed Upstream enablers for industries. This will case study examples that explore, with the help develop circular economy solutions in IFC teams on the ground, options for scaling specific IFC industries and value chains, and positive biodiversity-related impacts through foster mechanisms that can sustain and IFC (and other) finance. improve the economics and competitiveness of circular economy options. The expected In FY22, terms of reference were finalized outcomes are two new IFC projects that use after extensive consultation with IFC and the tools and resources to design, develop, World Bank colleagues, UNDP, and SANParks. and operate client-facing projects. An Expression of Interest was published, and FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 26 FIAS 2022 Annual Review 02 12 firms or consortia responded; a shortlist of building curriculum. In FY22 the project 6 was agreed on by IFC and UNDP. The team progressed according to plan. All key target received 5 qualifying proposals and selected results for this project cycle have been the winning consortium. The team also had met. For READ, the project completed the an introductory meeting with the consultants, pilot tests in Mexico and South Africa and UNDP, and SANParks. the tool customization and pilots in India. For ASHA, it completed tool customization Global Housing Building and pilots in all three pilot countries, India, Client Capacity to Develop Mexico, and South Africa. In addition to other social sustainability areas, ASHA Sustainable Communities examines a project’s provisions to adapt to This multi-region Upstream project seeks the impact of climate change and increase to increase clients’ business and design resilience to environmental risks. Likewise, capacity to develop quality projects with it reviews various requirements related a view to creating affordable, quality, to the reduction of GHG emissions, such inclusive, secure, sustainable, and healthy as the use of energy efficient systems, residential communities. The project seeks passive thermal comfort measures, and to develop, customize, and pilot the READ sustainable wastewater management, as (Real Estate Assessment of Developers) well as a project’s accessibility to public and and ASHA (Affordable Socially sustainable non-motorized transportation, employment Housing Application) housing tools, while hubs, and social amenities such as health also developing each tool’s capacity- care and education. FIAS FY22 Climate-Tagged Projects Responsible Financial Inclusion and Innovation * Central-America Sustainable Banking Initiative * Global Housing Advisory Platform Housing for Pakistan Initiative * Implementation (Child) * Global Housing Microfinance Initiative * Sustainable Banking Network Global * Egypt Textile Value Chain Project Scaling Biodiversity Finance * CEU Agriculture Finance Digital Platform Colombia Productivity and Jobs Egypt Green Building SOE and State in the Economy * SL Climate Smart Agri Finance * Gender-Inclusive Infrastructure Circular Economy Knowledge & Natural Resources * Development Product * UPSEZWA Nigeria * Sustainable Infrastructure of the Future Platform * Colombia Productivity Advisory to Axis Bank on Climate and ESG * Projects listed in orange text with * are funded through FIAS Core FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 27 03 As the FIAS partnership enters a new five-year strategy cycle, the focus is on recovering and rebuilding from the economic devastation caused by the COVID-19 pandemic. 73 FIAS FY22 Portfolio In the FY22–26 strategy cycle, FIAS- supported Advisory Services have shifted emphasis from supporting economy-wide reform efforts to focusing on sector-specific projects reforms in the manufacturing, tourism, agribusiness, supply-chain, and digital financial services to lead client countries, key private sector firms, and investors in the of which… direction of investments, jobs, and income 65 generation. The sharp increase in the proportion of sector-specific projects further complements the IFC’s 3.0 Creating Markets Upstream agenda to build the private projects sector’s potential in client countries. FIAS has set ambitious targets for advancing Operational the economic prospects of women and are client-facing and… the green economic development agenda, advancing IFC’s strategic priorities to expand 31 the work in gender and climate change. Advancing digitalization in developing economies is another thematic focus that is an integral part of the strategy. Along with projects these priorities, FIAS continues to focus on countries in IDA, the Sub-Saharan Africa region, and FCS, which is reflected in its FY22 portfolio. Highlights benefit IDA Overview of the Portfolio As of June 30, 2022, the end of FY22, the FIAS portfolio consisted of 73 projects, of which 65 were client-facing (59 country- and region-specific; 6 global platforms with client-facing components); 8 were global projects spanning knowledge, product, and program development. Among the 59 projects focused on country and regions, 27 benefit IDA countries, 26 prioritize the Sub-Saharan Africa countries, while 23 are concentrated in FCS. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 28 FIAS 2022 Annual Review 03 ECONOMY- WIDE AND ENABLING SECTOR-LEVEL SECTOR-LEVEL PROJECT TYPE ENVIRONMENT ADVISORY ADVISORY TOTAL Client-facing Projects 27 14 24 65 Share of Client-facing Projects (%) 42% 22% 37% 100% Global Projects 4 0 4 8 Share of Global Projects (%) 50% 0% 50% 100% Total Projects 31 14 28 73 Share of Total Projects (%) 43% 19% 38% 100% More than half of the projects in priority This is true across both the client-facing and areas help single countries; the others global projects. work in regions which include IDA, FCS, and/or Africa countries, such as FIAS- As detailed in the FIAS FY22–26 strategy, the supported work in the Organization for the increased emphasis on sector-specific Harmonization of Business Law in Africa reform work will be reflected in terms of (OHADA) and the Women, Business and the budget as well as portfolio. From a 30 Law — Africa Initiative. percent share of total planned work (in budget terms) during the FY17–21 cycle, The table above provides a breakdown of sector-specific advisory supported by FIAS is the 73 FIAS-supported projects across the expected to grow to a share of between 60 full spectrum of Advisory Services: Enabling and 70 percent in FY22–26. environment advisory, sector-level advisory, and interventions targeting both. Progress on Gender and Climate Change Enabling environment AS aims to improve client country business environments to As planned in the FIAS FY22–26 strategy, unlock a broad range of new private sector the FIAS Core portfolio is surpassing the IFC investment opportunities. Sector level AS Advisory Services overall portfolio in the seeks to create markets via sectoral or proportion of gender- and climate-related market-wide intervention that will facilitate work. With the FIAS portfolio still under private sector investment and for which IFC development the program has not yet hit its could be a potential financing partner. The targets for the five-year cycle of doubling shift in focus to sector-specific work reflects IFC corporate targets in the proportion of the FIAS alignment with the IFC 3.0 Creating FIAS Core projects with gender and climate Markets Upstream Agenda geared toward components. But the trend is in the right unlocking more private investment and direction and FIAS anticipates meeting the helping developing countries retain more of targets. Through FY22, nearly two-thirds the investment they have already secured. of projects funded from FIAS Core include gender components, solid progress toward As the table indicates, enabling environment the FIAS strategy target of 80 percent; advisory continues to represent a substantial nearly half of all FIAS projects include gender portion (nearly half) of the FIAS portfolio. components, ahead of the 40 percent target. But this share is expected to decline as the FIAS is progressing toward the target of strategy cycle progresses and older projects 70 percent of the Core portfolio including carried over from the previous cycle phase climate change components: through FY22, out. Already, projects devoted to sector- 58 percent of FIAS Core projects include level advisory, or those that include sector- climate change elements; 26 percent of all level advisory, make up more than half the FIAS projects include climate components, portfolio (42 of 73 projects, or 58 percent). reflecting the lack of climate-related activity FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 29 in projects carried over from the previous • FIAS-supported regulatory streamlining strategy cycle. As legacy projects phase out in Bosnia and Herzegovina and and new projects launch, FIAS anticipates Kosovo generated $296,707 in direct meeting the 35 percent target for the full compliance cost savings to private portfolio, which includes Core, programmatic, businesses in FY22. and project-specific work. Nearly a third of FIAS Core projects (7 of 24, or 29 percent) Value of financing facilitated (VFF) is a have both gender and climate components. longstanding measure in IFC but new to the Of the total portfolio, 8 of 73 projects, or 11 FIAS Scorecard. It refers to the investment percent, have both components. or financing that a client was able to receive as a result of the Advisory Services FIAS Strategy Emphasizing provided. Investment Generated (IG) is Investment Generation, Retention the actual investment made by investors in a location, including re-investments and As a key financial source for IFC AS and expansions by existing investors, that can the IFC 3.0 Creating Markets agenda, FIAS be attributed to the World Bank Group’s is emphasizing projects with the potential support to the country through a specific to help clients attract and retain greater project. The project should have carried private sector investment. The IFC Monitoring out activities to support reforms that & Evaluation (M&E) team helps evaluate contributed to improving the investment project proposals seeking FIAS funding climate and to fostering private investment. support, analyzing their potential to make Investment retained captures work related good on their targeted results for investment to managing investor grievances. IFC counts generation. M&E also plays a key post- the total value of investment (i.e., assets factor role in validating the results claimed from a balance sheet) of existing foreign by project teams, applying a rigorous and domestic investors endangered by methodology that determines how much severe or high-risk grievances that benefit new and retained investment can be reliably from investor grievance mediation and attributed to the FIAS-supported work. As management or through the intervention of a result of this conservative approach, FIAS an investment promotion agency supported is reporting significantly less investment by IFC AS. Direct compliance cost savings generated and retained for FY22 than the (DCCS) quantify the reductions in monetary Program team anticipates will eventually costs (official fees, lawyers, notary, unofficial be validated. Even so, the results to date payments, etc.) and labor costs (staff are considerable: time spent on completing procedures) associated with regulatory reforms • The Subnational Investment Climate contributed to by IFC projects. project in Bosnia and Herzegovina generated $3,587,651 in new Strong Results for investment in FY22. Development Effectiveness and Client Satisfaction • The South Africa Private Sector Competitiveness project generated IFC annually surveys Advisory Services $26,146,104, bringing the total investment clients on the performance of advisory generated in FY22 by FIAS-supported projects. In FY22, 45 clients of FIAS- projects to $29,733,755. supported projects responded to the client satisfaction survey, 43 positively, or • The Global Housing Advisory Platform 96 percent, ahead of the strategy cycle Implementation project recorded target: 90 percent, and generally in line with $20,400,000 in value of financing client satisfaction results over the previous facilitated (VFF); Invest West Africa five years. Regional Warehouse Receipts recorded $1,900,000 VFF. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 30 FIAS 2022 Annual Review 03 100% 97% 96% 96% FIAS CLIENT SATISFACTION, FY17–22 100 91% 90% Share of positive client responses from FIAS 90 supported projects 80 70 60 50 40 30 20 10 0 FY17 FY18 FY19 FY20 FY21 FY22 During FY22, 3 of 3 closed projects received introduce a well-developed framework within positive ratings for Development Effectiveness, which to assess mergers that is consistent or 100 percent (strategy cycle target: 80 with relevant international experience to percent). The Europe and Central Asia address all key elements of merger control Agri-Finance Project closed in FY22 with a design. In line with international experience, DE rating of Successful; the Vietnam Private only mergers above an objectively defined Sector Competitiveness project closed in threshold will need to be notified, and a FY22 with a Mostly Successful DE rating. The fast-track mechanism will enable efficiency- Doing Business Mozambique project closed enhancing concentration to move forward in 2020; its Mostly Successful DE rating was swiftly. The authority will, hence, be able to confirmed by the M&E team during FY22. focus on those transactions most at risk of harming consumers without deviating FIAS Reform Activity resources from enforcement actions against Lagged in FY22 anticompetitive practices or other initiatives to promote competition. For years the FIAS Program has emphasized investment climate reforms as one of the Several factors contributed to the key measurable outcomes from IFC AS disappointing reform results in FY22. supported by the trust fund. FIAS continues Significant turnover in the FIAS portfolio meant to work with client governments on legal and that about half the portfolio is less than two regulatory reform designed to streamline years old; close to half is new as of FY22; business regulation and make it easier to these projects were too new to be producing start and grow domestic firms and to attract reforms, which generally involve drafting and greater domestic and foreign investment into passage of legislation and follow-up evaluation developing economies. Over the previous to ensure adequate reform implementation. two strategy cycles, FIAS-supported projects Two years of pandemic-related business generated an average of 55 reforms per year; closures and travel restrictions, as well in FY22, the FIAS portfolio produced 1 reform. as changes in policy priorities in client The Markets and Competition Policy project governments, brought reform activity in older in Peru helped the government enact the FIAS projects to a temporary halt. Still other country’s first economy-wide merger control projects in the portfolio are closing in on law and related regulations. completion and have already been credited with the reforms they set out to achieve. Passage and implementation of the Peru In addition to these factors, two months reform closes a long-lasting public debate into FY22 the World Bank Group decided and introduces the last missing piece to discontinue the Doing Business report of Peruvian competition policy which following the discovery of irregularities in the now covers all major areas needed to DB reports for 2018 and 2020. This decision, prevent anticompetitive practices and and the uncertainty that had hovered over concentrations. The law and its regulations Doing Business for the two years leading up FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 31 to it, constrained IFC-supported reform work operating environment and are gradually geared toward the Doing Business indicators starting to resume operations, albeit well in areas such as starting a business, getting below capacity. According to the latest Private electricity, and taxation. Sector Rapid Survey conducted in June 2022, more than three-quarters of the firms IFC teams continue to work with clients were operational, compared to two-thirds in on reform agendas. IFC defines reforms November 2021 at the time of the first round. as changes implemented by a client that Through the Afghanistan Business Enabling significantly improve the investment climate in Project (completed in FY20), Afghanistan a country, region, or sector. These changes are Export Competitiveness Project (ongoing), tangible achievements brought about with IFC Afghanistan Competitiveness Study Project advisory assistance and for which there is wide (ongoing), and Afghanistan Business Licensing technical and expert consensus regarding their Project (ongoing), Afghanistan has been a relevance in private sector-led development. key FIAS client in South Asia. IFC continues to The M&E team continues to work with engage with the private sector and mitigate client-facing teams on new or revised reform critical economic challenges. categories to replace the indicator-based reforms linked to Doing Business. In FY22, FIAS-supported activities developed new strategies engaging with the Afghan Agility and Continuity: FIAS private sector as the lead counterpart rather Supports IFC Crisis Response in than the government, an approach aligned with IFC’s overall strategy for re-engagement Afghanistan and Ukraine in Afghanistan. The ongoing Afghanistan Confronting an unprecedented global Competitiveness Study Project, for example, economic challenge, the FIAS partnership had relied on government counterparts to helps IFC respond with agility to meet urgent implement envisioned studies. The project client needs while continuing to support the aims to identify Afghanistan’s comparative core mission of improving the climate for advantages, major bottlenecks, policy gaps, private sector growth in some of the world’s and investment opportunities and lead to most vulnerable countries. In the FY22–26 the development of an investment pipeline. strategy cycle, FIAS continues to support The government-facing emphasis became efforts in Afghanistan and Ukraine. The untenable, delaying contract negotiations FIAS-supported work underscores IFC’s with the selected vendor and the tendering determination to continue working even process was put on hold for the two intended in some of the most challenging conflict- studies. IFC responded with flexibility and affected environments. The foundational restructured implementation activities to idea is that FCS countries cannot wait until focus on private sector interventions. In FY22, all instability ends to begin the work of the FIAS-supported team reinitiated the repairing and rebuilding economies; the work procurement of a firm to carry out one of the must begin now in the context of conflicts in sector studies delayed in early 2021 due to client countries. the change in government. While some firms remain on the ground in Afghanistan and can The Afghanistan political crisis has led carry out this work, there is limited capacity to a significant economic contraction, to carry out studies. The FIAS partnership will increasing food insecurity, and widespread deprivation, due to the change of government in August 2021. The World Bank Group, in close coordination with the international In FY22, FIAS-supported activities developed community, development partners, and the Afghanistan Reconstruction Trust Fund new strategies engaging with the Afghan (ARTF) donors, is unlocking ARTF funds to private sector as the lead counterpart support the Afghan people and deliver critical rather than the government health, education, and livelihood support. Private businesses are adjusting to the new FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 32 FIAS 2022 Annual Review 03 continue to support private-sector partners Amid New Initiatives, FIAS and implement new activities to enhance Maintains Focus on IDA, economic growth and stability. Africa, FCS The ongoing Russian invasion of Ukraine continues to inflict substantial economic and The FIAS FY22–26 strategy combines social damage due to extensive destruction innovation with continuity. The shift toward of productive assets and infrastructure, more sector-focused advisory, support for limited market access, and labor force IFC 3.0 Creating Markets Advisory, emphasis dislocations. Throughout the FIAS on investment generation and retention, and partnership, Ukraine has remained a key procedures to ensure strategic alignment to client in the Europe and Central Asia (ECA) the FIAS Scorecard results, including gender region. FIAS has helped IFC deliver four and climate, are among the innovations in advisory and diagnostic projects in Ukraine, the new strategy cycle. At the same time, covering agri-finance, financial inclusion FIAS continues to prioritize IDA borrowing and consumer protection, private sector countries (with significant concessional competitiveness, and a project to identify funding needs and low per-capita income), barriers to private sector investments. Sub-Saharan Africa, and FCS (countries Some project examples include the Country affected by institutional and social fragility Private Sector Diagnostic (CPSD) project, and violent conflict). This work often the Ukraine Competition Project, and the proceeds amid highly volatile political and ECA Agri-Finance Project. Ukraine’s markets security circumstances and in economies remain concentrated, as government that faced serious obstacles to attracting interventions and regulatory barriers, new investment even before the onset of the combined with the dominant role of state- COVID-19 pandemic. In addition to activities owned enterprises and politically connected already described in these priority areas, firms, limit entry and distort competition. below are some examples of this highly challenging—and potentially rewarding—FIAS- To respond to the private sector’s immediate supported work. needs, IFC is adapting its approach to meet current challenges. IFC adjusted its South Africa Private Sector services to its client needs in Ukraine and Competitiveness Project in other countries affected in various ways Marks Successes by the Russian invasion of Ukraine. IFC is implementing a comprehensive response Despite COVID-19’s tremendous impact on to the impacts of the Russian invasion project activity and client priorities, the Private of Ukraine for Ukraine and its neighbors. Sector Competitiveness project in South In Ukraine, IFC will continue providing Africa achieved significant results in FY22, short-term liquidity in the near term to reporting on key indicators. These include help preserve businesses, especially in investment generation and job creation agribusiness and technology, and to ensure stemming from new investments brought the supply of critical goods such as food about with the help of the project. Almost all and fuel. It will also seek to support housing the business environment and investment solutions for displaced people. In the policy and promotion (IPP) outcomes and medium- to longer-term, IFC’s focus will shift output targets set by the project have been to supporting Ukraine’s reconstruction. In the achieved and, in many cases, exceeded. affected neighboring countries, IFC seeks to The exceptions are installation of the SCADA support capital markets amid increased risk system (supervisory control and data aversion while helping address supply chain acquisition) in iLembe, and the issuance of bottlenecks through investments in retail and title deeds, which are still in progress. The logistics. It also aims to scale up investment project has achieved reforms, as reported in energy security and transition. FIAS in prior years, in IPP, construction permitting, anticipates continuing to play an integral role and getting electricity, and continues to in supporting IFC AS in Ukraine. work to deepen their implementation. More FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 33 reforms are expected to be submitted for Mali IC4 Project Proceeds Amid validation in FY23. Political Turmoil Reform activity to date over the life of the The Mali Investment Climate Phase 4 project includes reducing the time required to Economy-Wide project aims to support obtain construction permits, register property, government institutions in attracting private and obtain approval for small projects, investment that will create jobs. Through strengthened institutional capacities of the studies, workshops, and advisory services South African investment promotion agency, to API Mali, the investment promotion and improved services to investors. Through agency, the project is working to build FY22 the project has recorded $26,146,104 in a pipeline of 27 new private investment investment generated. A survey developed commitments in priority sectors, including by the project team and IFC’s Monitoring & agribusiness and energy. An operational Evaluation (M&E) team and conducted by single window for women will help in the Invest Durban determined that investments creation of women-owned businesses generated as a direct outcome of IPP reform and provide advice to women-led contributed to the creation of 8,000 new jobs businesses. The work during FY22 attributable to project activities. The project unfolded amid political instability, including delivered at least $15 million in consumer postponement of presidential elections cost savings stemming from competition and the announcement in January 2022 reform resulting in reduced data costs and of sanctions and the suspension of $60,000 in compliance cost savings (CCS) to transactions between Mali and ECOWAS. the private sector through regulatory reform. Government focus shifted from economic These numbers are expected to increase as development to urgent questions of additional surveys are rolled out to additional purchasing power, food, and constitutional leads in Durban as well as other subnational and electoral reform. investment promotion agencies. An agreement with ECOWAS was reached OHADA Strengthening Credit shortly after the end of FY22 and sanctions Infrastructure for MSME were lifted. Despite these challenges during FY22, the project team completed studies Growth Program examining potential in the textile sector This is a five-year advisory services markets and the cotton and meat value chains and and enabling regional environment program developed marketing plans relating to these to promote access to credit for MSMEs and and other products for use by API Mali, the women-owned businesses in four member country’s investment promotion agency. states of OHADA: Burkina Faso, Côte d’Ivoire, Other project activities during FY22 included the Democratic Republic of the Congo, and drafting a business retention and expansion Gabon. The program focuses on responding strategy, developing an investment to economic pressures created by the tracking tool, conducting workshops with COVID-19 pandemic. It is expected to trigger private sector representatives, developing significant market movement by introducing a pre-pipeline linked to businesspeople and scaling movable asset-based lending and in the Malian diaspora interested in implementing the provisions of the recently investing in Mali, working on land title adopted OHADA Insolvency Law to help transaction streamlining, and assessing counteract COVID-19-induced bankruptcies Mali’s current investment code with an eye and unemployment. It seeks to enhance the to recommending changes. The project business enabling environment, optimize also produced an updated draft of a Mali usage of the digital credit infrastructure (credit Special Economic Zones (SEZ) law to better reporting systems, secured transaction and align with draft ECOWAS SEZ guidelines. collateral registry, and insolvency regimes), and Expected results three years after the end encourage product innovation. In June 2022, of the project include $15 million in new and the scope of the project was expanded to expanded private sector investment and include 17 other OHADA member states. $2.7 million in investment retained. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 34 FIAS 2022 Annual Review 03 Uganda MSME Access to Finance Africa Leasing Seeks to Build New Seeks to Expand MSME Access Leasing Market to Finance The project aims to build the foundation Agriculture is the backbone of Uganda’s for a future viable leasing market by economy, contributing more than 24 percent enhancing the legal and regulatory of the gross domestic product (GDP) and framework in Burkina Faso, Cameroon, over 78 percent of the country’s exports. Côte d’Ivoire, and Gabon. The project will Smallholder farmers represent 85 percent of introduce knowledge-based market tools the total farming community, and employ 65 in collaboration with business associations percent of Uganda’s workforce, with women and leasing stakeholders to train and constituting 75 percent of that amount. improve skills and product expertise. At the Despite their importance to employment policy/macro level, the program will support and economic growth, however, IFC (2018) improvements in the national legal and estimates that 37 percent of the MSMEs regulatory environment for leasing in two were fully credit-constrained with women of the four program countries to support facing a higher finance gap. Women own future Upstream potential. At the industry about 40 percent of Uganda’s private level, the program team will engage with enterprises but receive only 9 percent of the relevant leasing stakeholders on the ground credit. Furthermore, only 10 percent of farm (business associations, government officials) households have access to credit. Uganda’s to educate leasing practitioners and formal MSME financing gap of $4.9 billion (18 introduce transaction related market tools. A percent of Uganda’s GDP) increases to $8 kick-off mission took place in each country, billion if the informal MSME sector demand and the team delivered country-specific is included. Unstructured value chains, high- national leasing market studies, serving as interest rates, limited credit information, and the basis for the national leasing action plan. stringent collateral requirements are among In Côte d’Ivoire a Cooperation Agreement the key constraints to accessing credit. was signed, followed by one leasing training for small and medium enterprises (SMEs) The program aims to expand access to with 74 participants. Additionally, 104 finance for smallholder farmers, MSMEs, and participants attended two leasing trainings refugees by piloting and scaling inclusive for SMEs and financial institutions, held by financial products and technologies in IFC’s leasing expert in partnership with Côte targeted value chains within a strengthened d’Ivoire Enterprises Confederation.​ enabling environment. The program will also develop and nurture relationships that Trade Facilitation West Africa allow the deployment of an appropriate mix Improving Movement of of IFC credit and risk-sharing instruments Goods Across Borders, Along as well as advisory services for industrial/ agribusiness and participating financial Trade Corridors institutions to improve the bankability of marginalized actors, and to create new The objective of the Trade Facilitation West investment opportunities. To promote access Africa (TFWA) program is to improve the to finance for the ‘underserved,’ the program efficient and reliable movement of goods will improve data availability for financial in the region and internationally through 78% institutions to improve financier acceptance the reduction of time and increased of alternative forms of collateral which are transparency and predictability for the more readily available to agricultural and private sector in West Africa, and by of Uganda’s MSME borrowers. Adopting digital and financial technologies, financial institutions strengthening the ability of regional trading networks to take advantage of these exports are can leverage the collateral registry and improvements. There are three components agriculture WRS to help to bridge the ‘rural last mile,’ and to serve a fragmented and small-scale to this program: borrower base. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 35 Component 1 – Improve and more efficiently • Technical activities over all three implement trade facilitation measures - this components continued to progress includes capacity building to strengthen and included capacity building the ECOWAS and the West African across several areas which had been Economic and Monetary Union (WAEMU) delayed during the pandemic: gender Commissions’ ability to effectively carry out mainstreaming and integrated project regional policy dialogue, design regional trade management for National Trade facilitation policies, and monitor these policies Facilitation Committees (NTFC), risk at both the national and regional levels. management for Customs (Togo), sanitary and phytosanitary measures Component 2 – More efficient movement (Burkina Faso, Côte d’Ivoire, Togo), of goods along selected corridors - this and advocacy for CSOs. Additionally, component aims to create an enabling the project supported simplification environment for trade in the legal, regulatory, of border procedures in Burkina and procedural areas. It will address how Faso and Togo with revisions to laws, policies, procedures, capacity building, their respective customs codes, and technology, and consultations can make improved customs connectivity with these trade corridors more efficient. the deployment of the Interconnected Transit Freight Management System Component 3 – Reduce barriers for small- (Système interconnecté de Gestion des scale traders with an emphasis on improving Marchandises en Transit/SIGMAT) along conditions for women traders - this supports the Abidjan-Ouagadougou corridor. small-scale traders, including women and other key stakeholders in trade facilitation • The comprehensive diagnostic reviews reforms and programs. It aims to institute of four Small-Scale Cross-Border Trade a regional and national support and (SSCBT) support centers in West Africa sensitization system, increase logistics and were completed and socialized with key transport operator professionalization, and stakeholders in the region. promote private sector associations and Civil Society Organizations (CSOs) to be more • TFWA improved coordination among effective stakeholders and partners in trade gender stakeholders and continued to facilitation policymaking. work closely with gender units of both ECOWAS and WAEMU by providing The TFWA program continued to deliver technical assistance and supporting the on its planned activities during the regular convening of the Joint Technical reporting period as in-person meetings and Working Group on Trade and Gender. international travel resumed to near pre- COVID-19 levels. However, insecurity and The TFWA program’s communication instability in some TFWA countries have team continued to advance the program’s impacted the timelines for some deliverables, communications efforts by developing notably in Burkina Faso and Mali. and disseminating program materials to external audiences. This included three A high-level summary of key activities factsheets and several comprehensive briefs undertaken during the reporting and reports, including publication of the period include: SSCBT reports. The program also featured progress of its work in the TFWA quarterly • Key stakeholders were updated on newsletters and program website implementation progress through and produced several informative and two technical committee meetings interactive videos. (December 2021 and July 2022) and one steering committee meeting (in December 2021). The TFWA is undergoing a Mid-Term Review, which is led by the European Union. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 36 FIAS 2022 Annual Review 03 Firm Surveys Assessments to And governments may use the findings Focus on Africa to inform policy actions about programs that support firms through the pandemic. The Firm Surveys Global Knowledge Firm-level data will be valuable for Upstream Development Product aims to assess teams to identify specific issues and needs the effects of COVID-19 on firms in the to be addressed in the post-COVID period. manufacturing, agribusiness, services, and The project builds on extensive experience, other sectors, and inform project design and particularly in Africa, in using similar surveys policy actions to support economic recovery, to inform projects across the World Bank with emphasis on African countries. Initiated Group. Surveys conducted in Comoros, in the second half of FY22, the project will be Ghana, Malawi, Nigeria, and Somalia have structured in two pillars: (1) firm survey data been applied in a variety of ways to develop collection, and (2) analysis of the effects of World Bank and IFC projects and assist COVID-19. Pillar 1 will support development clients in supporting client country private of new approaches to collect and harmonize sectors recover and grow. high-quality firm-level data to understand firm dynamics and the impact of public Strengthening the Mango Supply policies. Pillar 2 will lead to two analytical Chain and Advancing in Senegal’s notes assessing the impact of COVID-19 on Agribusiness Sector SMEs and examining strategies for improving policy support to firms. Mangos are emblematic of Senegal and contribute to 15 percent of the country’s The outputs of the project are expected expanding horticultural exports. A major to inform the design of advisory and effort to promote mango exports, particularly investment or Upstream projects as well as from the greener regions of Casamance policy actions undertaken by governments. and Sine-Saloum, began in the early 2000s Advisory projects that support business and helped Senegal gain a foothold in the development services by providing training, European Union market. The work is part consulting, and SME financing, for example, of a larger IFC effort supporting growth may use the findings to adapt their design across Senegal’s agribusiness sector and to specific gaps identified through the generating investment opportunities in crops surveys. Investment or Upstream projects such as cashews, rice, onions, potatoes, may use the findings in their due diligence. and coconuts. During eight weeks of the year, Senegal is the lone country producing mangos, and its relative proximity to Europe makes Senegalese mangos an attractive option for European buyers. However, fruit fly infestation poses a major challenge, rendering the mangos inedible and leading European phytosanitary inspectors to reject entire container loads of the fruit. IFC Advisory Services, with FIAS support, has worked with counterparts in Senegal to address this persistent problem. In 2021, for example, Senegal achieved the best performance among West African exporters for the volume of mangoes exported versus the number of containers rejected by EU inspectors due to fruit fly contamination. IFC helped the Directorate of Vegetative Protection (DPV) to Mangoes in a Senegalese Market. reassure the EU as to quality control and lower Photo: Emma Lawson-De Roeck, IFC the number of rejected mango containers. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 37 DPV’s leadership credited IFC support with The mango value chain represents helping assure access to the EU market, opportunities for work and employment, an achievement made more significant by particularly for women and young the additional challenges imposed by the people, brings additional revenue to rural COVID-19 pandemic. communities, especially to family farms, and adds value to rural employment in terms To date, the project has recommended of skills development and certification. The seven procedures, standards, or practices mango sector employs an estimated 20,000 that have helped 52 agricultural-related people and generates about $6.6 million (4 businesses and organizations make changes billion CFA) annually. which improved their competitiveness and efficiency. For example, strengthening Building a Pipeline of the export certification system was key to Upstream Projects securing EU market access. As 90 percent of the country’s mango crop is intended for In FY22, FIAS started building a project export, reliable certification was critical to portfolio that aligns with the IFC 3.0 Creating maintaining investor interest in expanding Markets—Mobilizing Private Capital agenda mango production in Senegal. Through and that asserts FIAS’s role as the funding facilitation of public-private dialogue, the mechanism of choice for Upstream-related project improved collaboration between DPV advisory. Upstream is intended to be a and mango exporters and brought about seamless continuum that seeks to harness structural procedural changes. World Bank Group-wide engagement; FIAS functions as a seed fund to kickstart Through FY22, the project has reached activities which, as they scale up, may tap 6,265 farmers, helped secure and improve other funding sources. The FY22 portfolio their revenue, and provided 16 investor or included 14 Upstream projects, described private partnership leads to IFC Upstream and below. The roster of Upstream projects is Investment Services teams. The Upstream- steadily increasing through FY23 and will tagged project is well on its way to meeting and continue to do so through the cycle as the exceeding its $19 million investment generated allocation process proceeds. target. An investor survey organized by the project team received responses from 17 firms Zimbabwe Warehouse Receipt that benefited from IFC technical assistance. System Opening Doors to The survey found that total investment realized Agricultural Credit by these companies since 2018 was more than $12 million. Access to the EU market was In Zimbabwe the agricultural sector is essential to securing additional investment the largest economic sector. Thus, the commitments in industrial mango plantations. success of the sector is vital. Unfortunately, Also in FY22 the team shared three investment productivity growth is constrained by leads with IFC’s Manufacturing, Agribusiness several factors, not least, limited access to and Services (MAS) team, two in the cashew finance partly because the recent economic sector and one in the horticulture sector. downturn of the country negatively impacted on the activities of the 19 A digital application called Commango, set operational banking institutions, 16 licensed up in 2018 with IFC support, has contributed asset management companies, and 178 to the growth in Senegal’s mango sector. micro-finance institutions resulting in the The application helps connect smallholder shrinking of domestic savings. Low inflows farmers with key market players, including of foreign investment and acute shortage of exporters, processors, local distributors, and finances combined with perceived high risk financial institutions. Commango provides of the sector led to limited lending in general detailed information on mango availability and the agricultural sector (mainly farmers, and shares data on local suppliers and rural agro-dealers and rural enterprises, product quality, connectivity that became medium and large-scale buyers, processors, vital when COVID-19 disrupted travel. and exporters) in particular. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 38 FIAS 2022 Annual Review 03 The overall objective of the FIAS-supported Promoting Inclusive Growth project is to expand access to finance in in Comoros through Private the agricultural sector in Zimbabwe by Sector Development supporting the development of a regulated warehouse receipt system (WRS). Specific A difficult and burdensome business objectives of the project include providing regulatory environment in the Comoros support to the government through the impedes private investment. There is Reserve Bank of Zimbabwe to amend the very low financial inclusion with only 9 Warehouse Receipt Act 2007 and develop percent of the adult population having a implementing regulations for warehouse bank account and 32 percent with an MFI receipts financing by December 2019; account. Additionally, Comoros suffers from supporting the sensitization, training, underdeveloped financial infrastructure such and capacity building of stakeholders on as collateral registry, use of credit bureau, structured trade financing; and providing and capital markets. In 2020, Comoros’s technical assistance to the government to GDP shrunk by 1.4 percent, a culmination of a strengthen the WRS ecosystem. gradual trend of declining growth, as well as due to significant external shocks (cyclones In FY22, the team supported the launch in 2019; COVID in 2020). of the Zimbabwe Mercantile Exchange on August 18, 2021 to facilitate the trading The objective of this Upstream project is to of warehouse receipts of agricultural conduct the initial scoping work needed to commodities. However, the COVID-19 identify potential reform and engagement pandemic continued to have negative opportunities, with an aim to develop child impacts on project implementation, namely: projects with appropriate counterparts that delaying stakeholder awareness creation on can help improve the business environment WRS through regional workshops, delaying and strengthen the financial sector in capacity building/training of stakeholders, Comoros in the short term, and eventually and delaying a benchmarking tour of enable stronger participation in the formal stakeholders to selected countries. economy, more private sector investment, and greater financial inclusion. UPSEZWA Nigeria Project Combines Gender and This is as an umbrella program that got under way in FY22 with FIAS support, with Climate Components the aim of producing extensive diagnostics, As noted in the previous chapter, the scoping, and market studies to identify UPSEZWA (Upstream Special Economic specific and credible reform opportunities Zones West Africa) Nigeria project and roadmaps, as well as potential financial aims to address and eliminate identified sector partners. Such a programmatic market and government-regulatory approach is needed in Comoros where failures in Nigeria by facilitating inclusive IFC has limited engagements and is in the economic growth and equitable social process of building relations and capacities development through the adoption and in the government. Given the challenging implementation of competitive SEZ legal, operating context and the significant regulatory, and institutional frameworks, capacity constraints, the team will be including climate-smart approaches to selective and will need to rely on detailed manufacturing and construction and diagnostics during pre-implementation to green development strategies. These identify the most high-impact interventions. competitive best-practice frameworks are expected to allow downstream private Based on the findings of the pre- investments in the health care, aeronautics, implementation work, the team will then manufacturing, agribusiness, petrochemical, design implementation plans in a phased and infrastructure sectors, among others. approach depending on the client’s This project is Upstream, IDA, FCS, and absorption capacity and funding availability. climate focused. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 39 Central America Sustainable participants to identify the challenges Banking Initiative Fostering or barriers that could hinder project implementation in their respective markets. Regional Climate Finance Central America is one of the regions of Housing for Pakistan (H4P) the world which is most exposed to the Initiative Addresses Affordable climate phenomenon, and its societies and Housing Deficit ecosystems are particularly vulnerable to the adverse effects of climate change. It is Pakistan faces a substantial affordable housing exacerbating socioeconomic vulnerabilities deficit, driven by rapid urbanization, inadequate in the region and will increasingly affect its urban planning, atomized and undercapitalized economic progress. residential development industries, lenders with limited capacity to reach low-income The overall objective of this project, therefore, households, and a lack of long-term funding. is to foster climate finance in at least three of five countries with the creation and The Upstream creation of an effective development of a green taxonomy guide housing market in Pakistan holds to enable green financing. The guide is a tremendous potential for improvements to tool to support the development of a green quality of life and economic development taxonomy and define green asset classes through increased availability of jobs for and instruments nationally according to both skilled and poorer, unskilled workers. international standards, and to stimulate According to IFC research, a total of five jobs incentives to go green. The primary countries are created for every new housing unit built. for project implementation will be Costa Rica, El Salvador, Guatemala, Honduras, H4P is a two-phase joint IS-AS project aimed and Nicaragua. at building the primary market for housing finance in Pakistan through investment The FIAS-supported team will produce a facilitation, and capacity-building measures report of the identification of relevant actors at financial institutions and developers. and reference models of good international The target groups are households from practices in the field of green finance the affordable segment, whose household taxonomy, and a report of the position incomes (both formal/documented and for the participating countries on green informal/undocumented) range from $500 taxonomy. Workshops, feedback sessions, to $1,200 per month. H4P builds on previous and training events are planned for the and current World Bank Group programs development of the guide with the interest and initiatives, especially its support to the groups in each country. They will also map Pakistan Mortgage Refinance Corporation, as FIs’ green portfolio as a demonstrative pilot well as the PAK Housing Program. Another in each selected country to identify target important element is the Government of opportunities (sectors, investment volumes, Pakistan’s recently established Naya Pakistan product types) for green financing. Housing Program, which supports the construction of five million affordable homes. In this reporting period, the project focused on developing a strong governance and With support from FIAS, the team aims collaborative structure. The team also began to improve capacities (e.g., know-how to the initial desktop review to identify climate originate, process, and manage mortgage finance-related strategies and initiatives loans to the affordable segment) in partner that are ongoing in the five countries. banks, developers, and the Pakistan In March 2022, the team conducted a Mortgage Refinance Corporation; compile training and workshop in El Salvador with and disseminate market information; and the participating countries on sustainable show market catalyzation and demonstration finance, focused on the concept, trends, effect: other financial institutions should offer and examples of green taxonomies. housing loans to the affordable segment and The interactive workshop engaged the increase lending activities to them. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 40 FIAS 2022 Annual Review 03 Mongolia Meat Exemplifies Multi- of the General Agency for Specialized Level Upstream Approach Inspections, Customs, and the General Authority for Veterinary Services. The training The agriculture sector remains central to related to registration of overseas meat the economy of Mongolia, providing the processors and compliance checklists used largest source of employment and offering by authorities to do inspections. significant potential for growth. The Upstream Mongolia Meat project aims to improve the Sri Lanka Climate Smart Agri- enabling environment of the Mongolian Finance Focusing on Empowering meat sector to create private investment Financial Institutions opportunities with a focus on addressing some of the key bottlenecks limiting the Although Sri Lanka is a fertile tropical sector’s growth, focused on the processor/ land with the potential for cultivation and exporter segment, and to increase food processing of a variety of crops, issues safety and decrease processing risks to such as productivity, profitability, poor enable firms to meet international standards product quality, and climate change hamper and expand market access. the growth of the agricultural sector. The contribution of the sector to the GDP has To achieve the objective, the FIAS-supported declined from 30 percent in 1970 to 6.9 team has adopted a two-phased approach – percent in 2020, due to shifting of focus phase 1 focuses on key regulatory and policy toward industry, climatic conditions, lack of level issues as well as relevant institutional investments in modern agriculture, and lack capacity building targeting improved service of formal financing. delivery and procedures; and phase 2, based on the successful implementation of phase 1, This Upstream project began in FY22 with will focus on market outreach and proactive interventions focused on enabling markets. investor targeting and promotion, aiming for The project aims to empower financial private sector investment facilitation. The institutions (FIs) with informed decision- project will align with activities discussed/ making capabilities while extending climate- planned both with MAS Upstream, which is smart agricultural (CSA) financing solutions to looking at investments in processors in the foster a climate-resilient agriculture sector in meat sector, and INFRA Upstream, which is Sri Lanka. The two-phased project will adopt looking at potential investments in storage/ a holistic approach to developing the sector transports/logistics related to the meat sector. by enabling FIs to provide CSA financing solutions to multiple players across selected The project is on track. The team organized agricultural value chains i.e., producers, an online meeting for Upstream infra team smallholder farmers, aggregators, logistic with the Mongolian transport companies. providers, storage providers, processors, and The team will also explore opportunities to SME agribusinesses, based on a) profitability; engage with Chinese freight forwarders and b) market/export potential or import Customs to analyze transit barriers. The substitution; c) total area of cultivation/ project will engage with MCS (Mongolian growth potential; and d) productivity. Consulting Service), the potential IFC agribusiness client for Upstream MAS, Supporting the development of an in the areas of livestock and poultry, ecosystem to facilitate CSA financing by and will provide necessary support to building strategic alliances with technology unlock entry barriers for an enabling and machinery vendors, agriculture business environment. departments, agritechs, fintechs, FIs, agribusinesses, and other players in the In June 2022, the team organized a value chain will lead to a commercially viable workshop on coordination of government business model for refinancing, reduce agencies for streamlining exports, attended operational costs and credit risks, improve by 22 officials. Also in June, the team farm-market linkages, and facilitate the provided training for 66 representatives adoption of CSA technologies. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 41 Women at work on a farm field in Sri Lanka. Photo: Lakshman Nadaraja/World Bank The FIAS-supported team intends to perform training and standard-setting for good a diagnostic assessment to identify the gaps agricultural practices. Platform clients include and challenges faced by the banks/FIs to food-processing companies, retailers, farms, implement climate-smart technologies in the and SME suppliers to retailers. identified agri value chains. The diagnostic will be carried out in collaboration with two The six-year $4.5 million Upstream advisory to three selected banks/FIs. Based on the project will help clients build capacity in findings from the diagnostic, innovative food safety globally. The project was funded client-centric CSA financial solutions and in the previous FIAS cycle, focusing on implementation models for the FIs would IDA and digitalization. The team continued be designed. implementing the Food Safety Platform, with a broader scope, focusing on food loss and Global Food Safety Addressing waste and its impact on climate change, as Food Safety Risks and Contributing well as food safety in IDA and FCS. to Sector Capacity The project is on track. In FY22, the FIAS- The Global Food Safety Platform was supported team developed an eLearning designed to reduce food safety risk for Course, “Food Safety Reforms, Learnings private-sector clients while contributing to from the Best: New Zealand Food Safety industry sector capacity. The platform is System in Case Studies,” launched during a working toward this goal in two dimensions: webinar in June. After the event, the Kenya advisory to firm-level agribusiness and Parliament and the Food Safety Task Force building capacity and thought leadership in for Kenya participated in the course. food safety by partnering with stakeholders, including the Bank Group’s Global Food Also in this reporting period, 13 new products Safety Initiative and Global Good Agricultural were developed and, with support from the Practices, an organization that provides global food safety team, a concept note for a FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 42 FIAS 2022 Annual Review 03 Bangladesh Food Safety Diagnostic project Global Housing Microfinance Seeks was approved in August 2021. The team also to Reduce Housing Poverty Across contributed to the IFC’s Vietnam Food Safety Multiple Regions and Food Loss and Waste project’s concept note development, which was approved in With nearly 70 percent of Africans living on October 2021. less than $60 a month, formal housing is far out of reach for most of the population. Gender-Inclusive Infrastructure Most low-income people build and improve and Natural Resources Focused on their own houses informally, in gradual steps. The objective of this multi-region, Strengthening Gender Expertise five-year Upstream umbrella project is This product development project (PDP) to reduce housing poverty by expanding aims to strengthen IFC’s advisory role and the innovative IFC-designed Housing gender expertise by (i) piloting gender- Microfinance (HMF) product that will enable smart solutions with IFC clients in the local FIs to finance home improvements power and cities sector to improve their and home expansions for the poor through operational performance, generate new IFC investment and advisory support. At opportunities for women and proactively least 80 percent of the work is expected to mitigate any adverse impact of its be conducted in Africa and 90 percent in operations on the same target group, and IDA countries. (ii) developing tools and guides for core infrastructure (INR) sectors. The pilots, tools, Loans of this type are traditionally provided knowledge products, and learnings derived to male customers, but this project will through this PDP will also contribute to strive to change this and to increase the achieving IFC’s gender commitments. share of women borrowers for loans related to home improvements and The FIAS-supported team seeks to develop incremental construction. The project is new approaches/offerings and build expected to create at least three child capacity of INR investment and advisory implementation projects with at least six clients to design and implement gender- FIs. Under these projects, at least 150,000 smart solutions into their operations. As low-income households will improve their companies acknowledge that gender housing conditions. inequity negatively impacts their bottom line and social license to operate, there is an In the pre-implementation phase, the expressed need for expertise and a growing team, with support from FIAS, will identify demand to understand how the private IDA and FCS countries of operation and sector can effectively integrate gender into potential counterparts as well as assess the their operations. This also points to a need key specifics of the product development to build capacity of INR staff to pitch and and approximate cost of the operation in design gender-smart solutions, to meet these countries. Introduction of the HMF the demands of INR clients. In addition to product will be conducted during project responding to external client demand for implementation. The product has already gender-smart solutions, this project will generated several investment opportunities respond to internal demands of achieving and enabled more than 45,000 low-income IFC’s corporate gender commitments. households to improve their living conditions. By drawing on its experience from Central Based on INR pipeline projections and Asia, IFC FIG Advisory Services is well 70 percent of expressed client demand, power and positioned to expand the product globally. Africans live on cities will be the sectors of primary focus in this PDP’s pilot activities; addressing Expansion of the HMF will help FIs and IFC investees create strong value propositions less than $60 gender-based violence will be a cross- for their clients and will generate investment a month cutting theme. opportunities for IFC to provide liquidity for HMF operations. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 43 Teresa del Carmen, in Buga, Colombia, works seasonally for the passion fruit producer’s alliance. Photo: Charlotte Kesl/World Bank IFC is active in housing finance and supported Upstream project will work with introducing mortgage markets in the clients to develop a sustainable infrastructure countries where it practically does not exist through asset-level financing, sustainable (Uzbekistan), by providing housing finance advisory, and Upstream platforms and through capital markets solutions (Georgia, initiatives that seek to catalyze specific India, and Indonesia), building mortgage technologies or new business models in refinance companies (Kenya and Pakistan), particular countries. promoting green, energy efficient, and disaster resilience housing (Caribbean), and The team will seek to play a key role in developing housing finance solutions for supporting clients to: (i) enhance their women (Colombia). However, the volume of corporate sustainability strategies; (ii) identify housing finance operations that target low- specific sustainability goals, key performance income people is rather limited, despite the indicators (KPIs), and targets; (iii) structure a need for such operations. IFC is well positioned sustainable financing around those targets; to expand the HMF product globally. and (iv) support them to achieve those sustainability targets through concrete Sustainable Infrastructure of the interventions at the project level. Future Platform Explores New The platform, which got under way in FY22, Avenues in Infrastructure Financing will be structured as a global umbrella that The market for sustainable finance, including can: (i) provide resources and expertise green, social, blue, sustainability, and for specific client engagements; and (ii) sustainability-linked bonds and loans, is articulate a centralized approach to industry expected to reach over $1.5 trillion globally in benchmarking and knowledge sharing, 2021. Demand for these financial instruments as well as client mapping, marketing, and has created an opportunity for IFC to help external branding. This platform will support catalyze and develop sustainable financing any specific sustainable sector initiative and solutions in emerging markets. The FIAS- will seek to complement existing initiatives FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 44 FIAS 2022 Annual Review 03 by Sustainable Infrastructure Advisory Global Housing Advisory Platform (SIA), Climate Business Department (CBD), Implementation Aims to Advance and Mainstream, while avoiding potential IFC Affordable Housing Investment duplication in terms of client engagement. SIA work will be key to delivering our The Global Housing Advisory Platform is the platform strategy services to clients, first proposed child project of the approved therefore SIA and Upstream will join forces Global Housing Umbrella. This project will under this platform, as well as joining with implement short-term client-facing advisory CBD (including for staffing and funding engagements with housing developers resources) to strengthen and expand aimed at triggering a change in behavior sustainable services for our clients. that will result in a measurable improvement in performance. The client engagement will The scope of the platform will expand be in the form of deployment of the Rapid to include an increasingly wide range of Assessment tools, targeted capacity building sustainability targets (e.g., decarbonization that will enable the client to implement targets in the energy sector are expected to recommendations, followed by re-assessment be key but also in other infra sectors such as using the Rapid tool to measure performance mining, shipping, water, logistics, etc.). The improvement. The overall goal of this global platform will host knowledge sharing from project is to facilitate or support $20 million of market mapping and lessons learnt from IFC investment in affordable housing through deals created across regions and clients. its short-term client advisory engagements. Scaling Biodiversity Finance KDP The project will complete the work already started during the pre-implementation As noted in the previous chapter, the phase to develop, customize, and pilot objective of this FIAS-supported knowledge the READ (Real Estate Assessment of development product is to assess options Developers) and ASHA (Affordable Socially and partnerships for IFC and IFC clients to sustainable Housing Application) housing invest in opportunities that directly contribute tools, while also developing each tool’s to biodiversity co-benefits at a landscape capacity-building curriculum. level, thereby significantly scaling IFC’s potential biodiversity-positive impacts. There The project is progressing according to is a clear role and rationale for IFC to explore plan. In this FY, the FIAS-supported team the potential for this new asset class and developed 12 tools and online training possibly catalyze the creation of a market. content for them. With assistance from IFC and vendor subject matter experts, the team The team aims to produce an upfront finalized the development of 27 self-study synthesis and framing report that covers eLearnings for ASHA Rapid, Comprehensive, an assessment of the types of capital and Coaching, and Outcome Areas learning investors that are interested in biodiversity paths, and 23 self-study eLearnings for conservation, and two detailed case study READ Rapid, Comprehensive, Coaching, examples that explore, with IFC teams on and Outcome Areas learning paths. The the ground, options for scaling positive team also developed another 17 webinars to biodiversity-related impacts through IFC supplement the self-study learning. and private finance. Teams will prepare a long list of 15 to 20 landscapes that have the Additionally, the team carried out the READ potential to raise biodiversity-related finance Rapid pilot in April and used the results and but need further bundling and structuring feedback to plan the READ Comprehensive, to connect to IFC business lines and an ASHA Rapid and Comprehensive, and investments. Examples include a landscape Coaching Pilots more efficiently. 11 people in Gorongoza National Park, Mozambique, a participated in the pilot training, of which 8 sector-specific investment client—Nespresso have been further selected to continue the coffee—in multiple landscapes. training through the Comprehensive READ Tool Assessment & Coaching. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 45 State Owned Enterprises Project SOEs, developing a database whose analysis to Identify Barriers to Private resulted in a note which included the key findings. The team also prepared a literature Sector Investment review looking at investment criteria and State-owned enterprises (SOEs) play a benchmarking those to the IFC principles. key role in global and domestic markets. This assessment studies where multilateral The presence of SOEs is not restricted to organizations invest in SOEs, which are the sectors where there is a clear economic guiding principles as well as the sectors rationale for their operation, but they in which multilateral organizations invest also operate in commercial sectors (e.g., in SOEs, and how those investments are manufacturing, chemicals, transport) where analyzed from a perspective of private sector they compete vis-à-vis private investors development to mitigate the risks of market posing risks for distorting markets and distortions and displacing private investment. crowding-out private investment. This analysis provides new evidence to inform the development of the tool for IFC In the COVID-19 context, the state is expanding SOE investments during FY23. its role as a market player, which affects the structure of markets and private sector in the FIAS Supporting Expansion of course to recovery. SOE and state aid policy IFC’s Gender Agenda trackers indicate that government support to mitigate the pandemic effects has targeted In concert with IFC’s overall strategy, FIAS is private sector operators and SOEs. In some playing an important role ensuring robust ECA countries, SOEs act simultaneously as inclusion of gender components in advisory market player with regulatory functions (e.g., and Upstream projects. Through the new licenses for competitors), lack separation of FIAS allocation process, the FIAS Program commercial and non-commercial functions interacts with teams, evaluating funding (public service obligations), with higher risks requests and working with teams to add of cross-subsidization, and are still prominent gender components when possible and in commercial sectors competing vis-à-vis strengthen those already included in project the private sector. State aid, bailouts, and implementation plans. As noted, 63 percent nationalizations pose market challenges for of the projects funded through FIAS Core the private sector, especially when those have gender components, solid progress are not fully aligned with the competition toward the FIAS strategy cycle target of 80 principles to ensure a level playing field. percent, as do 47 percent of the projects in the overall FIAS FY22 portfolio, ahead The new way forward in the IFC strategy is of the IFC corporate target of 40 percent. also aiming to expand in terms of the sectors In addition to projects already described, of involvement beyond infrastructure and below are examples of some of the FIAS- traditional sectors with high SOE presence supported initiatives working with clients on and explore opportunities also in fully gender-related aspects of private sector-led commercial sectors (e.g., manufacturing) economic development. where SOEs are still present. Contributing to Pillar II of the IFC 3.0 strategy in creating Women, Business and the Law markets and opportunities, this project aims Advisory Initiative for Africa Piloting to strengthen the identification of barriers Gender Reform Implementation for private sector development and provide guidance on opportunities and reform The Women, Business and the Law (WBL) options to enable investment in sectors with Advisory Initiative is expanding the support SOE presence. for gender equality throughout Africa by increasing the participation of women in the The project is advancing at a good pace. economy. The project aims to achieve this In this reporting period, with support from goal by co-designing gender-neutral laws FIAS, the team conducted a stock-taking with the governments. The FIAS-supported of the IFC investment portfolio targeting projects for piloting reform implementation FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 46 FIAS 2022 Annual Review 03 Binta uses her tablet to record sales and manage her vegetable stand in Dakar, Senegal. Photo: Vincent Tremeau/World Bank are ongoing in Côte d’Ivoire and Rwanda, recommended gender reforms such as: 1) whereas preparatory client engagement is Protecting women from domestic violence; in progress in Gabon, Mauritania, Senegal, 2) Eliminating gender-based discrimination Sierra Leone, Somalia, and Togo. The work in access to credit; 3) Allowing women to through World Bank lending operations equally be head of household, choosing is ongoing in Cameroon, Chad, Senegal, where to live, work outside the home, open Sierra Leone, and Uganda. bank accounts, own and manage the property, and removing the duty of wifely In Côte d’Ivoire, the team delivered an obedience; and 4) Eliminating restrictions initial country-level assessment, including on women’s work in industrial jobs and a scorecard, WBL action plan, and reform mandating equal remuneration for work of memoranda. The team is advising on draft equal value. Lastly, in Mauritania, the draft amendments to the Labor and Penal Codes, law on protecting women and girls against resulting in the enactment of legislation violence was reviewed and a legal drafting protecting women against violence. In proposal was delivered, including proposed Rwanda, the project delivered reform amendment texts to the labor code and memoranda, an action plan, technical personal status law. assistance and legal drafting proposals, and a legal review of the Consumer Protection Law and Ministerial Order Establishing the List of Gross Misconduct. In Gabon, four laws adopted by Parliament incorporated IFC’s FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 47 Côte d’Ivoire Legislative Reform for Enhancing Women Economic Women’s Economic Inclusion Participation in Egypt Project Côte d’Ivoire ranks in the bottom 25 The WBL project for Egypt was approved economies globally (134th of 156 countries) in March 2021. The project experienced on the Global Gender Gap Index 2021 and minor delays due to government security ranks 43rd out of 56 countries measured approvals. As the COVID-19 restrictions by the African Development Bank’s Africa and travel limitations eased, the project Gender Inequality Index. A World Bank team resumed face-to-face meetings with Group economic update illustrated the the client and related stakeholders and impact of gender discrimination, estimating delivered a capacity-building workshop that the benefits of reducing gender to multiple government stakeholders on discrimination are between $6 billion to the “Women, Business and the Law Index” $10 billion, or between one-third and half (WBL-Index) methodology, a tool developed of the country’s current revenues. It further by the World Bank Group. As this index shows that inequalities in the private sector forms the basis of all project activities, and agriculture are also evidenced by the workshop was a key milestone for productivity differences between men and government engagement and undertaking women, resulting from women’s unequal further activities. The project team also access to means of production, financing, developed an implementation plan in and commercial networks, among other partnership with the National Council issues. In this context, this project was for Women, the Ministry of Labor, and developed in Côte d’Ivoire to increase the Financial Regulatory Authority. IFC’s women’s economic empowerment. team provided WBL-related reform recommendations on the draft labor law The project aims to reduce gender legal that are still under discussion in parliament. inequalities and discrimination against Furthermore, the project supported women to facilitate access to jobs and the World Bank’s Development Policy employment opportunities across all sectors, Operation’s gender pillar, the first of its kind access to finance, and protection from in the region. domestic violence. This engagement, which came in response to the discussions at the Women & Insurance Phase II level of the Prime Minister’s Office and the Improving Women’s Access to Ministry of Justice and Human Rights, will Affordable Insurance Products offer advisory services on laws identified as regulatory constraints to women’s economic Building on the momentum of the Women participation. A preliminary assessment of and Insurance project that produced the Côte d’Ivoire’s legal framework indicated “SheforShield: Insure Women to Better lagging performance, thus presenting reform Protect All” report, the second phase of the opportunities. In accordance, the project project emphasizes improving women’s will advise and support the government access to affordable and tailored insurance on legal amendments and reforms in four products, and employment opportunities areas – removal of restrictions for women to as agents or distributors. The report found work in certain types of jobs and industries, that the untapped market representing prohibition of gender-based discrimination in women presents a $1.7 trillion opportunity access to credit, the introduction of parental for the insurance industry, with half of it leave, and domestic violence legislation. flowing from 10 emerging economies. As The project will work with the private women play a multifaceted role in society sector to identify and support champions and have varying financial needs and for implementing these reforms. It also preferences at different stages of their envisions analyzing the government data lives, the report advocates identifying collection system to assess and recommend and targeting women based on their improvements to gender-disaggregated data socioeconomic segments to realize this subject to buy-in from the government. market potential. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 48 FIAS 2022 Annual Review 03 Through this initiative, the project plans Exterior y Turismo), PromPeru, municipalities, to apply insights generated from the first regional authorities, and the private sector to phase to develop an insurance advisory disseminate the findings of the Destination product offering for women. As IFC is the Assessment of Arequipa. Based on the only development financial institution with findings, MINCETUR reached out to the World a special focus on women’s access to Bank to finalize a sectoral loan to develop insurance, this product will further help in Arequipa as a key destination to secure positioning IFC as a thought leader in the financing for the infrastructure investments women and insurance landscape. In the end, identified in the assessment. The project also the project expects to (i) Increase awareness assisted MINCETUR in leading a series of in the insurance industry of the business workshops to discuss the draft regulations case for targeting women as a segment, and on online home rentals with local, national, stimulate demand for women’s insurance and municipal officials as well as private programs; (ii) Increase IFC’s institutional sector representatives. capacity to deliver women’s insurance programs; and (iii) Increase understanding Competitiveness Policy Evaluation of life cycle risks faced by women by Lab Informs Improvement in conducting new research on women’s risk Growth-Oriented Policies across emerging markets. The primary objective of the Competitiveness Strengthening Tourism Sector Policy Evaluation Lab (ComPEL) is to generate Competitiveness in Peru high-quality evidence to inform policies that aim to improve firm productivity, create The hospitality and tourism sector in jobs, and generate investment. ComPEL Peru has been severely impacted by the aims at improving operations and country pandemic. The sector, in which women programs continuously and systematically account for a substantial portion of by strategically using impact evaluation employment, has recovered merely 20 and other research to: (i) compare the percent of its pre-pandemic tourism levels, value-added of various interventions or with no hint of bouncing back until 2025. In implementation modalities; and (ii) develop addition, social unrest in the tourist region and rigorously pilot new policy instruments and the lack of health services have kept to expand the offerings of interventions visitor entry low. In this light, the project related to private sector development. aims to strengthen the institutional capacity of the tourism sector to attract and retain ComPEL supports the design and sustainable and inclusive investments in implementation of impact evaluations around target destinations. This goal will be achieved thematic clusters through technical advice, by improving Peru’s regulatory environment, academic reviews, funding, workshops, and building an institutional framework for seminars. The thematic clusters are: investment promotion, and supporting the development of strong data collection on (i) Targeting firms with high growth potential: behalf of the Peruvian Government. Aims at understanding how to identify firms with high growth potential and what The project expects to create direct and kind of policies would better assist them indirect employment as well as generate $20 in achieving growth. million in investments and at least two leads on potential infrastructure projects. While (ii) Connecting businesses to improve all the project outputs have been delivered, market access and promote spillovers: the project is now focusing on supporting Aims at exploring the role of interventions the achievement of outcomes. To mitigate that connect business to the demand the low investment appetite from the private side and those that reduce search and sector, the project is closely working with enforcement frictions. the Ministry of Foreign Trade and Tourism (MINCETUR – Ministerio de Comercio FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 49 (iii) Improving regulatory efficiency to benefit During the reporting period, the USAID firms: Focuses on understanding what grant continued to support two projects: specific types of regulatory interventions the main ComPEL project that generates have shown to have positive impact and disseminates cutting-edge evidence on firm outcomes and what type of in partnership with client governments and interventions have shown to alleviate donors through systematic reviews of global firms’ burdens. evidence and original research, including firm-level impact evaluations of programs (iv) Improving technology adoption: Focuses that grow the private sector; and the Firms on how to encourage firms at different and Analytics project which includes national stages of capabilities to adopt technologies. business pulse surveys on pandemic Central to these impact evaluations will be impacts and response, and firm-level impact their approach to measuring technology evaluations of programs that grow the adoption and its spillovers. private sector and support the Sustainable Development Goals. Although the ComPEL (v) Improving access to SME finance: Aims project ended in June 2022, the remaining at addressing the SME finance gap. grant will be used to continue the work on Interventions may target SMEs or informal the wider Ghana survey. entrepreneurs and be related to the direct provision of finance (guarantees, Central America Investment collaterals, loans, equity, grants, Climate Achieves Objectives in crowdfunding, etc.) through schemes that Sanitary Registration reduce transaction costs, financing costs, information asymmetries, and/or risks. The project’s objective was to streamline Interventions may also be related to the and automate procedures for sanitary adoption of digital payment systems and registration for processed food and other financial technologies. beverages in Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. Impact evaluations advanced during the These procedures would include a first-time reporting period with 11 reports produced, registry as well as a regional automated 6 data collection initiatives (5 surveys and 1 system for mutual recognition of sanitary round of administrative data) completed, and registries among all five Central American 1 workshop—the Flagship Impact Evaluation Customs Union participant countries. Workshop—delivered with the World Bank Specifically, the project aimed to reduce the Group’s Europe and Central Asia region team average number of days and the cost to to 109 participants from 14 project teams. register a processed food product, reduce the number of documents required to trade Regarding the 11 reports produced, 6 reports for mutual recognition registration, and analyzing impact evaluation data were increase the number of product registries finalized, 1 each for Georgia, Kenya, Mexico, that are mutually recognized. and 3 for Peru; 2 implementation reports were completed for Kenya; 2 baseline reports were From inception to completion, the project completed for Burkina Faso and Ghana; has achieved its objectives to streamline and and 1 report was prepared with insights from automate procedures for sanitary registration impact evaluation activities in Ethiopia. for processed food and beverages in the five client countries, including the establishment Other research knowledge products of the regional automated system for were also completed, including four notes mutual recognition of sanitary registries analyzing data from Business Pulse Surveys among them. Modules were developed for and the identification of data collection the national sanitary registration systems companies and other partners to conduct in El Salvador, Guatemala, Honduras, and additional surveys in six countries across Nicaragua, which have streamlined and Africa, as well as the publication of the automated the sanitary registration process systematic review on technology adoption. in each country, thereby increasing private FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 50 FIAS 2022 Annual Review 03 sector competitiveness by making it easier, In FY22, the project attained achievements in faster, and less costly to trade. The project setting up and institutionalizing the investor also achieved key regional regulatory grievance mechanism to prevent or limit changes during implementation, including the escalation of investor grievances to the reduction of documentary requirements courts and arbitration. Secondly, the project for mutual recognition which has further successfully established a single online harmonized procedures and eliminated portal/e-registry (www.elicense.gov.kg) to courier and transport costs. increase transparency and accountability for businesses. The e-registry currently High-level results achieved to date include: contains 200 licenses and permits and has recorded over 11,500 individual visits by • Reduction in first-time registrations from businesses, exceeding the target of 10,000. 70 to 41 days (vs. target 52); with an As a result, a presidential decree issued in average reduction in registration costs June broadened the scope of the e-registry from $334 to $236 (vs. target $250); and established the platform as the single portal for all permissive documents in the • Reduction in the average number of days country, surpassing the team’s expectations to register a processed food product and confirming the government’s strong for mutual recognition from 5 to 2.78 commitment to the reforms. business days. The project showcased significant progress • Reduction in the average cost to register on digital infrastructure with the identification a processed food product for mutual of three new regulations (Law on Roads, recognition from $536 to $320, a 40 Law on Electrical Communications, and Law percent reduction (vs. target 25 percent). on Licensing), which are in the adoption process, to address key barriers to digital • Reduction from 4 to 2 of the number of infrastructure development. In February, the documents required to trade for mutual Cabinet of Ministers adopted the resolution, recognition registration. “On Digital Infrastructure Development of the Kyrgyz Republic for 2022–23,” • Increase in the number of product introducing a roadmap of information registries mutually recognized from 4,581 and communication technologies (ICT) to 15,910 (vs. target 6,948). infrastructure development that the project previously supported. Based on current data, the different pace of reforms in the countries, and continued Tajikistan Competitiveness automation and regional integration, the Enhancement Project Focused on project impact is projected to generate $9.7 Post-Pandemic Recovery million in compliance cost savings for first- time registration and $8.1 million in private In Tajikistan, the project aims to enhance sector savings for mutual recognition three SME resilience and support the post- years after the project end. pandemic recovery in the service and real sectors. The project has attained substantial Kyrgyz Republic Investment and progress in implementing reforms in the Growth Project Progressing tourism sector to enhance competitiveness and enable post-COVID-19 recovery Toward Objectives and resilience. The project in Kyrgyz Republic continued progressing well in FY22 and is on track to As a result, the project reported $300,000 achieve its objectives. The project received in investments generated, achieving 8.6 SECO approval for a cost extension until percent of its target, and 145 jobs created, December 31, 2023, to fully implement exceeding the target by 145 percent. The the recently added digital infrastructure project achieved another milestone with the component with a budget hike of $550,000. government’s introduction of a unilateral FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 51 visa-free regime, with 52 countries for a and supporting local firm integration into period of 30 days. In addition, the first round the emerging local and regional TT value of the Tailored Advisory Program for SMEs chain. The project aims to line up two in tourism commenced with 11 participating foreign investors with expressed interest in companies, leading to the creation of 145 expanding operations in Egypt and at least jobs (9 permanent and 136 seasonal workers one investment commitment secured. It in 2022). Additionally, the project contributed also aims to help bring about a 10 percent to the design of a new World Bank improvement in operational performance Development Policy Operation (DPO) aimed in key export competitiveness indicators at supporting the Government of Tajikistan by working with local firms participating to increase economic and social resilience in a supplier development pilot project. to external shocks and sustainable growth. Two years post-completion, the project Furthermore, the signing of a cooperation aims to generate at least $50 million in agreement with the government in FY22 new investment. facilitated the intensification of most activities. This included the completion of the bidding Since the approval of the implementation and selection process for the development of plan in January 2021, the project has the e-Services for Business System (e-portal faced a series of incidents delaying for inspection management and online implementation, including a one-year application for licenses/permits). delay in receiving security clearance from the governmental authorities to Egypt Private Sector Development conduct implementation activities, project Program Completes Key Pre- restructuring, and a lengthy handover process with the changing of the project’s Implementation Activities The Egypt PSD program is considered a comprehensive reference for other World Bank Group teams working on investment climate reform in Egypt. The team’s experience from this vast and versatile engagement with multiple line ministries and government agencies will benefit all other project teams working on the reform agenda in Egypt. During FY22, the Egypt PSD program successfully concluded all planned pre-implementation activities, and as a result, all five child projects are now active and reporting independently. Egypt Textile Value Chain Project Creating Linkages to Value Chains Significant opportunities exist for expanding participation by Egypt in the emerging global and regional technical textiles (TT) value chain. It is expected that $650 million to $800 million in new foreign investment could be attracted to Egypt’s TT sector over the next five years. The overall goal of this project is to expand the positioning of Egypt as an emerging manufacturing and export base for TT A woman employee at Egypt’s Rich Factory carefully sewing a garment. by attracting more foreign investment Photo: Dominic Chavez/World Bank FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 52 FIAS 2022 Annual Review 03 team leader. These issues were eventually A key project milestone was reached with resolved during the reporting period: the the enactment of two reforms derived from project received its security clearance, the previous ex-post reviews delivered in the restructuring was completed, and the new first half of FY22. The Colombian Agricultural team leader was onboarded. Additionally, Institute (ICA - Instituto Colombiano the impact of COVID-19 combined with the Agropecuario) approved Resolution 824 on global political/economic landscape, and agricultural activities related to the export of the effects of Russian invasion of Ukraine, fresh produce and MinSalud/Invima enacted has significantly affected Egypt’s economic Decree 334 on the registry, licensing, growth. The foreign currency shortages and quality control, and surveillance of drugs a series of regulations and fiscal policies and related health products. Both reforms affecting the importation of key production incorporate recommendations included inputs, also led to a major slowdown in in the ex-post evaluations conducted by the manufacturing sector due to a lack the project. The team continues to monitor of imported raw materials. Currently, the progress of potential reforms related to government is working on a series of project recommendations, mainly the ex- executive decisions that should positively post reviews. impact the importation of components for the production process in key strategic To promote export growth and science, industries, including technical textiles. technology, and innovation (STI) investment, the team completed the Colombia Colombia Productivity and Jobs Productiva impact evaluation report to Achieves Key Objectives assess the pilot program’s impact on SMEs with strong export potential. Overall, The project in Colombia achieved all the impact evaluation of the Government outcome targets for FY22, and despite of Colombia program indicates that the COVID-19 disruptions and social unrest, is on program improved general management track to achieve overall targets as planned. practices, but the impact was weak on In addition, the project exceeded inception- exports, employment, and sales. The to-date targets, including five outputs, disseminated results and lessons learned surpassing cumulative targets. from the impact evaluation will allow the government and other partners to improve their programs supporting firms. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 53 Man working outside his workshop, India. Photo: Nishant Meenah/Pexels FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 54 FIAS 2022 Annual Review 03 Knowledge Management, IFC Scan Guide: Policy and Regulatory Publications, and Dimension of Food Safety, Food Loss and Wastes, Food Fortification: IFC Learning Highlights Scan Guide is a new tool developed by Each year IFC and the World Bank publish the IFC Food Safety Advisory team to many outputs, including real-time tools, support the analysis of the policy and policy technical notes, and global flagships, regulatory dimensions of four aspects of that help inform FIAS advisory work and a country’s national food system: food provide the analytical basis for policy advice safety, food fortification, food loss and on critical topics related to the private sector. waste, livestock production (animal welfare Highlights include: and use of antibiotics). The publication provides a list of assessment questions in FY22 Publications these four areas to allow users to identify challenges and transformations. Doing Women’s Economic Participation and so could increase efficiency in protecting Public Disclosure Authorized the Impact of Regulatory Barriers: The consumers, improving national food safety TRADE, INVESTMENT AND COMPETITIVENESS Women, Business and the Law team while supporting and creating a sustainable published an insight paper that considers the food industry. Public Disclosure Authorized impact of legal discrimination and the absence of protective legislation on women’s Social Contracts for Development: Public Disclosure Authorized TRADE, INVESTMENT AND COMPETITIVENESS economic outcomes, namely employment, Bargaining, Contention, and Social EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT Women’s Economic Participation and and earnings. The paper explores the various Inclusion in Sub-Saharan Africa: This Public Disclosure Authorized the Impact of Regulatory Barriers pathways or channels through which laws report focuses on the impacts of and Author: Souad Adnane and regulations affect those outcomes and adjustments to climate change in developing concludes that although legal reform is not countries and on how future trade Under the direction of: Iva Hamel And general supervision of: Christine Qiang enough to bring about change, it is a critical opportunities will be affected by both the first step in initiating social change and changing climate and the policy responses promoting women’s economic participation to address it. The authors argue that policies and women’s employment in the that reflect the demands and expectations of formal sector. the people lead to more stable and equitable outcomes than those that do not. Their focus Distributional Impacts of COVID-19 in the is on how social contracts are forged in the MENA DEVELOPMENT REPORT Middle East and North Africa Region: In region, how they change and why, and how a Distributional Impacts the decade following the Arab Spring, the better understanding of social contracts can of COVID-19 in the Middle East North Africa (MENA) region has inform reform efforts. Middle East and North Africa Region confronted war, oil price volatility, economic slowdowns, and COVID-19, crises that have The Inclusion of Women in the Digital torn at the social fabric of the region and Economy in Jordan and Lebanon: Many contributed to high unemployment, high factors explain the absence of Middle Eastern levels of informality, and low growth. This women in the digital economy: the workforce report investigates how COVID-19 changed gender gap across the region extends the welfare of individuals and households in online; women often lack digital literacy the region. Through phone surveys and and awareness of opportunities online; and Johannes G. Hoogeveen and Gladys Lopez-Acevedo, Editors micro-simulation exercises, the report legal frameworks are needed to support assesses the impact of COVID-19 on jobs, online work. The lessons learned report income, poverty, and inequality. The results provides a wealth of lessons on the best show that in the short run, poverty rates in pathways for development organizations MENA will increase significantly and and other stakeholders to pursue in their inequality will widen. A group of “new poor” is efforts to increase women’s participation in likely to emerge that may have difficulty online marketplaces. recovering from the economic consequences of the pandemic. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 55 Women, Business and the Law 2022: Unmasking the Impact of COVID-19 on Women, Business and the Law 2022 is the Businesses: Firm-Level Evidence from eighth in a series of annual studies measuring Across the World: This paper provides a the laws and regulations that affect women’s comprehensive assessment of the short- economic opportunity in 190 economies. The term impact of the COVID-19 pandemic project presents eight indicators structured on businesses worldwide with a focus on around women’s interactions with the law developing countries. The results are based as they move through their careers. Amid on a novel data set collected by the World a global pandemic that threatens progress Bank Group and several partner institutions toward gender equality, ‘Women, Business in 51 countries covering more than and the Law 2022’ identifies barriers to 100,000 businesses. women’s economic participation and encourages reform of discriminatory laws. Inclusive Distribution: Advancing Gender Equality in the Fast-moving Consumer Emerging Market Real Economy Sustainable Bonds – current and potential issuance Africa in the New Trade Environment: Goods Sector: This learning brief introduces Country focus: Egypt, Ghana, Morocco, Nigeria, South Africa Sector analysis: Power, Transport, Agribusiness Market Access in Troubled Times: Sub- how gender equality can be advanced within Saharan Africa represents only a small share the distribution activities of the FMCG sector. of global production and trade while hosting It presents an emerging business case, the half of the extreme poor worldwide. To catch challenges, and recommendations to up with the rest of the world, the continent address these challenges. The brief is based has no alternative: it must undertake on IFC projects in Egypt, Indonesia, Nigeria, reforms to scale up its supply capacity while Philippines, and Sri Lanka; desk research; better linking its production and trade to and interviews with market participants. the global economy. This report provides a comprehensive, state-of-the-art analysis Emerging Market Real Economy by a team of renowned trade economists Sustainable Bonds – current and who present a strategy to bolster Sub- potential issuance: Together with Saharan Africa’s market access in the current Environmental Finance and HSBC, IFC issued global environment. a report to survey the five focus countries of Egypt, Morocco, Ghana, Nigeria, and South Transforming Agribusiness in Nigeria Africa which have issued 20 sustainable for Inclusive Recovery, Jobs Creation, bonds. This report reviews the challenges and Poverty Reduction: Policy Reforms and opportunities in each country for future and Investment Priorities: Nigeria has sustainable bond issuance across three key for decades placed enormous emphasis sectors: power, transport, and agribusiness.  on diversifying its economy beyond oil and into sectors such as agribusiness Short Term Effects of COVID-19 on and manufacturing. The report illustrates Digital Infrastructure in Emerging the potential of the agribusiness sector to Markets: This note leverages data from accelerate inclusive growth, create jobs, and industry sources and an IFC survey of digital reduce poverty. infrastructure companies to assess the short-term effects of COVID-19 on digital Accelerating Sustainable Finance infrastructure in emerging markets. The note Together: The IFC-supported Sustainable concludes with a discussion of emerging Banking Network (SBN)’s second Global trends and their implications for public policy Accelerating Sustainable Finance Together Progress Report documents the accelerated and corporate and investment strategies Global Progress Report of the Sustainable Banking and Finance Network progress of SBN members in translating in support of the development of the digital Evidence of Policy Innovations and Market Actions across 43 Emerging Markets policy innovations into practical infrastructure sector in emerging markets. October 2021 implementation. It includes 30 country reports that capture sustainable finance market transformation across 38 emerging markets, representing $43 trillion, or 86 percent, of emerging markets banking assets. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 56 FIAS 2022 Annual Review 03 FY22 Events Regulatory Impact Assessment and the Importance of Evidence-Based Setting the Tone for Gender Equality— Regulations: The webinar, held on How the GCC Gender Reforms Sparked September 21, 2021, was co-organized a Regional Movement: As a part of GCC with Colombia Productiva and the IFC knowledge week—a series of knowledge- team to present the Regulatory Impact sharing events organized by the World Analysis. Speakers included the President Bank’s Gulf Cooperation Council (GCC) of Colombia Productiva and SECO’s Chief Country Management Unit in February 2022, of Regulatory Policy and Analysis, followed the session focused on historic reforms by a panel discussion with representatives enacted with the technical support of the from the Colombian private sector and Finance Competitiveness and Innovation the United Nations Industrial Development (FCI) Business Regulations for Gender Organization (UNIDO). Equity team in the GCC countries (Saudi Arabia, Kuwait, and the UAE) to create more Competition Policy: International Event economic opportunities for women as and Workshop on Mergers: In June 2022, employees and entrepreneurs. The aim of the Peru Growth Program team organized the session was to share experiences on the an international event and workshop on unprecedented reform initiatives, including mergers to build capacity for the assessment the political economy, challenges in enacting of mergers from a competition standpoint. and implementing the changes, and lessons The event was attended by leading experts learned, as well as the way forward based on from international competition authorities national agendas. from the USA, EU, Mexico, UK, OECD, and Chile. Feedback from the client was Viewing Sustainability Through a Food overwhelmingly positive. Safety Lens Master Class: The masterclass in April 2022 aimed to help food safety Egypt V-LAB Summit: On June 18, 2022, professionals better understand the the V-LAB Summit signaled the close of the broader aspects of sustainability and their Spring 22 acceleration cycle, which included intersection with food safety. IFC’s food panel discussions, interactive workshops, safety team explored how the successful and impressive startup pitches. The event management of sustainable and safe food also marked the completion of IFC’s support practices can create value for a business— to AUC Venture Lab, Egypt’s first university- all while contributing to the Sustainable based accelerator, providing critical Development Goals. acceleration services, key to investment readiness of entrepreneurs, and creating a Marrakech Investor Day: Hosted by pipeline of fintech startups that could launch the Morocco Business Environment and innovative financial products and leverage Subnational Competitiveness project, private sector financing to scale their the event showcased potential and new businesses. This support resulted in over 40 investment opportunities in the region, recent new financial products developed by fintech FDI, global and regional economic trends, startups that reached over 230,000 users and the role of data in investment promotion through those newly developed products from the location and investment promotion and services. Through CMA’s support fintech agency’s (IPA) perspectives. The IFC team startups also managed to generate over $1 presented the key achievements of the CRI million in revenue and leverage more than and the new investment promotion mandate $1.5 million in investment. supported by the project, with testimonials from investors on competitiveness. The event took place on April 6, 2022, and was professionally broadcasted on multiple streaming platforms and local television. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 57 Digital Disruption in Tourism Forum Affordable Housing Workshop in Nigeria: Brings Innovative Digital Solutions to the In June 2022, IFC and the World Bank Sector in Ethiopia: On May 16, 2022, the hosted the housing workshop in Lagos. forum aimed to catalyze creation of a digital The workshop initiated a dialogue on how ecosystem for the travel and tourism sector sustainable housing could be developed in Ethiopia that could deploy innovative and scaled for individuals, families, and technologies for increased competitiveness students. It highlighted potential regulatory and sustainability of the sector. The forum and legal reforms that might eliminate was a result of a collaboration between the challenges, discussed land management and Prime Minister’s Office Digital Transformation land allocation, supply and demand issues, Team, Ministry of Tourism, Ministry of access to finance and innovative solutions Innovation and Technology, selected private for the development of a sustainable and sector partners, and IFC’s CMA. The forum affordable housing market in the country. The included panel discussions, presentations, a stakeholders agreed that a holistic approach series of workshops, and a hackathon. More should be undertaken to tackle some of the than 10 innovative digital solutions under most critical issues in the sector, where close the theme ‘Tour Operation Management and continuous collaboration between all and Support’, ‘Exploring Addis Ababa’, and parties involved is key. ‘Tourism Marketplace’ were presented as part of a 48-hour hackathon, and three were awarded during the forum. Public-Private Dialogue in Tunisia to Promote the Entrepreneurial Ecosystem in the Maghreb Region: IFC has been helping the Maghreb region mobilize investments in startups and venture capital funds, through improving the business enabling environment and strengthening key players in the entrepreneurial ecosystem. In May 2022, IFC conducted a public-private dialogue on the sector’s sustainable growth. The event presented the first results of the regional study that allowed to learn about the developments of the entrepreneurial ecosystem and provided an opportunity to discuss possible solutions to existing challenges that could be implemented by all parties involved. This PPD served as a starting point for eliminating key barriers the ecosystem players are facing in the region. Better access to markets and finances were named as the most critical that need to be addressed. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 58 FIAS 2022 Annual Review 04 Activities covered in the FIAS 2022 Annual Review were co-financed via a set of FIAS trust funds. Financial results reported in this section cover the donor and World Bank Group funds managed under the FIAS trust fund structure as well as supplemental funds earmarked for the implementation of the FIAS strategy. Financial Results FY22 FIAS Contributions These funds are provided by IFC and the $31.4M World Bank for FIAS-related activities and to cover sustaining costs associated with the management of FIAS. FIAS financial reports use cash-based reporting in alignment with the quarterly financial reports on IFC’s donor-funded operations. and Resource Use total Funding of which: Core, Programmatic, and Project- Specific Contributions $14.2M In FY22, FIAS donors and the World Bank Group contributed a total of $31.4 million (including trust fund administration fees of $1.22 million) to the various FIAS trust funds, supporting the implementation of a broad-based investment climate to Core reform effort under the FIAS program. Contributions from IFC in the form of allocations from the Funding Mechanism $9.2 million from donors for Technical Assistance and Advisory $5 million from IFC Services (FMTAAS) are treated as an additional source of funding for FIAS- $11.7M related activities (see details in Table 1: Sources and Uses of Funds). expenditures Pace of spending is accelerating as new projects begin implementation FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 59 World Bank Group core contributions eased, reaching $474,982, or 4 percent of all totaled $5.0 million in FY22. The $5.0 million expenditures. This was still low compared to from IFC was supplemented by in-kind the $3 million to $5 million per year during Travel expenses support from the World Bank. The World Bank Group contribution represents 16 the first three years of the previous strategy cycle. Indirect costs (infrastructure, office were three percent of total FY22 FIAS contributions.2 occupancy, and other miscellaneous costs) times higher remained relatively low in FY22 at 3 percent in FY22 than Core contributions received from donors (see Table 1, Sources and Uses of Funds). amounted to $9.2 million in FY22, representing the previous 29 percent of total contributions. As in the Direct project expenditures for FY22, including year as COVID FY17–21 strategy cycle, some donors agreed to roll over the unused portions (i.e., fund country- and global-level client-facing, were $10.4, or 89 percent of total expenditures of restrictions balances) of their contributions to the FY17–21 $11.7 million. In FY22, $1.1 million, or 9 percent were lifted funding cycle into the new FY22–26 cycle. of total FIAS expenditures, covered indirect Programmatic contributions from donors project costs including program support made available through thematic and regional such as global knowledge development FIAS trust funds totaled $15.2 million in FY22, products (KDPs), monitoring and evaluation or 48 percent of total contributions. Project- (M&E), and knowledge sharing. Program specific contributions from donor partners management and general and administration amounted to $2.0 million in FY22, or 6 percent costs, including operational support such of total contributions. This was down from as administrative expenses, donor relations, $5.9 million in FY21, an expected decrease as public relations, and other costs, totaled older projects close and FIAS focuses on new $204,952, or 2 percent of total expenditures additions to the project portfolio. The $26.3 (see details in Table 2: Expenditures by million in total donor contributions in FY22 Advisory Services Activity). represented 84 percent of the $31.4 million in total contributions. FIAS funding contributes substantially to the advisory services projects it supports. The Use of Funds $10.4 million in FIAS support for client-facing projects represented 66 percent of total FY22 In FY22 (from July 1, 2021, through June 30, spending on those projects. FIAS contributed 2022), FIAS expenditures for client-facing and an average of $159,912 to the 65 client-facing non-client-facing projects as well as program projects it supported in FY22. FIAS provided 41 management and general and administration percent of total FY22 spending by the 8 global costs totaled $11.7 million. This represents knowledge projects in the FIAS portfolio, with a 37 percent rate of spending against cash an average contribution of $112,344 per project. receipts of $31.4 million for the year. The relatively low burn rate stemmed from the In FY22, FIAS expenditures in priority areas late entry in the fiscal year of many of the new were in line with the strategic spending projects in the FIAS portfolio and their modest targets outlined in the FIAS FY17–21 strategy. spending levels in the initial months of activity. Of the $10.4 million in client-facing project Staff and consultant costs represented the expenditures, 58 percent supported IDA largest share of total FY22 FIAS expenditures borrowing countries (target 70 percent), 44 (41 and 52 percent, respectively). Travel percent went to projects in Sub-Saharan expenses were three times higher in FY22 Africa (target 50 percent), and 33 percent than the previous year as COVID restrictions supported projects in FCS (target 25 percent). 2 Annual contributions from the World Bank are treated in the same manner as core donor funds and are co-mingled with other donor funds in the FIAS Parent Trust Fund account, as terms and conditions allow. Annual contributions from IFC are received as a direct contribution to a FIAS-dedicated trust fund and in the form of regular administrative budget to cover sustaining costs associated with the management of FIAS. Together they comprise IFC’s annual contribution to the FIAS FY17–21 strategy cycle. Contributions received from IFC in the form of allocations from the Funding Mechanism for Technical Assistance and Advisory Services (FMTAAS) are treated as an additional source of funding for FIAS-related activities. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 60 FIAS 2022 Annual Review 04 Among regions, Sub-Saharan Africa Fundraising Update made up the largest share of client-facing expenditures with 44 percent. Europe and Total contributions (secured and Central Asia received the next largest share commitments) from the World Bank Group of client-facing expenditures with 19 percent, and donors for FY22 through FY26 reached followed by client-facing global projects at $137.1 million through October 2022. Of this 12 percent, East Asia and Pacific and the amount, $56.3 million (41 percent) comes Middle East and North Africa each made up from contributions by donors and IFC 7 percent, Latin America and Caribbean at 5 and goes toward FIAS Core. This account percent, and South Asia 4 percent.3 is under the direct management of the FIAS Program, enabling FIAS to prioritize Administration fees are collected by IFC to areas such as IDA, Africa, gender, and cover trust fund administration costs and are climate change. FIAS programmatic and deducted from donor contributions at the project-specific contributions amounted time of receipt. In FY22, IFC collected trust to $80.9 million, or 59 percent. These fund administration fees of $1.2 million from contributions fund programs developed FIAS donor contributions.4 in consultation with individual donors that combine FIAS and IFC priorities with those In FY22, FIAS received $30.2 million in cash of the contributing countries. (See Table 1: receipts (net of administration fees) and Sources of Funds for a list of contributors expended $11.7 million for the same period, or to the FIAS Core, programmatic, and 39 percent of total cash receipts. project-specific accounts.) Overall spending levels for IFC regional and FIAS has once again set an aspirational global Advisory/Upstream Services projects target of $200 million in fundraising for are determined by IFC senior management FY22–26. With the funds raised to date, through the Country-Driven Budgeting FIAS is 69 percent of the way toward that process. In FY22, FIAS Program management goal, with a $62.9 million funding gap to be instituted a new system to determine filled. Discussions with existing and potential eligibility of project funding requests in new donors are ongoing. The FIAS Program relation to the FIAS strategy. This ensures is profoundly grateful for the support that resource distribution aligns with IFC received to date. priorities in developing countries and the FIAS FY22–26 strategy. 3 World Bank Group regions have been reconfigured and are shown in Annex 2. Because FIAS prioritizes Sub-Saharan Africa, and for ease of comparison with previous FIAS Annual Reviews, this summary provides spending per the old regional definitions. 4 FIAS trust funds are subject to the standard IFC trust fund administration fee of 5 percent. Trust fund administration fees collected by IFC are included in Table 1, Sources and Uses of Funds. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 61 FY22 DONOR CONTRIBUTIONS PERCENT OF FIAS FY22 FIAS (GROSS RECEIPTS) EXPENDITURES 100% = $31.4 Million 100% = $11.7 Million Programmatic (48%) Client-Facing (89%) Core (29%) Non-Client Facing (11%) World Bank Group (16%) Project Specific (6%) FIAS EXPENDITURE BY REGION, FY22 100% = $11.7 Million Sub-Saharan Africa (44%) Europe and Central Asia (19%) World (12%) East Asia and Pacific (7%) Middle East and North Africa (7%) Latin America and Caribbean (5%) South Asia (4%) FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 62 FIAS 2022 Annual Review 04 Table 1: Sources and Uses of Funds FIAS CORE ROLLOVER FY17-21 FROM FY21 TO FY22 FY22 DONOR / PARTNER (FY17-21 CYCLE) (FY22-26 CYCLE) (FY22-26 CYCLE) WORLD BANK GROUP CONTRIBUTIONS Core Contributions IFC 28,661,111 5,000,000 IBRD 10,000,000 2,722,944 - Subtotal World Bank Group Contributions 38,661,111 2,722,944 5,000,000 CORE DONOR CONTRIBUTIONS Austria 1,045,800 2,251,000 Ireland 3,426,900 886,833 - Luxembourg 3,594,312 958,535 1,996,800 Netherlands 5,000,000 1,213,308 - Norway - 82,785 1,103,509 Sweden 6,573,453 1,834,972 3,830,579 Switzerland 5,000,000 - - Canada - 571,461 - Subtotal Core Donor Contributions 24,640,465 5,547,894 9,181,888 TOTAL CORE CONTRIBUTIONS 63,301,576 8,270,838 14,181,888 PROGRAMMATIC DONOR CONTRIBUTIONS Austria 6,692,249 - 3,376,500 Australia (Fiji and Vietnam) 712,073 - 4,062,300 Switzerland (MCICP I) 34,400,000 14,255,804 1,890,000 Switzerland (MCICP II) - 3,800,000 Mali (DANIDA) - 1,141,441 Norway (WBL) 906,844 403,953 949,598 EU ( Including ECOWAS IP, Balkans IP) 6,596,362 - United Kingdom (BEED/SIRMS) 5,358,414 - Subtotal Programmatic Donor Contributions 54,665,942 14,659,758 15,219,839 PROJECT SPECIFIC DONOR CONTRIBUTIONS France (OHADA) 6,692,767 4,760,895 - USAID 22,987,692 1,694,832 1,994,024 Trademark East Africa 350,000 Subtotal Project Specific Donor Contributions 30,030,459 6,455,727 1,994,024 TOTAL PROGRAM & PROJECT SPECIFIC DONOR CONTRIBUTIONS 84,696,401 21,115,484 17,213,863 TOTAL RECEIPTS 147,997,978 29,386,322 31,395,751 Trust Fund Administrative Fees* 4,853,929 1,220,086 TOTAL (NET) RECEIPTS 143,144,049 29,386,322 30,175,664 * An amount of $29 million was carried forward from FY17–21 to the FY22–26 FIAS cycle. Out of the $29 million, $8 million (including prior contributions from Canada and Ireland) was carried forward in FIAS Core; $21 million was carried forward in programmatic and project-specific trust funds.. ** Administration fees collected by IFC to cover cost of trust fund administration. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 63 Table 1: Sources and Uses of Funds (continued) FY17-21 FY17-21 FY22 FY22 USES OF FUNDS USD $ % USD $ % Staff Costs 62,728,065 48% 4,831,751 41% Consultants /Temporaries and Contractual services 48,612,622 37% 6,053,773 52% Travel 13,744,863 10% 474,982 4% Other expenses 6,715,699 5% 329,517 3% TOTAL USES OF FUNDS 131,801,249 100% 11,690,024 100% Table 2: Expenditures by Advisory Services (AS) Activity FY17-21 FY17-FY21 FY22 FY22 STANDARD AS ACTIVITY EXPENDITURES ACTUAL USD $ ACTUAL % ACTUAL USD $ ACTUAL % PROJECT RELATED EXPENDITURES of which: Direct Project Expenditures 1 114,747,915 87% 11,485,072 98% of which: Indirect Project Expenditures 2 16,094,282 12% 204,952 2% TOTAL PROJECT RELATED EXPENDITURES 130,842,197 99% 11,690,024 100% GENERAL & ADMINISTRATION COSTS 3 959,051 1% - - TOTAL STANDARD AS ACTIVITY EXPENDITURES 131,801,249 100% 11,690,024 100% 1 Direct Project Expenditures include project preparation, implementation, and supervision costs of client-facing projects. 2 Indirect Project Expenditures include program support costs such as product development, M&E, knowledge sharing, etc. 3 Program Management and General & Administration Costs include operational support costs such as administrative expenses, donor relations, public relations, and other costs. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 64 FIAS 2022 Annual Review 05 Annex 1: FIAS Scorecard and Results Methodology FIAS FY22 Scorecard FY22–26 FIAS Scorecard FY17–21 FY22–26 STRATEGY STRATEGIC THEME INDICATOR* CUMULATIVE FY22 CUMULATIVE TARGET Focus on 1.  % FIAS client-facing project 63% 58% 58% 70% Priority Clients implementation spend in IDA countries % FIAS client-facing project implementation spend in 46% 44% 44% 50% Sub-Saharan Africa Portfolio of % FIAS client-facing project 28% 33% 33% 25% Projects implementation spend in FCS 2. Delivering Number of Reforms supported by FIAS 204 1 1 200 Significant Business Results % reforms supported by FIAS in IDA countries 58% 0% 0% 70% % reforms supported by FIAS in Sub-Saharan Africa 43% 0% 0% 50% Abbreviations % reforms supported by FIAS in FCS countries 24% 0% 0% 25% Client Satisfaction 3.  Overall client satisfaction: FIAS client 94% 96% 96% 90% and Development survey results Effectiveness Development Effectiveness: % FIAS- supported projects rated satisfactory 72% 100% 100% 80% for DE Measuring Impact 4.  Direct Compliance Cost Savings (USD) $196.2M $296,707 $296,707 $200M Investment Generated/Retained (USD) $999.1M $29,733,755 $29,733,755 $1B Measuring Impact 5.  Value of financing facilitated (USD) $22,300,000 $22,300,000 TBD (New Indicator) Measuring Impact 6.  Number of Jobs Pilot impact assessments TBD TBD 10–15 (Jobs) Annexes Leverage (New 7.  Number of IFC investment operations 106 30 30 Indicators for informed and enabled by FIAS tracking and reporting) Number of IBRD Development Policy and Investment operations informed by FIAS 28 7 7 Thematic Impact 8.  % projects gender flagged (FIAS Core) 63% 63% 80% (New indicators) % projects gender flagged (FIAS total program portfolio) 47% 47% 40% % projects with climate related activities (FIAS Core) 58% 58% 70% % projects with climate related activities (FIAS total program portfolio) 26% 26% 35% Blank boxes in FY17–21 indicate the value was not part of Scorecard for that cycle; in Target column, blank boxes indicate targets are not being calculated for IFC, IBRD linkages. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 65 M&E note on reforms and updated and quantitative elements (captured via impact indicators’ methodologies quantitative indicators) result in benefits to key stakeholders such as off-taker firms, This note provides an update regarding farmers etc. Qualitative elements involve Monitoring and Evaluation (M&E) work in outcomes such as enactment of legislation the areas of the three indicators of the FIAS related to the agribusiness sector or Scorecard: number of reforms, value of implementation or improvement of industry- financing facilitated, and investment generated. specific procedures, policies, and practices. 1. Reporting on reforms Quantitative elements of agribusiness Traditionally many of the reforms reported reforms capture interventions that: by IFC related to the reforms spurred by the Doing Business report. Although the report • Facilitate investment in agricultural/ was discontinued in 2021, a limited number agribusiness sectors of legacy projects with DB-related reforms continue. FIAS results reflect the declining • Reduce average cost/time and number trend of DB-related reforms. of procedures to comply with agri-trade regulations As IFC moves toward enabling market creation and furthering its IFC 3.0 strategy, • Improve food safety practices, standards, many projects are reporting reforms in new and performance of firms & Smallholder topic areas beyond traditional DB indicators. Farmers (SHFs) These new areas are more targeted to sector policies in line with IFC 3.0, thus, in FY22 the • Increase access to inputs, markets, IFC M&E team developed criteria to validate finance, and services for firms/SHFs reforms for implementation and regulatory work in two new topics, electronic payment • Improve linkages and participation in system (e-payment) and climate finance, and the agribusiness value chain through updated reform criteria for agribusiness. The contractual arrangements new reform criteria were approved and are being used across IFC AS operations. • Increase export of agri-products All investment climate reforms are defined as • Improve food loss and waste legislative and/or administrative/institutional management practices changes. These changes are only validated if they have a positive effect on private sector • Improve food fortification policies beneficiaries as confirmed through surveys, administrative data of the government, or rapid assessments. Summaries of how E-payment reforms are validated in three new topics are Electronic payment and settlement systems outlined as follows. are electronic mechanisms established to facilitate the clearing and settlement of Guidance notes along with relevant criteria monetary and other financial transactions. and indicators to report reforms for each of Secure, affordable, and accessible electronic the new topics were circulated to operations payment systems and services promote teams, while several more reform criteria for development, support financial stability, and new sectors are currently being developed help expand financial inclusion. to meet the changing dynamics of IFC Advisory work. 1.1. Agribusiness A reform in agribusiness is counted when both qualitative changes (legislative or administrative or institutional changes) FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 66 FIAS 2022 Annual Review 05 A reform in electronic payment systems is (iv) Review existing national building counted when at least one of the following codes, and draft and implement criteria is met: green building regulations. (I) Changes to primary and secondary A reform in climate finance is counted when: legislation meet the positive criteria and have led to: (I) Changes to primary and secondary legislation and/or administrative 1. 10% increase in number of transaction procedures, and/or institutional changes account holders/users; OR have led to: At least one financial institution (FI) using the reform/legislation developed 2. 10% decrease in the remittance to increase access to climate finance service fees and/or time (applicable to projects working on domestic as well as cross-border/international Updates on impact indicator’s remittance service) definition and monitoring (II) Changes to administrative procedures or institutional changes meet the positive 2.1. Value of Financing Facilitated criteria and have led to: Three financing facilitated (FF) indicators have been used within the IFC since 2014 1. 10% increase in number of transaction on Advisory projects. Given the evolution account holders/users; OR of AS delivery in IFC, including the recent introduction of Upstream approach, the 2. 10% decrease in the remittance value of financing facilitated will explicitly service fees and/or time (applicable differentiate between the value of IFC to projects working on domestic as financing facilitated and non-IFC financing well as cross-border/international facilitated. A new indicator “Value of (non- remittance service). IFC) Financing Facilitated” is proposed to separate the non-IFC financing facilitated from IFC Advisory Services, which will 1.3 Climate Finance be applied to all projects including Programs that improve the enabling Upstream tagged AS projects. All projects environment for climate finance aim to help approved in FY23 (from July 1, 2022, the financial sector to scale up private sector onwards) are expected to apply the new financing for climate-related projects in line FF methodology for results reporting. The with international standards. These include systems development for this change is engagements to: being awaited. (i) Develop and adopt a national 2.2 Investment Generated (IG) is the sustainable taxonomy aligned to actual investment made by investors international standards in a location, including re-investments and expansions by existing investors, (ii) Develop, strengthen, and implement that can be attributed to the World Bank policies and regulations to facilitate Group’s support to the country through financing of green-eligible activities a specific project. The project should and assets have carried out activities to support reforms that contributed to improving the (iii) Develop and implement green bond investment climate and to fostering private guidelines or frameworks aligned to international standards FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 67 Taking delivery of store merchandise in Ghana. Photo: Arne Hoel/World Bank investment. The IFC M&E team has refined • An improved target setting methodology and improved the methodology for the for IG was developed. Three options, calculation of IG indicators during FY22. depending on data availability, have been Notable improvements include: developed to assist project teams with target-setting. • All projects tracking IG as an impact indicator are required to run investor • The Investment Policy and Promotion surveys to measure results. A standard (IPP) product results framework was investor survey questionnaire was updated to further align and clarify developed to make it easier for project indicator definitions. teams to administer investor surveys. IFC aims to roll out these changes via training • The World Bank global team has sessions to all regions between January and developed criteria to assist project June 2023. teams with assigning contribution rates to IG results. FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 68 FIAS 2022 Annual Review 05 Annex 2: Portfolio of FIAS-Funded Projects in FY22 2.1 FY22 FIAS-Funded Client-Facing Projects REGION TOTAL FUNDS (REGION MANAGED TOTAL FYTD CODE) COUNTRY PROJECT NAME BY IFC EXPENDITURES Egypt, Arab Republic of Egypt Green Building $73,174 $49,329 Egypt, Arab Republic of Egypt Textile Value Chain Project $389,266 $300,723 NORTH AFRICA Egypt, Arab Republic of Enhancing Women Economic Participation in Egypt Project $89,500 $64,383 Egypt, Arab Republic of WRS ecosystem development in Egypt $79,640 $14,824 (AFR) Morocco Improving the Competitiveness of Marrakech-Safi $76,208 $194,728 Morocco Morocco Business Environment Project $61,200 $- Tunisia Attracting FDI in Tunisia $64,260 $141,129 Tunisia Tunisia Investment Climate Reforms Program II $100,000 $62,628 Africa Region Africa Leasing $270,076 $400,642 Africa Region OHADA Strengthening Credit Infrastructure Project $200,000 $718,835 Burkina Faso TFWA Risk Management Benchmarking $137,041 $100,203 Comoros Inclusive Growth in Comoros through Private Sector Development $10,000 $9,167 Côte d'Ivoire Côte d’Ivoire Legislative Reform for Womens Economic Inclusion $146,000 $89,635 Côte d'Ivoire Trade Facilitation West Africa Corridor CI-BF $553,467 $513,437 Ghana Ghana Investment Climate Program $500,000 $667,490 Ghana Ghana-Burkina Trade Facilitation Diagnostic $60,000 $56,568 Ghana TFWA KM for component 3 $13,513 $8,362 Mali MALI IC4- Economy Wide $386,363 $363,854 SUB SAHARAN AFRICA Mali Mali Investment Climate phase 4 $24,348 $40,688 Mozambique Doing Business in Mozambique $- $(23,357) Mozambique Mozambique Investment Climate Project 2 $415,841 $376,215 (AFR) Nigeria UPSEZWA Nigeria $44,000 $26,126 Rwanda Rwanda Legislative Reforms for Womens Economic Inclusion Advisory $146,000 $31,662 Rwanda Women Business and the Law Advisory Initiative for Africa $147,401 $85,213 Senegal Invest West Africa - Senegal Agribusiness Competitiveness Advisory $87,824 $86,877 Senegal Piloting Psychometric Scoring to increase MSME Access to Finance in Senegal and UEMOA $149,916 $149,916 South Africa South Africa Private Sector Competitiveness Project $517,924 $400,469 Togo Trade Facilitation Lome-Ouaga Corridor $434,185 $426,414 Uganda Uganda MSME Access to Finance $- $15,234 Western Africa Region Invest West Africa Regional Warehouse Receipts Program $151,944 $79,174 Western Africa Region TFWA scoping for activities to support small scale cross border traders $300,000 $275,735 Western Africa Region TFWA Umbrella Trade Facilitation West Africa $250,000 $191,141 Western Africa Region West Africa Trade Facilitation - Ghana-Burkina Corridor $344,500 $- Zimbabwe Zimbabwe Warehouse Receipt System Project $50,000 $20,878 FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 69 2.1 FY22 FIAS-Funded Client-Facing Projects (continued) REGION TOTAL FUNDS (REGION MANAGED TOTAL FYTD CODE) COUNTRY PROJECT NAME BY IFC EXPENDITURES CENTRAL TÜRKIYE Kyrgyz Republic Kyrgyzstan Resilience and Growth Project $530,000 $507,025 ASIA & (CAT) Tajikistan Tajikistan Competitiveness Enhancement Project $450,000 $413,671 Indonesia Indonesia Investment Climate Competitive Sectors and Competition MCICP $625,000 $396,213 PACIFIC ASIA & (EAP) EAST Mongolia Mongolia meat $77,000 $73,544 Vietnam Vietnam Private Sector Competitiveness $413,348 $289,723 Azerbaijan Azerbaijan Investment Climate and Agribusiness Competitiveness Project $474,859 $96,852 Bosnia and Bosnia and Herzegovina Sub-national Investment climate project $838,000 $219,169 Herzegovina EUROPE Georgia Georgia Trade, Investment and Agricompetitiveness Project $148,591 $111,713 (EUR) Kosovo Kosovo Investment Climate II $660,680 $599,586 Serbia CEU Agriculture Finance Digital Platform $158,334 $- Ukraine Competition Ukraine $145,750 $113,008 Ukraine Europe and Central Asia Agri-Finance Project $214,253 $214,064 Central America Region Central-America Sustainable Banking Initiative $19,771 $13,155 LATIN AMERICA & Colombia Colombia Productivity $106,390 $91,948 CARIBBEAN Colombia Colombia Productivity and Jobs $1,237,698 $51,918 (LAC) Peru Markets and Competition Policy Peru $151,069 $172,250 Peru Peru Investment Policy and Promotion $172,585 $195,149 Peru Programmatic Approach for Private Sector Growth in Peru $768,325 $- Peru Strengthening Tourism Sector Competitiveness in Peru $54,102 $67,702 Afghanistan Afghanistan Business Enabling Project $293,000 $273,376 MIDDLE Afghanistan Afghanistan Competitiveness Study $220,000 $- (MER) EAST Afghanistan Afghanistan Export Competitiveness Project $334,000 $252,293 Pakistan Housing for Pakistan Initiative $64,000 $- India Advisory to Axis Bank on Climate and ESG $50,000 $- SOUTH ASIA (SA) Sri Lanka SL Climate Smart Agri Finance $114,540 $- Africa Region Global Housing Advisory Platform Implementation (child) $210,000 $33,640 GLOBAL CLIENT Africa Region Global Housing Microfinance Initiative $40,000 $- FACING (WLD) World Region Firm Surveys and Analytics $570,000 $42,739 World Region Global FS Platform (child) $125,000 $124,822 World Region Sustainable Banking Network Global $80,000 $41,274 World Region Sustainable Infrastructure of the Future Platform $71,163 $69,592 FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 70 FIAS 2022 Annual Review 05 2.1 FY22 FIAS-Funded Client-Facing Projects (continued) REGION TOTAL FUNDS (REGION MANAGED TOTAL FYTD CODE) COUNTRY PROJECT NAME BY IFC EXPENDITURES Africa Region Scaling Biodiversity Finance $60,000 $10,841 East Asia and GLOBAL KNOWLEDGE Circular Economy Knowledge Development Product $24,000 $21,405 Pacific Region DEVELOPMENT World Region SOE and State in the Economy $40,000 $1,453 (WLD) World Region Competitiveness Policy Evaluation Lab 1 $1,093,553 $667,821 World Region Gender-Inclusive Infrastructure & Natural Resources $17,380 $17,215 World Region Responsible Financial Inclusion and Innovation $100,000 $- World Region Trade Facilitation and Border Management PDP $775,312 $177,022 World Region Women & Insurance Phase II $50,000 $- FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 71 Annex 3: Abbreviations ARTF Afghanistan Reconstruction Trust Fund AS Advisory Services ASHA Affordable Socially Sustainable Housing Application BR business regulation; business regulatory CBD Climate Business Department, IFC CCAP Climate Change Action Plan CCDR Country Climate and Development Report CCS compliance cost savings CEMAC Central African Economic and Monetary Community CEU Central Europe CIB Commercial International Bank C-JET Competitiveness for Jobs and Economic Transformation CMA Creating Markets Advisory ComPEL Competitiveness Policy Evaluation Lab CPSD Country Private Sector Diagnostics CRI Regional Investment Center (Marrakech-Safi region) DB Doing Business, World Bank Group DCCS direct compliance cost savings DE development effectiveness DEC Development Economics Vice Presidency, World Bank DPL Development Policy Loan DPO Development Policy Operation DPV Directorate of Vegetative Protection, Senegal EAC East African Community ECA Europe and Central Asia Region, World Bank Group ECOWAS Economic Community of West African States EFI Equitable Growth, Finance and Institutions Vice Presidency, World Bank Group EMDEs emerging markets and developing economies e-payment electronic payment system ESG Environmental, Social, and Governance standards FCI Finance, Competitiveness and Innovation Global Practice, World Bank Group FCS fragile and conflict affected situations FDI foreign direct investment FF financing facilitated FI financial institution FIAS Facility for Investment Climate Advisory Services FMTAAS Funding Mechanism for Technical Assistance and Advisory Services, IFC G20 Group of 20 leading economies GB Green Building GCC Gulf Cooperation Council GDP gross domestic product GPRS Green Pyramid Rating System GVC global value chain FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES 72 FIAS 2022 Annual Review 05 H4P Housing for Pakistan HMF Housing Microfinance IBR Indicator-Based Reform IBRD International Bank for Reconstruction and Development (World Bank) IC Investment Climate ICT information and communication technology IDA International Development Association IFC International Finance Corporation IFC AS IFC Advisory Services IG investment generated IGM investor grievance management mechanisms INR Infrastructure unit, IFC IPA Investment Promotion Agency IPP Investment Policy and Promotion JET Jobs and Economic Transformation initiative, World Bank Group KDP Knowledge Development Product KM knowledge management KPI key performance indicator LAC Latin America and Caribbean Region, World Bank Group LEED Leadership in Energy and Environmental Design LLC limited liability company MAS Manufacturing, Agribusiness and Services unit, IFC MCICP Multi-Country Investment Climate Program M&E Monitoring and Evaluation MENA Middle East North Africa Region, World Bank Group MIGA Multilateral Investment Guarantee Agency MINCETUR Peru Ministry of Foreign Trade and Tourism MSMEs micro, small, and medium enterprises NTFC National Trade Facilitation Committee OECD Organisation for Economic Cooperation and Development OHADA Organization for the Harmonization of Business Law in Africa OMD Operations Management Department, IFC OSS one-stop shop PDP Product Development Project PPE personal protective equipment READ Real Estate Assessment of Developers SBFN Sustainable Banking and Finance Network SBN Sustainable Banking Network SCADA Supervisory Control and Data Acquisition SCDs Systemic Country Diagnostics SDP Supplier Development Program SEZ special economic zone SHF smallholder farmers SIA Sustainable Infrastructure Advisory, IFC FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES FIAS 2022 Annual Review 73 SIRM Systemic Investor Response Mechanism SMEs small and medium enterprises SNDB Subnational Doing Business SOE state-owned enterprise SSCBT small scale cross-border trade TFWA Trade Facilitation West Africa TT technical textiles UNIDO United Nations Industrial Development Organization UPSEZWA Upstream SEZ Project in West Africa VFF value of financing facilitated WAEMU West African Economic and Monetary Union WBL Women, Business and the Law WRS warehouse receipt system WTO World Trade Organization FIAS—THE FACILITY FOR INVESTMENT CLIMATE ADVISORY SERVICES About the Facility for Investment Climate Advisory Services (FIAS): Through the FIAS program, the World Bank Group and Development Partners facilitate investment climate and sector reforms in emerging markets and development economies (EMDEs) to foster open, productive, and competitive markets and to unlock sustainable private investments in sectors that contribute to growth and poverty reduction. The FIAS Program is managed by the International Finance Corporation (IFC), a member of the World Bank Group, and implemented by IFC Advisory Services teams. For more information, visit https://www.thefias.info.