Annual Report 2019–20 Financed by in partnership with © 2020 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 Devel- opment); 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 noncommercial 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 govern- ments they represent. The World Bank Group does not guarantee the accuracy of the data included in this work. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work with- out permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. All queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Pub- lisher, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: pubrights@worldbank.org. About the Competitive Industries and Innovation Program (CIIP) The CIIP partnership was created to enhance country growth and employment prospects by supporting public policies and investments that promote competitiveness and innovation within and across industries. As the Trustee and Administrator for CIIP, the World Bank Group is responsible for program development, implementation, and monitoring and evaluation. For more information, visit www.theciip.org 2 TA B L E O F CO N T E N T S Abbreviations and Acronyms 5 Foreword: Message from CIIP Partners 6 Executive Summary 11 Timeline 14 Results at a Glance 16 Feature Story: Supporting Industrial Transformation and Employment in Uganda Amid COVID-19 18 The CIIP Theory of Change 20 Chapter 1: Global Knowledge, Analysis, and Assessments 23 Chapter 2: Country Operations 35 Chapter 3: Projects Completed in FY20 51 Chapter 4: Communications and Outreach 59 Chapter 5: Financial Portfolio and Resource Use Through June 2020 61 CIIP Annual Report 2019–20 3 4 A B B R E V I AT I O N S A N D AC R O N Y M S ASA Advisory Services and Analytics BPS Business Pulse Survey CE Circular Economy CG Competitiveness Grant CGE Computable General Equilibrium CIIP Competitive Industries and Innovation Program COVID-19 Coronavirus Disease DCED Donor Committee for Enterprise Development ESMAP Energy Sector Management Assistance Program EU European Union FDI Foreign Direct Investment FY Fiscal Year GDP Gross Domestic Product GIZ German Agency for International Cooperation GVC Global Value Chain ICT Information and Communications Technology ID Identification IFC International Finance Corporation INVITE Investment for Industrial Transformation and Employment Project IP Industrial Park KII Key Informant Interview MDTF Multi-Donor Trust Fund MSME Micro, Small, and Medium Enterprise NGO Non-Governmental Organization NSO National Statistical Office OACPS Organization of African, Caribbean and Pacific States OECS Organization of Easter Caribbean States PI Personal Initiative PIU Project Implementation Unit PPD Public-Private Dialogue QI Quality Infrastructure RDT Rapid Diagnostic Tool SEZ Special Economic Zone SME Small and Medium Enterprise TA Technical Assistance TOR Terms of Reference TTT Training of the Trainers TVET Technical and Vocational Education and Training UNIDO United Nations Industrial Development Organization WBG World Bank Group Note: All dollar amounts are U.S. dollars unless otherwise indicated. CIIP Annual Report 2019–20 5 FOREWORD Message from CIIP Partners Caroline Freund Global Director Trade, Investment, and Competitiveness, The World Bank Group I am pleased to present the 2019-20 Annual Report for the Competitive Industries and Innovation Pro- gram (CIIP). In its seventh year of implementation, CIIP continues to support its client countries to deliver jobs and economic transformation through policy advice and targeted investments enhancing sustainable industrial competitiveness. The COVID-19 pandemic and resulting economic and fiscal shocks reverberated across the world in 2020 and led to unprecedented declines in economic activity and employment. The nature of the pandemic and resulting containment measures and restrictions have threatened some of the key productivity channels, such as trade and foreign direct investment (FDI), human capital, competition, agglomeration, and macro and financial foundations, including debt, investment, and state-owned enterprise transparency. The most vulnerable populations and economies have been the most affected with 150 million additional people expected to be pushed into extreme poverty, the first rise in extreme poverty in more than two decades. Support measures to client countries have focused on relief, restructuring, and building a better, more resilient recovery. The pandemic response has created opportunities for deeper structural change to spur a robust recovery, innovation and digital solutions to expand work and business opportunities, greater focus on resilience to boost the green agenda, and opportunities to build safer and more accessible workplaces. CIIP-supported interventions have been at the forefront of the World Bank Group’s (WBG) support for private sector recovery. Although there have been some interruptions or delays in CIIP grants due to travel restrictions, several grants were able to reorient their planned activities to support COVID-19 recovery efforts. For example, the lending project that the Uganda grants have been informing was repositioned to mitigate the shocks from COVID-19 by providing credit and liquidity to affected micro, small, and medium enterprises (MSMEs) and creating the foundations for a rapid recovery and continued economic transformation. The project aims to catalyze over $254 million in private investment in manufacturing and facilitate the creation of an additional 30,000 jobs. The grant in Ghana supported the repositioning of the SME support program to complement response measures provided by the Government’s Coronavirus Alle- viation Program and the MasterCard Foundation. The first call for grant applications will focus on SME COVID-19 recovery grants. The project aims to increase the average value of gross sales of supported firms by 15 percent. In Senegal, the CIIP grant was restructured to include a survey to assess the impact of COVID-19 on firm performance, expectations and labor adjustments and investigate how firms are adapt- ing to the shock by adopting digital technologies. The analytical work will inform the design of a new Jobs, Economic Transformation and Recovery Program for Results focusing on technology adoption for SMEs, business environment and financing, and facilitation of public-private partnerships. The COVID-19 pandemic has also highlighted the continued relevance of CIIP’s knowledge work for the jobs and economic transformation agenda from recovery to resilience. The analytical work on the green competitiveness and the role of the private sector in the circular economy is particularly key to ensuring a greener and more sustainable recovery. The Services-Led Development grant analyzed the importance of face-to-face interactions in service sectors and the vulnerabilities arising from social distancing. The policy research working paper financed by the grant, “When Face-to-Face Interactions Become an Occupational Hazard: Jobs in the Time of COVID-19”, demonstrated substantial heterogeneity in effects across indus- tries, income groups, and gender And the technology adoption survey in Kenya was implemented in con- junction with a Business Pulse Survey (BPS) to understand how COVID-19 has been affecting businesses’ responses in terms of technology adoption. We look forward to exploring the next phase in our partnership and enhancing our ability to help our clients build back better. 6 Bjørn Brede Hansen Director, Section for Multilateral Development Banks Ministry of Foreign Affairs, Norway In 2014 Norway decided to become a partner to CIIP because of this trust fund’s innovative approach to industry competitiveness and the sustainable development agenda with focus on SMEs. Since its estab- lishment the CIIP has shown impressing results. Even during the last year, with extreme difficult business environments, the trust fund has been able to reorient its focus on project implementation. CIIP has been assisting companies and carried out surveys to assess the impacts of COVID-19 on firm performance and operations. As a result, CIIP has given good advice and directions to the tourism investments needs in sev- eral countries. Through technical training, internship, mentoring and a start-up toolkit support is given to women to enter male-dominated sectors. Within the CIIP we find the interesting WBG’s Learning Series on Circular Economy and Private Sector Development which we have found to be very popular. The CIIP grant team has recently finalized a new report on “Global Value Chains: An Investment Perspective”. The report seeks to investigate the relation- ship between foreign direct investments and global value chain participation at the macro and micro levels. We look forward to reading the final report in March 2021. Elisabeth Gruber Director, Department for International Financial Institutions Federal Ministry of Finance, Austria Last year was like no other in our lifetimes. Swiftly spreading across the entire globe, the COVID-19 pan- demic wreaked havoc wherever it hit. Looking forward, the focus now has to be on how to turn the crisis into an opportunity and on how to emerge from it stronger than before. Making their economies more resilient against shocks has moved up on the priority list of many policy-makers. The economic restructur- ing and recovery that will follow the crisis will have to be sustainable and inclusive and it will need to have a green and digital imprint. The World Bank’s important “jobs and economic transformation” (JET) agenda, that Austria also strongly endorses, is, thus, further heaved to the forefront. CIIP can play a key role in assisting client countries’ efforts in these fields. In the current context, CIIP’s key objectives – namely to support partner countries develop a solid, diversified industrial base and innovative and entrepreneurial eco-systems that are fit for an increasingly digital world and that create decent and productive jobs – are now more pertinent than ever. As CIIP donors, we were happy to witness the CIIP team react rapidly to the spread of the pandemic by re-orienting efforts and by supporting the re-design of projects to advance COVID-19 relief and recovery activities. It was gratifying to see the value of CIIP knowledge products as they informed the restructuring and adaptation of operations towards COVID-19 abatement. We are equally delighted about CIIP continuing its pioneering work on green competitiveness by refining and advocating for, inter alia, circular economy, eco-industrial park and sustainable tourism approaches. These, together with CIIP’s support for technology adoption and the leveraging of digital technologies, will be very useful tools for client countries as they endeavor to come out of the crisis on a sustainable develop- ment path. Leaving the COVID-19 pandemic and the damage it caused behind will require tailored interventions and massive investments. Millions of jobs have to be created while industries need to be rebuilt and restruc- tured in an ecologically sustainable and future-proof manner. We count on CIIP to continue its support for private sector recovery and (increasingly green and digital) competitiveness in developing (and especially IDA) countries by leveraging public and private investment and by informing smart, evidence-based poli- cy-making. CIIP Annual Report 2019–20 7 Liliana de Sà Kirchknopf Head of Division, Private Sector Development State Secretariat for Economic Affairs SECO Federal Department of Economic Affairs, Education, and Research, Switzerland Based on Switzerland’s international cooperation strategy 2021-24, the goal of SECO’s economic develop- ment cooperation is to promote economic growth and sustainable prosperity. SECO’s economic and trade policy expertise enables partner countries to shape structural transformation, develop their private sector and integrate into the global economy. Specifically, SECO supports the creation of reliable economic framework conditions and innovative private-sector initiatives in its partner countries. This gives people and companies access to markets and opportunities, creates employment opportunities and offers future perspectives locally. Therefore, SECO has been pleased to support CIIP over the last years to contribute to the above goals. The focus on bringing regulatory changes in developing countries and supporting the growth of firms in specific industries and sectors has been a forceful combination. In addition, CIIP has managed to leverage USD 962 million investments, resulting in more than 30’000 new and additional jobs and income perspectives (cumulative results). In times of Covid-19, this is more important than ever. We wish the program continued success as it enters the closing cycle. Cecile Billaux Head of Unit E2 – Micro-economic Analysis, Investment Climate, Private Sector, Trade and Employment DG INTPA European Commission Over the 9 years of implementation, the Competitive Industries and Innovation Program (CIIP) has been an important ally and partner for the European Commission in the common fight against poverty and in the creation of inclusive and sustainable growth in our partner countries , in particular in those from the Organization of African, Caribbean, and Pacific States (OACPS). Moreover, CIIP’s development objectives have constantly evolved in line with the corresponding EU’s policies , strategies and implementation modalities , in particular with those promoting a stronger role of the private sector as engine of sustainable socio-economic development, accompanying economic diversi- fication and transformation. In this connection the achievements presented in the CIIP Annual Report 2019-20 are quite significant : for the strategies and the reform programs keen to mobilize investments , for the new firms, in particular those from the MSMEs sector, and the jobs created, for the number of people trained, the leveraged public and private finances , and for the additional export value generated. All of this has been made possible through the regular injection of analytical work , innovative technologies, skills development and good practices in the value chains that CIIP provides. However, as also highlighted in the Global EU Response to COVID-19, the pandemic and the associated economic crisis have brought a challenge of unprecedented magnitude that requires a fast, massive and coordinated reaction in term of resilience and in term of associated socio-economic recovery. In this connection the CIIP recent focus to accompany the green and the digital twin transitions and to foster the introduction of circular economy in the industry and enterprises processes and practices main- tains all its relevance. This echoes the European Green Deal, the EU industrial strategy, the indications contained for a new Comprehensive Strategy with Africa, and places the CIIP at the forefront of rethinking and refocusing the 8 development support towards a more inclusive, sustainable and green recovery , key to economic resilience in a post-COVID world. As CIIP now transitions to the new Competitiveness for Jobs and Economic Transformation (C-JET) umbrella facility, it is well placed to consolidate knowledge and enhance our understanding of emerging topics that will be key to the economic recovery over the next forthcoming years. We look forwards with strong interest. Escipión J. Oliveira Gómez Assistant Secretary General, Structural Economic Transformation and Trade Organisation of African, Caribbean and Pacific States (OACPS) Following the endorsement of the revised Georgetown Agreement by its 9th Summit of Heads of State and Government the African, Caribbean and Pacific Group of States (ACP Group) evolved into the Organisa- tion of African, Caribbean and Pacific States (OACPS). This is not merely a change of name, but a “revolution” in perspective and of mind-set, which will allow the OACPS to deliver efficient and timely support to its Member States, with special emphasis on our Micro, Small and Medium Enterprises (MSMEs) in their quest for survival and international competitiveness, with the ultimate objective of reducing and eventually eradicating poverty in our countries. Moreover, the recently concluded negotiations for the new OACPS-European Union (EU) Partnership Agreement should further enhance our joint capacity to efficiently support regional and continental inte- gration processes undertaken by our Member States, by, inter alia, supplying our MSMEs with the neces- sary tools to actively participate in regional and global value chains. The ongoing COVID-19 pandemic has disrupted all economic and social processes, reaffirming that global challenges cannot be successfully addressed independently by a sector, country, region, or continent. Con- sequently, the OACPS has been at the forefront, hand-in-hand with the EU and other partners, promoting a rapid-response system and organising public-private dialogues and exchanges of best practices in crisis management amongst the six OACPS regions. As can be appreciated in this annual report, the Compet- itive Industries and Innovation Program (CIIP) has been an important tool in countering the COVID-19 pandemic. In this new world context, OACPS enterprises must “re-establish” their competitiveness by finding innova- tive ways to reach their customers with targeted “value propositions”, competing in terms of quality and 1 uniqueness, not price or volume. Our MSMEs must therefore adapt their offerings to the needs and expec- tations of consumers in target markets with the ultimate goal of supplying unique products and services worldwide. Among the many initiatives implemented by the CIIP, I would like to draw special attention to those seeking to strengthen our ICT networks and stimulate the adoption of digital tools by our MSMEs. These also seek to provide adequate digital instruments and improve the managerial and technical capacities of OACPS entrepreneurs, in order to allow them to contribute to the transformation of their communities, generate sustainable livelihoods, and strengthen social cohesions and economic resilience. The CIIP has also made considerable contributions towards ensuring affordable financing for OACPS MSMEs, which is one of MSMEs’ main challenges in their pursuit of international competitiveness. Issues related to access, interest rates, collateral, guarantee repayment periods, and credit scores, among others, often become insurmountable hurdles for our businesspersons when they are seeking to harness sufficient financial resources to implement their ventures. 1 Nairobi, Kenya, December 2019 CIIP Annual Report 2019–20 9 Joint efforts made under the CIIP by the OACPS, EU World Bank, and the governments of Austria, Switzerland, and Norway have fostered social and economic inclusion, as well as the active participation of women, youth, and vulnerable groups in the economy and society as a whole. These actions have supported the personal development and wellbeing of the direct beneficiaries of the CIIP while contrib- uting towards building more prosperous, peaceful, and fair societies for generations to come. 10 Executive Summary This is the seventh Annual Report of the Competitive Industries and Innovation Program (CIIP), a multi-donor part- nership among the WBG; the European Union (EU); tOrganization of African, Caribbean and Pacific States (OACPS) Secretariat; and the Governments of Austria, Norway, and Switzerland. This report outlines the progress that CIIP has made in implementing the program’s objectives during its fiscal year (FY) from July 1, 2019, to June 30, 2020 (FY20). Results and leverage In FY20, active CIIP grants leveraged $470 million in public financing, contributing to the implementation of five sector strategies and reform programs, the development of four SME support programs, and the creation of three public-private dialogue (PPD) mechanisms. The supported interventions in turn contributed to the facilitation of $27.2 million in private investment, and the training or support of 222 SMEs. From inception to date CIIP has helped countries to create 58 PPDs, which have informed the adoption of 16 laws and regulations, and the implementation of more than 74 strate­ gies or priority reforms. These targeted interventions have contributed to the creation of at least 30,334 new jobs and 499 new firms, the support of 3,336 SMEs, the facilitation of $102 million in new revenues from the sale of goods and services, $78 million in additional export value, and $167 mil- lion in disbursed finance. CIIP has funded a total of 70 country and knowledge grants and its global reach now totals 60 countries (figure 1). The program has leveraged more than $3.6 billion in public financing from World Bank operations (1:99 leverage ratio of CIIP funding) and $962 million in private investment (1:27 leverage ratio). Towards the end of FY20, active country operations and knowledge activities adjusted their implementation to respond to new demands for support in addressing the impact of COVID-19. Knowledge created through CIIP grants is actively informing the restructuring of operations and COVID-19 recovery response on tourism competitiveness, the role of green competitiveness in a resilient recovery, technology adoption and leveraging digital technologies, access to compet- itive and contestable markets and understanding the medium-term implications of direct government support in key sectors and topics. Half of all country operations that were active in FY20 have already reoriented their deliverables or are planning to do so to respond to the changing circumstances. Figure 1: Global footprint of CIIP Country Grants 2015-2020 Active Grants Closed Grants CIIP Annual Report 2019–20 11 Operational highlights This annual report profiles the 15 country operations active in FY20, as well as the seven country projects that closed during this fiscal year. Some highlights include: • CIIP teams conducted policy analysis, including an analysis of the tourism sector in Egypt and its contribution to economic growth in the context of COVID-19; a diagnostic of digital entrepreneurship and innovation to foster the digital economy in Ethiopia; a mixed-methods policy note assessing the e-readiness, infrastructure, policy and legal factors that contribute to ICT adoption for SMEs in Malawi, and a computable general equilibrium (CGE) analysis in Guinea to inform recommendations on high priority road and other investment, such as digital infrastructure. • CIIP teams led policy dialogues, including a focus group discussion with technical and vocational edu- cation and training (TVET) providers in the Central African Republic; and the establishment of the Southern Tanzania Tourism Route Forum that connects Zanzibar businesses with the safari ecosystem in southern Tanzania aiming to create a “beach and bush” tourism offering. • CIIP financed surveys, such as the investor survey of 360 key decision-makers in foreign-owned com- panies operating in the countries along the Nacala corridor in Southern Africa; a technology adoption survey of 1,786 informal and formal enterprises in Senegal to provide measures of technology at the firm-level and identify gaps; and a survey in Ethiopia assessing the local SME sector to understand the underlying factors limiting the scale-up of linkages between local SMEs and tenants in industrial parks (IPs), particularly in apparel and textile value-chains. • CIIP supported the design and operationalization of several SME support programs, including the SME Hubs in the Democratic Republic of Congo, which are expected to alleviate information and communications technology (ICT), logistics, electricity, and related constraints to SME growth; the MSME Financing Facility in Somalia, which was established as an independent entity with a commercial orientation based on private sector governance principles; and the Business Linkages program in Ethio- pia, which strengthens linkages between domestic enterprises and FDI firms in the industrial parks. Knowledge Highlights This Annual Report profiles the ten knowledge activities active in FY20. Some highlights include: • The Technology Adoption grant supported the preparation, implementation, and data analysis for the World Bank Technology Adoption Survey. The survey is under implementation in Malawi and Kenya and under preparation in the Dominican Republic. The survey aims to generate new measures of technology adoption and develop a new global and comparable database on technology adoption at the firm level. The collected data will offer new insights into technology disruption and trends and inform client countries’ efforts in implementing COVID-19 recovery efforts to support the private sector. • The Services-Led Development flagship work supported the development of a global framework to inform policy dialogues and investment decisions by enhancing knowledge on the relative contribution of the services sector to pro- ductivity and inclusive development outcomes for countries across income groups. The work was leveraged to inform policy priorities during the COVID-19 crisis through its analysis of the vulnerabilities of different service occupations to various restrictions on the service sector due to government pandemic containment efforts. • The Quality Infrastructure grant implemented the World Bank Group Rapid Diagnostic QI Tool in Ghana, Somalia, and Ethiopia. The tool uses a systematic methodology to assess a country’s quality infrastructure ecosystem and identifies issues and gaps in the quality policies and strategies, institutional capabilities, regulatory frameworks, technical competencies, and international recognition, and makes recommendations for reform. • The Global Value Chains: Investment Perspective report investigated the relationship between FDI and Global Value Chains (GVC) participation and found that countries’ FDI centrality is highly correlated with their GVC centrality and that countries can use strategies integrating FDI policies with wider economic policies to stimulate GVC participation. Governments can respond to COVID-19 challenges by seizing opportunities of potentially shifting GVCs and prepare their economies for the economic realities of the post-crisis world. 12 Communications Communications efforts in FY20 focused on maintaining a solid external web presence of the program, highlighting results and capturing learning. The CIIP team significantly improved the program’s online presence and enhanced its online branding and digital assets to ensure knowledge retention and maximize knowledge sharing. The team also published and disseminated results stories from seven CIIP country operations, highlighting project deliverables and results. The website was also updated with a full online grant database and enhanced user-friendly project information visual map. CIIP Annual Report 2019–20 13 TIMELINE Partnership Austria and Switzerland create Multi-Donor Trust Funds (MDTFs) European Union joins MDTF OACPS-European Union create Single-Donor Trust Fund Norway joins MDTF Original closing date Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul 2013 2014 2015 2016 2017 Planning and operations 1st call for proposals Selection process completed Midterm review Selection process completed 1st annual report 2nd annual report 3rd annual report start 2nd call for proposals 3rd call for proposals 4th call for proposals Strategy and Interim Business Plan 4th annual report Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul 2013 2014 2015 2016 2017 14 Original end of New end of New end of New end of disbursement date disbursement date I disbursement date II disbursement date III New closing date I New closing date II New closing date III Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul 2018 2019 2020 2021 2022 Midterm review Final evaluation end 5th annual report 6th annual report start end 5th call for proposals Export Impact Assessment Sierra Leone II Comoros Congo, Rep. Congo, Dem. Rep. Ethiopia II Pacific Islands Guinea Women’s Crossing Over Uganda The Gambia Uganda II Central African Republic GVC-linked FDI in OACPS countries Malawi Somalia Mauritania II Guinea II Ghana II Services-Led Development Private Sector Digital Platforms I Tanzania III Technology Adoption Developing Informed Industry Analytics Guyana Quality Infrastructure Southern Africa Innovation Support for Businness Growth OECS II Circular Economy Senegal Egypt Private Sector Digital Platforms II OACPS Non-OACPS Knowledge OACPS Knowledge Non-OACPS Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul 2018 2019 2020 2021 2022 CIIP Annual Report 2019–20 15 Results at a glance FY20 RESULTS Outputs Outcomes Impacts 5 strategies or reform 470 million USD in public finance 1.35 million USD in private programs designed leveraged from World Bank domestic investment for tourism in the Pacific projects by firms linked to industrial Islands, agriculture in parks in Ethiopia Comoros, and multiple sectors in Ghana 3 cross-institutional 9 investment climate reforms 27.2 million USD in private coordination mechanisms implemented investment created (Republic of Congo and in Mauritania (Pacific Islands and Tanzania) Mauritania) 4 SME support programs 222 SMEs trained or supported developed (Ethiopia, Sierra Leone, and (Central African Republic, Egypt) Somalia, and Sierra Leone) 2 skills training programs designed in Muritania 6 connections planned to targeted tourism products (Pacific Islands) 80 people trained/certified (Mauritania and Democratic Republic of Congo) 16 CUMULATIVE RESULTS Outputs Outcomes Impacts 74 strategies or reform 3.6 billion USD in public 30,334 jobs created programs designed finance leveraged 58 cross-institutional 310 hectares in industrial 499 new firms created coordination mechanisms land serviced created 16 laws or regulations 3,336 SMEs trained or supported 962 million USD in private supported investment leveraged 78 million USD in additional export value supported 102 million USD in additional sales value supported 167 million USD of finance disbursed CIIP’S RESOURCE LEVERAGE 70 grants across 60 countries $36 million in CIIP financing $3.6 billion in public finance leveraged from World Bank operations, of which $470 million in FY20 CIIP Leverage: FY13–20 CIIP Annual Report 2019–20 17 F E AT U R E S T O RY Supporting Industrial Transformation and Employment in Uganda Amid COVID-19 The COVID-19 pandemic and the ensuing economic the short-term impact of COVID-19 while staying on the long- crisis have led many developing countries to fear for an term course towards high-growth economic transformation. extended period of downturn. In Uganda, the outfall of COVID-19 could push an estimated additional 780,000 INVITE aims to help Uganda continue the economic and people into poverty, causing greater hardship and inequality. industrial transformation process - especially in regions that comprise the future Growth Triangle, anchored around three Prior to the economic shock, Uganda was experiencing manufacturing hubs (Gulu, Mbarara, and Mbale) as set out in a rebound in growth. Due to the compounding effects of Uganda’s National Development Plan III (2021-2025). The COVID-19 and the locust invasion in the country, real gross project aims to address three interlinked development chal- domestic product (GDP) growth in Uganda is expected to fall lenges that have hindered private investment and job creation: from 6.7 percent in 2019 to not more than 1 percent in 2020. 1) liquidity constraints in firms, particularly MSMEs, exacer- Growth in manufacturing is expected to decelerate to about bated by COVID-19; 4 percent in FY20, from 7.1 percent during FY19. Trade and 2) risk aversion to investment in MSMEs and emergent mar- tourism-related activities, such as hotel accommodation and ket segments; and restaurants, are also expected to shrink from an average annual 3) access to viable economic opportunities in lower-income 1 growth of 3.5 percent to about 1 percent over the same period. host and refugee communities. The World Bank, with critical support from the Competitive In the short term, the project will mitigate the risk of firm insol- Industries and Innovation Program, is using a rapid response vency, and enable financial institutions to support viable firms mechanism to reorient the US$200 million pipeline project in the manufacturing and export sectors by (i) extending the Investment for Industrial Transformation and Employment loan period for well-performing firms and financing the cost of (INVITE) to support the Ugandan Government in addressing providing a grace period; (ii) enabling micro firms to restart or 1 Uganda Economic Update, 15th Edition, July 2020. Packing Soya flour, SESACO Ltd., Kyengera Masaka Road Photo credit: World Bank 18 continue operations by providing lines of credit to institutions competitively selected lead investors in the targeted districts supporting micro-enterprises; and (iii) providing financing to with performance-based grants for business plans that demon- MSMEs based on security in the form of their receivables. strate large network effects and meet criteria such as inclu- sion, innovation, rate of return, and job creation potential. In the medium term, the project aims to enhance the abil- ity of the financial system to support productive enterprises Through the creation of a multi-donor trust fund (MDTF), the by mitigating the financial sector’s risk aversion through lending operation will also enhance the capabilities of select the development of de-risking instruments for new lending public institutions critical to job creation and build the capac- to MSMEs, such as partial risk guarantees, and long-term ity of private firms. CIIP has directly contributed to the design sub-ordinated loans to encourage productive, long-term of the MDTF and informed the development of several pro- investments. The design of new financial instruments will grams, such as an Export Development Program, a Supplier draw on CIIP analysis of products and challenges faced by key Development Program, and an MSME Business Develop- financial institutions providing access to finance for MSMEs. ment Program aimed at helping both exporters and domestic companies expand their sales and growth through digital plat- INVITE will also support investment in refugee and host forms. The project is scheduled for Board approval before the districts by encouraging the expansion of existing supply end of 2020, and aims to benefit 140,000 firms, catalyze over chains or the establishment of new supply chains. Diagnostic $254 million in new private investment in manufacturing, and and value chain analysis, conducted by CIIP, has identified facilitate the creation of an additional 30,000 jobs by 2025. sectors with high growth potential. The project will provide CIIP Annual Report 2019–20 19 The CIIP Theory of Change To reduce poverty and to promote shared prosperity, many government policy makers have implemented a series of policy inter- ventions designed to attract private investment, to raise firm-level productivity, to produce higher value-added goods, and to create more and better-paying jobs. These interventions assume political and macroeconomic stability, peace and security, and the basic rule of law. The policy initiatives include designing spatial solutions, such as SEZs, growth poles, or growth corridors; providing grants to firms to enable innovation, capacity growth, and product development; and initiating reforms of the overall regulatory and policy frameworks. The effectiveness of these initiatives has remained debatable largely because of the absence of rigorous evidence-based assessments of such interventions. 20 Vision and Purpose Analytics In 2012–13, the WBG, the EU, the OACPS Secretariat, and the govern- ments of Austria, Norway, and Switzerland set up a partnership under the umbrella of the CIIP, which aims to improve the effectiveness of industry competitiveness and policy formation and enforcement. The purpose of CIIP is to support the creation of private sector employment by enabling and promoting firm-level competitiveness across industries. Approach CIIP provides funding at the project preparation stage to shape project design and the early stages of project implementation. CIIP funding is directed at WBG task teams or more broadly government teams that are preparing projects to be financed primarily by the World Bank and often in complementarity with other multilateral development banks or bilateral institutions. As such, CIIP helps leverage a large amount of aid funding. The funding provides project teams with the opportunity to learn from pol- icy initiatives that have already been tested; to conduct analytical work, such as market assessments, enterprise mapping, or feasibility studies (in the case of the International Finance Corporation operations); to develop a PPD; and to design policy instruments and impact evaluations. In addition, CIIP conducts operation assessments and learning events to act as a repository or resource hub for related policy interventions, such as SEZs or grants. Also, CIIP aims to trigger more development partner collaboration in the coun- tries where projects have been identified. The level of collaboration can range from involvement in project design to participation in implementing and financing parts of the project. CIIP Annual Report 2019–20 21 Theory of Change Assumptions CIIP’s theory of change underpins the program’s overall Key assumptions underpinning the theory of change are as objectives and, operationally, the causal chain of objectives follows: for each project. CIIP aims to achieve its outcome and impact 1. That CIIP enables the identification of core constraints in milestones by supporting the design and early implementa- selected markets and industries that are preventing effec- tion phase of interventions, which support the removal of the tive private sector engagement. identified constraints hindering firm competitiveness. These 2. That CIIP identifies project teams and project interven- interventions aim to deliver systemic changes—for instance, tions that effectively address the constraints that have been through policy reforms that shape the way markets perform identified. and that change the way firms participate in and access those 3. That the government is willing to take up a project financed markets. Removing identified constraints will, in turn, lead by the World Bank or any of the donor partners to support to better functioning markets (industry output level) and to the implementation of project design. improved firm performance among target beneficiaries (out- 4. That the firm-level improvements facilitated by CIIP proj- come level), which is measured through improved business ect interventions will encourage additional firms as sup- practices, sales, and increased productivity and profitability. pliers, distributors, and competitors, as well as raise their The result is increased additional net income and employ- standards and improve their competitiveness. ment for poor women and men, ultimately contributing to a 5. That the network of more productive firms ultimately reduction in poverty and shared prosperity. creates growth in employment and income-generating opportunities for the poor. 6. That in terms of employment there will be a net creation of employment by competitive firms. Reporting 7. That there are no external shocks that prevent the achievement of targeted impacts, including conflict- and CIIP reports outputs that are directly attributed to the grant-­ environmental-­related shocks. financed activities and inputs (for example, the earmarked public financing will be attributed to CIIP only if it is clearly linked to CIIP-financed inputs). At the outcome and impact level, CIIP reports on what can be feasibly associated with CIIP-­ enabled outputs, which emphasizes contribution rather than direct attribution, in acknowledgement of the myriad attribution challenges associated with CIIP’s cross-sectoral and policy-­based interventions. Results reported by the task teams are scrutinized by the CIIP secretariat and presented to the steering committee only if the information is found to be credi- bly associated with CIIP’s work. Where feasible, country exam- ples are used to inform a narrative of different country trajec- tories for enhancing competitiveness and for creating jobs. Impact: Improvements in firm performance result in job growth, net Poverty reduction income growth, and poverty reduction. Outcome: Improved market and business environment leads to improved Enterprise performance firm-level performance and growth in value addition and employment (and eventually to crowding in of suppliers and competitors). Outputs: Removal of systemic constraints leads to sustainable changes Systemic change in the way the market system operates, such as through improved policies and growth in public and private investment. Activities: Program interventions target the underlying systemic constraints within selected markets and industries in a sustainable way. Intervention 22 CHAPTER 1 Global Knowledge, Analysis, and Assessments CIIP Annual Report 2019–20 23 Developing Informed Industry Analytics to Better Inform OACPS Operations Grant amount $43,724 Project update The analytical project set out to better understand the determinants of competitive participation in selected industries. The pro- ject aimed to develop market studies that could specify the range of policies and investments that would facilitate the development of specific sectors of the global economy and the growth of OACPS countries’ participation in them. Initial market analysis of the construction sector in OACPS countries was initiated in FY20, but the onset of the COVID-19 shifted World Bank priorities and the project was discontinued. In its short implementation period, the project finalized a thorough literature review of the construction sector and a concept for applying a benchmarking of OACPS countries’ construction sectors. The literature review and concept design have already been used by OACPS regional project teams in Cote d’Ivoire and East Africa in the implementation of country level studies on cons- truction. Intermediate outputs have been documented in Bank systems for future use if the work is to be continued post COVID- 19. In the interim, the outputs have informed CPSD assessments of the housing and construction sectors in Kenya and Rwanda. 24 Enhancing Private Sector Competitiveness through the Circular Economy Grant amount $150,000 Project update This CIIP knowledge activity is the program’s first comprehensive Advisory Services and Analytics (ASA) activity on green compe- titiveness with the objective of exploring the private sector’s role in the circular economy (CE) and investigating methods by which governments can scale up such interventions through targeted industry approaches. By actively engaging the private sector and supporting policies that promote new markets for sustainable products, the circular economy can become part of the spectrum of solutions that governments can deploy to improve competitiveness. This is especially critical in the wake of the COVID-19 pande- mic and the ensuing need to ensure a greener and more resilient recovery, as highlighted in a recent World Bank blog. The outputs of the knowledge work have recently been initiated and will include a global report on “Circular Economy and Private Sector Development”, produced with co-financing from the Donor Committee for Enterprise Development (DCED) and the Korea-World Bank Partnership Fund. The report will collect primary data from industries in six countries to identify the gaps in their circular economy potential. The report will be supplemented by case studies and will provide policy makers and donors guidance on approaches to maximizing CE in their private sector development agendas. The initial set of outputs include partial funding to the World Bank’s first Learning Series for Circular Economy and Private Sector Development, presented jointly with the Korea-World Bank Partnership Fund and the Energy Sector Management Assistance Program (ESMAP), United Nations Industrial Development Organization (UNIDO), German Agency for International Cooperation (GIZ) and other development partners. Over 900 people have registered for the series which will run until the end of FY21. The recording for the first overview session is now available online. Subsequent sessions of the series will discuss the circular economy in eco-industrial parks, plastics, digital technologies, construction and tourism. The activity will complement and explore synergies with other ongoing efforts on green competitiveness, such as “The International Framework for Eco-Industrial Parks”, and the World Bank’s active program on resilient industries where the global team has been enhancing operational quality by supporting the inclusion of specific climate co-benefit targets in lending projects. CIIP Annual Report 2019–20 25 Exporters Capacity Building Impact Assessment Grant amount $500,000 Project update CIIP is supporting pilot impact assessments in Argentina and Columbia aiming to evaluate the effectiveness of a range of techni- cal assistance programs to SMEs focused on improving management practices targeted towards exporting. The studies assess the following firm-level outcomes: (1) export managerial practices, (2) export value, (3) number of export destinations, (4) number of exported products, (5) new export product-destination pairs, (6) firm profits, (7) firm sales, (8) firm satisfaction. The assessments gather lessons that can help improve the export competitiveness of firms in OACPS countries and support their integration in global export markets. In Argentina, the intervention to promote exporters is completed and all firms have received support. Following the initial diagnos- tic, half of the firms received technical assistance by export consultants to improve their export-oriented business practices focu- sing on areas where: (i) firms had bigger weaknesses, (ii) potential returns to investment was higher, (iii) firms were keen to make improvements. The impact of the technical assistance on the overall export managerial practices index score of firms that received it was found to be both positive and significant. Firms in the treatment group improved their index by six points more than firms in the control group, which only received the diagnostic. The impact is equivalent to an improvement of 12.5 percent relative to the initial level. This is a substantial improvement given the cost of the technical assistance is about US $3,000 per firm. Improve- ments were concentrated in the areas of strategy, distribution, and administration, which were prioritized for improvement during the diagnostic. Given these results, we could expect that the probability of starting to export could increase by 7 percent, while the exports value for the firms already exporting could increase by 25 percent. In Colombia, the intervention is also completed, and all firms have received support to promote their productivity and exports. A total of 200 firms applied for the program and met the eligibility criteria. These 200 firms were then randomly assigned to two groups of 100 each. Firms were first given an initial diagnostic and recommendations for improvements in quality, labor produc- tivity, commercial strategy, and energy efficiency. During the intervention stage firms in the treatment group received up to 190 hours of technical assistance: 30 hours directed towards general commercial strategy and 160 hours towards two of the other four areas in which they have the most room to improve. The final phase is a trade fair (macrorrueda de negocios) organized by Pro- Colombia and designed as a business matchmaking forum to enable firms to obtain meetings with international buyers, primarily from countries with which Colombia has free trade agreements. The follow up survey in Colombia is expected to be completed by April-May 2021. In both countries, the project has been instrumental in influencing policy dialogue and policies on competitiveness, specifically by highlighting the importance of firm capabilities and productivity for success in export markets. The team estimates that each CIIP dollar has leveraged six dollars of public investment in Colombia and four dollars in Argentina, and the program could have even larger public leverage in OACPS countries. All policy notes and best practices generated by the pilot will be widely disseminated as global public goods that could inform policy makers in OACPS countries in their efforts to support SMEs struggling to diversify and break into export markets. 26 Global-Value Chain Linked Foreign Direct Investment in OACPS Countries Grant amount $200,000 Project update The project team completed a first draft of the report “Global Value Chains: An Investment Perspective.” The project seeks to investigate the relationship between FDI and GVC participation at the macro and micro levels and offer specific policy recommen- dations for developing countries to enter GVCs and upgrade along the value chain. The main report consists of six chapters: 1. The relationship between FDI and GVC participation at the macro level; 2. Multinational firms shape the development of GVCs; 3. How domestic firms can learn from multinational firms to participate in GVCs; 4. Government policies to stimulate GVC parti- cipation through FDI; 5. Broader policies to integrate and upgrade in GVCs; 6. The impact of COVID-19 on FDI and GVCs, and implications for the global economy. The report finds that countries’ FDI centrality is highly correlated with their GVC centrality; multinational firms are the primary drivers of globalization through unbundling and offshoring production processes; all major exporting countries benefit from a strong presence of multi-national corporations; power asymmetry and production length jointly determine GVC governance; and countries can use strategies integrating FDI policies with wider economic policies to stimulate GVC participation. Governments can respond to the challenges brought on by COVID-19 by getting the economy ready and open for a post-crisis start; seizing opportunities of potentially shifting GVCs; and stimulating global cooperation and exchange. The team also completed five qualitative case studies and two quantitative case studies to complement the main report. The qualitative case studies combine firm interviews and desk research and focus on Honduras, Kenya, Mauritius, Malaysia, and China. The case studies analyze the top sector in terms of GVC participation for each country and offer in-depth analysis of the characteristics of the sector, the country’s role in the corresponding GVC, the country’s path to entering and upgrading in the GVC, and the policy lessons for other developing countries. The two quantitative case studies focus on Rwanda and West Bengal and combine firm-level data with transaction-level data to empirically test the impact of FDI inflows on firms’ GVC participation, productivity, product complexity through demonstration effect, and linkages effect. The quantitative case studies also visualize the domestic part of global production networks in selected sectors, highlight the position and contribution of multinational firms, and offer practical policy recommendations. The final report and case studies will be launched in March 2021. CIIP Annual Report 2019–20 27 Innovation Support for Business Growth in Low Income Countries: A Toolkit Grant amount $200,000 Project update The team has advanced the implementation of planned activities despite some delays related to COVID-19 restrictions. Two main streams of work have commenced in Kenya, the first of which is an assessment of the Kenyan Science Technology and Inno- vation system with a focus on manufacturing and agro processing, both of which are priority areas for the Kenyan Government. The objective of this work is to assess the current structure and performance of the sectors and to provide advice to the Kenyan Government on how to optimize its policy approach, especially around technology diffusion. The mapping process has been completed, and policy analysis is underway. This mapping work has also been used to inform the second related stream assessing Kenyan small and medium enterprises (SME) and entrepreneurship support, which is under preparation and preliminary map- ping has been completed. The next step is to explore subnational entrepreneurship support systems because even though Nairobi’s ecosystem is much studied, far less is understood about science, technology, innovation and entrepreneurship at the subnational level. The analytical work has utilized two WBG developed analytical tools, the Public Expenditure Review for Science Technology and Innovation, and the entrepreneurship ecosystem assessment tool. This is the first time the public expenditure tool has been used in Africa and so far, it has proven to be adaptable and applicable. Elements of the tool had to be altered to deliver the func- tional analysis element, which assesses how well the government is developing and delivering its innovation support, as this had previously been developed through face to face interviews, now not possible with COVID-19. The entrepreneurship ecosystem assessment tool is less developed, and there are various aspects of it that are being tried, altered, and simplified thanks to this pro- ject. When completed, both streams of work are expected to be used by the Kenyan Government in developing future innovation and SME support policies. In light of the COVID-19 pandemic, the original plan to provide face to face training on innovation and SME policy and program design in both Kenya and the Democratic Republic of Congo is being revisited and the efficacy of delivering it online is being assessed. 28 Private Sector Digital Platforms: Improving Market Access and Regulation I Grant amount $300,000 Project update The knowledge activity has finalized all outputs and fulfilled all envisioned objectives. The team organized a high-level conference called “Online Markets for Development: Opportunities and Risks”, which was held on October 15, 2019, and helped translate new topics into relevant policy actions, identify how online markets can help remove economic frictions, scale-up demand, and increase productivity and jobs in developing countries, and consider the risks associated with lack of contestable market dynamics and policy solutions to address them. The conference contributed to strengthening World Bank Group operations, creating new knowledge for developing countries, and expanding the research network. To complement the agenda on assessing the risks of uncontestable markets, the team also prepared a document on competition challenges associated with the development of digital platforms and summarized the regulatory approaches designed and implemented in the European Union and the United States. The team also developed and piloted a survey to codify the regulatory framework for digital platforms. The approach was piloted in Colombia, Mexico, and Peru for some digital activities. In addition, the team also finalized the report “Regulation of Sharing Economy Platforms: A Multi-Country Comparative Study” and supporting database aiming to provide a preliminary investigation and discussion based on empirical, comprehensive, and comparative international data on how regulators are responding to the emerging sharing economy. The report and database applied the defined methodology to a diverse set and sample of 65 jurisdictions from a selection of both developed and developing economies. The final deliverable identified the main policy concerns within each jurisdiction and measured the effectiveness of government responses to sharing economy transport and accommodation platforms. The report considered whether there was evidence of a connection between the regulatory response and reduction of policy concern, and what are the impacts of regula- tory responses on innovation, a key driver of productivity and economic growth. Notwithstanding the current detrimental impacts of the COVID-19 pandemic on the uptake of sharing economy platforms, countries throughout the world will continue to be affected by the emerging sharing economy in the future. Knowledge developed under this activity is informing the Digital Business and Markets Global Engagement and supporting the forthcoming World Development Report on data driven business models, World Development Report 2021: Data for Better Lives. The analytical outputs have also been embedded in the development of the Digital Economy for Africa Digital Business Pillar. The outputs have also been utilized to inform the design of the pipeline $200 million Ethiopia Digital Foundations lending project. CIIP Annual Report 2019–20 29 Private Sector Digital Platforms: Improving Market Access and Regulation II Grant amount $100,000 Project update The second part of the CIIP Private Sector Digital Platforms grant is a follow-up of the Digital Platforms flagship ASA activity, focusing on providing diagnostic resources to help operational teams convert the findings of the global report into actionable inter- ventions and policy reform recommendations. In particular, the grant co-funded some of the diagnostic resources to help project teams understand the landscape of digital solution firms in the Africa and Middle East and North Africa regions by initiating the development of two databases on digital solution providers and digital market regulatory responses, including an integrated framework to capture regulatory responses aimed at nurturing digital business models while mitigating potential negative effects. The activity will also help inform the COVID-19 digital platforms response across operational engagements. 30 Quality Infrastructure Country Assessments Grant amount $170,000 Project update The objective of quality infrastructure (QI) assessments is to help governments understand the strengths and areas for improve- ment in a country’s QI ecosystem and to provide high-level recommendations to develop or strengthen it. The CIIP grant suppor- ted the completion of two quality infrastructure assessments in Ghana and Somalia. The reports provided an assessment of the QI ecosystem in each country using the World Bank Group QI Rapid Diagnostic Tool (RDT) which is based on good international practices. The assessment is designed to provide users with feedback on the state of a QI function along four main pillars: (i) legal and institutional framework, (ii) administration and infrastructure, (iii) service delivery and technical competency, and (iv) external relations and recognition. The assessments were done through in country missions and structured virtual interviews with the different QI institutions, deve- lopment partners, private sector representatives, and related regulatory authorities based on the RDT questionnaire and an additional set of questions, if needed. The assessment was supported by desk research and review of existing documentation from relevant websites. The client countries endorsed the assessment reports, and the QI recommendations informed the design and implementation of the Ghana Economic Transformation Program and the Somalia Agriculture Global Practice Projects and International Finance Corporation (IFC) advisory, mainly in the livestock sector. In Ethiopia, The QI assessment was delayed due to COVID-19 travel restrictions, and the team had to rely on virtual interviews with other development partners and consultants on the ground to complete the evaluation. The report on Ethiopia will be com- pleted by October 2020. CIIP Annual Report 2019–20 31 Services-Led Development: Myth or Reality? Grant amount $200,000 Project update CIIP supported the development of a framework to inform policy debates and enhance development strategies regarding the relative contribution of the services sector to productivity and inclusive development outcomes. The team prepared a complete narrative that outlines the underlying framework and highlights the supporting evidence for the flagship report. This narrative, which identifies what countries need to do to prepare and make services-led growth both more productive and inclusive, was presented at a workshop where the World Bank’s Equitable Growth, Finance, and Institutions Chief Economist and the Trade, Investment, and Competitiveness Global Director were discussants. The narrative includes a discussion of the services sector as a source of jobs and economic transformation, including the contribution of services to productivity growth and job creation and comparison of firm dynamics in services and manufacturing; an investigation of the promise of services-led growth, including a discussion of whether the features of manufacturing once thought of uniquely special for development are increasingly shared by services and a look at whether the conventional pattern of structural change is still relevant; and a concluding section on policy priorities and recommendations on how countries can leverage the potential of “high-end” services and boost the performance of “low-end” services. Owing to changing client priorities during the COVID-19-induced crisis, the completion of the flagship report itself was delayed and is currently planned for December 2020. The COVID-19-related disruption presented an opportunity to use the ongoing flagship work to inform policy priorities during the crisis. In this case, an analysis of the importance of face-to-face interactions that are prominent in many services sectors con- tributed to the discussion of vulnerabilities owing to social distancing. A working paper titled “When Face-to-Face Interactions Become an Occupational Hazard: Jobs in the Time of COVID-19” looked at data on 900 job titles from the Occupational Infor- mation Network database for the United States to demonstrate that there is substantial heterogeneity in vulnerability across indus- tries, income groups, and gender. The paper found that (i) industries vary in whether they emphasize face-to-face interactions and home-based work and the two do not always go together; (ii) occupations that are less amenable to home-based work are largely concentrated among the lower wage deciles, and (iii) a larger share of women’s employment is accounted for by occupations that are intensive in face-to-face interactions. 32 Technology Adoption in an Era of New Industrial Revolution Grant amount $400,000 Project update The CIIP grant supported the preparation, implementation, and data analysis of the World Bank Technology Adoption Survey. This work has been informing operations supporting private sector economic recovery after the COVID-19 shock. The pandemic led to challenges with face-to-face data collection, but the team worked intensively with country counterparts and regional teams to identify solutions and effectively implement the project. In Malawi, the team is implementing the technology adoption survey at the firm-level in collaboration with the National Statis- tical Office (NSO). The WBG team is supporting the NSO to build capacity for collecting firm-level data to measure technology adoption and has provided training for the NSO staff, including enumerators, supervisors, and Managers. The NSO has collected and shared with the team results from 480 interviews, which are currently being processed and assessed. The data will provide key inputs for the SME and Technology Adoption Readiness CIIP county grant in Malawi, which is informing the design of the $86 million Malawi Financial Inclusion and Entrepreneurship Scaling Project. In Kenya, data collection was affected by the COVID-19 pandemic and delays from the Kenya National Statistical Agency in providing a sampling frame. To further understand how COVID-19 has been affecting businesses’ and their decisions in terms of technology adoption, the team implemented a business pulse survey. The sample is nationally representative and the first wave, which collected data on 1933 firms, is completed. A second wave of the BPS is ongoing, and the team has completed data collec- tion for 1124 firms. The team is using the same sampling frame to implement the technology adoption survey in a third wave of data collection to support the preparation of a financial operation to facilitate access to finance and enterprise recovery, and to inform a background study defining key strategies for entrepreneurship and SME support. The questionnaire was adapted to address the current circumstances associated with COVID-19 and the need for telephone data collection. In consultation with the management team and the CIIP Secretariat, the team is working on replacing Jamaica with the Domi- nican Republic. The representative sampling frame in Jamaica was produced with significant delays and did not contain contact information, making it impossible to adapt the data collection to COVID-19 related phone or online implementation. Conse- quently, the technology adoption survey in Jamaica was cancelled and the team is currently preparing to begin implementation of the survey in the Dominican Republic in response to a request by the Government. CIIP Annual Report 2019–20 33 34 CHAPTER 2 Country Operations CIIP Annual Report 2019–20 35 CENTRAL AFRICAN REPUBLIC Private Sector Support Services Delivery Design Leverage n/a Grant amount $200,000 Project update The team conducted analytical work and extensive consultations with Government and relevant stakeholders to map the landscape of donor, public, and private efforts in the Central African Republic and inform and design activities to provide technical assis- tance to MSMEs and entrepreneurs and financial assistance to MSMEs, entrepreneurs, and organizations. Background research found that financial and technical assistance would often need to be delivered in parallel to maximize the impact on beneficiaries and increase the likelihood of sustainable improvements in business performance. The team found that Central African Republic’s private sector is recovering from extensive destruction of assets and is constrained by several factors that increase business risk, such as poor infrastructure, low capacity of institutions and government to intermediate private sector and economic growth, low human development indicators, remote geography and physical and virtual connectivity challenges, a challenging business envi- ronment, etc. The COVID-19 pandemic has further impacted revenues for both MSMEs and large, formal businesses, and has increased the need for technical and financial support to facilitate recovery. The analysis also found that business growth is constrained by the lack of adequately skilled job seekers. A focus group discussion with TVET providers uncovered the main challenges faced by various stakeholders, including limited capacity and resources to accommodate the high demand for TVET; significant infrastructure and equipment needs; lack of training curricula; inadequacy of teaching materials; high degree of mismatch between courses offered and skills to respond to the demand of prospective employers; lack of specialized trainers and little to no teacher training programs; lack of analysis and feasibility studies to identify training needs of the labor market; lack of consultations between TVET stakeholders on the development TVET curricula; lim- ited employment opportunities for trainees; and lack of formal training curricula for out-of-school youth. To address the identified challenges, the team developed a list of potential activities, such as building the capacity of the SME and Artisan’s Business Center, a financially autonomous public entity; providing grants to develop business support services pro- viders, non-governmental organizations (NGOs), training providers, and private sector development organizations; strengthening business incubators and accelerators to increase digital literacy and entrepreneurship; supporting public-private dialogue through funding and strengthening critical public and private organizations; establishing linkages between SMEs and more sophisticated businesses; etc. The deliverables from the grant activity would prepare the ground and inform the design of any potential World Bank-funded investment lending operation. The Country Partnership Framework for the Central African Republic, approved in September 2020, foresees the implementation of a private sector development project consistent with the activity designs. 36 CONGO, DEM. REP. Small and Medium Enterprise Development and Growth Leverage Democratic Republic of Congo SME Development and Growth Project ($100 million) and National Agriculture Development Program (pipeline, $500 million) Grant amount $472,500 Project update The project team launched the $100 million SME Development and Growth Project in February 2020 and presented the project activities to stakeholders and beneficiaries. The SME Centers toolkit was presented at the event with a dedicated session that dis- cussed the implementation arrangements and the collaboration with local partners. KPMG has been selected as the implementing partner and implementation is expected to begin in November 2020. CIIP analytical support has been critical for the launch of the SME Hubs subcomponent, which has attracted a lot of attention and support from private sector stakeholders and the new Minister of SMEs. The SME Hubs are expected to alleviate ICT, logistics, electricity, and related constraints, which were reported as the top barriers to business operation. The SME hubs are different from the spatial approaches previously implemented in the Democratic Republic of Congo because they rely on private investors and are expected to be fully financially sustainable. The SME Hubs toolkit has been finalized and will be translated into French. In addition, the SME Ecosystem report has been disseminated widely and it has supported the preparation of the new strategy on support to entrepreneurship, prepared by the Ministry of SMEs and ratified by the Parliament in June 2020. The strategy prepa- ration relied on the unique database of more than 2,300 MSMEs and an exhaustive analysis of their ecosystem presented in the report. The main recommendations of the report include simplifying and increasing the transparency of the policy environment, addressing market and institutional gaps, strengthening and expanding the base of opportunity entrepreneurs, devising innovative solutions for infrastructure challenges, piloting approaches to address MSME skills gaps at scale, and pursuing integration into national market and value chains. The recommendations will inform the new government strategy on entrepreneurship and the $500 million World Bank pipeline National Agricultural Development Program, which aims to improve agricultural productivity and market access of smallholder farmers and strengthen public sector capacity to respond to agriculture sector emergencies. CIIP Annual Report 2019–20 37 EGYPT Cluster and Sector Diagnostics in Arab Republic of Egypt’s Lagging Regions Leverage Upper Egypt Local Development Performance for Results Program ($500 million) Grant amount $220,000 Project update The CIIP-funded Technical Assistance (TA) helped identify the enabling factors that can catalyze private sector growth in Assiut and Menia, two of the poorest governorates in Upper Egypt. Upper Egypt includes 10 governorates and stretches from south of Cairo to the border with Sudan and most of the population and economic activity are concentrated along the banks of the River Nile. CIIP’s analytical outputs are being leveraged by counterparts to support the geographic expansion of the ongoing Upper Egypt Local Development Program to Assiut and Menia. The program empowers governorates to reinforce subnational compet- itiveness by tackling local market and coordination failures that limit private sector growth and improving the provision of basics services to citizens. The extended program will continue to focus on enhancing the business environment and competitiveness, financing the improvement of government-to-business services and the roll-out of cluster competitiveness initiatives, in large part based on the findings of this TA. Three main outputs from the CIIP grant contribute to the expansion of the program: (i) a governorate-level Private Sector Diag- nostic (inspired by the World Bank’s methodology used in Country Private Sector Diagnostics; (ii) an economic and cluster map- ping of the two governorates, including a rapid mapping of the entrepreneurship ecosystem; and (iii) a deep dive analytical work into tourism, which is relevant to the current governorates as well as the new ones. The originally planned spatial and territorial analysis did not advance in the overall program, so it was dropped from the program expansion and replaced with the tourism deep dive. The sectors and clusters identified and briefly analyzed in this TA will be the subject of the expanded operation’s focus, due to their positive impacts on exports, jobs, and social inclusion in the targeted regions. Tourism was more closely analyzed to understand its potential contribution to this goal in the context of the COVID-19 crisis and to leverage the political will to accel- erate economic recovery to direct efforts towards structural constraints that stifled the region’s outstanding potential in attracting higher value-add local and international tourism. The outputs were jointly financed with the United Kingdom-funded Transform- ing Local Institutions in Upper Egypt ASA activity. Finally, the CIIP grant supported the restructuring of the ongoing operation to facilitate its expansion to the two new governorates, or more broadly to Egypt’s lagging regions. The outputs of this TA component supported the design of a Competitiveness Grant (CG), a new operational tool to promote competitiveness policies at a subnational level. This innovative instrument is unique in the WB portfolio and the TA helped: (i) inform the design of the tool, including by analyzing relevant experiences globally; and (ii) extract the most relevant lessons learned from the Egypt operation’s CG to inform the tool’s potential application in other countries. The CG is essentially a merger between the Competitive Cities conceptual framework, developed with CIIP support in 2015, and the Performance Based Grant mechanism used by the Urban, Disaster Risk Management, Resilience, and Land Global Practice in multiple operations globally, including in the second component of the Egypt project. It consists of “top-up” fiscal transfers from central governments to local governorates, regions, and cities that are conditional on local governments’ per- formance in implementing competitiveness policy actions against specific metrics. To access the CGs, the governorates also need to meet capacity building milestones, which are focused on ensuring the local administration’s capacity to prioritize policy actions based on competitiveness analytics and informed public-private dialogue. The built capacity increases the quality and relevance of the performance metrics that the CG subsequently incorporates as milestones against which disbursements are programmed. 38 ETHIOPIA SME Competitiveness Support Leverage Competitiveness and Job Creation Project ($250 million), Competitiveness and Job Creation Project Additional Financing ($175 million), Digital Foundations Project (pipeline, $200 million), and SME Finance Project Additional Financing (pipeline, $200 million) Grant amount $450,000 Project update To support the Government’s recent efforts to foster digital economy in Ethiopia, CIIP has funded a “Diagnostic on Digital Entre- preneurship and Innovation,” which was completed in March 2020. The study is informing the design of the new $200 million Digital Foundations project, scheduled for approval in FY21, which has a $40 million component dedicated to fostering digital entrepreneurship. The diagnostic assessed the current state of digital entrepreneurship in Ethiopia and concluded that the sector is in the nascent stage and facing several challenges across the different stages of the startup lifecycle spanning from financing to inadequate business skills and support infrastructure. Based on potential for job creation, efficiency improvements and inclusive growth, there is an opportunity to grow the digital economy in Ethiopia by focusing on digital financial services, e-commerce, transport and logistics, information technology outsourcing and software development. The CIIP grant is also contributing to the World Bank engagement in strengthening linkages between domestic enterprises and FDI firms in Ethiopia. The team commissioned a survey aimed at assessing the local SME sector to understand the underlying factors limiting the scale-up of linkages between local SMEs and tenants in IPs, particularly in apparel and textile value-chains. Key informant interviews (KII) were conducted with international buyers, FDI firms operating inside and outside the IPs, and local manufacturing firms and service providers. The KII report has been finalized and it summarizes the current state of link- ages between local SMEs and FDI firms; the key challenges that are hampering local sourcing, including legal and policy issues, business environment, buyers sourcing practices and compliance standards, local suppliers competitiveness, and lack of entrepre- neurial capacity; and a prioritized list of policy recommendations to support integration of local suppliers into the value chains. In addition, CIIP is funding an SME policy mapping exercise for Ethiopia to understand whether the Government’s allocation of innovation policy resources aligns with its targeted impact. The Government has realized the need to provide comprehensive support to SMEs to address the most binding constraints for their competitiveness, success and growth to complement the ongoing interventions on facilitating access to finance and business management services. CIIP has funded an analysis, which focuses on access to markets and production facilities that were identified as critical binding constraints for SME development and growth. The analysis identifies challenges facing SMEs operating in dominant sectors in selected cities in Ethiopia, such as textile and garments, agribusiness, etc., reviews experiences of other countries, and provides creative solutions that address the identified challenges. CIIP Annual Report 2019–20 39 GHANA Complementary Support to Economic Diversification Leverage Ghana Economic Transformation Project ($200 million) Grant amount $200,000 Project update The CIIP grant has supported the finalization of project design and launch of project activities for the $200 million Ghana Eco- nomic Transformation Project. The team worked with the government to utilize the existing project interventions to effectively support the private sector during the COVID-19 pandemic. Given that SEZs are a new instrument for Ghana, the team recruited an SEZ expert with global experience to support the imple- mentation of Component 2: Crowding in investments: promoting spatial and industrial planning and development. The expert worked closely with the Ministry of Trade and Industry and the Ghana Free Zones Authority to help shape the initial plan of activities under the lending project and to develop the Terms of Reference (TORs) for a SEZ benchmarking and value proposition consultancy and TORs for the development of a national SEZ policy. The team has provided technical assistance and advisory to project counterparts on international best practice in SEZ development, from the initial policy, to the legal framework, and the identification and prioritization of sites. The project team was also supported by two entrepreneurship and venture capital specialists to advance implementation of Com- ponent 3: Accelerating entrepreneurship and MSME growth. With support from the grant in TOR development, the Ministry of Finance recruited consultants to conduct the institutional review of the Venture Capital Trust Fund as well as two feasibility studies on the potential Startup Catalyst Fund and Strategic Industries Fund. The Ministry also recruited a consultant who is assisting the National Board for Small-Scale Industries in preparing a five-year strategic plan, following the finalization of the National MSME Policy and the Enterprise Ghana Agency Bill, which is pending Parliament approval. At the onset of COVID- 19, the team held a series of discussions with the National Board to help reposition the project-financed SME support program to complement immediate response measures provided under the Government’s Coronavirus Alleviation Program as well as a new initiative by the MasterCard Foundation. As a result, the Project Implementation Manual was updated to include details on the SME COVID-19 recovery grants, which will be the focus of the first call for grant applications, which is expected to be launched in October 2020. This first round will also help to refine the design of an impact evaluation which will measure the success of the SME component of the project. 40 GUINEA Promoting Diversification and Inclusive Growth in Guinea Leverage Guinea First Fiscal Management, Competitiveness, and Energy Reform Development Policy Loan, $90 million) Grant amount $266,000 Project update The CIIP team has nearly completed the Market Access and CGE analysis and is in the process of drafting the final report. In addition, the team is in the process of drafting the first two of the four planned case studies. Due to COVID-19 travel limitations, interviews required for the remaining two case studies will be conducted virtually. The Market Access, CGE analysis, and the four case studies will comprise a final report, outlining key recommendations to the Government on high priority road and other investments, such as digital infrastructure. During the consultations conducted for the first two case studies in Mamou and Kankan, the team found that constraints around key infrastructure, such as access to electricity and water, impact the entire country, and as such, are transversal needs. Addition- ally, many regions within Guinea show high potential for agribusiness, but without these infrastructure investments, larger scale development in these areas is unlikely. Informed by this finding, the remaining case studies will focus on the potential of the mining sector where larger foreign companies either have financed or are likely to finance some portion of these infrastructure invest- ments. As such, the remaining two case studies will be conducted in Boke and either Siguiri or Nzerekore. During the process of conducting the case study interviews and consultations, the team found that adequate preparation is critical, and the process is greatly facilitated by a strong local contact already designated in the target city. This process went smoothly in Mamou but was more challenging in Kankan. For the remaining two case studies, the team will be leveraging existing World Bank and IFC operations to access local government officials in Boke and either Siguiri or Nzerekore. CIIP Annual Report 2019–20 41 GUYANA Competitiveness and Diversification Diagnosis Leverage n/a Grant amount $250,000 Project update The CIIP team conducted an extensive technical mission to define the scope and objectives of the study and kickstart the analyt- ical work. The diagnostic will contribute to the analytical underpinnings of the policy discussions determining the analysis, prior- itization, and investment plans for private sector development and job creation in competitive industries with a view to ensuring stability, and sustained, diversified and inclusive growth in the context of the recent transformative oil boom. The Concept Note for the study has been approved by World Bank management. The diagnostic comprises of four main areas of analysis and aims to identify constraints and opportunities for diversification and competitiveness: (i) insights from global experience on economic transformation based on country case studies that are comparable and/or relevant, (ii) an economy-wide review of the policy foundations and enablers for economic transformation and diversification, and (iii) industry deep-dives focusing on sector spe- cific challenges and competitiveness potential, and (iv) considerations and analysis of the political economy and implications for competitiveness and diversification strategies. The findings of the analyses would inform a set of recommendations that would be presented as a menu of options with cost-benefit implications, and associated roadmap of short to long term actions that could maximize stability and shared prosperity outcomes. The team has also carried out extensive baseline scoping of the competitiveness issues in the sectors of focus, such as agriculture/ agribusiness, tourism, mining, ICT/services, and reviewed the strengths and weaknesses in cross-cutting areas, such as governance, infrastructure, energy, business environment. The preliminary analysis in agriculture identified the following priority commod- ities, ordered from closest to furthest from the current export basket: oilseeds, bovine cattle, sunflower oil, fish flour for animal feed, palm oil, fowls, sheep, cocoa beans, cocoa paste, and sunflower seeds. The second stage of sector level analytical work will dive deeper into the suitability and cost of developing each value chain. The tourism analysis found that Guyana’s tourism sector possesses significant potential to promote sustainable and equitable development in the country’s interior through a distinctive eco-tourism experience and that poor internal transport infrastructure is the greatest constraint to the growth of tourism in Guy- ana. In the final analysis the team will also assess governance and implementation capacities for competitiveness programs. The team has also completed preliminary drafts of the global case studies and the literature review on economic transformation and resource curse and extracted lessons for Guyana. The grant is also funding the contract of a prominent economist, Jim Robinson, the author of “Why Nations Fail”, who is working on a Guyanese Political Economy Analysis. 42 MALAWI SME and Technology Adoption Readiness Leverage Financial Inclusion and Entrepreneurship Scaling Project (pipeline, $86 million) Grant amount $150,000 Project update The team has drafted a policy note examining the e-readiness, infrastructure, policy and legal factors that contribute to ICT adop- tion for SMEs in Malawi. The study aims to understand how the micro and macro-economic factors, and legal and regulatory structures affect technology adoption and innovation as well as summarize the current initiatives that embrace digital technology in the country. The study adopted a mixed methods approach. A desk research approach aimed to understand how enabling the legal and regulatory environment is to promotion and adoption of digital technology by SMEs. Key documents reviewed included the Communication’s Act (2016), the Payment Systems Acts and regulations, ICT Policies, and the Business Registration Act (2016). The qualitative survey involved in-depth interviews with Senior Management staff from six randomly sampled SMEs classified according to the National Statistics Office ranking criteria and further categorized on whether they have fully or partially adopted digital technology. The Policy Note suggests that the Government of Malawi could channel resources towards providing affordable backhaul and infrastructure to enable service providers. The report calls for urgent investment in power generation and distribution infrastruc- ture, as well as exploration of alternative energy sources such as solar polar. Improving the investment climate for the digital sector by eliminating retrogressive taxes on internet services and digital equipment can go a long way to reducing the start-up cost and increasing greater adoption of technology. Improving the environment will also include strategically raising awareness and digital literacy among the private sector. Furthermore, upgrading digital skills by enhancing the ICT curricula for both primary and secondary institutions would contribute to supporting the sector. Finally, establishing digital innovation hubs that serve as ICT “information” centers and platforms can promote dialogue between the private sector and ICT service providers for share more up to date emerging technology solutions and innovations. In Malawi, the firm-level data from the standardized World Bank Technology Adoption Survey will help the team analyze and determine key challenges and propose government policies and strategies that will create the facilitating conditions to enable SMEs to adopt more effective technologies, including digital technologies, such as digital infrastructure and technology extension services. Through the firm-level survey and associated analytical work and case studies, CIIP is supporting the preparation and informing the design of the $86 million Malawi Financial Inclusion and Entrepreneurship Scaling Project, which is currently under preparation. CIIP Annual Report 2019–20 43 MAURITANIA Fostering Women’s and Vulnerable Economic Operators’ Engagement in the Nouadhibou Free Zone Leverage Nouadhibou Eco-Seafood Cluster Project ($7.75 million) and Nouadhibou Eco-Seafood Cluster Project Additional Financing ($8 million) Grant amount $200,000 Project update The CIIP team hired an international NGO and training institute, move GmbH, to adapt content and conduct the initial Train- ing-of-the-Trainers (TTT) program for the personal initiative (PI) training program for women in fisheries in the Nouadhibou Free Zone. A local women’s NGO, Mauritanie 2000, was also contracted to implement the PI training program and identify trainers and beneficiaries. The collaboration between move, Mauritanie 2000, and the World Bank was formally launched in September 2019. The three-week TTT was completed successfully in November 2019, with 10 out of 15 trainers qualifying as PI trainers and mentors. Two trainers that did not qualify after the first week chose not to continue, while the others stayed on as trainer interns or beneficiaries of the pilot training. All 10 qualified PI trainers were expected to take part in the PI training program in Nouadhi- bou due to begin in March 2020, however, due to the COVID-19 pandemic, the program and the Master trainer TTT had to be delayed until FY21. These are now expected to take place in October and November 2020, in accordance with local restrictions on gatherings, while the move team will conduct the Master trainer TTT remotely from Germany with trainer candidates connecting from Nouakchott. Additional content is being developed for the training program in response to the pandemic and will include a short module on beneficiaries’ legal rights and a fact sheet on oppor- tunities for innovation in the artisanal fisheries sector. The grant also contributed to significant progress on the proposed radio activity targeting artisanal fishermen. A partnership between the EU Promopêche Program, GIZ, International Labor Organi- zation and two World Bank projects was established in July 2019 to advance project design and preparatory work. The partnership made it possible to widen the scope of the initiative beyond Nouadhibou and to secure additional funding of over $180,000. Over 20 journal- ists were trained in August 2019 at the Radio Mauritanie training center and six were selected to be part of the “Radio Pêche” team. A project coordinator was hired to supervise and ensure quality con- tent, a Monitoring and Evaluation agency was contracted to gather feedback and results from the activity, and a contractual agreement for broadcasting was signed with Radio Mauritanie. Unfortunately, the program launch, which was scheduled for December 2019, had to be cancelled and broadcasting was put on hold over contract concerns between Radio Mauritanie and the Ministry of Fisheries. Recent leadership changes at the Ministry may allow the Bank team to revamp the radio activity, however, it is for now unclear if the activity will be able to resume within project duration. 44 ORGANIZATION OF EASTERN CARIBBEAN STATES Blue Economy in the OECS Leverage OECS Regional Tourism Competitiveness Project ($26 million) and Unleashing the Blue Economy of the Eastern Caribbean (pipeline, $60 million) Grant amount $200,000 Project update In March 2020, the CIIP grant was restructured on a request from the Organization of Eastern Caribbean States (OECS) leaders and World Bank management. The focus of the grant shifted from supporting the design of the Blue Investment Fund to provid- ing policy guidance to transition to digitally enabled blue economy tourism activities. The redesigned scope of activities will give CIIP an opportunity to inform the refined project activities of the ongoing $26 million OECS Regional Tourism Competitiveness Project, which is currently undergoing restructuring, and to inform the design of the $60 million pipeline project, Unleashing the Blue Economy in the Eastern Caribbean. The objective of the proposed project is to stimulate economic recovery in the partici- pating countries (Dominica, Grenada, St. Lucia and St. Vincent & the Grenadines), strengthen their marine and coastal resilience, and improve the competitiveness of their economies in three critical and interconnected sectors and areas: tourism, fisheries and aquaculture, and waste management. The project aims to achieve this through strengthening the governance, policy, and capacity building for key productive sectors and areas and scaling up access to finance and infrastructure investments in the blue economy. The CIIP grant is funding activities to define blue economy tourism experiences and conduct a mapping of these activities in the four countries to assess the countries’ digital presence, skills, and policy challenges. The team is investigating the challenges facing policymakers in the participating countries, specifically looking at the legislative and policy challenges facing the operation and regulation of digitally enabled tourism activities. Based on international best practices, a set of recommendations and guidelines will be developed for policymakers in the region, which will be disseminated during regional training sessions. A firm is under procurement to support the identification of the policy, infrastructure, and capacity building needs to transition to a blue economy with a special focus on digital skills. The CIIP team has developed an effective communication mechanism between the countries and helped facilitate a series of virtual stakeholder workshops to identify priorities, bottlenecks, and responses to the impact of COVID-19 on the tourism sector. COVID-19 has shirted priorities and presented challenges with client feedback and procurement. The pandemic has also accel- erated the transition to sustainable and digitally enabled tourism providing the CIIP grant additional opportunities for leverage. CIIP Annual Report 2019–20 45 SENEGAL Senegal Digital Competitiveness: Supporting Productivity and Inclusion from the Adoption of Digital Technologies Leverage Third Multi-Sectoral Structural Reforms Development Policy Loan ($180 million) and Jobs, Economic Transformation and Recovery Project (pipeline, $100 million) Grant amount $350,000 Project update The CIIP grant supported the preparation and implementation of the $180 million Senegal Third Multi-Sectoral Structural Reforms Development Policy Loan through several main activities. The team completed data collection of the first Technology Adoption Survey in Senegal and produced a firm-level database and a report. The survey was applied to 1,786 informal and formal enterprises. The data provide novel measures of technology at the firm-level, which identify technological gaps on general business functions, such as business administration, business planning, value chain management, marketing, sales, and payments, as well as sector specific functions, such as land preparation and harvesting for agriculture, input sourcing and cooking for food processing firms, or design and sewing for wearing apparel. To support policy dialogue, program design and ex-ante impact assess- ment of the loan the grant funded a poverty and social impact assessment of the supported set of reforms. Specifically, the team supported the production of ex-ante simulations of the potential distributional effects through prices of pro-competition reforms in the telecommunications market that would expand the number of mobile internet operators in the country. The activity also included some simulation analysis on the likely economic impact of changes in electricity tariffs and conducted a review of the existing evidence for developing countries on the potential economic effects of strengthening the entrepreneurship ecosystem by making it easier for entrepreneurs to create formal start-ups or small firms and facilitating their growth. The team conducted a study on the digital landscape for agriculture in Senegal relative to peer countries, with a focus on the CommAgri and ComMango information technology applications. The assessment covered functionality and expected value for users, as well as strengths and weaknesses regarding design features that are key for systems profitability and scale. Based on cus- toms data covering the period 2015-2018, the team produced evidence on how the time to import and export, and its uncertainty, negatively impacts firms export performance, measured by export survival, value and quality upgrading, and what are the policy implications for facilitating imports of goods that are critical to fight the COVID-19 pandemic. The case study on assessing the benefits of a blockchain solution for mangos or groundnuts value chains was replaced by a survey to assess the impact of COVID- 19 on firm performance, expectations, and labor adjustments and analyze how firms are reacting to the shock by adopting digital technologies. The work supported by this CIIP grant has generated interest in the topic of technology adoption for SMEs and is informing the design of the pipeline $100 million Jobs, Economic Transformation and Recovery Program for Results operation that is cur- rently under preparation on Project. The operation will have a vertical component that focuses on specific value chains, including horticulture and fishery, and a horizontal component that will support firms to adopt better technologies, improve the business environment, enhance financing, and facilitate public-private partnerships. 46 SOMALIA MSME Financing Facility and Digital Services Readiness Support Leverage Somalia Capacity Advancement, Livelihoods, and Entrepreneurship through Digital Uplift Projects (SCALED-UP) ($18 million) Grant amount $200,000 Project update The CIIP grant has advanced the set up and operationalization of the MSME Financing Facility, the main component of the supported lending operation. Gargaara Company Limited was established as an independent entity with a commercial orientation based on private sector governance principles, with the Ministry of Finance as its first shareholder. Seven members of the Gar- gaara Board of Directors have been appointed, three representatives from the public sector, three representatives from the private sector, and one representative from the donors, and the Board has selected the core management team. CIIP funding supported the capacity building, public private dialogue, and technical assistance to prepare the MSME Financing Facility Charter and the MSME Subprojects Manual. Three financial institutions have been onboarded to participate in the MSME Financing Facility. The Gargaara Board also issued approval to onboard three commercial banks and all three participation agreements have been signed. The participation agreements include a commitment to implement institutional development plans prepared based on the capacity gaps identified during the accreditation process by the Gargaara team. The first disbursements were made in June 2020. CIIP funding also supported technical assistance to draft a detailed policy statement to inform a comprehensive legal and regu- latory framework for the proposed digital identification (ID) system, which aims to increase access to basic digital financing and government services targeting entrepreneurship and employment, particularly for women The support included reviews and assessments, as well as facilitating dialogue between key stakeholders from the private sector, public sector, NGOs, and civil soci- ety organizations. An interim 11-member Digital ID Task Force has been established to operationalize the digital ID policy and facilitate the set-up of the Federal Identification and Registration Authority under a digital ID law to be drafted and enacted. A high-level Project Director will implement the digital ID system in close collaboration with the digital ID Task Force and reporting directly to the office of the Prime Minister and the Ministry of Finance. The project is in the final stage of hiring a legal advisory board to commence the drafting of laws and regulations for the digital ID system. CIIP Annual Report 2019–20 47 SOUTHERN AFRICA Nacala Corridor Regional Trade Project Leverage Southern Africa Trade and Connectivity Project (pipeline, $350 million) Grant amount $350,000 Project update The project team completed the design and fieldwork for an investment survey to assess the barriers to trade and investment and medium-term investment potential along the Nacala corridor. The survey used self-reported data from 360 key decision-makers in foreign-owned companies operating in the countries within the project catchment area. Survey results are summarized in the final report and suggest that planned foreign investments in the short to medium term are mostly envisaged in the tertiary sector; ‘faster and cheaper border clearance’ and ‘strengthening the logistics and transport sectors’ are the most attractive conditions for foreign investors; and if project activities were implemented, investors in both Mozambique and Malawi would increase their investments by 50 percent. After extensive consultations with stakeholders in Malawi and Mozambique, the team finalized the report “Analyzing the Institu- tional Structure for a Nacala Corridor Coordination Mechanism,” which provides background and institutional analysis to inform the design of an optimal and sustainable coordination mechanism to foster cooperation and maximize benefits from expected infrastructure investment along the Nacala corridor. The team supported the preparation of a draft agreement between the gov- ernments of Malawi, Mozambique, and Zambia related to the Nacala Development Corridor. The team also completed an analysis of the political economy and competi- tion of the transport and logistics sector along the Nacala Corridor. The report assesses the key market dynamics driving high transport costs, identifies oppor- tunities for potential reforms, and assess the expected effects of pro-competition reforms on economic variables. The report investigates how shaping incentives of transport sector operators can inform the assessment of policy options and political economy considerations. The team also drafted a report identifying the major non-tariff barriers to trade along the Nacala Corridor and the Beira Cor- ridor focusing on trade and transit-transport facilitation. The report includes a review of infrastructure systems, self-assessment of the World Trade Organiza- tion Trade Facilitation Agreement by states along the corridors, the legal and regulatory framework to trade, including the Sanitary and Phyto-Sanitary and Technical Barriers to Trade, the status of Transit-Transport facilitation instru- ments, and an update on the status of management systems. Finally, the team drafted a report identifying opportunities, assessing feasibility and cost, and designing activities that deliver climate co-benefits, including both mitigation and adaptation activities, to be included in the project under preparation. Spe- cific activities to address climate change vulnerability include the use of hydro, solar or other renewable energy, construction of border posts with energy efficient materials or retrofitting of existing building, installation of climate and disaster risk early warning system, the adoption of measures in supply chains to improve energy or resource efficiency, and others. 48 TANZANIA Zanzibar Tourism Leverage Boosting Inclusive Growth for Zanzibar (pipeline, $150 million) Grant amount $200,000 Project update Prior to the outbreak of COVID-19, the team utilized project funds to help the government define potential tourism sector related investments in Nyungwi, Makunduchi and Chwaka, the three focus villages, and surrounding areas, for the $150 million World Bank financed Boosting Integrated Growth for Zanzibar project. The document presents detailed integrated tourism development plans addressing gaps in pursuing higher-value tourism along four key pillars of value enhancement: making places, improving products, promoting good practices, and building capacity. The intended follow-up work on the creation of a public-private dia- logue platform and the baseline assessment of enterprises in the three areas was halted by the COVID-19 outbreak and the subsequent lockdown in Zanzibar. The activities will resume in October and the team will ensure that COVID-19 related impacts are fully reflected, and that viable recovery strategies and solutions are included in the lending project. The baseline survey of tourism enterprises in the project focus areas, as well as a sample of household surveys, will form the basis for monitoring impacts over the life of the project. During the preparation of the local area tourism development plans several pub- lic-private dialogue platforms were established and will be maintained during the implementation of the project. These include the Nyungwi Tourism Improve- ment Area Partnership and the Southern Tanzania Tourism Route Forum that connects Zanzibar businesses with the safari ecosystem in southern Tanzania and aim to create a solid “beach and bush” experience. These platforms also connect and build synergies between the project and an ongoing Southern Tanzania-fo- cused World Bank lending operation. The project Board date has been slightly delayed to early 2021 to accommodate upcoming elections in Tanzania and to ensure that any COVID-19 related recovery solutions can be incorporated into project activities. CIIP Annual Report 2019–20 49 UGANDA Mobilizing Private Investment for Jobs Leverage Investment for Industrial Transformation and Employment (pipeline, $200 million) Grant amount $250,000 Project update The CIIP grant is informing the preparation of the pipeline $200 million Investment for Industrial Transformation and Employ- ment project. To support upstream work related to the planned operation and the Government’s National Development Plan, an indicative private sector development program on Jobs and Investment is being prepared as a multi-donor partnership. The program is structured as a collaborative and coordinated effort to support the delivery of more and better jobs, accelerate the transformation of the economy by increasing value addition and the competitiveness of exports, increase incomes for farmers and small businesses, provide financial support to SMEs, and unlock the potential of high growth, emerging industrial clusters. The pipeline project is being reoriented to respond to challenges presented by the COVID-19 pandemic and aims to promote private sector investment and employment by mitigating the shocks from COVID-19 and supporting new economic opportunities including in refugee and hosting communities by connecting refugees to markets through value chains. The project is changing the paradigm from humanitarian response to development response by supporting refugees to become self-reliant economic actors. The COVID-19 pandemic has lowered both local and foreign demand forcing many MSMEs to lay off staff and close. The proj- ect will provide credit and liquidity to MSMEs to negotiate a temporary relief in the current economic crisis, while creating the foundation for rapid recovery and supporting continued economic transformation. A Multi Donor Trust Fund has been set up to provide technical assistance to implement the project while World Bank resources will be used for investment. In February and March 2020, the team conducted a project identification mission in the country. The mission identified a key set of areas of intervention that would catalyze the jobs and economic agenda, including (i) institutions for economic transformation; (ii) industrial infrastructure in strategic locations; (iii) a digital platform to enhance firm level competitiveness; and (iv) access to finance. The project is preparing for appraisal with a target Board date of November 2020. 50 CHAPTER 3 Projects Completed in FY20 CIIP Annual Report 2019–20 51 THE COMOROS Competitiveness and Jobs Project Leverage Integrated Development and Competitiveness Project ($25 million) Grant amount $249,951 Project update CIIP provided support for early project implementation of the $25 million Integrated Development and Competitiveness Project, which was declared effective in May 2020. A full Project Implementation Unit (PIU) has been set up and key procurement activ- ities are underway. The project team conducted intensive onboarding to operationalize key PIU staff and relevant stakeholders. There is strong engagement and project ownership on the ground. Activities are expected to speed up as soon as key implementing partners are recruited, with the PIU requiring close supervision and implementation support given the relatively weak institutional capacity and the complexity of the project. Project management systems and related implementation platform are in place and being strengthened in line with required World Bank standards and policies. The Steering Committee is established, and financial management, procurement, and safeguards instruments systems are in place and being deployed by the PIU. Specific training is also being provided and planned, including regarding COVID-19 measures. Operations manuals have been approved and vali- dated by the Bank and a manual of procedures for component 2, Direct Support to Firms, is being prepared. A survey firm is currently being procured to conduct a Business Pulse Survey to assess the impact of COVID-19 on firm perfor- mance and operations. An approximate number of 500 MSMEs are expected to be surveyed. Results from the survey will inform the implementation of activities under Component 2 of the project which provides direct support to firms. 52 CONGO, REPUBLIC OF Diversification and Competitiveness Program Leverage Enterprise Development and Competitiveness Project ($25 million) Grant amount $167,484 Project update CIIP has contributed to the early implementation of the $25 million Enterprise Development and Competitiveness Project, which has been effective since June 2019. Following the finalization and dissemination of the grant’s key deliverable, “The Port of Pointe Noire Competitiveness,” the team has prepared a roadmap of the report’s key recommendations in consultation and dialogue with all main stakeholders. Informed by the findings, the team has identified key areas of intervention in line with relevant institutional arrangements. Aligning recommendations with the potential for interagency coordination and implementation capabilities would greatly enhance their development effectiveness. The team is finalizing the diagnostic on a One Stop Shop for Border Operations. A consultant is currently working on identifying implementable actions and strengthening coordination between the multiple agencies that are involved, which was identified as one of the main constraints to the operationalization of the One Stop Shop. In terms of SEZ diagnostic and development, CIIP support provided capacity building on institutional, planning, and operational aspects. Finally, the work that the team and the project implementation unit have done on mapping of value chains is being translated in a nationwide effort to undertake a census of the private sector. Since the lending project is also conducting a mapping of operators in key value chains, the proposed census will be fully coordinated with activities under the project, including with studies to assess and evaluate the capacity of operators in identified value chains to better support entrepreneurs and firms. The roll-out of firm-level technical and financial support measures under the project has also been adjusted to reflect the COVID-19 response. CIIP Annual Report 2019–20 53 THE GAMBIA Policies for Sustainable and Inclusive Private Sector-Led Growth Leverage n/a Grant amount $451,139 Project update The main grant deliverable titled “Policies for Private Sector-Led Growth: Achieving Sustainable and Inclusive Growth” has been finalized and approved by World Bank management. The final report incorporates feedback received from the main stakeholders, the Central Bank of The Gambia, Ministry of Agriculture, and The Gambia Tourism Board. The report identifies the main mac- roeconomic factors constraining private investment as low productivity, lack of diversification, low level of private sector credit, challenging business environment, ineffective public investment, etc. The study highlights ways to support the entrepreneurship ecosystem, including through PPD to support policy implementation, digitizing government to business services to incentivize formalization and support firm growth, strengthening support intermediaries and leveraging the Gambian diaspora for network- ing and access to finance. The report outlines both sector-specific and sector-wide actions to facilitate access to finance, including credit guarantee schemes and grants, pre-harvest finance for agriculture, supply chain financing for MSMEs, mortgage finance for tourism, etc. Finally, the study identifies promising value chains in agribusiness and tourism and outlines a set of short-medium and long-term actions to unlock their full potential. This analytical work has catalyzed and informed the preparation of a new ASA activity in The Gambia led by Finance, Com- petitiveness, and Innovation global practice on Support to Private Sector COVID-19 recovery, particularly in the tourism sector. Given the sector’s importance to the economy and the significant impact it has withstood from the pandemic, the team will be facilitating a PPD among key tourism stakeholders to come up with a concrete plan of action for long-term recovery. The ASA builds on the dialogue and findings that came out of the CIIP-funded analysis and that have informed the team’s advice to the government over the past year, starting from the Thomas Cook collapse to the onset of COVID-19. It is possible that the agreed action plan, to be completed by end-FY21, would be at least partly financed through a future World Bank operation. 54 GUINEA Women Entrepreneurs and Crossing Over Leverage n/a Grant amount $261,123 Project update All grant activities have been completed. A total of 1,901 women applied to the Women Breaking Barriers program, which com- bines business training, information sessions, technical training, internships, mentoring, and a start-up toolkit to support women to enter male-dominated sectors. The sectors selected for the intervention were baking, artisans, barbershops, painting, brickmaking, and aquaponics. Out of 1,600 eligible applicants, 400 were randomly selected to participate in the program, and an open day event was held to provide more information on opportunities in the selected sectors. Of the 400 women invited to participate, 277 participated in the various training and information sessions of the program. The implementing partner conducted a monitoring survey after the completion of the program, which showed that most women felt that they were prepared to be entrepreneurs as a result of the program. Over 90 percent of women said that they had already put into practice the skills they acquired during training. Women believed that they had received enough business (98 percent) and technical (94 percent) training and would recommend the program to a friend. The participants repeatedly stressed that the program helped to build self-confidence and provided them with the tools and competencies to build a better future for themselves and their families. The grant funded a randomized impact evaluation, which aims to assess the effectiveness of the program and its effects on the likelihood of women opening a business in a traditionally male-dominated sector. The impact evaluation conducted a baseline survey of 1,200 women that had applied to the program and randomly selected 400 women to participate and 400 women to be the control group. Following the completion of the program in 2019, the project team conducted a follow-up survey of the 800 women in July-August 2020. Due to the COVID-19 outbreak, the follow-up was shorter it was conducted over the phone instead of face-to-face as planned. The follow-up survey reached 89 percent completion rate. The team is currently analyzing the results to assess the rigorous impacts of the intervention on firms and employment outcomes. A video associated with this grant was featured as part of the launch of the regional flagship report “Profiting from Parity: Unleashing the Potential of Women’s Businesses in Africa”, which has been downloaded over 9,800 times since its launch. CIIP Annual Report 2019–20 55 PACIFIC ISLANDS Competitiveness for a Pacific Possible Leverage n/a Grant amount $360,343 Project update The project team completed the final deliverable, the “Vanuatu Tourism Investment Needs Assessment and Plan”, in January 2020. The Investment Plan consists of the following key analytical elements: (i) a strategic segmentation of Vanuatu’s tourism visitor market to identify the priority segments at which investments should be targeted; (ii) 10-year forecasts (2020-2030) of mar- ket demand from each of these strategic visitor segments; and (iii) a quantification of the supply-side private sector investment, particularly in accommodations and air transport capacity, that will be needed to support the projected levels of visitor demand. Informed by these analytical underpinnings, a set of strategic tourism-enabling public investments are recommended, based on their potential to unlock demand from the priority visitor market segments and mobilize private investment of the scale and nature required by these segments. The recommended investments cover Vanuatu’s three core tourism destinations (Efate, Santo, and Tanna) and include access and connectivity infrastructure, basic services infrastructure, and tourism-specific facilities, amenities, and workforce training centers. The investment plan was presented to the Government of Vanuatu at a workshop attended by around 30 representatives from the public and private sector, and the plan is on track to be adopted as the official government planning document for tourism sector investment planning in Vanuatu, guiding future investment decisions and policy efforts to drive the sector’s long-term devel- opment. The Ministry of Finance and Economic Management is open to the possibility of a tourism-specific project, anchored in the solid analytical foundation of the investment plan. A new government was formed after elections in March 2020 and the Department of Tourism has signaled that the formal adoption of the investment plan is a priority, followed by the appraisal of the proposed investments. Furthermore, there are preliminary discussions ongoing for a new COVID-19 emergency response Devel- opment Policy Operation for Vanuatu, which may feature some of the tourism-relevant policy reforms identified in the investment plan that aim to enhance the regulatory environment for private investment. The COVID-19 pandemic has brought tourism to a standstill in Vanuatu and even though the magnitude of disruption to the sec- tor is difficult to estimate, it is clear that the tourism outlook has changed dramatically and that there will be a significant shortfall in tourism demand in the near term relative to projections put forward in the investment plan. Over the medium-to-longer term, the baseline expectation is that tourism will rebound as the pandemic gradually dissipates, with the level of demand eventually converging to the long-term 2030 forecasts of the investment plan. In addition, the recent Tropical Cyclone Harold caused wide- spread damage to residential and services infrastructure in Vanuatu’s northern islands. The reconstruction and humanitarian and economic relief expenditures will likely consume most fiscal resources in the medium term and tourism-oriented investments such as those in the investment plan are likely to be postponed or deprioritized. Given the importance of tourism to Vanuatu’s economy, the repair or development of tourism assets is likely to eventually be part of broader economic recovery efforts. 56 SIERRA LEONE Competitive Agro-Processing Project Support Leverage Agro-Processing Competitiveness Project ($10 million) Grant amount $339,290 Project update The CIIP grant has completed its support for the SME TA Facility. CIIP funded wide stakeholder consultations and discussions on the establishment of an Advisory Committee for the SME TA Facility, including its composition, structure and governance. The Committee has already held its first meeting and aims to provide strategic guidance to the SME TA Facility. The grant also supported training on incubation and acceleration best practices and case studies and provided guidance on the draft SME busi- ness and financial plan. The SME TA Facility was launched in February 2020 with the goal of increasing the competitiveness and growth of local agro-processing companies. Over the next four years, the Facility will support over 150 small and medium enterprises by providing a customized suite of services, including coaching, training, market linkages, and investment facilitation through provision of matching grants. The SME TA Facility has selected its first cohort of 25 SMEs from a pool of 300 applicants to receive intensive coaching. To advance the entrepreneurship ecosystem building efforts, the Facility partnered with Freetown Pitch Night to host its first-ever agro-processing pitch competition for University students where three students won $1,000 grant plus technical assistance support to develop their business ideas. Also, the Facility, in partnership with ‘The Ignition Hour’, had organized its first-ever ‘Agro-Processors Fireside Chat’ event, showcasing women agro-processors. After the onset of the COVID-19 pandemic, the project conducted a thorough impact assessment of the SMEs in the first cohort of the Facility and recommended early grant disbursements to alleviate cashflow accompanied by flexible terms in relations to matching contributions and use of grant funds to cover operating expenses. The Facility will also explore opportunities with SMEs to diversify products and capitalize on new market opportunities informed by market trends. The recommended financial support could also contribute towards sharing the risk of exploring new opportunities, diversification and addition of new product lines. CIIP Annual Report 2019–20 57 UGANDA Second Competitive and Enterprise Development Project Leverage Investment for Industrial Transformation and Employment (pipeline, $200 million) Grant amount $286,637 Project update The CIIP team finalized the diagnostic and value chain analysis which identified sectors with high growth potential and high potential to contribute to the circular economy, such as horticulture, beverages, dairy, and pharmaceuticals. Work was also final- ized on the access to finance and the agriculture finance analysis which identified key financial institutions providing access to finance to SMEs and their products and challenges. Work was also completed on national Quality Infrastructure to support the Uganda National Bureau of Standards. The data collection from SMEs was delayed due to COVID-19 related firm closures, but it has recently resumed under the follow-on Uganda grant. All deliverables under this grant and complementary deliverables under the follow-on Uganda grant will inform the design of the pipeline $200 million Investment for Industrial Transformation and Employment lending project, which is currently under preparation. 58 CHAPTER 4 Communications and Outreach CIIP Annual Report 2019–20 59 Context As the CIIP enters its final year as a standalone program, communications effort in FY20 focused on highlighting results, capturing learning, and ensuring a smooth transition to the World Bank Group’s new Competitiveness for Jobs & Economic Transformation (C-JET) Umbrella 2.0 program. The CIIP team has also dedicated resources to improving the CIIP’s online presence to retain the program’s legacy and brand reputation. Communications Objectives for FY 2020 1. Ensure that program results from client countries are properly captured, highlighted and disseminated; 2. Improve the online presentation of the CIIP’s global footprint and ensure that the CIIP website remains a one-stop digital hub for up-to-date project information, funding allocations, and results; 3. Maintain the CIIP’s overall online branding and digital assets to ensure adequate knowledge retention and smooth transition to the future C-JET Umbrella. Activities during FY 2020 • Highlighting results. During FY 2020, we developed a series of “results stories” that highlight project deliverables, results, and learnings from seven client countries: Ethiopia, Georgia, Kenya, Mauritania, Nigeria, North Macedonia, and Tunisia. Each result story is designed as an easily sharable pamphlet and featured promi- nently on the CIIP’s website. • Improving CIIP’s online presence. CIIP’s web portal, theciip.org, was refreshed this year to ensure that the website meets latest design and user experience trends. Specifically, the homepage of the website was updated with an overhauled “In Focus” section that now showcases a more diverse group of knowledge products. We have also improved the mobile responsiveness of the website, allowing easier access on mobile devices. Following the COVID-19 crisis, the team integrated the World Bank’s COVID-19 response related to competitiveness as part of the resources featured on the CIIP website. • Maintaining an up-to-date online project database. During FY20, we completely redesigned the “Country Opera- tions” section of the CIIP website, highlighting result stories from seven client countries, as well as aggregate results at the global level. The updated project map now features updated individual country-level project information. Country opeations before (left) and after (right) Digital communications results Total pageviews Total visitors 46,423 42,137 60 CHAPTER 5 Financial Portfolio and Resource Use through June 2020 CIIP Annual Report 2019–20 61 Table 3.1 Donor Contributions Schedule Table (expressed in thousands) Committed Paid-In Outstanding Actual in USD Total in USD in contribution currency FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 SDTF (ACP) Tabl EC 15,039 15,039 - 10,039 7,750 1,792 19,581 Sub-Total - 10,039 7,750 - 1,792 - 19,581 Cent MDTF Cong Switzerland 3,000 3,000 - 1,626 1,690 3,316 Austria 5,000 5,000 - 6,455 6,455 Cong Norway 11,000 11,000 - 1,494 1,494 Ethio EC 4,708 4,708 - 3,081 2,396 561 6,038 Gam Sub-Total 11,161 1,690 3,890 561 17,303 Total 11,161 11,729 11,641 2,352 36,884 Gha Investment Income on MDTF Funds (a) 14 37 37 39 70 73 107 57 433 Guin Grand To tal 11,176 11,766 11,677 39 70 73 2,459 57 37,317 (a) As per Administrative Agreements investment income earned on SDTF undisbursed funds was credited to EC's Donor Balance Account, while investment income earned Guya on MDTF undisbursed funds shall be used for the same purposes as the contributions and is credited to the trust fund account. Cumulative investment earned as of June 30, 2019 is USD 376k. Keny Mala Figure 3.1 Total Donor Contributions (including Investment Income), Commitments, and Disbursements Mau 4000000 OEC 3500000 Paci 3000000 Sene Sierr 2500000 Som 2000000 Sout 1500000 Tanz Ugan 1000000 Sub- 500000 0 Total Donor Contributions Current CIIP Commitments Disbursements Available for New Received and Investment Commitments Tabl Income Egyp Table 3.2 Summary of Project Level Commitments and Disbursements Sub Sources and Uses $ FY13-20 Tota l Donor Contri buti ons Recei ved (MDTF + SDTF) 36,883,716 Inves tment Income on MDTF Funds 432,846 Total Funds 37,316,562 Current CIIP Commi tments (Opera ti ons , Knowl edge a nd Admi ni s tra ti on) 36,008,188 Central 2% Fee 737,674 Remaining Balance 570,700 Disbursements (disaggregated by Operations, Knowledge and Administrative Categories) 33,809,171 Central 2% Fee 737,674 Program Administration MDTF: includes management, collaboration, global knowledge, competitiveness programs & analysis and assessment 2,800,977 Program Administration SDTF: includes management, competitive analysis, competitiveness programs, innovation and entrepreneurship support & innovation and enterpreneurship programs at industry level 2,821,524 MDTF- Country Operations & Knowledge 12,683,771 SDTF- Country Operations 14,765,225 62 Table 3.3(a-c): Project Level Disbursement Grant Disbursements Amount Cumulative FY20 Table 3.3a: Ongoing Country Operations (ACP) Cental African Republic $ 200,000 125,461 125,461 Comoros $ 249,951 249,951 30,722 Congo, Democratic Republic of $ 472,500 436,155 108,528 Congo, Republic of $ 167,484 167,484 5,242 Ethiopia $ 450,000 327,804 205,273 Gambia, The $ 451,139 451,139 44,187 Ghana $ 577,171 569,518 152,812 Guinea $ 266,000 96,388 62,253 Guyana $ 250,000 107,435 107,435 Malawi $ 150,000 116,224 116,224 Mauritania $ 200,000 112,607 112,607 OECS Countries $ 200,000 89,442 89,442 Pacific Islands $ 360,343 360,343 163,390 Senegal $ 350,000 163,397 163,397 Sierra Leone $ 339,290 339,290 29,342 Somalia $ 200,000 136,478 124,420 Southern Africa $ 350,000 334,973 334,973 Tanzania $ 200,000 130,961 130,961 Uganda (2 grants) $ 536,637 534,444 311,859 Sub-Total 5,970,515 4,849,494 2,418,528 Table 3.3b: Ongoing Country Operations (Non-ACP) Egypt $ 220,000 107,523 107,523 Sub-Total 220,000 107,523 107,523 CIIP Annual Report 2019–20 63 Table 3.3c: Ongoing Knowledge Initiatives Developing Informed Industry Analytics to Better $ 43,724 43,724 43,724 Inform ACP Operations Enhancing Private Sector Competitiveness through $ 150,000 29,547 29,547 the Circular Economy Exporters Capacity Building Impact Assessment $ 500,000 400,388 193,719 (Argentina and Columbia) Global Value Chain-linked FDI in ACP $ 200,000 186,911 175,392 Innovation Support for Business Growth; a toolkit $ 200,000 71,406 71,406 Private Sector Digital Platforms - I $ 300,000 270,010 250,299 Private Sector Digital Platforms - II $ 100,000 10,624 10,624 Quality Infrastructure Country Assessments $ 200,000 129,260 129,260 Services-Led Development: Myth or Reality? $ 200,000 12,717 12,717 Technology Adoption in an era of a new industrial $ 400,000 143,316 143,316 revolution: ACP countries Women Entrepreneurs and Crossing Over in Guinea $ 261,123 261,123 Sub-Total 2,554,847 1,559,027 1,060,004 Total $ 8,895,069 $ 6,665,752 $ 3,555,347 64 CIIP Annual Report 2019–20 65 www.theciip.org ciip@worldbank.org Financed by in partnership with