The World Bank Implementation Status & Results Report Land Bank Financial Intermediation Project (P150008) Land Bank Financial Intermediation Project (P150008) AFRICA EAST | South Africa | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 8 | ARCHIVED on 22-Jul-2021 | ISR47680 | Implementing Agencies: Land and Agricultural Development Bank of South Africa, Land and Agriculture Development Bank of South Africa, National Treasury Key Dates Key Project Dates Bank Approval Date: 23-Jan-2017 Effectiveness Date: 29-Sep-2017 Planned Mid Term Review Date: 31-Oct-2019 Actual Mid-Term Review Date: 11-Dec-2019 Original Closing Date: 01-Apr-2022 Revised Closing Date: 01-Apr-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project's development objective is to sustainably scale up Land Bank's financing, specifically to benefit emerging farmers. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Line of Credit for Agricultural Financing:(Cost $93.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Unsatisfactory Unsatisfactory Overall Implementation Progress (IP) Unsatisfactory Unsatisfactory Overall Risk Rating High High Implementation Status and Key Decisions The project implementation is on hold due to Land Bank continuing to be in default status since April 2020. Since less than 10 percent of the project funds have been utilized till date and the project is currently due to close in April 2020, the ratings for the progress towards achievement of the Project Development Objective and Overall Project Implementation are retained as “Unsatisfactory’. The World Bank is continuing to monitor the situation and is engaging in ongoing dialogue with Land Bank (the borrower) and the National Treasury (the guarantor) to support their efforts to cure Land Bank’s default status. An implementation support mission undertaken between May 17 and June 14 has recommended key actions for National Treasury’s and Land Bank’s consideration. 7/22/2021 Page 1 of 5 The World Bank Implementation Status & Results Report Land Bank Financial Intermediation Project (P150008) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Substantial Substantial Macroeconomic Moderate High High Sector Strategies and Policies Moderate Substantial Substantial Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Moderate High High Sustainability Fiduciary Low Moderate Moderate Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Moderate High High Results PDO Indicators by Objectives / Outcomes PDO is to sustainably scale up Land Bank’s financing, specifically to benefit emerging farmers IN01021698 ►Volume of wholesale loans disbursed under the project (minimum) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 65,100,000.00 Date 31-Oct-2016 30-Sep-2020 30-Jun-2021 01-Apr-2022 IN01021699 ►Volume of direct value chain loans disbursed under the project (minimum) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6,598,240.00 8,827,970.00 27,900,000.00 Date 31-Oct-2016 30-Sep-2020 30-Jun-2021 01-Apr-2022 IN01021700 ►Total NPL rate under the line of credit (maximum) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 7/22/2021 Page 2 of 5 The World Bank Implementation Status & Results Report Land Bank Financial Intermediation Project (P150008) Value 0.00 0.00 0.00 10.00 Date 31-Oct-2016 30-Sep-2020 30-Jun-2021 01-Apr-2022 IN01021786 ►Direct project beneficiaries (minimum) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 57.00 1,100.00 Date 31-Oct-2016 30-Sep-2020 30-Jun-2021 01-Apr-2022 Intermediate Results Indicators by Components Line of Credit for Agricultural Financing IN01021787 ►Increase in outstanding loan portfolio of Land Bank (minimum) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 37,796,688,000.00 0.00 0.00 10.00 Date 31-Dec-2015 31-Mar-2020 31-Mar-2021 01-Apr-2022 The net outstanding loan portfolio is expected to reduce by 21% compared to the portfolio in March 2020. Comments: IN01021788 Increase in CB outstanding loan portfolio (minimum) (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 31,607,333,000.00 0.00 0.00 10.00 Date 31-Dec-2015 31-Mar-2020 31-Mar-2021 01-Apr-2022 IN01021789 Increase in REM outstanding loan portfolio (minimum) (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 489,051,000.00 0.00 0.00 20.00 Date 31-Dec-2015 31-Mar-2020 31-Mar-2021 01-Apr-2022 IN01021790 ►Land Bank liabilities that are long-term (over 1 year) (minimum) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 31.00 58.00 58.00 40.00 Date 31-Dec-2015 31-Mar-2020 31-Mar-2020 01-Apr-2022 IN01021791 7/22/2021 Page 3 of 5 The World Bank Implementation Status & Results Report Land Bank Financial Intermediation Project (P150008) ►Return on Average Equity (minimum) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.78 0.00 0.00 6.78 Date 31-Dec-2015 31-Mar-2020 31-Mar-2021 01-Apr-2022 Preliminary results show a loss reported for the year. Comments: IN01021792 ►Return on Average Assets (minimum) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.12 0.00 0.00 1.12 Date 31-Dec-2015 31-Mar-2020 31-Mar-2021 01-Apr-2022 Land Bank's preliminary results show a loss for the year. Comments: IN01021793 ►Total NPL rate for Land Bank (maximum) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.72 11.40 26.60 10.00 Date 31-Dec-2015 31-Mar-2020 31-Mar-2021 01-Apr-2022 Overall Comments IR The figures are preliminary and unaudited. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P150008 IBRD-86860 Effective USD 93.00 93.00 0.00 26.88 66.12 29% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P150008 IBRD-86860 Effective 23-Jan-2017 10-Apr-2017 29-Sep-2017 01-Apr-2022 01-Apr-2022 7/22/2021 Page 4 of 5 The World Bank Implementation Status & Results Report Land Bank Financial Intermediation Project (P150008) Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 7/22/2021 Page 5 of 5