The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) AFRICA | Africa | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2018 | Seq No: 4 | ARCHIVED on 19-Apr-2020 | ISR41118 | Implementing Agencies: Commission Bancaire de l'Afrique Centrale - COBAC, Groupe d' Action contre le Blanchiment d' Argent en Afrique Centrale (GABAC), Banque des Etats de l'Afrique Centrale (BEAC) Key Dates Key Project Dates Bank Approval Date: 04-May-2018 Effectiveness Date: 24-Oct-2018 Planned Mid Term Review Date: -- Actual Mid-Term Review Date: Original Closing Date: 04-Jul-2023 Revised Closing Date: 04-Jul-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to strengthen the capacity of selected CEMAC regional financial institutions to implement their mandates in the areas of financial stability, inclusion and integrity. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1. Strengthening the Capacity of BEAC and COBAC to Implement their Financial Stability Mandate:(Cost $12.00 M) Component 2: Strengthening the Capacity of BEAC and COBAC to implement their Financial Inclusion Mandate:(Cost $14.00 M) Component 3: Strengthening Capacity of GABAC to Implement its Financial Integrity Mandate:(Cost $4.00 M) Component 4: Supporting Selected Reforms through Results Based Financing:(Cost $2.00 M) Component 5: Project Implementation:(Cost $3.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions This ISR is filed based on the findings of the implementation support mission that visited Yaoundé and Libreville in January 2020. Progress towards achievement of PDO and overall implementation progress remain satisfactory; however, the COVID 19 global pandemic can slow down significantly a large number of activities financed by the Project. A year after effectiveness, the Strengthening the Capacity of 4/19/2020 Page 1 of 7 The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) Regional Financial Institutions in the CEMAC Region project is currently on track to meet its development objectives. Several activities related to diagnostics and preparatory assessments have been completed (or are about to be completed) and many work streams are in full implementation. The fiduciary performance of the project is moderately satisfactory and no major issues have been reported as of today. All legal covenants have been met despite some delays. The COVID 19 global pandemic poses serious challenges for the effective implementation of the Project. The World Bank stands ready to continue supporting the CEMAC regional institutions and adapt the project interventions to respond to the new immediate priorities, Below a summary of progress by component: Component 1. Strengthening the Capacity of BEAC and COBAC to Implement their Financial Stability Mandate. The component is progressing well. Several activities led by BEAC and COBAC have been achieved including: internal controls, IFRS, macro and micro prudential stress tests, composite index of economic activity and Islamic finance. Component 2: Strengthening the Capacity of BEAC and COBAC to implement their Financial Inclusion Mandate. This component is progressing but at a lower pace. Activities related to financial inclusion and payment systems have recorded delays due to slow and sometimes unsuccessful procurement processes. An action plan has been adopted to ensure the delays are addressed. Despite the delays, several activities are progressing well including credit registries and credit bureaus. With the completion of the merger of the two stock exchanges, additional technical assistance to support the BEAC with the central depository will also be launched. Component 3: Strengthening Capacity of GABAC to Implement its Financial Integrity Mandate. This component is progressing; however, some delays have been recorded. For that reason, GABAC’s work program will focus on its core functions, namely, conducting mutual evaluations and National Risk Assessments. Component 4: Supporting Selected Reforms through Results Based Financing. The component is progressing very well. Two intermediate DLIs have been achieved already, one ahead of schedule. The remaining intermediate DLIs are progressing well and most likely will be implemented ahead of schedule Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic High High High Sector Strategies and Policies Low Low Low Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Low Low Low Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes 4/19/2020 Page 2 of 7 The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) Increase the capacity of CEMAC regional financial institutions IN00823514 ►Increased capacity of COBAC to supervise banks under new risk based supervision framework. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 03-Jul-2018 13-Sep-2019 31-Mar-2020 03-Jul-2023 IN00823515 ►Increased capacity of BEAC to produce reliable financial, monetary and economic statistics on a monthly basis. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Data updated and Value No data published No data published No data published published every month Date 02-Apr-2018 13-Sep-2019 31-Mar-2020 03-Jul-2023 IN00823621 ►Increased capacity of BEAC to expand the population coverage of the regional credit registry. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 03-Jul-2018 13-Sep-2019 31-Mar-2020 03-Jul-2023 IN00823622 Increased capacity of BEAC to expand the female population's coverage of the regional credit registry. (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 12.00 IN00823623 ►Increased capacity of GABAC to comply with the FATF membership requirements. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Yes Yes Yes Yes Date 02-Jul-2018 13-Sep-2019 31-Mar-2020 03-Jul-2023 Intermediate Results Indicators by Components Component 1. Strengthening the Capacity of BEAC and COBAC to Implement their Financial Stability Mandate IN00823624 ►The Composite Index of Economic Activity is computed based on date from 6 countries and published on a quarterly basis. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 4/19/2020 Page 3 of 7 The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) CIEA is compiled with date from 6 countries Value No data published No data No data and published on a quarterly basis Date 02-Jul-2018 13-Sep-2019 31-Mar-2020 03-Jul-2023 IN00823628 ►BEAC to prepare financial statements in compliance with IFRS standards by year 2 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Jul-2018 13-Sep-2019 31-Mar-2020 03-Jul-2023 IN00823632 ►Adoption of an operations manual outlining key FOGADAC's responsabilities, procedures and relevant documentation for the rapid an effective resolution of a failing bank by year 3 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Jul-2018 13-Sep-2019 31-Mar-2020 03-Jul-2023 IN00823634 ►Implement risk based supervision for MFIs by Year 3 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Jul-2018 13-Sep-2019 31-Mar-2020 03-Jul-2023 IN00823636 Migrate MFI data from SESAME to CERBER system by year 2 (Yes/No, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Jul-2018 13-Sep-2019 31-Mar-2020 03-Jul-2023 IN00823638 Develop methodologies, procedures and systems to conduct risk based supervision by year 2 (Yes/No, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 03-Jul-2018 13-Sep-2019 31-Mar-2020 03-Jul-2023 IN00823639 Produce reports and dashboards with KPI on MFI performance by year 3 (Yes/No, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes IN00823640 4/19/2020 Page 4 of 7 The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) ►Assess MFIs financial conditions under the new risk based framework (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 03-Jul-2018 13-Sep-2019 31-Mar-2020 03-Jul-2023 Component 2: Strengthening the Capacity of BEAC and COBAC to implement their Financial Inclusion Mandate IN00823625 ►Updated regulations for issuing and processing emoney by year 2 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 02-Jul-2018 13-Sep-2019 31-Mar-2020 03-Jul-2023 IN00823629 ►Regional financial inclusion task force created by year 2 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 02-Jul-2018 13-Sep-2019 31-Mar-2020 03-Jul-2023 IN00823633 ►Financial inclusion indicators produced and published by year 3 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 02-Jul-2018 13-Sep-2019 31-Mar-2020 03-Jul-2023 IN00823635 ►Conduct at least 2 innovative pilots in selected economies (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 03-Jul-2018 13-Sep-2019 31-Mar-2020 03-Jul-2023 IN00823637 Percentage of women amongst the new financial services users reached through innovative pilots in selected countries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Component 3: Strengthening Capacity of GABAC to Implement its Financial Integrity Mandate 4/19/2020 Page 5 of 7 The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) IN00823626 ►Number of staff trained to carry out mutual evaluations by year 2 (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 20.00 15.00 Date 02-Jul-2018 13-Sep-2019 31-Mar-2020 03-Jul-2023 IN00823630 ►Number of mutual evaluations carried out in CEMAC member countries using the revised FATF methodology (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1.00 6.00 Date 02-Jul-2018 13-Sep-2019 31-Mar-2020 03-Jul-2023 Component 4: Supporting selected reforms through results based financing IN00823627 ►Adopt credit bureau law by year 2 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 15-Mar-2019 03-Jun-2019 31-Mar-2020 03-Jul-2023 IN00823631 ►Private credit bureau operator selected by year 4 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 15-Mar-2019 13-Sep-2019 31-Mar-2020 03-Jul-2023 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P161368 IDA-62290 Effective USD 25.00 25.00 0.00 3.49 20.33 15% P161368 IDA-D3030 Effective USD 10.00 10.00 0.00 2.77 6.93 29% Key Dates (by loan) 4/19/2020 Page 6 of 7 The World Bank Implementation Status & Results Report Strengthening the Capacity of Regional Financial Institutions in the CEMAC Region (P161368) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P161368 IDA-62290 Effective 04-May-2018 26-Jul-2018 24-Oct-2018 04-Jul-2023 04-Jul-2023 P161368 IDA-D3030 Effective 04-May-2018 26-Jul-2018 24-Oct-2018 04-Jul-2023 04-Jul-2023 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 4/19/2020 Page 7 of 7