The World Bank Eswatini Youth Employment Opportunities Project (P507360) Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 03/13/2025 | Report No: ESRSA04098 Mar 13, 2025 Page 1 of 8 The World Bank Eswatini Youth Employment Opportunities Project (P507360) I. BASIC INFORMATION A. Basic Operation Data Operation ID Product Operation Acronym Approval Fiscal Year P507360 Investment Project Financing (IPF) EYEOP 2025 Operation Name Eswatini Youth Employment Opportunities Project Country/Region Code Beneficiary country/countries Region Practice Area (Lead) (borrower, recipient) Eswatini Eswatini EASTERN AND Social Protection & Jobs SOUTHERN AFRICA Borrower(s) Implementing Agency(ies) Estimated Appraisal Date Estimated Board Date Kingdom of Eswatini Ministry of Agriculture, Deputy Prime 10-Mar-2025 06-May-2025 Minister's Office Estimated Decision Total Project Cost Review Date Public Disclosure 05-Mar-2025 27,000,000.00 Proposed Development Objective To increase earning opportunities for targeted youth in Eswatini B. Is the operation being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project Activities The project will support income-earning opportunities through a mix of economic inclusion interventions for youth, alongside strengthening delivery systems to support identification and targeting of vulnerable youth. Component 1 will provide youth with various earnings opportunities through self-employment along the agriculture value chain in sectors that can also support improved nutrition security in their communities; Component 2 will operationalize a digital social registry to support the government in objective profiling and identification of youth and provide tailored support to youth needs and capacities, including prioritizing youth in climate-affected regions to support proactive climate risk management. Component 1:Creating earning opportunities through sustainable livelihoods. Under subcomponent 1, the project will develop a package of economic inclusion support to build youth capacity for self-employment and Mar 13, 2025 Page 2 of 8 The World Bank Eswatini Youth Employment Opportunities Project (P507360) entrepreneurship along the agriculture value chain, with a focus on climate-smart agricultural practices. The interventions will prioritize soft skills training including climate-sensitive trainings that enable resilience and adaptability in the face of climate-related risks. Gender will remain a salient feature of both subcomponents, in terms of soft skills training on gender sensitivity in the workplace, being mindful of women’s care and family obligations in intervention design and identifying gender sensitive livelihood opportunities. Component 2: Strengthening delivery systems, project management, and M&E Social protection programs in Eswatini have historically not reached their intended demographics. Under subcomponent 2.1, the activities will focus on developing a social registry to profile, identify, and objectively target vulnerable youth in high-risk, climate-affected regions with the activities described in Component 1. In addition, the component will build capacity for project implementation, coordination and monitoring and evaluation, including tracer studies under subcomponent 2.2. D. Environmental and Social Overview D.1 Overview of Environmental and Social Project Settings The project activities will be implemented throughout the entire country, with a specific focus on regions experiencing high youth unemployment, poverty, and vulnerability to climate-related shocks. Technical assistance and capacity building is planned for the agriculture sector, which is associated with potential environmental risks such as deforestation, land degradation, pesticide use, and loss of biodiversity. There is no presence of Indigenous Peoples. The project does not involve associated facilities. The project activities are not envisioned to be carried out in high-biodiversity settings. D.2 Overview of Borrower’s Institutional Capacity for Managing Environmental and Social Risks and Impacts Public Disclosure Eswatini Water and Agricultural Development Enterprise (EWADE) under the Ministry of Agriculture, the Deputy Prime Minister’s Office (DPMO), and the Ministry Economic Planning and Development (MEPD) will implement the project. These are key government bodies in Eswatini responsible for spearheading the country's economic planning, policy formulation, and development strategy implementation. They do not have the experience of implementing projects that apply the WB ESF. EWADE's capacity to manage E&S risks in compliance with World Bank ESF will be strengthened as needed, including through requiring that it recruits one (1) Environmental and Social Specialist within the PMU to manage, monitor, and implement ESF requirements as set forth in the Environmental and Social Commitment Plan (ESCP). The ESCP also contains other measures to strengthen the E&S capacity of the Recipient, all proportionate to the E&S risk rating. II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Moderate A.1 Environmental Risk Rating Moderate The project environmental risk is rated as Moderate, considering that no rehabilitation or civil works are planned under the project activities. The project primarily involves small-scale interventions such as training programs, apprenticeships, and capacity-building initiatives with minimal physical and environmental footprints. Technical assistance and capacity building is planned for the agriculture sector, which is associated with potential environmental risks such as deforestation, land degradation, pesticide use, and loss of biodiversity. The project also plans to provide small-scale grants to foster entrepreneurship, which will materialize as small-scale sub-projects Mar 13, 2025 Page 3 of 8 The World Bank Eswatini Youth Employment Opportunities Project (P507360) potentially involving risks, to a minimal scale, associated with occupational and community health and safety, environmental pollution involving pesticide use, biodiversity and natural resources use. Low A.2 Social Risk Rating The project's social risk is rated as Low at this stage, but will be continuously re-assessed during implementation. Potential social risks stem from the following: (i) challenges in ensuring inclusion and consideration of all groups interested in project’s benefits, including relating to women and their participation in the project’s stakeholder engagement activities; (ii) risks associated to the personal data privacy of the profiling information to be gathered, particularly considering the possibility that the information gathered could be leaked and/or used for unintended purposes; and (iii) challenges in monitoring downstream E&S risks resulting from start-up grants, even though start- up grant proposals with potentially high and substantial E&S risks will be excluded from project financing. B. Environment and Social Standards (ESS) that Apply to the Activities Being Considered B.1 Relevance of Environmental and Social Standards ESS1 - Assessment and Management of Environmental and Social Risks and Impacts Relevant Civil works are not expected under this project. Type 3 Technical Assistance activities including capacity building activities are expected along selected agriculture value chains and on topics such as renewable energy, flood-proof construction, and green waste management. Direct workers and contracted workers are expected to be involved under the project to implement the capacity building programs and to develop the social registry. ESS1, 2, 3, 4, 6, and Public Disclosure 10 are considered relevant. Potential direct and indirect E&S risks and impacts are associated with OHS, labor and working conditions, misuse of pesticides, environmental pollution including soil and air pollution, spread of communicable diseases, community health and safety, ineffective use and management of living natural resources. Environmental and Social Management Guidelines will be developed as part of the Project Operation Manual to mitigate E&S risks and impacts associated with project activities. The E&S Management Guidelines will be developed within three months of Project Effectiveness Date. Component 1A plans to finance grants provided to foster youth entrepreneurship. Approximately 40,000 beneficiaries will access a small-size grant of USD300-350. To mitigate any E&S risks and issues arising from the sub-projects financed by the grants, an ESMP will be developed by the PMU to be implemented by the beneficiaries of the grant. The ESMP will be developed prior to start of the grant provision activities. To mitigate social risks, necessary requirements for stakeholder engagement will be included as part of SEP in the ESCP. ESS10 - Stakeholder Engagement and Information Disclosure Relevant Project activities will involve the participation of different stakeholder groups. Preliminary stakeholder analysis identified the following stakeholders as critical to the project: vulnerable youths, government ministries, agencies and departments, NGOs, private sector, training institutions, social enterprises. The implementing entity will structure stakeholder engagements systematically to ensure that all the target youths and other relevant stakeholders are identified, and constructive relationships are built and maintained throughout the project cycle. Necessary requirements for stakeholder engagement will be included as part of SEP, including requirements on: (i) Providing stakeholders with information about the environmental and social risks and impacts of the Project in a timely, understandable, accessible and appropriate manner and format; (ii) Consulting stakeholders in a culturally Mar 13, 2025 Page 4 of 8 The World Bank Eswatini Youth Employment Opportunities Project (P507360) appropriate manner, which is free of manipulation, interference, coercion, discrimination and intimidation; (iii) Documenting and report the stakeholder engagement activities under the regular reports, as relevant; (iv) establishing, publicizing, maintaining, and operating an accessible grievance mechanism, to receive and facilitate resolution of concerns and grievances in relation to the Project, promptly and effectively, in a transparent manner that is culturally appropriate and readily accessible to all Project-affected parties, at no cost and without retribution, including concerns and grievances filed anonymously, in a manner consistent with ESS10. The grievance mechanism will be required to be equipped to receive, register, and facilitate the resolution of SEA/SH complaints, including through the referral of survivors to relevant gender-based violence service providers, all in a safe, confidential, and survivor-centered manner. ESS2 - Labor and Working Conditions Relevant ESS2 is considered as relevant. The project is expected to involve direct workers and contracted workers to implement the capacity building programs and to develop the social registry. Potential ESS2 related risks and impacts are associated with OHS, labor and working conditions during the roll out of capacity building activities. Considering that the labor risks associated with the project are low, labor management elements under ESS2 will be included as part of ESCP. Providing small-scale grants to approximately 40,000 beneficiaries are planned under Component 1A, which will create sub-projects involving risks, to a minimum extent, related to labor and OHS risks. To mitigate ESS2 related risks and issues arising from the sub-projects financed by the grants, an ESMP will be developed by the PMU to be implemented by the beneficiaries of the grant. ESS3 - Resource Efficiency and Pollution Prevention and Management Relevant Public Disclosure ESS3 is considered as relevant to the project activities. The project activities plan for Type 3 Technical Assistance, capacity building activities, along selected agriculture value chains, off-farm value-chain products and services, development and utilization of digital services, etc.. Potential downstream direct and indirect ESS3 risks and impacts include misuse of pesticides and environmental pollution including soil and air pollution. Nonetheless, these potential, downstream ESS3 risks and impacts are expected to be minimal. To mitigate these risks, Environmental and Social Management Guidelines will be developed as part of the POM. Providing small-scale grants to approximately 40,000 beneficiaries are planned under Component 1A, which will create sub-projects involving risks, to a minimum extent, related to environmental pollution and resource use. To mitigate any ESS3 related risks and issues arising from the sub-projects financed by the grants, an ESMP will be developed by the PMU to be implemented by the beneficiaries of the grant. ESS4 - Community Health and Safety Relevant ESS4 is considered as relevant. The project is expected to directly interact with communities. Potential ESS4 related risks and impacts include risks of the spread of communicable diseases, community health and safety. To mitigate these risks, Environmental and Social Management Guidelines will be developed as part of the POM. There are also SEA/SH related risks, which are explained in the SEA/SH risk section above (A.3). Providing small-scale grants to approximately 40,000 beneficiaries are planned under Component 1A, which will create sub-projects involving risks, to a minimum extent, related to community health and safety. To mitigate any ESS4 related risks and issues arising from the sub-projects financed by the grants, an ESMP will be developed by the PMU to be implemented by the beneficiaries of the grant. Mar 13, 2025 Page 5 of 8 The World Bank Eswatini Youth Employment Opportunities Project (P507360) ESS5 - Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Not Currently Relevant Not Currently Relevant. Any downstream activities (grant) that may involve significant land acquisition or physical resettlement will be excluded from consideration. Project Operations Manual will have necessary eligibility criteria for grants and reflected this requirement. This will be reflected in the ESCP as well. ESS6 - Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources ESS6 considered as relevant to the project activities. The project activities plan for Type 3 Technical Assistance, capacity building activities, along selected agriculture value chains, off-farm value-chain products and services, development and utilization of digital services, etc.. Potential downstream direct and indirect ESS6 risks and impacts include ineffective use and management of living natural resources, nonetheless, these potential ESS6 risks and impacts are expected to be minimal. To mitigate these risks, Environmental and Social Management Guidelines will be developed as part of the POM. Providing small-scale grants to approximately 40,000 beneficiaries are planned under Component 1A, which will create sub-projects involving risks, to a minimum extent, related to natural resources use ans biodiversity management. To mitigate any ESS6 related risks and issues arising from the sub- projects financed by the grants, an ESMP will be developed by the PMU to be implemented by the beneficiaries of the grant. ESS7 - Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Not Currently Relevant Local Communities Public Disclosure No groups that fit the criteria defined in ESS7 are present in the Project’s expected area. ESS8 - Cultural Heritage Not Currently Relevant ESS8 is not relevant as the project does not involve civil works and the project site is not anticipated to affect cultural heritages. ESS9 - Financial Intermediaries Not Currently Relevant ESS9 is not relevant as no FIs are expected to be involved in this project. B.2 Legal Operational Policies that Apply OP 7.50 Operations on International Waterways No OP 7.60 Operations in Disputed Areas No B.3 Other Salient Features Use of Borrower Framework No Borrower's ES Framework has not been comprehensively assess to determine its effective use, in part or in whole. Mar 13, 2025 Page 6 of 8 The World Bank Eswatini Youth Employment Opportunities Project (P507360) Use of Common Approach No None C. Overview of Required Environmental and Social Risk Management Activities C.1 What Borrower environmental and social analyses, instruments, plans and/or frameworks are planned or required by implementation? - Environmental and Social Commitment Plan (ESCP) by Appraisal. - The Terms of Reference (TOR) of technical assistance activities will be reviewed to ensure consistency with the ESF. - Hire one (1) Environmental and Social Specialist during implementation. - Enter into Memorandums of Understanding or other written agreements/arrangements between Project Implementation Entities and other concerned agencies to ensure proper coordination of E&S risk management activities prior to Effectiveness. - Environmental and Social Management Guidelines as part of the Project Operational Manual for the Project during implementation. - Environmental and Social Management Plan for sub-projects under Component 1A for the Project during implementation. III. CONTACT POINT Public Disclosure World Bank Task Team Leader: Kevin Sanya Heraniah Title: Senior Social Protection Specialist Email: kheraniah@worldbank.org TTL Contact: Hardwick Tchale Job Title: Lead Agriculture Economist Email: htchale@worldbank.org TTL Contact: Innocent Kibira Najjumba Mulindwa Job Title: Senior Education Specialist Email: imulindwa@worldbank.org IV. FOR MORE INFORMATION CONTACT Mar 13, 2025 Page 7 of 8 The World Bank Eswatini Youth Employment Opportunities Project (P507360) The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects V. APPROVAL Task Team Leader(s): Kevin Sanya Heraniah, Hardwick Tchale, Innocent Kibira Najjumba Mulindwa ADM Environmental Specialist: Min Ji Sohn ADM Social Specialist: Aimonchok Tashieva Public Disclosure Mar 13, 2025 Page 8 of 8