The World Bank Implementation Status & Results Report Southern Africa Trade and Connectivity Project (P164847) Southern Africa Trade and Connectivity Project (P164847) EASTERN AND SOUTHERN AFRICA | Southern Africa | IBRD/IDA | Investment Project Financing (IPF) | FY 2021 | Seq No: 7 | Archived on 16-Apr-2025 | ISR02706 Implementing Agencies: Ministry of Transport and Logistics, Republic of Mozambique, Ministry of Transport and Public Works, Republic of Malawi, Roads Authority, Republic of Malawi 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 27-Apr-2021) The project development objective is to support Malawi and Mozambique in increasing regional trade coordination, reducing trade costs and time, developing regional value chains, and improving access to infrastructure. Has the Development Objective been changed since Board Approval of the Project Objective? No 2. COMPONENTS Name Reduce Trade Costs:(Cost 120,000,000.00) Strengthen Regional Coordination and Project Implementation:(Cost 36,000,000.00) Strengthen Value Chains for Regional Integration:(Cost 34,000,000.00) Strengthen Transport Infrastructure to Improve Market Access:(Cost 70,570,686.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial Apr 16, 2025 Page 1 of 12 The World Bank Implementation Status & Results Report Southern Africa Trade and Connectivity Project (P164847) 4. KEY ISSUES & STATUS 4.1 Implementation Status and Key Decisions The project has made significant progress towards reducing trade costs and improving regional coordination. Both countries' joint efforts led to the completed negotiations and signing of the Simplified Trade Regime (STR) framework that was concluded in August 2024 and signed on October 18, 2024. The accelerated implementation plan agreed during the previous review is under implementation. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 06 - 04 Sep Proposed Rating 27 Apr 2021 2024 Political and Governance Moderate Moderate Moderate Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social High High High Stakeholders Low Low Low Overall Substantial Substantial Substantial Apr 16, 2025 Page 2 of 12 The World Bank Implementation Status & Results Report Southern Africa Trade and Connectivity Project (P164847) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes Increase regional trade coordination Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Percentage of key corridor 0.00 Dec/2020 17% 20-Nov-2024 17% 20-Nov-2024 30.00 Jun/2027 performance indicators with Comments on A corridor performance monitoring system has been setup by the NDCTC and there is operational improvement achieving targets improvement in at least 6 out of 22 indicators. The data is collected annually once made as measured by the established and published and shared with corridor stakeholders. corridor performance monitoring mechanism. (Percentage) Reduce Trade Costs Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Dec/2020 33% 20-Nov-2024 33% 20-Nov-2024 18.00 Jun/2027 Decrease in logistics cost of Comments on Reduction in the percentage of logistics costs for the defined basket of imported products on containerized achieving targets the Nacala/Beira corridor to Blantyre road/rail route as a percentage compared to the imports/exports $ per ton at invoiced imported cost including insurance and freight (CIF). destination (Percentage) M&E attributions will require an evaluation which will be carried out and at this point of time it is difficult to attribute percentages to the project. Decrease in logistics 0.00 43% 43% 20.00 cost of containerized Comments on Reduction in the percentage of logistics costs for the defined basket of imported products on imports $ per ton at achieving targets the Nacala to Blantyre road route as a percentage compared to the invoiced imported cost destination (Nacala to including insurance and freight (CIF). Apr 16, 2025 Page 3 of 12 The World Bank Implementation Status & Results Report Southern Africa Trade and Connectivity Project (P164847) Blantyre, Road). (Percentage) Decrease in logistics 0.00 0.00 0.00 15.00 cost of containerized Comments on Reduction in the percentage of logistics costs for the defined basket of imported products on imports $ per ton at achieving targets the Nacala to Blantyre rail route as a percentage compared to the invoiced imported cost destination (Nacala to including insurance and freight (CIF). Blantyre, Rail) (Percentage) Decrease in logistics 0.00 42% 42% 20.00 cost of containerized Comments on Reduction in the percentage of logistics costs for the defined basket of imported products on imports $ per ton at achieving targets the Beira to Blantyre road route as a percentage compared to the invoiced imported cost destination (Beira to including insurance and freight (CIF). Blantyre, Road) (Percentage) Decrease in logistics 0.00 33% 33% 20.00 cost of containerized Comments on Reduction in the percentage of logistics costs for the defined basket of exported products on exports in $ per ton to achieving targets the Blantyre to Beira road route as a percentage compared to the invoiced exported value. port (Blantyre to Beira, road). (Percentage) Decrease in logistics 0.00 50% 50% 15.00 cost of containerized Comments on Reduction in the percentage of logistics costs for the defined basket of exported products on exports in $ per ton to achieving targets the Blantyre to Nacala rail route as a percentage compared to the invoiced exported value. port (Blantyre to Nacala, rail). (Percentage) 0.00 Dec/2021 0.00 20-Nov-2024 0.00 20-Nov-2024 20.00 Jun/2027 Decrease in average time to clear a border crossing Comments on Decrease is measured by number of hours required to complete all formalities on both sides (Percentage) achieving targets of the border upon arrival at the first border including wait time and documentation time. 0.00 0.00 0.00 20.00 Apr 16, 2025 Page 4 of 12 The World Bank Implementation Status & Results Report Southern Africa Trade and Connectivity Project (P164847) Decrease in average Comments on Decrease is measured by number of hours required to complete all formalities on both sides time to clear Muloza- achieving targets of the border upon arrival at the first border including wait time and documentation time. Milange border post (Percentage) Decrease in average 0.00 0.00 0.00 20.00 time to clear Zobue- Comments on Decrease is measured by number of hours required to complete all formalities on both sides Mwanza border post achieving targets of the border upon arrival at the first border including wait time and documentation time. (Percentage) Decrease in average 0.00 0.00 0.00 20.00 time to clear Caloume- Comments on Decrease is measured by number of hours required to complete all formalities on both sides Dedza border post achieving targets of the border upon arrival at the first border including wait time and documentation time. (Percentage) Strengthen value chains for regional integration Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Total private capital mobilized in Malawi and Mozambique (Amount(USD)) Increase in sales of value 0.00 Dec/2020 0.00 20-Nov-2024 0.00 20-Nov-2024 20.00 Jun/2027 chain actors participating in Comments on Average change in annual sales of value chain actors supported with matching grants and/or the supported value chains achieving targets skills development programs. The value chain actors include sales of traders, small-scale (Percentage) farmers, emerging farmers, and SMEs supported by the project. Number of women 0.00 868.00 868.00 2,500.00 value chain actors Comments on Number of women value chain actors that benefit from the skills and capital in Component supported by value achieving targets 3. chain development activities (Number) Strengthen transport infrastructure to improve market access Apr 16, 2025 Page 5 of 12 The World Bank Implementation Status & Results Report Southern Africa Trade and Connectivity Project (P164847) Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Dec/2020 0.00 20-Nov-2024 0.00 20-Nov-2024 100.00 Jun/2027 Share of population with Comments on Share of population that are direct beneficiaries that experience improved access to enhanced access to achieving targets infrastructure (roads and border posts) that have been built or rehabilitated through a WBG- infrastructure (Percentage) financed project. Beneficiaries would be within project area of influence within 2km of roads and border posts (RAI). 6.2 Intermediate Results Indicators by Components Reduce Trade Costs Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year People using digitally enabled 0 Nov/2024 0 06-Dec-2024 0 06-Dec-2024 50,000 Jun/2027 services (new services) (Number of people) CRI People using digitally 0 Nov/2024 0 06-Dec-2024 0 06-Dec-2024 10,000 Jun/2027 enabled services (new services) - Female (Number of people) CRI People using digitally 0 Nov/2024 0 06-Dec-2024 0 06-Dec-2024 5,000 Jul/2027 enabled services (new services) - Youth (Number of people) CRI 70.00 Dec/2020 61.20 20-Nov-2024 61.20 20-Nov-2024 40.00 Jun/2027 Apr 16, 2025 Page 6 of 12 The World Bank Implementation Status & Results Report Southern Africa Trade and Connectivity Project (P164847) Reduction in percentage of Comments on Percentage of cargo (containers/consignments/declaration) inspected consignments subject to achieving targets (physical/documentary) by Customs in Malawi at three selected clearance points/borders of physical inspection in Malawi project impact. (Percentage) Reduction in percentage of 60.00 Dec/2020 41.00 20-Nov-2024 41.00 20-Nov-2024 40.00 Jun/2027 consignments subject to Comments on Percentage of cargo (containers/consignments/declaration) inspected physical inspection in achieving targets (physical/documentary) by Customs in Mozambique at three selected clearance Mozambique (Percentage) points/borders of project impact. Reduction in the number of 13.00 Dec/2020 13.00 20-Nov-2024 13.00 20-Nov-2024 6.00 Jun/2027 agencies physically located at Comments on Currently 13 agencies operate at the border (Coordinated Border Management (CBM) Dedza and Muloza border achieving targets review). Upon implementation of CBM and trade facilitation reforms it is expected to have posts in Malawi (Number) this number reduced to 6 agencies. Upgrade infrastructure at all 0.00 Dec/2020 0.00 20-Nov-2024 0.00 20-Nov-2024 100.00 Jun/2027 border posts in Mozambique Comments on This indicator will track progress in building physical infrastructure at the respective border (Percentage) achieving targets posts. (Milange, Zobue, Calomue, Cassactiza and Ponta do Ouro in Mozambique.) 0.00 Dec/2020 0.00 20-Nov-2024 0.00 20-Nov-2024 25.00 Jun/2027 Increase in small scale cross- Comments on This indicator measures the number of small scale cross-border trader who are issued border traders (SSCBT) achieving targets border residency card. IOM defines small scale cross-border trader as persons that regularly beneficiaries (Percentage) cross the borders in the region to sell and buy goods. Increase in women 0.00 Dec/2020 0.00 20-Nov-2024 0.00 20-Nov-2024 25.00 May/2027 small scale cross- Comments on This indicator measures the number of women small scale cross-border traders who are border traders (SSCBT) achieving targets issued border residency card. IOM defines small scale cross-border trader as persons that beneficiaries regularly cross the borders in the region to sell and buy goods. (Percentage) Strengthen Regional Coordination and Project Implementation Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Dec/2020 6 20-Nov-2024 6 20-Nov-2024 6.00 Jun/2027 Apr 16, 2025 Page 7 of 12 The World Bank Implementation Status & Results Report Southern Africa Trade and Connectivity Project (P164847) Number of harmonized Comments on This indicator will measure the creation of MOUs/agreements across corridor countries that standards/mutual achieving targets enables recognition of recognition agreements/ documents, procedures, practices, standards, data, systems and others. equivalence arrangements agreed between Malawi and Mozambique (Number) No Dec/2020 Yes 20-Nov-2024 Yes 20-Nov-2024 Yes Jun/2027 Mozambique Logistics KPIs Comments on A logistics KPI is a performance measurement that is used to track visualize and optimize all published (Yes/No) achieving targets relevant logistics processes in an efficient way and includes supply chain and transportation. No Dec/2020 Yes 20-Nov-2024 Yes 20-Nov-2024 Yes Jun/2027 Malawi Logistics KPIs Comments on A logistics KPI is a performance measurement that is used to track visualize and optimize all published (Yes/No) achieving targets relevant logistics processes in an efficient way and includes supply chain and transportation. Spatial information tools No Dec/2020 Yes 20-Nov-2024 Yes 20-Nov-2024 Yes Jun/2027 developed to monitor civil Comments on Operationalizing spatial information tool that will visualize road network vulnerabilities. works projects in areas achieving targets vulnerable to flood and storms (Climate indicator) (Yes/No) Grievances responded and/or 0.00 Dec/2020 100% 20-Nov-2024 100% 20-Nov-2024 100.00 Jun/2027 resolved within the Comments on This indicator measures the transparency and accountability mechanisms established by the stipulated service standards achieving targets project so that the target beneficiaries grievances are attended to promptly. The project (Percentage) shall adopt incident reporting and response protocol. Grievances responded 0.00 Jun/2021 100% 20-Nov-2024 100% 20-Nov-2024 100.00 May/2027 and/or resolved within Comments on This indicator measures the transparency and accountability mechanisms established by the the stipulated service achieving targets project so that the target beneficiaries grievances are attended to promptly. The project standards in shall adopt incident reporting and response protocol. Mozambique (Percentage) 0.00 Jun/2021 100% 20-Nov-2024 100% 20-Nov-2024 100.00 May/2027 Apr 16, 2025 Page 8 of 12 The World Bank Implementation Status & Results Report Southern Africa Trade and Connectivity Project (P164847) Grievances responded Comments on This indicator measures the transparency and accountability mechanisms established by the and/or resolved within achieving targets project so that the target beneficiaries grievances are attended to promptly. The project the stipulated service shall adopt incident reporting and response protocol. standards in Malawi (Percentage) Strengthen Value Chains for Regional Integration Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Number of value chain actors 0.00 Dec/2020 868.00 20-Nov-2024 868.00 20-Nov-2024 5,000.00 Jun/2027 supported by value chain Comments on Number of value chain actors that access or benefit from the skills and capital interventions development activities. achieving targets in Component 3. (Number) Number of women 0.00 Dec/2020 482.00 20-Nov-2024 482.00 20-Nov-2024 2,500.00 May/2027 value chain actors Comments on Number of women value chain actors that benefit from the skills and capital in Component supported by value achieving targets 3. chain development activities (Number) Gender gap in the share of 17.00 Dec/2020 17.00 28-May-2024 17.00 28-May-2024 12.00 Jun/2027 the value of production sold Comments on This indicator measures the difference in the share of the value of production sold between (Percentage) achieving targets male-headed households and female-headed households supported by the project. Strengthen Transport Infrastructure to Improve Market Access Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Length of primary and/or 0.00 Dec/2020 0.00 20-Nov-2024 0.00 20-Nov-2024 45.00 Jun/2027 secondary road on or Comments on Length of primary and/or secondary road improved through the project. connecting regional truck achieving targets corridor rehabilitated or upgraded in Malawi (Kilometers) Apr 16, 2025 Page 9 of 12 The World Bank Implementation Status & Results Report Southern Africa Trade and Connectivity Project (P164847) Number of schools with IRAP 0.00 Dec/2020 0.00 20-Nov-2024 0.00 20-Nov-2024 15.00 Jun/2027 Star Rating along the Nacala corridor (Malawi) (Number) Construction of axle load 0.00 Dec/2020 0.00 20-Nov-2024 0.00 20-Nov-2024 1.00 Jun/2027 weigh station in Malawi Comments on Installation of new axle load control station consistent with SADC standards. (Number) achieving targets African Road Safety No Dec/2020 No 20-Nov-2024 No 20-Nov-2024 Yes Jun/2027 Observatory (ARSO) datasets collected and reported in Malawi (Yes/No) Apr 16, 2025 Page 10 of 12 The World Bank Implementation Status & Results Report Southern Africa Trade and Connectivity Project (P164847) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed IDA-68700 Effective 75.00 69.56 0.00 19.72 49.82 28.36% IDA-D8040 Effective 75.00 69.48 0.00 20.07 49.33 28.92% IDA-D8030 Effective 230.00 90.65 119.43 31.29 61.72 33.64% 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing Apr 16, 2025 Page 11 of 12 The World Bank Implementation Status & Results Report Southern Africa Trade and Connectivity Project (P164847) IDA-68700 Effective 27-Apr-2021 15-Jul-2021 06-Oct-2021 30-Jun-2027 30-Jun-2027 IDA-D8030 Effective 27-Apr-2021 07-Jun-2021 24-Sep-2021 30-Jun-2027 30-Jun-2027 IDA-D8040 Effective 27-Apr-2021 15-Jul-2021 06-Oct-2021 30-Jun-2027 30-Jun-2027 8. KEY DATES Key Events Planned Actual Approval 27-Apr-2021 27-Apr-2021 Effectiveness 24-Sep-2021 24-Sep-2021 Mid-Term Review No. 01 01-Jul-2024 06-May-2024 Operation Closing/Cancellation 30-Jun-2027 9. RESTRUCTURING HISTORY Restructuring Level 2 Approved on 09-Apr-2025 10. ASSOCIATED OPERATION(S) There are no associated operations Apr 16, 2025 Page 12 of 12